Last updated: 9 December 2024
This information has been developed for regulated entities to support them to understand and meet their compliance responsibilities.
On this page:
Who will be regulated?
The NVES Regulator regulates entities under section 29 of the New Vehicle Efficiency Standard Act 2024 (NVES Act). Regulated entities must comply with the NVES Act 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
Key dates
To support planning a list of key dates have been developed.
| Key Dates | Description |
|---|---|
| From 9 December 2024 |
The NVES Regulator website goes live. NVES Regulator News is launched. The NVES-specific data testing template (as part of the NVES Regulator Information Technology (IT) testing program) is available for download. |
| On 1 January 2025 |
The NVES Act comes into effect. From 1 January 2025 regulated entities will have 6 months to get ready to comply with the NVES Act. Compliance will be enforced from 1 July 2025. |
| From 2 January 2025 | Regulated entities will have access to a testing environment that imitates the RAV to test the four new data fields for NVES. This is part of the NVES Regulator Information Technology (IT) testing program. |
| From 1 July 2025 |
Compliance provisions in the NVES Act commence. All new NVES entries on the RAV must include the 4 new NVES-specific data fields, they are:
|
| From September 2025 |
Regulated entities will be able to create an account on the NVES unit registry. This is where entities can view their unit balances after interim emissions values (IEVs) are determined from February 2026.
|
| On 31 December 2025 |
The 2025 performance period will end. This is from 1 July 2025 to 31 December 2025. |
| On 1 January 2026 |
The 2026 performance period will begin. This is from 1 January 2026 to 31 December 2026. |
| On 1 February 2026 |
Entities will receive their Interim Emissions Value (IEV) for the 2025 performance periods. If an entity has not met the performance standard for 2025, it will need to use units in order to become compliant. Entities can earn units by overperforming in subsequent performance period, and can trade for units with other entities. Entities will have until 31 December 2027 to use units to reduce their 2025 IEV. |
What regulated entities must do
Regulated entities have a duty to meet or beat the CO2 targets (measured in grams per kilometre or CO2 g/km) for light vehicles (up to 4.5 tonnes) imported into Australia.
Under the NVES Act, light vehicles that are covered are classified as Type 1 and Type 2. These are defined below:
| Vehicle types | Rationale |
|---|---|
| Type 1 vehicles |
|
| Type 2 vehicles |
|
The targets in the NVES Act are listed below. Individual targets are adjusted according to vehicle mass:
| Targets (in CO2 g/km) | ||
|---|---|---|
| Performance year | Type 1 vehicles | Type 2 vehicles |
| 2025 | 141 | 210 |
| 2026 | 117 | 180 |
| 2027 | 92 | 150 |
| 2028 | 68 | 122 |
| 2029 | 58 | 110 |
Each performance period begins on 1 January and ends on 31 December of that year. The exclusion to this rule is 2025, where the performance period begins on 1 July 2025 and ends 31 December 2025.
Performance against these targets is calculated across an entity’s entire fleet (as a whole).
The target decreases each year, meaning the vehicles offered to the Australian market will need to emit less CO2/km each year (on average).
The targets for years after 2029 will be set by the Transport Minister in a legislative instrument. This is informed by policy advice provided by the Department of Infrastructure, Regional Development, Communications and the Arts.
Mass in running order (MIRO) means the mass of the vehicle including all fluids, fuel, standard equipment and an additional 75kg to account for the driver.
An entity’s interim emissions value for a year is worked out by measuring the performance of each of the entity’s vehicles for the year against the set emissions targets for the year.
- A positive value indicates the entity has not met the target for the year (the fleet’s average emissions are greater than the target).
- A negative value indicates the entity has met the target for the year (the fleet’s average emissions are less than the target), and the entity will be issued units on the unit registry.
See section 19 of the NVES ACT for information on how this is calculated.
Before a road vehicle can be provided to another person for road use in Australia for the first time, it must be entered on the RAV.
The RAV is an online database of vehicles that have:
- met the requirements of the Road Vehicle Standards Act 2024(RVSA) legislation
- been approved for provision to the Australian market.
Regulated entities already enter vehicles on the RAV. From 1 July 2025 they will be required to include 4 new NVES-specific data fields in their RAV submissions for vehicles that are covered by the NVES Act. The 4 new data fields are:
- NVES vehicle type
- Vehicle CO2 emissions (grams per kilometre)
- MIRO (kilograms)
- Rated towing capacity (kilograms)
For more information about this read about the NVES IT Testing program below.
For an entity to submit NVES data on the RAV they must be a vehicle type approval holder or authorised to submit on behalf of one.
Further information about the RAV can be found here.
Further information about the RVS can be found here.
Ensuring compliance
To calculate a vehicle fleet’s IEV, the NVES Regulator will sum the difference between the emissions number and emissions target for all vehicles entered onto the RAV over the year. The emissions target for each vehicle is calculated to account for the fleet limit curve (FLC), defined as Mass Adjustment Factor in the NVES Act.
A fleet limit curve (FLC) adjusts an individual vehicle’s CO2 target (or a fleet’s CO2 target) based on its average mass. In practice, this means that heavier and lighter vehicles have different targets that are appropriate to their size. Where a vehicle falls on the curve indicates how efficient it is for its size.
- If a vehicle’s results are above the curve, the vehicle is underperforming against the target.
- If a vehicle’s results are below the curve, the vehicle is overperforming against the target.
Across each year the NVES Regulator will calculate and report on whether an entity has met the targets set in the NVES Act.
It is important to note:
- Only vehicles entered onto the RAV from 1 July 2025 for the first time will be covered.
- Individual vehicles registered on the RAV before 1 July 2025 will not be covered under the NVES.
- This means the NVES won’t apply to vehicles already on the RAV before 1 July 2025.
If an IEV has not been reduced to zero within the two-year period, the NVES Regulator will send an infringement notice to the entity.
An infringement notice is sent to a regulated entity when they have not complied with their duty to reduce their IEV to zero within two years. Entities may pay the amount specified in the notice, or they may challenge the notice by requesting a review or attending court.
Further information about infringement notices and penalties will be developed and published here in the coming months.
Performance reporting
From 1 July 2025 the NVES Regulator must:
- publish information of an entity’s performance against the NVES Act and the targets set
- maintain the integrity and security of the unit registry trading system
- publish information from the unit registry trading system to create transparency and enable efficient trading between entities.
This information will include:
- reporting information such as:
- entity name
- IEV
- the number of units held in each registry account
- information about compliance
- guidance material
- the NVES Regulator’s approach and philosophy
- the methodology, timing and outcomes of monitoring and investigations
- section 29 exemptions in the NVES Act
- registry applications.
Further information on performance reporting is being developed and will be updated in the coming months.
NVES Regulator IT Testing program
The NVES Regulator is rolling out an Information Technology (IT) testing program to help it build new IT systems and enhance current ones. The aim of this work is to support its regulation and administration of the NVES Act.
The IT testing program will be rolled out across 3 phases. Each of these phases will comprise a testing program for regulated entities that is managed by the Department of Infrastructure, Transport, Regional Development, Communications and the Arts (the department) and the NVES Regulator.
The testing program makes sure:
- the NVES Regulator’s systems work as required
- regulated entities data and processes translate into NVES Regulator’s systems and processes
- there is enough time for regulated entities and the NVES Regulator to test the system and for regulated entities to understand how to comply through the system
- regulated entities have an opportunity to inform the design of the NVES Regulator systems.
Testing is voluntary but strongly encouraged ahead of the 1 July 2025 compliance date.
A high-level overview of the testing program has been developed below.
| Phase | Phase 1 | Phase 2 | Phase 3 |
|---|---|---|---|
| Build period | November 2024 to June 2025 |
January 2025 to December 2025 |
January 2025 to January 2026 |
| About | RAV enhancements built to support the collection of NVES emissions data from regulated entities | Calculation of a vehicle’s emissions performance against targets, and the conversion of results into units that are tradeable. |
Integration with the Clean Energy Regulator (CER) third-party provider (TROVIO) trading software (CorTenX). This will be used to create the NVES Regulator unit registry. |
| Milestones | Testing of the additional NVES-specific data in an environment that mimics the RAV. | Development and testing of a dashboard, reports and other user experience (UX) products. | Development and testing of the unit registry rules in the CorTenX environment. |
About the testing environment
As required under the NVES Act, the first phase of the testing program focuses on the requirement for regulated entities to upload 4 new NVES-specific data fields on the RAV.
To prepare for this, the NVES Regulator has developed a:
- testing environment that imitates the RAV and will be available for use from 2 January 2025. Further information will be published here.
- testing template (provided in CSV (excel) and XML formats) regulated entities can complete to test the 4 new NVES-specific data fields.
- user guide (provided in PDF and word format) to understand the broader context of the IT testing program, and how to use the testing template and the testing environment.
Please note: The data provided to the NVES Regulator during the testing program and through the testing environment is for testing purposes only. It will not be used to calculate compliance. Only data received through the RAV from the 1 July 2025 will be counted.
About the template
The template is available in CSV (excel) and XML formats and has been designed to allow regulated entities to test:
- the 4 new NVES-specific data fields required on the RAV
- the data validation rules and
- the process of submitting their data.
The template is limited to only 20 data records (rows) per file upload.
What are the new NVES-specific data fields on the RAV?
The 4 new NVES-specific data fields on the RAV are:
- NVES vehicle type
- Carbon dioxide (CO2) emissions (grams per kilometre)
- Mass in running order (MIRO) (kilograms)
- Rated towing capacity (kilograms)
The template will be emailed to regulated entities on 9 December 2024.
Download the data template (CSV and XML) now
Download the Phase 1: NVES Regulator IT Testing program user guide (PDF) now.
What will the process be?
From 2 January 2025, regulated entities can submit their completed template for validation.
The end-to-end process is as follows:
- Download CSV (excel) or XML testing template.
- Follow the instructions in the template and complete all required fields. Remember the template is limited to only 20 data records (rows) per submission.
- Send the completed template via email to NVESTestSubmissions@infrastructure.gov.au. No specific subject line is required before you send the email.
- The NVES Regulator will upload submissions into the testing environment.
- Only NVES-specific data fields will be tested.
- Submitters will receive an email notification from the testing environment detailing a successful test, or highlighting validation or testing errors.
Please note: Regulated entities are able to submit the template multiple times to the NVES Regulator during the testing period.
NVES unit registry
From 1 February 2026, units will be issued to regulated entities that hold an account (registered users) on the NVES unit registry. Their IEV will be used to issue units.
If a registered user’s IEV is:
- less than zero, it will accrue units that can either be traded with other registered users or used to meet targets in following years.
- greater than zero, regulated entities will have 2 years to reduce it to zero.
For example, a regulated entity can reduce their IEV to zero by extinguishing units that they have accrued either by trading with other regulated entities, or by extinguishing units they have earned in other years by beating the headline limit.
Further information about the unit registry is being developed and will be updated here in the coming months.
What support will the NVES Regulator provide?
The NVES Regulator is committed to supporting regulated entities to understand and perform their obligations. It will invest in communications, education and training that meets user needs.
Further information about engagement activities can be found here.
Users are encouraged to contact the NVES Regulator to provide feedback on what information and support they want from the Regulator.
To be the first to hear about updates, we encourage interested users to subscribe to the NVES Regulator newsletter.