New Vehicle Efficiency Standard introduced

The Australian Government has released the preferred model of the New Vehicle Efficiency Standard, set to come into effect by the start of next year.

The Standard has been under development since the Australian Government committed to its development last year.

The Standard will only apply to new passenger and light commercial vehicles, not used or existing vehicles. They work by providing car companies with targets for average emissions per kilometre from new vehicles sold.

The New Vehicle Efficiency Standard will deliver more vehicles to Australia with the latest engine and design technologies to ensure lower fuel bills, meaning bigger savings at the petrol pump.

This will bring Australia into alignment with other developed nations across the world including the United States, providing the nation with a strong Standard.

If Australia catches up with the Standard in the U.S. by around 2028, Australians stand to save about $1000 per vehicle per year.

Minister for Transport, Regional Development and Local Government Catherine King said the Standard would play a large role in the future options available to Australian motorists.

“The Albanese government favours a model which ensures achievable change, which will bring Australia in line with US standards by 2028 and provide the optimal cost benefit outcomes for Australian car buyers,” Minister King said.

“The standard increases choice. It doesn’t dictate what sort of car or ute people can buy, but will mean you have a wider range of modern and cheaper to run vehicles.

“As you make the choice about your next car, it’s only fair you have the widest range of options possible to get the car that is right for you and right for your hip pocket.”

The Impact Analysis that outlines the design options considered, and the preferred design is available on the Department website.  Submission close on 4 March 2024. For further information on how to have your say here.

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