Exposure draft—New Vehicle Efficiency Standard Amendment (NVES Integration Date) Determination 2026

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We're seeking submissions on a proposed amendment to the New Vehicle Efficiency Standard Determination 2024, to remove 'Exempt Vehicle' status for some vehicles with a gross vehicle mass over 3.5 tonnes from 1 July 2027.

Why we want your input

We're seeking input to ensure the proposed amendment achieves the government's policy intent to apply the requirements of the New Vehicle Efficiency Standard to new cars, sport utility vehicles and 'utes' ('pickup' trucks) with a gross vehicle mass (GVM) up to 3,855kg (8,500 pounds) from 1 July 2027.

How you can voice your opinion

You can provide comments via the 'Have you say' button on this page or by emailing cleanercars@infrastructure.gov.au.

What will be the outcome of this consultation?

Your submission will help inform the final determination that the Minister makes after this consultation has closed.

The issue

The New Vehicle Efficiency Standard Act 2024 (NVES Act) sets fleet average carbon dioxide (CO₂) emissions targets for entities that supply light passenger and commercial vehicles to Australia.

The purpose of this amendment is to enable vehicles with a gross vehicle mass (GVM) between 3.5t to 3.855t to be included in the calculation of a regulated entities' 'interim emissions value' under Section 19 of the NVES Act from 1 July 2027, if they are required to comply with Australian Design Rule (ADR) 81/03 (Energy Consumption Labelling for Light Vehicles) or ADR 114/00 (Carbon Dioxide Emissions Measurement).

When the NVES Act was passed in 2024, it was intended to apply to vehicles with a GVM between 3.5 and 4.5t, if the vehicle is designed to be used as a substitute for a passenger vehicle (such as a 'ute' or 'pickup' truck). Vehicles with a GVM over 3.5t are currently exempt from the NVES, as Australia did not have a CO₂ test procedure in its national road vehicle standards (known as the Australian Design Rules) for vehicles over 3.5t until ADR 114/00 was adopted in May 2026.

ADR 81/03 requires vehicle models with a GVM over 3.5 tonnes that are sold for the first time from 1 July 2026 to comply with a CO₂ testing requirement, if the vehicle is fitted with a label containing information on the vehicle's fuel consumption, carbon dioxide emissions, energy consumption and/or battery range. This enables heavier vehicles, particularly electric vehicles, to be listed on the Green Vehicle Guide website.

ADR 114/00 requires vehicles supplied from 30 June 2027 with a GVM over 3.5t (other than work vans or work trucks) that would be regarded as a light duty vehicle in the United States (vehicles with a GVM under 8,500 pounds or 3,855kg) to comply with a CO₂ testing requirement. Further information on what ADR 114 requires is available in the Explanatory Statement.

If adopted, this instrument would amend the New Vehicle Efficiency Standard Determination 2024 to:

Amend the definition of NVES Integration Date at subsection 4(1) to mean the end of the day on 30 June 2027, if the vehicle is required to comply with ADR 114/00 or ADR 81/03. If the vehicle is not required to comply with one of these ADRs, the NVES Integration Date will remains as the end of the day on the 31 December after an ADR on Carbon Dioxide Emissions applies to the vehicle.
Amend the definition of ADR on Carbon Dioxide Emissions at subsection 4(3) to explicitly include ADR 81/03 and ADR 114/00.
Amend subsection 6(1) to clarify that a vehicle type that was not currently required to comply with an ADR on Carbon Dioxide Emissions immediately before 1 July 2026 retains exempt vehicle status until the NVES Integration Date. This exemption would remain in effect for the life of the vehicle, even if a vehicle complies with an ADR on Carbon Dioxide Emissions before that date. This means that a vehicle over 3.5t GVM was supplied before 1 July 2027 will have exempt vehicle status and will not be included in the calculation of a regulated entity's' interim emissions value under the NVES Act, even if the vehicles complies with ADR 81/03 or ADR 114/00.

A CO₂ test procedure has not been yet specified for vehicles with a GVM over 3,855kg, as the international standards adopted by the United Nations (UN) do not currently cover these vehicles, although work is well advanced to extend emissions testing to larger vehicles. This means these vehicles will retain exempt vehicle status until 31 December 2029.

Once the UN Regulations for CO₂ emissions testing have been updated in late 2026, we plan to undertake further consultation to determine what CO₂ testing requirements should apply to these vehicles, to enable their inclusion in the NVES from 1 January 2030. These vehicles account for around 6,000 new vehicle sales per year, or less than 0.5% of new vehicle sales under 4.5t GVM.

Relevant documentation

Outcome

Consultation on the proposed amendments to remove exemptions for cars, SUVs and utes between 3.5 and 3.855 tonnes from 1 July 2027 was open for submissions from 21 May to 20 July 2026.

During this consultation, we received 5 submissions and heard from peak bodies representing the automotive and freight and logistics sector, car manufacturers and climate groups.

Following this input, the Minister made the New Vehicle Efficiency Standard Amendment (NVES Integration Date) Determination 2026. An updated version of the New Vehicle Efficiency Standard Determination 2024 that adopts these amendments will come into effect on 1 January 2027 and apply to affected vehicles entered onto the Register of Approved Vehicles from 1 July 2027.

Vehicles over 3.855 tonnes and vehicles that meet the definition of a ‘work van’ or ‘work truck’ specified in Australian Design Rule 114 will continue to be exempt after 1 July 2027. The Minister has provided a Statement of Reasons outlining the reasons for the decision. An addendum to the 2024 impact analysis that qualitatively evaluates the impact of this change has also been published.

Publication of submissions

As part of our consultation process, individuals and organisations who lodge a submission are asked to nominate whether they would like their submission to be published by the department, or if they would like to keep their submission private. Where a submission does not indicate a privacy preference, the highest privacy setting will automatically be applied to protect the privacy of the individual. Because of these privacy settings and individual preferences, not all submissions received may be published.