Federal Government Listens to Industry Advice to Develop New Fuel Efficiency Standards

After almost six weeks and over 40 meetings with the Australian Government, the Government has made concessions to its New Vehicle Efficiency Standards legislation which was released earlier this week.

Motor Traders Association of NSW, as part of the Motor Trades Association of Australia (MTAA) has consistently advocated for reasonable adjustments to the NVES scheme – such as moving light commercial vehicle targets closer to the US standard. MTA NSW and the MTAA are pleased that the Australian Government has noted its advice and applied the necessary adjustments to the final policy.

The changes include:

• Recalibration of the targets for Utes, vans and some 4WDs from passenger vehicles into the light commercial vehicle category. Some heavy 4WDs with a ladder frame and have a towing capacity of more than 3 tonnes. The majority of SUVs would remain in the PV class.
• Adjusting the headline limit for trucks, vans and some 4WDs
• The timing of implementation. While the commencement of the scheme will still commence on 1 January 2025, penalties will not commence until 1 July 2025
• Adjustment of the upper breakpoints, increasing the upper breakpoints by 200kg for LCVs to 2400 Kg and Passenger Vehicles (PVs) to 2200 Kg.

The Federal Government will also provide $60 million to boost EV charging at dealerships under the Driving the Nation fund.

MTA NSW and MTAA will continue to work with the Australian Government on implementing the NVES and its operation for the five-year term of the program concluding in 2029, and the review of the NVES in 2026 will also be critical to ensure that the scheme operates for all stakeholders.

We also have provided you with supporting documents.
Fact Sheet
MTAA Media Release

If you have any questions, please contact our Head of Government Relations Collin Jennings via email at [email protected] or phone at (02) 9016 9016.