The work to date

In September 2022, the Australian Government asked the community about the proposed goals, objectives and actions for a National Electric Vehicle Strategy (NEVS), which included questions about the introduction of a fuel efficiency standard. That consultation process received over 500 submissions from more than 200 organisations and over 1,500 individuals. The community was clear—an Australian new vehicle emissions standard is critical if we are to reduce emissions and reduce the amount Australians spend on fuel every year.

The National Electric Vehicle Strategy (NEVS) was released on 19 April 2023 and aims to increase the supply of affordable and accessible electric vehicles, and establish the resources, systems and infrastructure to enable rapid EV uptake. The central Government action in the NEVS was to introduce a fuel efficiency standard for new light vehicles.

At the same time, the Government released the consultation paper Fuel Efficiency Standard—Cleaner, Cheaper to Run Cars for Australia, and asked the community and industry how the Government should design a standard suitable for Australia.

Around 2,700 submissions were received and overwhelmingly, submissions supported the development and introduction of the NVES for Australia. The range of insights we received helped us to design the NVES that would increase consumer choice of new cars, reduce emissions and lower fuel costs.

On 4 February 2024, we released a second consultation paper, the Cleaner, Cheaper to Run Cars: An Australian New Vehicle Efficiency Standard Consultation Impact Analysis, which set out the options we considered for the design of the NVES, as well as the government's preferred design. We received around 8,900 submissions from the community, industry and other organisations representing the environment, health, technology and road users.

Following the February 2024 Impact Analysis consultation, we then drafted legislation on the preferred design of the New Vehicle Efficiency Standard based on all of the submissions we received.

On 27 March 2024, the New Vehicle Efficiency Standard 2024 Bill (NVES Bill) was introduced and read for a first time to the House of Representatives.

The Hon Catherine King MP moved that the NVES Bill be read a second time in the House of Representatives on 16 May 2024, and made a speech about the Bill. Subsequently the Bill was passed by both Houses of Parliament later that day.

On 31 May 2024, the New Vehicle Efficiency Standard Act (NVES Act) received Royal Assent and is now Australian law. The NVES Act establishes a vehicle emissions standard for the purpose of reducing carbon emissions in the transport sector. This will contribute to the achievement of Australia's greenhouse gas emissions reduction targets and obligations as a part to the Climate Change Convention, the Kyoto Protocol and the Paris Agreement.

On 1 July 2025, the NVES Regulator commenced its oversight of enforcement and compliance of the NVES Act for all new covered vehicles. Car manufacturers and suppliers (known as regulated entities) have a duty to meet or beat the emissions targets for the vehicles they supply to the Australian market over a performance period.

Your feedback has helped us to develop the right standard for Australia. The NVES is now law and the NVES Regulator oversees its compliance. The department will continue to work to ensure the NVES is at its best design.