Ever since the Brundtland Report was released, governments around the world have been grappling with ways in which resources (both renewable and non-renewable) can be exploited in a sustainable manner. this concern has been articulated in several documents and fora at the domestic and international level. A wide range of regulatory instruments have been used to address the challenges of sustainability. This paper examines the role that current fiscal policies in Australia have played in fostering the shift towards sustainable mobility. To set the stage for the analysis, the paper starts off with a cursory review of the notion of sustainable mobility. It then examines Australia's dependence on the motor vehicle and its environmental impact. Flowing on from the last point, the paper critically reviews the dimensions of the issues that are driving the need for change towards sustainability.