Australia has half price petrol to Europe and you see this in both car size and engine size.
Also I have read (newspaper so who knows) that Australia allows far more fuel inefficient cars than Europe.
https://www.abc.net.au/news/2019-10-11/australians-car-not-a...
But equally we have a lower percentage of diesel cars which is great for not dying
https://www.sciencedaily.com/releases/2017/09/170918093337.h...
Having more people pay tax does not mean there is a net increase in tax collected.
Some of the children from a large rural families will move to cities and make careers that pay lots of taxes. Cities almost always have lower birthrates than countryside.
Even just maintaining replacement rate fertility requires an average of 2.1 children TFR, which means some families would need to have 3 or 4 children to get there since other families will have only 2 or 1 child.
A 180-200 BHP sedan can tow a trailer quite easily. You don't need a big SUV for that.
What you're saying is likely not true.
Australians love 4 wheels drive and bigger cars. In some cases it's justified for obvious reasons: rough environments with less infrastructure (bush, outback..). In other cases it is for softer reasons: a big camping culture, having a big car being a social status, towing your boat/jet ski etc.
Also a few other points to consider:
_ Australia enjoyed economic growth for a long time and Australians are rich.
_ Fuel is cheap. According to www.globalpetrolprices.com right now a liter of gasoline is 0.74 euros compared to 1.33 for France
_ The road infrastructure is more favourable for big cars than in Europe (big/plenty parking spots in most towns in Australia).