About the NVES Regulator

Last updated: 9 December 2024

Use this information to understand the role and responsibilities of the NVES Regulator.

On this page:

Role of the NVES Regulator

The New Vehicle Efficiency Standard (NVES) Regulator makes sure regulated entities understand their obligations under the New Vehicle Efficiency Standard Act 2024 (NVES Act) and are compliant from 1 July 2025.     

Under the New Vehicle Efficiency Standard Act 2024 (NVES Act) the NVES Regulator defines regulated entities as:

  • The entity that holds a road vehicle type approval for a covered vehicle and that enters it on the Register of Approved Vehicles (RAV) for the first time. (NVES Act S.12(1) (a) to (d))
  • A road vehicle type approval has the meaning from the Road Vehicle Standards Act 2018 (RVSA)
  • A covered vehicle is a Type 1 or Type 2 vehicle as defined in the NVES Act

In general:

  • Holders of road vehicle type approvals are vehicle manufacturers or original equipment manufacturers (OEMs), or distributors, suppliers or importers (domestic or international) that provide passenger vehicles or light commercial vehicles (up to 4.5 tonnes) to the Australian market
  • A covered vehicle is a passenger or light commercial vehicle up to 4.5 tonnes Gross vehicle mass (GVM), unless a vehicle class is exempted from the NVES by a legislative instrument.
  • Entry on to the RAV is an administrative step that must be completed by regulated entities for all vehicles before they are provided to the Australian market for the first time.
  • Under the RVSA these regulated entities must hold a vehicle type approval and enter covered vehicles on the RAV.
  • A vehicle type approval holder is responsible for ensuring ongoing compliance.
  • Regulated entities must enter NVES-specific data onto the RAV from 1 July 2025 when compliance is enforced

From 1 January 2025 the NVES Regulator will:

  • support and educate regulated entities on how to comply with and meet the standard in the NVES Act
  • engage regulated entities to test the efficiency and effectiveness of its systems, frameworks, communications and education products
  • roll out an Information Technology (IT) testing program across 3 phases.

From 1 July 2025 the NVES Regulator will:

  • monitor and report performance against emissions targets
  • undertake compliance activities such as calculating, monitoring and reporting.

To understand what the NVES Regulator does, it is important to understand how the NVES Act works and what it aims to do. 

The NVES Act works by setting carbon dioxide (CO2) emissions targets for new vehicles (measured in grams per kilometre or CO2 g/km) each year. These are applied across an entity’s entire fleet of vehicles brought into Australia. Each year the limit is reduced, so the target becomes more stringent.

The NVES Act aims to:

  • reduce CO2 emissions
  • increase the number of fuel-efficient, low- and zero-emission vehicles sold in Australia and provide Australian consumers with a greater choice of new vehicles to purchase   
  • bring Australia’s vehicle emissions targets in line with other countries.

Find out further information about the NVES and what it means.

NVES Regulator responsibilities

The NVES Regulator is responsible for calculating and reporting on the interim emissions values (IEV) and final emissions values (FEV) of regulated entities. These indicate whether regulated entities have met their carbon dioxide (CO2) targets under in the NVES Act each year.

To achieve this outcome, the NVES Regulator focuses on the following 4 actions. They are:

  1. Encourage compliance and undertake enforcement
  2. Undertake awareness-raising activities in the community and industry
  3. Accept data from industry, and publish data about industry for the public
  4. Manage the NVES unit registry, where units can be transferred.

To do this the NVES Regulator:

  • upholds the credibility and integrity of the NVES Act
  • supports regulated entities to meet and comply with the NVES Act
  • reports on a regulated entity’s performance, as required by the NVES Act
  • maintains the NVES unit registry
  • supports and enables unit trading between registry account holders
  • analyses the data collected to make sure the NVES Act is working the way it is intended
  • takes compliance action promptly and appropriately, such as issuing notices and penalties.

The NVES Regulator’s implementation is strongly guided by the outcomes, overall benefits of the NVES and the Government’s objectives. It also follows the best-practice principles of Regulation from the Australian Government Department of Finance Resource Management Guide for Regulator Performance 128 (RMG 128). They are:

1. Continuously improve and build trust

Taking a whole-of-system approach, an annual evaluation of the performance, capability, and culture of the NVES Regulator will be conducted to make sure continuous improvement is conducted. 
Through this process the NVES Regulator will work to establish, maintain, and enhance trust in the regulatory system and Australia's regulatory framework as a whole.

2. Prioritising a risk-based and data-driven approach

Using data, the NVES Regulator will manage and analyse risks in relation to the integrity of the registry and unit trading behaviour. 
Integrating data analytics and regulatory intelligence will inform better compliance, monitoring, and enforcement strategies. 
Collaborating with key users will support the NVES Regulator to build trust in data quality, aiming to reduce regulatory burden and, when appropriate, compliance costs.

3. Build effective collaboration and engagement with users

Communicating clearly, early and often to address questions or concerns will support the NVES Regulator to work collaboratively with regulated entities to assist them in meeting their obligations. 
Adherence to these best practice principles will be documented in the department's Corporate Plan and Annual Report, as mandated by the Public Governance, Performance and Accountability Act 2013 (PGPA Act) Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).

NVES regulatory context

The NVES Regulator works within a broader regulatory context to make sure the NVES Act is enforced.

There NVES regulatory context is made up of the:

Minister for Transport

The Australian Minister for Transport is responsible for the legislation and setting headline limits.

Department of Infrastructure, Transport, Regional Development, Communications and the Arts (the department)

The department is responsible for upholding and managing the NVES Act. This includes providing policy advice, conducting stakeholder engagement and management, performing regulatory reviews on the NVES Regulator and reporting on emissions.

The Assistant Secretary, NVES Regulator

The Assistant Secretary, NVES Regulator, is responsible for overseeing the NVES Regulator’s daily operations.

NVES Regulator

The NVES Regulator is responsible for monitoring, compliance and enforcement of the NVES Act. It assesses the performance of regulated entities against the targets. It is also responsible for stakeholder engagement, collecting data, reporting on compliance, and issuing notices, infringements and penalties if needed under the NVES Act.

Regulated entities

Under the New Vehicle Efficiency Standard Act 2024 (NVES Act) the NVES Regulator defines regulated entities as:

  1. The entity that holds a road vehicle type approval for a covered vehicle and that enters it on the Register of Approved Vehicles (RAV) for the first time. (NVES Act S.12(1) (a) to (d))
  2. A road vehicle type approval has the meaning from the Road Vehicle Standards Act 2018 (RVSA)
  3. A covered vehicle is a Type 1 or Type 2 vehicle as defined in the NVES Act

In general:

  1. Holders of road vehicle type approvals are vehicle manufacturers or original equipment manufacturers (OEMs), or distributors, suppliers or importers (domestic or international) that provide passenger vehicles or light commercial vehicles (up to 4.5 tonnes) to the Australian market
  2. A covered vehicle is a passenger or light commercial vehicle up to 4.5 tonnes Gross vehicle mass (GVM), unless a vehicle class is exempted from the NVES by a legislative instrument.
  3. Entry on to the RAV is an administrative step that must be completed by regulated entities for all vehicles before they are provided to the Australian market for the first time.
  4. Under the RVSA these regulated entities must hold a vehicle type approval and enter covered vehicles on the RAV.
  5. A vehicle type approval holder is responsible for ensuring ongoing compliance.
  6. Regulated entities must enter NVES-specific data onto the RAV from 1 July 2025 when compliance is enforced

The unit registry

This is the system used by the NVES Regulator to issue units to a regulated entity. Regulated entities use this system to trade or extinguish units.

Regulatory powers of the NVES Regulator

The NVES Regulator can exercise regulatory powers through in the Regulatory Powers (Standard Provisions) Act 2014. The functions and powers of the NVES Regulator include:

  • monitoring powers, which can be used to monitor compliance with provisions of an Act and to monitor whether information given to the Commonwealth is correct (Part 2)
  • investigation powers, which can be used to gather material that relates to the contravention of an offence or civil penalty provision (Part 3)
  • the power to apply to a court for civil penalty orders and injunctions (Parts 4 and 7)
  • the power to issue infringement notices (Part 5)
  • the power to accept and seek enforcement of undertakings relating to compliance with legislative provisions (Part 6).

Coercive powers, in the form of monitoring and investigation powers, may be used to ‘check’ compliance with a provision to which a civil penalty or offence applies. An authorised person exercising monitoring or investigation powers is using those powers to evaluate the conduct of a person and gather requisite information and evidence in the case of a contravention.

Enforcement powers are typically used after coercive powers are used and may include the issuing of infringement notices, applying for civil penalty orders or injunctions, or entering into enforceable undertakings.

This information has been taken from the Regulatory powers page of the Australian Government Attorney-General’s Department website.

Further information

Legislation

Links to further pages