Joint media release: An Australian-made New Vehicle Efficiency Standard

The Hon Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government

The Hon Chris Bowen MP, Minister for Climate Change and Energy

Australian motorists will soon be able to choose from a wider range of cleaner, cheaper to run cars with the Parliament passing the legislation for the Albanese Government’s New Vehicle Efficiency Standard.

This is good news for the hip pocket and for the environment.

Car makers now have an incentive to send us their most efficient vehicles, while ensuring Australians have access to the range of vehicles they need for work and leisure.

The New Vehicle Efficiency Standard will reduce emissions from new passenger vehicles by more than 60 per cent by 2030, and roughly halve the emissions of new light commercial vehicles over the same period.

Motorists are predicted to save around $95 billion in fuel alone by 2050 and over the same period, transport sector CO2 emissions by are expected to be reduced by around 321 million tonnes.

Australia is joining most of the global car market in having a Standard, as a result Australian family will have more options to spend less on fuel.

The Liberals and Nationals have opposed this at every step, preferring Australia remain with Russia as one of the only advanced economies not to ensure people have more access to cheaper to run cars.

Introducing a Standard tailored for Australian conditions will ensure a smooth transition to a better, more efficient vehicle fleet.

The NVES will begin on 1 January 2025.

The Standard will only apply to new cars, meaning Australians can expect a greater and better range of diesel, petrol, hybrid and electric vehicles to enter our markets.

The 2024-25 Budget includes provision of $84.5 million over five years to help establish the scheme, a regulator and facilitate credit trading between manufacturers.

This is the right package of measures for Australia. People will still be able to buy the vehicles they know and love while getting access to the safest, most modern, efficient cars.

Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King:

“This is a monumental milestone for Australians, with this Standard to pave the way for Australians to access and benefit from the most advanced car, SUV and ute technology offered in other countries – which are cheaper to run and better for the environment.

“At every step of the way, we have listened to the views of Australians on how we can deliver a Standard that works uniquely for our country, which is what we have delivered today.”

Quotes attributable to Minister for Climate Change and Energy, Chris Bowen:

“The Albanese Government has done what the Coalition tried and failed to do. It marks an end to the decade of delay and denial which put Australian motorists at the back of the global queue for cars that are cheaper and cleaner to run.  

“This is not just a win for the environment, it’s a big win for motorists around the country who want access to a bigger variety of more efficient vehicles.

“The impact of this shift will benefit Australians for decades.”  

Quotes attributable to NRMA Group CEO, Rohan Lund:

“The NRMA supports this legislation as we believe that it will provide Australians with more choice when it comes to buying affordable fuel-efficient vehicles in the future.”

Quotes attributable to Motor Trades Association of Australia CEO, Matthew Hobbs:

“The government has struck a workable compromise with industry through good faith negotiations.  

“We will need to continue to work together to ensure that the NVES works for all Australians to 2030 and beyond.” 

Quotes attributable to Electric Vehicle Council CEO, Behyad Jafari:

“This is a historic day for Australia. After many attempts by successive governments, the parliament has finally passed New Vehicle Efficiency Standards.

“Australian drivers will benefit from access to a greater choice of vehicles, lower fuel bills and real cuts to transport emissions.”

Quotes attributable to Australian Automotive Dealer Association CEO, James Voortman:

“We welcome the passage of the New Vehicle Efficiency Standard, which is something dealers have supported for a long time.

“Make no mistake, this is an ambitious standard which be very challenging to achieve, but dealers are ready to play their part in significantly lowering vehicle emissions.”  

Quotes attributable to Smart Energy Council CEO, John Grimes:

“Australians will finally have access to smarter, cleaner, more efficient cars with the passage of New Vehicle Efficiency Standards through Federal Parliament today.

“Today is a historic day. Finally, Australia has joined the rest of the world in having efficiency standards for new vehicles.”

Quotes attributable to Federal Chamber of Automotive Industries Chief Executive, Tony Weber:

“We welcome the certainty which passage of today's legislation provides for Australia’s automotive industry. This will be challenging, but we've always recognised the importance of a Government mandated CO2 Standard for Australia.”