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In a move to deliver more cars that are not only cost-effective but also environmentally friendly, the Federal Government is introducing a new vehicle efficiency standard in Australia.

The proposed New Vehicle Efficiency Standard is open for public consultation for a month and the government plans to introduce the legislation promptly, with the cost-saving rules expected to take effect by 1 January 2025.

The standard exclusively applies to new passenger and light commercial vehicles, excluding used or existing ones, setting targets for average emissions per kilometre for new vehicles sold.

It aims to align the nation with international standards, echoing the success of the United States, which implemented a similar strategy fifty years ago.

Minister for Climate Change and Energy Chris Bowen MP expressed that the lack of action on an efficiency standard has translated into substantial costs of up to $1000 annually for families and businesses at the petrol pump.

“The… New Vehicle Efficiency Standard will push car makers to give Australian motorists more choices of new cars, Utes, and vans that use less fuel and that have until now only been available to buyers in overseas markets,” Minister Bowen said.

Meanwhile, Minister for Transport, Regional Development, and Local Government Katherine King MP said that the government “favours a model which ensures achievable change, which will bring Australia in line with US standards by 2028 and provide the optimal cost-benefit outcomes for Australian car buyers”.

“The standard increases choice. It doesn’t dictate what sort of car or Ute people can buy but will mean you have a wider range of modern and cheaper to run vehicles,” Minister King emphasised.

Have Your Say in the New Vehicle Efficiency Standard

Submissions close at 11:59 PM on 4 March 2024. More information, including an Impact Analysis and ways to provide feedback, can be found at

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