What is the Australian Government doing?

The Government is introducing a New Vehicle Efficiency Standard (NVES). Vehicle efficiency standards are common around the world to encourage vehicle suppliers to sell cleaner cars. Vehicle efficiency standards help by:

  • saving you money at the petrol pump
  • giving you more choice about the cars that you can buy
  • reducing transport emissions, improving the air that you and your family breathe.

Most advanced economies around the world have introduced vehicle efficiency standards. Because Australia has not introduced a vehicle efficiency standard, the nation is being left behind.

How can I have my say?

We are now inviting you to consider the proposed design and implementation of Australia's New Vehicle Efficiency Standard, so that we can incentivise global vehicle manufacturers to send cleaner, cheaper-to-run cars to Australia.

On 4 February 2024, we published the Cleaner, Cheaper to Run Cars: An Australian New Vehicle Efficiency Standard Consultation Impact Analysis which sets out the options we have considered for the design of the New Vehicle Efficiency Standard, as well as the Government's preferred design. This paper is available on the consultation page New Vehicle Efficiency Standard—Cleaner and Cheaper to run Cars for Australia.

Have your say

Submissions close at 11.59pm on 4 March 2024.

Why do we need a New Vehicle Efficiency Standard?
 
 
Currently

New cars in Australia use 20% more fuel than those in the US

The Australian Government's New Vehicle Efficiency Standard design will mean

In 2028, you could save around

$1,000 per year in fuel and $17,000 over the life of the vehicle

Currently

Transport emissions
will become the largest source of greenhouse gas emissions by 2030, if we do nothing

The Australian Government's New Vehicle Efficiency Standard design will mean

By 2050, a reduction of

369 million tonnes of carbon emissions

$5 billion in health benefits from reduction in air pollution by 2050

We have listened to you

In April and May 2023, around 2,700 Australian organisations and individuals responded to our first consultation about the sorts of features they wanted to see in a New Vehicle Efficiency Standard. Based on this feedback, as well as economic modelling and international research, we have designed a standard that we think is right for Australia. You can read the Fuel Efficiency Standard—Cleaner and Cheaper-to-run Cars for Australia consultation paper (19 April 2023), the submissions we had permission to publish and a consultation summary.

How can I find out more?

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YouTube video—Fuel Efficiency Standard: Cleaner and cheaper-to-run cars for Australia