Proposed New Vehicle Efficiency Standard (Exempt Vehicles) Determination 2024

Listen

In May 2024, the New Vehicle Efficiency Standard Act 2024 (NVES Act) received Royal Assent after the passage of legislation in the Australian Parliament. The NVES Act will commence on 1 January 2025.

As part of implementing the Standard, a number of legislative instruments are required, including the establishment of exemptions under the NVES Act.

Why we want your input

In designing the best possible Standard for Australia, it has been important to provide the Australian community and industry with opportunity to help shape this landmark reform. We are seeking your input on the proposed exemption determination under the NVES Act.

How you can voice your opinion

You can have your say by submitting a written response via our consultation portal. Please click the ‘Have your say’ button below to begin.

What will be the outcome of this consultation?

Your input will help inform the design of an exemption determination to be made under the NVES Act.

The Issue

Legislation for the New Vehicle Efficiency Standard (the Standard) passed Parliament in May 2024, and the New Vehicle Efficiency Standard Act 2024 (NVES Act) became law.

The department is now preparing for the commencement of the NVES Act on 1 January 2025, and is focusing on implementation matters, including a number of legislative determinations. To assist with this work the Hon Catherine King MP has approved the New Vehicle Efficiency Standard Exemption Principles to guide the department's consideration of any exemptions made under the NVES Act.

Proposed Determination

With these principles in mind the department has designed the Proposed New Vehicle Efficiency Standard (Exempt Vehicles) Determination 2024 to address certain types of vehicles that cannot practically comply with the Standard. The proposed draft exemption determination would exempt vehicles that do not have an Australian light vehicle CO2 test under Australian Design Rule (ADR) 81/02.

The New Vehicle Efficiency Standard (Exempt Vehicles) Determination 2024 draft is now open for consultation. As a part of this process, the department hosted an industry webinar on 9 September 2024 to discuss the proposed determination and answer questions. A copy of the department’s presentation slides is available. Feedback provided during consultation will help inform the development of the legislative determination.

Outcome

Consultation to address certain types of vehicles that cannot comply with the Standard was open for submissions from 9 August to 8 October 2024.

During consultation, we received 73 submissions and heard views from the automotive industry peaks and motoring associations, car manufacturers, climate groups, electric vehicle associations, groups representing farming and regional communities, international organisations, government and individuals.

Following this input, the Minister has made the New Vehicle Efficiency Standard Determination 2024, which can be found at legislation.gov.au. The determination will come into effect from 1 January 2025, alongside primary legislation. The determination exempts vehicles that do not have an Australian light vehicle CO₂ test mandated by an Australian Design Rule (ADR). The Minister has provided a Statement of Reasons outlining the reasons for the decision.

The department is now consulting on a Proposed New Series of ADR 81 to implement the NVES. A new series of ADR 81 is required to help ensure exempt vehicles are captured within the NVES, as soon as practically possible, to meet the objects of the NVES Act. We encourage interested parties to participate in this consultation.

Publication of submissions

As part of our consultation process, individuals and organisations who lodge a submission are asked to nominate whether they would like their submission to be published by the department, or if they would like to keep their submission private. Where a submission does not indicate a privacy preference, the highest privacy setting will automatically be applied to protect the privacy of the individual. Because of these privacy settings and individual preferences, not all submissions received may be published.