New Vehicle Efficiency Standard introduced

Legislation for the Australian Government’s New Vehicle Efficiency Standard is being introduced.

Australian motorists will soon be able to choose from a wider range of more efficient, modern vehicles, and be able to save at the bowser.

The new Standard will reduce emissions from new passenger vehicles by more than 60 per cent by 2030, and roughly halve the emissions of new light commercial vehicles over the same period.

The Australian Government has closely consulted with a broad range of stakeholders over the past year, and received around 9,000 submissions during the latest consultation period. 

Measures in the Standard will include:

  • Recategorising a limited number of 4WDs from passenger car to light commercial vehicle. This acknowledges that some off-road wagons use similar ladder-frame chassis, and need comparable towing capacity above 3 tonnes, to dual cab utes. This includes models such as the Toyota Landcruiser and Nissan Patrol;
  • Smoothing the emissions trajectory for light commercial vehicles. This reflects adjustments announced by the US EPA to its vehicle Standard and smooths the transition for utes, vans and 4x4s;
  • Adjusting the weight-based relative emissions limits (known as the break point), recognising that heavier vehicles emit more;
  • Staging implementation to enable preparation and testing of essential data reporting capabilities. To ensure we get the implementation right in partnership with industry, the scheme will commence on 1 January 2025 but manufacturers will not begin earning credits or accruing penalties until 1 July 2025. 

To help accelerate the transition, the Government will provide $60 million to boost EV charging at Australian dealerships, under the Driving the Nation fund.

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