Information for drivers

driver of a car as seen from the dash

Australia’s New Vehicle Efficiency Standard will incentivise car manufacturers to supply cleaner and cheaper-to-run cars.

What is the New Vehicle Efficiency Standard?

Under the New Vehicle Efficiency Standard (the 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 sedans, 4WDs, utes and vans, but they’ll need to sell more efficient models to offset any less efficient models they sell. 

The Standard will come commence from 1 January 2025. 

How will the Standard affect me?

Car companies prioritise sending cleaner cars to countries that have fuel efficiency standards for new vehicles. Until now, Australia has been left behind as one of the few advanced economies without a fuel efficiency standard. The Standard brings Australia in line with the rest of the world.

Under the 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 petrol pump. 

What are the next steps?

The Standard will commence from 1 January 2025. The government will establish a new regulator to oversee its operation. 

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