13 March 2024

New Vehicle Efficiency Standard - A fair transition


On 4 February 2024, the Australian Government released a consultation paper on a New Vehicle Efficiency Standard (NVES) titled ‘Cleaner, Cheaper to Run Cars: The Australian New Vehicle Efficiency Standard.' 

About the NVES

The NVES goes some way to announcing the Government’s 5-year plan to reduce vehicle emissions by more than 60 per cent for passenger vehicles and light commercial vehicles.

The MTA WA’s Response

The communication about the NVES from New Car Dealer members to the MTA WA has been strong. The MTA WA, along with our partner associations in the east and the AADA, have mounted a highly visible and consistent campaign in an attempt to have amendments made to the current proposal. The Federal Government is committed to introducing the NVES, but in its current form, this would have significant impacts not only for the automotive industry, but also for consumers, who will pay more for their favourite vehicles.  This campaign includes convening highly productive briefing sessions held in Canberra with our US fuel efficiency expert Barbara Kiss. The MTAA advises that Barbara, who has provided enormous value to the MTAA position, is already receiving positive media attention.

The MTA WA has worked closely with the MTAA on developing the MTAA response to the government consultation paper.

Read the MTAA response to the NVES here.

About the MTAA response to the Government NVES consultation Paper

Some of the key areas focussed upon in the MTAA response include:

  • Including four-wheel drive vehicles and SUVs in the Light Commercial category
  • Calling for true consistency with the US model, not just the parts that fit the ideology
  • Commitments to biennial reviews of the NVES
  • Allowing for the pooling of credits
  • Investigating and acting on the impact on regional dealers and consumers
  • Reviewing stimulus measures, including extending the FBT criteria for PHEVs beyond 2025
  • Calling for the introduction of a national end-of-life vehicle scrappage scheme to treat and dispose of the 20 million ICE vehicles to come off Australian roads
  • Alerting motorists and industry of the elements and timing of an introduction of a national road user charge
  • The issue of skills and labour shortages

Next steps

The lobbying process increases in its level from now.

The MTA WA will keep our members apprised of developments including asking members to take specific action with key members of State and Federal Parliament.