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New Vehicle Efficiency Standards

Slashing bills and emissions

New Vehicle Efficiency Standards

Australia’s New Vehicle Efficiency Standards will commence on January 1st 2025, after years of campaigning from myself and other members of the crossbench. 

This is a critical win for our community and will help slash household fuel bills and transport emissions! 

What are the  changes? 

Until now, Australia was alongside Russia as one of the only developed countries not to have fuel efficiency standards in place. Overall, 85% of the international car market is covered by fuel efficiency standards.

As a result, Australia has become a dumping ground for old, expensive, and inefficient cars - with new cars in Australia using 20% more fuel than in the US. 

When the new standards come into effect, car makers will be required to adhere to an emissions limit across all the cars they sell in Australia. This limit will reduce over time, meaning that car makers will have to supply Australians with more efficient cars that use less petrol and produce fewer emissions.

We will therefore get access to more efficient vehicles that are cheaper to run and produce less emissions. There will also be increased access to a broader range of more affordable EVs. 

How will this affect petrol bills and the climate? 

As a result of the changes, motorists are expected to save around $1,000 per year in fuel costs. That’s because more efficient new cars use less fuel, so it will cost less to fill up at the pump. 

By 2030, emissions from passenger vehicles are also expected to reduce by around 60%. Before the change, emissions from our transport sector had been expected to increase over the next few years. 

The standards will only apply to new cars - so existing vehicles or second-hand cars won't be affected. Independent modelling suggests there will also not be a material impact on the price of new cars.

What else needs to be done? 

I am delighted to see the government finally taking action that's good for cost of living and for our climate. It's long overdue and something that I have been campaiging for since before my election.

However, there is still much more that needs to be done.

Alongside the introduction of the standards, there was also a $60 million investment in EV charging. I know this is a real pain point for EV drivers in Wentworth, so I will be pushing hard for more funding. 

The standards will also be reviewed in a couple of years time. This is an important opportunity for press for further improvements - like ensuring fuel efficiency ratings are shown when cars are sold online, and encouraging the uptake of vehicle-to-grid charging.

Learn more:

  • SMH: Out with the Range Rover, in with the EV as Wentworth fight goes green (here
  • SBS: The filthy five car brands accused of environmental damage (here)
  • The Driven: Spender calls for government to accelerate efficiency standards legislation (here)
  • Explainer: My explainer on what the New Fuel Efficiency Standards mean (here)
  • Submission: My submission to the government regarding the Fuel Efficiency Standards consultation (here
  • Media release: EV Strategy is welcome but needs more ambition (here)

Read more from the experts:

  • Climate Council: 10 things you should know about fuel efficiency standards (here)
  • Grattan Institute: Cleaner Cars - Just Do It (here)
  • Department for Transport: What a New Vehicle Efficiency Standard means for Australians (here

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