New Vehicle Efficiency Standard Becomes Law

On 16 May the Government’s New Vehicle Efficiency Standard (NVES) legislation officially passed through Parliament and is now scheduled to become law, subject to Royal Assent. The movement through Parliament has occurred more quickly than anticipated after the Government reached an agreement with the Greens and the Standard remains unchanged from what was tabled in March this year.

While the Standard is very ambitious and will be challenging to achieve, ultimately, the law in its final form is much better for industry than the proposal that was put forward earlier in the year. The AADA and Dealers across Australia have worked hard to bring forward the perspective of new car Dealers and we believe our voice has been heard in this debate.

The standards come into effect on 1 January 2025 with manufacturers beginning the process of earning credits or paying penalties in 1 July 2025. The AADA Secretariat will work with the Government on the implementation of the Standard and will be closely monitoring the market dynamics and impacts of the laws once they have begun.

In particular, we are focused on holding the Government to its word on moving the point of compliance to the point of sale and delivering the $60 million Dealer charging fund.

The Government media release by Minister Catherine King MP is available here and more information about the NVES is available on the Department of Infrastructure, Transport, Regional Development and the Arts website.

Please click here to see the AADA Media Release regarding the NVES.