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 Infrastructure, Transport, Regional Development and Local Government Minister 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 Climate Change and Energy Minister 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.
As at 16 May 2024.
