New Vehicle Efficiency Standard Act 2024
| New Vehicle Efficiency Standard Act 2024 | |
|---|---|
| Parliament of Australia | |
| |
| Territorial extent | Australia |
| Enacted by | House of Representatives |
| Enacted by | Senate |
| Assented to by | Governor-General David Hurley |
| Assented to | 31 May 2024 |
| Commenced | 1 January 2025 |
| Legislative history | |
| Initiating chamber: House of Representatives | |
| Bill title | New Vehicle Efficiency Standard Bill 2024 |
| Introduced by | Catherine King |
| Final stages | |
| Finally passed both chambers | 16 May 2024 |
| Amends | |
| Clean Energy Regular Act 2011 Road Vehicle Standards Act 2018 | |
| Summary | |
| sets CO2 emission limits for vehicles | |
| Status: Current legislation | |
The New Vehicle Efficiency Standard Act 2024 (NVES) is an Australian act of parliament that imposes emissions limits on vehicles.
The law was implemented on 1 January 2025, with it coming into effect on 1 July 2025.[1]
Manufactures are fined A$100 for every gram of carbon dioxide per kilometre (g/km of CO2) average over the limit, and credits for every g/km of CO2 under the limit. Credits can be sold to other manufactures or be banked for future years.[2] Vehicles with a gross vehicle mass over 4.5 tonnes are exempt from the bill.[3]
Fines will be first issued in 2028, for the 2025 reporting period, called interim emissions value (IEV) which ran from 1 July to 31 December 2025. The results of the 2025 IEV will be publicised in February 2026.[1]
The bill has two classifications of vehicles with emission targets. Type 1 vehicles: passenger cars and SUVs. Type 2 vehicles: light commercial vehicles, such as utes and vans.[4]
SUVs can count as a Type 2 vehicle if they are built with four wheel drive on a body on frame and have three tonnes braked towing capacity.[3]
Emissions limits
| Year | Type 1 vehicles | Type 2 vehicles |
|---|---|---|
| 2025 | 141 | 210 |
| 2026 | 117 | 180 |
| 2027 | 92 | 150 |
| 2028 | 68 | 122 |
| 2029 | 58 | 110 |
| Source:[3] | ||
Reactions
In 2025, Ford Australia and Isuzu dropped their 4×2 variants of their Ford Everest and Isuzu MU-X SUVs in Australia due to not meeting emissions requirements for passenger vehicles.[4]
See also
References
- ^ a b Margeit, Rob (31 December 2025). "Federal Government to name and shame car makers failing to meet CO2 targets". Whichcar?. Retrieved 6 January 2026.
- ^ Coleman, James (5 July 2025). "Australia's car industry is facing a major shake-up: What does that mean for buyers?". Region Canberra. Retrieved 1 January 2026.
- ^ a b c Nevett, Josh (12 January 2025). "What the first federal emission standard means for Aussie car buyers". CarExpert. Retrieved 1 January 2026.
- ^ a b Misoyannis, Alex (1 August 2025). "Ford Everest, Isuzu MU-X variants the first victims of Australia's new vehicle emissions rules – UPDATE". Drive. Retrieved 1 January 2026.