New Vehicle Efficiency Standard Act 2024

The New Vehicle Efficiency Standard Act 2024 (NVES) is an Australian act of parliament that imposes emissions limits on vehicles.

Territorial extentAustralia

EnactedbyHouse of Representatives

EnactedbySenate

AssentedtobyGovernor-General
David Hurley

Quick facts Parliament of Australia, Territorial extent ...

New Vehicle Efficiency Standard Act 2024
Parliament of Australia
Long title An Act to establish a vehicle efficiency standard, and for related purposes
Territorial extent	Australia
Enacted by	House of Representatives
Enacted by	Senate
Assented to by	Governor-General David Hurley
Assented to	31 May 2024
Commenced	1 January 2025
Legislative history
Initiating chamber: House of Representatives
Bill title	New Vehicle Efficiency Standard Bill 2024
Introduced by	Catherine King
Final stages
Finally passed both chambers	16 May 2024
Amends
Clean Energy Regular Act 2011 Road Vehicle Standards Act 2018
Summary
sets CO2 emission limits for vehicles
Status: Current legislation

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The law was implemented on 1 January 2025, with it coming into effect on 1 July 2025.^[1]

Manufactures are fined A$100 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 manufactures or be banked for future years.^[2] Vehicles with a gross vehicle mass over 4.5 tonnes are exempt from the bill.^[3]

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.^[1]

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.^[4]

SUVs can count as a Type 2 vehicle if they are built with four wheel drive on a body on frame and have three tonnes braked towing capacity.^[3]