Information for Industry

The Australian Government has introduced the New Vehicle Efficiency Standard (NVES) to encourage more lower emissions vehicles on Australian roads. The NVES came into effect on 1 January 2025.

Established under the New Vehicle Efficiency Standard Act 2024 (NVES Act) it sets carbon dioxide (CO2) emissions targets (emissions targets) for new passenger cars and light commercial vehicles, such as utility vehicles (utes) and vans (up to 4.5 tonnes gross vehicle mass (GVM)) entering the Australian market from 1 July 2025.

Regulated entities (such as car manufacturers and suppliers that hold a vehicle type approval) must comply with set emissions targets for all new covered vehicles they bring into Australia, which they must meet or beat.

Further information about compliance requirements for regulated entities can be found on the NVES Regulator's website: Complying with the NVES | New Vehicle Efficiency Standard Regulator.

The NVES Regulator enforces compliance with the NVES Act

The NVES Regulator are responsible for calculating and reporting the interim emissions values (IEVs) and final emissions values (FEVs) for regulated entities. These values show whether entities have met their requirements under the NVES Act.

To do this effectively they concentrate on 4 main actions:

  • Guiding and supporting regulated entities to manage their obligations.
  • Encouraging compliance and taking appropriate enforcement action.
  • Collecting data from industry and publicly sharing information about industry performance.
  • Managing the NVES unit registry, where NVES units can be traded.

You can find out more about the regulator here: About the regulator | New Vehicle Efficiency Standard Regulator.

What this means for regulated entities

Who is a regulated entity?

You are a regulated entity if you are a car manufacturer, supplier or importer that holds a vehicle type approval for a covered vehicle and enters it on the Register of Approved Vehicles (RAV) for the first time.

Who is not a regulated entity?

You are not a regulated entity if you:

  • Only supply vehicles as a second stage manufacturer.
  • Only supply vehicles under the concessional RAV entry pathway.
  • Only supply vehicles with a GVM greater than 4.5 tonnes.
  • Supply vehicles within a vehicle category that is not covered by the NVES (for example, motorbikes, small omnibuses, tractors).
  • Sell or distribute new or used vehicles but are not a vehicle type approval holder (for example, dealerships).
  • Are an Australian consumer purchasing a new or used vehicle.

As a regulated entity supplying a new vehicle to the Australian market, you will have set average emissions targets to meet each year for new passenger and light commercial vehicles coming to Australia. This will encourage you to offer more fuel-efficient, low and zero emissions vehicles to consumers. 

Further information on your obligations can be found here: Your obligations | New Vehicle Efficiency Standard Regulator.

Supporting legislation

To support the commencement of the NVES, a number of legislative instruments are required. These include the establishment of exemptions under the New Vehicle Efficiency Standard Act 2024 (NVES Act), the development of NVES rules and updates to other legislative instruments under the Road Vehicles Standards Act 2018 (RVSA).

Exemptions

Guided by the New Vehicle Efficiency Standard Exemption Principles provided to us by the Minister for Transport, the Hon Catherine King MP, we undertook 60-days of public consultation on the New Vehicle Efficiency Standard Determination 2024 (the determination).

Following this input from stakeholders, the Minister has made the determination which came into effect on 1 January 2025, alongside the NVES Act. The determination exempts vehicles that do not have an Australian light vehicle CO2 test mandated by an Australian Design Rule (ADR). The Minister has provided a Statement of Reasons outlining the reasons for the decision.

Amendments to the Register of Approved Vehicles (RAV) determination

On 9 September 2024, the Hon Catherine King MP signed the Road Vehicle Standards (Information on the Register of Approved Vehicles) Amendment Determination 2024. Schedule 2 of this sets out the necessary data fields that you are required to complete if you are supplying a vehicle covered under the NVES Standard to the Australian market from 1 July 2025. Emissions information is required for all vehicles which are entered onto the RAV on or after 1 July 2025.

On 30 May 2025, the Hon Catherine King MP signed the Road Vehicle Standards (Information on the Register of Approved Vehicles) Amendment Determination 2025. Schedule 1 of this clarifies the mass and towing capacity data required for the NVES for 'cab-chassis' vehicles and heavy off-road passenger vehicles and identifies the motive power for road vehicles. This amendment commenced alongside the above amendment from 1 July 2025.

Industry engagement

The department and the NVES Regulator are committed to working closely with industry and regulated entities to ensure you understand your requirements under the NVES. You can find out more about regular industry engagement sessions by visiting the NVES Regulator's website: Engaging with the regulator | New Vehicle Efficiency Standard Regulator.

Resource hub

Below are key resources where you can learn more about the NVES legislation.

New Vehicle Efficiency Standard

New Vehicle Efficiency Standard Determinations

Industry webinars and resources

Exemption to the NVES: Industry Webinar Presentation (9-Sept-24)

Contact

Policy and legislative enquiries

Please contact the Cleaner Cars team within the Reducing Surface Transport Emissions Branch of the department if you have an enquiry about:

  • NVES policy, the NVES Act and legislative amendments
  • changes to the Australian Design Rules (ADRs)
  • emissions testing protocols
  • exemptions.

Regulation and compliance enquiries

Please contact the NVES Regulator team within the New Vehicle Efficiency Standard Regulator Branch if you have an enquiry about:

  • data and reporting
  • regulation dashboards and public reporting models
  • upcoming events and training
  • NVES Unit Registry and unit trading
  • IT issues with the NVES Unit Registry
  • compliance with the New Vehicle Efficiency Standard Act 2024
  • questions for the NVES Regulator
  • feedback or complaints.