Toyota Proposes AU$190 to AU$7,370 Diesel Payouts, Pending Court Approval

AU$190 to AU$7,370 is the proposed payment span for registered owners and former owners covered by Toyota Australia’s AU$750 million diesel-filter settlement. The difference depends primarily on whether the vehicle was purchased new or used and whether the claimant still owns it. None of the payments is approved or guaranteed: the Federal Court is scheduled to consider the agreement on November 20, 2026.

The registration deadline has already passed, so owners who did not join the class action can no longer register. For those who did, the proposed ranges divide claimants into four groups:

• New-vehicle buyers who still own the vehicle: approximately AU$6,100 to AU$7,370.
• Used-vehicle buyers who still own the vehicle: approximately AU$1,820 to AU$3,750.
• New-vehicle buyers who no longer own the vehicle: approximately AU$1,140 to AU$1,210.
• Used-vehicle buyers who no longer own the vehicle: approximately AU$190 to AU$495.

These figures show how ownership history can matter as much as the underlying defect in determining compensation. The largest proposed amounts go to people who absorbed the original purchase cost and continue to own an affected vehicle. The lowest amounts go to used-vehicle buyers who have since sold theirs. Individual eligibility and final payment arrangements remain subject to the court-approved settlement scheme.

The defect behind the settlement

The proceedings cover 264,170 Toyota HiLux, Fortuner and Land Cruiser Prado vehicles built from October 1, 2015, through April 23, 2020. The affected vehicles used Toyota’s 2.4-litre 2GD-FTV or 2.8-litre 1GD-FTV four-cylinder turbo-diesel engines.

The disputed component is the diesel particulate filter, an emissions-control device designed to capture soot from the exhaust. In the affected vehicles, the filter could become clogged. Documented consequences included excessive white exhaust smoke, unpleasant exhaust odours, increased fuel consumption and additional wear, as well as unscheduled inspections, servicing or repairs.

Toyota introduced countermeasures during the affected production period, including making a manual filter-regeneration switch standard from June 2018. A more comprehensive remedy using revised exhaust hardware and software became available in May 2020. Toyota says that repair remains available free of charge, including for affected customers who cannot now join the class action.

“Toyota Australia has agreed to a settlement in the DPF Class Action case. The settlement is subject to Court approval,” a company spokesperson said. Toyota also said it remained committed to providing the free remedy and apologised for the inconvenience or discomfort experienced by customers.

Why the settlement total does not flow directly to owners

The proposed AU$750 million fund is not simply being divided among vehicle owners. Litigation funder Balance Legal Capital has claimed 32.5 per cent of the settlement, potentially more than AU$243 million, along with approximately AU$35 million for expenditure associated with the case.

Estimated claimant payments would be higher without the 32.5 per cent funding claim. Under that comparison, the ranges would be approximately AU$9,600 to AU$11,600 for new-vehicle buyers who still own their vehicles; AU$2,860 to AU$5,900 for used-vehicle buyers who still own them; AU$1,800 to AU$1,900 for new buyers who no longer own them; and AU$300 to AU$780 for used buyers who no longer own them.

The proposed settlement also identifies the financial risk assumed by the funder. If the action had failed, Balance Legal Capital would have received no return and would have been required to cover Toyota’s defence costs in addition to the applicants’ costs. That risk-allocation model enabled the litigation to proceed, but its cost materially reduces the money potentially available for individual payments.

A seven-year dispute still awaits its decisive step

The original class action was filed in August 2019. In 2022, Toyota was ordered to pay an estimated AU$2 billion over the issue, but the company appealed. Subsequent court proceedings reconsidered how the vehicles’ loss in value should be calculated, including the effect of the repair that became available in 2020.

The proposed AU$750 million agreement could bring that extended dispute closer to an end, but the November 20 approval hearing remains the controlling milestone. Until the Federal Court approves the settlement and its distribution arrangements, the published figures are estimates not confirmed payments.

By Thomas Caldwell — AMI’s senior editor for mechanical and mobility engineering, covering vehicle electronics, systems integration, electrification, chassis systems, propulsion, and safety policy.