Australian drivers will soon have access to a broader array of contemporary, fuel-efficient vehicles, promising savings at the pump. The Albanese Government’s impending introduction of the New Vehicle Efficiency Standard legislation promises economic and environmental benefits.
Expected to slash emissions from new passenger vehicles by over 60% by 2030, and approximately halve emissions from new light commercial vehicles over the same period, the standard will also usher in significant fuel savings for Australians.
The New Vehicle Efficiency Standard will also rectify Australia’s historical lack of such regulations, curbing unnecessary fuel expenses for households.
A year-long consultation process, involving extensive stakeholder engagement and over 9,000 submissions has guided the government’s decision-making. The standard incentivizes manufacturers to offer their most fuel-efficient models, ensuring consumers get a diverse selection of vehicles.
Refinements to the consultation process have been made to enhance consumer choice and sustainability. These include reclassifying select 4WDs as light commercial vehicles, smoothing emissions trajectories for light commercial vehicles, adjusting weight-based emissions limits, and implementing a staged rollout to refine data reporting capabilities.
Commencing on January 1, 2025, with manufacturers earning credits or penalties from July 1, 2025, this phased approach ensures a seamless transition in partnership with the industry.
To speed up the transition, the government will allocate $60 million to enhance electric vehicle (EV) charging infrastructure at Australian dealerships through the Driving the Nation fund.
This approach will revolutionize Australia’s vehicle fleet and offer financial relief to families while promoting access to safer and efficient cars.
