Information for drivers

driver of a car as seen from the dash

Australia is establishing a New Vehicle Efficiency Standard to incentivise car manufacturers to supply cleaner and cheaper to run cars.

What is a New Vehicle Efficiency Standard?

Under a New Vehicle Efficiency Standard (a Standard), each vehicle manufacturer has a set average CO2 target for all new cars they produce, which they must meet or beat. Over time, the CO2 target is lowered and in order to continue to meet or beat the target, car companies must provide more choices of fuel-efficient, low or zero emissions vehicles.

The target is applied nationally on average. Suppliers can still sell any vehicle type they choose, including SUVs, 4WDs, utes and vans, but they’ll need to sell more efficient models to offset any less efficient models they sell. 

How would a New Vehicle Efficiency Standard affect me?

Car companies prioritise sending cleaner cars to countries that already have fuel efficiency standards for new vehicles. This means we are at the back of the queue when global manufacturers decide which countries they are going to sell their more modern, less polluting cars to.

With the introduction of a Standard, you will have more choice of fuel-efficient, low or zero emission new cars. Over time, this technology will also become available in the second-hand market where 70% of Australians buy their cars. This means that a growing number of Australians will have access to cheaper to run cars and savings at the bowser.

What are the next steps?

New legislation is required and the Government will need to establish a new regulator. A Standard is expected to come into effect from 1 January 2025.

Find out more