New Vehicle Efficiency Standard Act 2024
2024 Australian legislation
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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.[1]
David Hurley
| New Vehicle Efficiency Standard Act 2024 | |
|---|---|
| |
| Parliament of Australia | |
| |
| 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 | |
Companies are fined A$50 (increasing to $100 if unpaid)[2] 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.[3] Vehicles with a gross vehicle mass over 4.5 tonnes are exempt from the bill.[4]
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.[5] 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.[4]
Emissions limits
| Year | Type 1 vehicles | Type 2 vehicles |
|---|---|---|
| 2025 | 141 | 210 |
| 2026 | 117 | 180 |
| 2027 | 92 | 150 |
| 2028 | 68 | 122 |
| 2029 | 58 | 110 |
| Source:[4] | ||
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.[5] 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.[6]
The Federal Chamber of Automotive Industries (FCAI) criticised NVES, including the claim that NVES would cause the prices of cars to increase.[7] Tesla and Polestar both quit the FCAI in March 2024 for the comments.[8]
