New Vehicle Efficiency Standard Act 2024

New Vehicle Efficiency Standard Act 2024
Parliament of Australia
  • An Act to establish a vehicle efficiency standard, and for related purposes
Territorial extentAustralia
Enacted byHouse of Representatives
Enacted bySenate
Assented to byGovernor-General
David Hurley
Assented to31 May 2024
Commenced1 January 2025
Legislative history
Initiating chamber: House of Representatives
Bill titleNew Vehicle Efficiency Standard Bill 2024
Introduced byCatherine King
Final stages
Finally passed both chambers16 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.

Companies are fined A$50 (increasing to $100 if unpaid) 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 companies or be banked for future years. Vehicles with a gross vehicle mass over 3.5 tonnes are exempt from the bill.

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.

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. SUVs can count as a Type 2 vehicle if they are built with four wheel drive with a body on frame construction, and have three tonnes braked towing capacity.

The Australian Design Rule ADR 114/00 will require some light-duty vehicles between 3.5 tonnes and 3,855kg to have their emissions tested. A discussion on whether the vehicles tested should be subject to NVES was closed on 20 July 2026, the results of the discussion are yet to be announced as of September 2026.

Emissions limits

NVES g/km of CO2
Year Type 1 vehicles Type 2 vehicles
2025 141 210
2026 117 180
2027 92 150
2028 68 122
2029 58 110
Source:

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. In 2026, Kia discontinued the 3.5 liter V6 petrol engine powered versions of the Kia Carnival MPV and Kia Sorento SUV models in Australia as the engine is unable to be modified to meet 2024 NVES regulations mandated on all new passenger vehicles sold in Australia from 2026.

In July 2026 the Chevrolet Silverado increased the GVM of the vehicle, classifying it as a NB1 vehicle and using an off-road clause to avoid Australian Design Rules around automated emergency braking systems, the increase of GVM also excepted it from NVES. The Ford Ranger Super Duty is also except from NVES due to its weight of 4.5 tonnes, with Ford stating it was a coincidence.

The Federal Chamber of Automotive Industries (FCAI) criticised NVES, including the claim that NVES would cause the prices of cars to increase. Tesla and Polestar both quit the FCAI in March 2024 for the comments. In September 2026 the Liberal–National Coalition announced a policy to drop net-zero emissions targets, including NVES.

See also

References

  1. 1 2 Margeit, Rob (31 December 2025). "Federal Government to name and shame car makers failing to meet CO2 targets". Whichcar?. Retrieved 6 January 2026.
  2. 1 2 3 Smy, Damion (19 September 2026). "Ram Trucks Australia warns new emissions regulations could push prices higher". CarExpert. Retrieved 19 September 2026.
  3. ↑ 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.
  4. 1 2 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.
  5. 1 2 Nevett, Josh (12 January 2025). "What the first federal emission standard means for Aussie car buyers". CarExpert. Retrieved 1 January 2026.
  6. ↑ Hickey, Jordan (9 January 2026). "Kia Sorento and Carnival petrol V6 axed in Australia". Drive. Retrieved 9 January 2026.
  7. ↑ Hickey, Jordan (17 July 2026). "Silverado joins Ram and Tundra US pick-ups in skipping safety compliance". Drive. Retrieved 20 September 2026.
  8. ↑ Baker, Tom (25 November 2025). "Ford Ranger Super Duty avoids NVES emissions laws thanks to 4500kg GVM, in big financial win for Ford Australia". Chasing Cars. Retrieved 20 September 2026.
  9. ↑ Davies, Max (23 January 2026). "Polestar slams Australia's top auto industry body for lack of EV support". CarExpert. Retrieved 19 August 2026.
  10. ↑ Fisk, Kathryn (23 January 2026). "Polestar won't rejoin top Australian car industry body until it 'stops fighting' emissions rules". Drive.
  11. ↑ McCowen, David (25 September 2026). "'Well done Angus': Car industry hits back at proposed efficiency changes". News.com.au. Retrieved 28 September 2026.