Motor cars and other motor vehicles principally designed for the transport of <10 persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) (HS code(s): 8703); Road vehicles engineering (ICS code(s): 43)

Proposed Amendments to the New Vehicle Efficiency Standard Determination 2024

·        Exposure draft—New Vehicle Efficiency Standard Amendment (NVES Integration Date) Determination 2026

·        Draft compilation—New Vehicle Efficiency Standard Determination 2024 (if amended by the New Vehicle Efficiency Standard Amendment (NVES Integration Date) Determination 2026)

·        Draft Explanatory Statement—New Vehicle Efficiency Standard Amendment (NVES Integration Date) Determination 2026

·        Fact sheet—Proposed changes to exemptions from the New Vehicle Efficiency Standard

(4 page(s), in English), (7 page(s), in English), (6 page(s), in English), (3 page(s), in English)

This notification outlines the Australian Government's intention to amend the New Vehicle Efficiency Standard Determination 2024, to remove 'Exempt Vehicle' status for vehicles with a gross vehicle mass between 3.5t and 3.855t from 1 July 2027, if the vehicle is required to comply with Australian Design Rule (ADR) 81/03 (Energy Consumption Labelling for Light Vehicles) or ADR 114/00 (Carbon Dioxide Emissions Measurement).

ADR 81/03 requires vehicle models with a GVM over 3.5 tonnes that are sold for the first time from 1 July 2026 to comply with a carbon dioxide emissions testing requirement, if the vehicle is fitted with a label containing information on the vehicle's fuel consumption, carbon dioxide emissions, energy consumption and/or battery range.

###pwork vans###a href="#_ftn1">[1] or work trucks[2]) that would be regarded as a light duty vehicle in the United States (vehicles with a gross vehicle mass under 8,500 pounds or 3,855kg) to comply with a carbon dioxide emissions testing requirement.

The purpose of this amendment is to enable vehicles with a gross vehicle mass between 3.5t and 3.855t to be included in the calculation of a regulated entities' 'interim emissions value' under Section 19 of the New Vehicle Efficiency Standard Act 2024 (NVES Act), if they are required to comply with ADR 81/03 or ADR 114/00. The NVES Act sets average CO2 emissions targets for entities that supply light passenger and commercial vehicles to Australia, which is intended to include vehicles with a GVM between 3.5 and 4.5t, if the vehicle is designed to be used as a substitute for a passenger vehicle (such as a 'pickup' truck). Vehicles with a gross vehicle mass over 3.5t are currently not included in these targets, as Australia did not mandate a CO2 test procedure for vehicles over 3.5t until ADR 114/00 was adopted in May 2026.

If adopted, the amending Determination would amend the New Vehicle Efficiency Standard Determination as follows:

·        Amend the definition of NVES Integration Date at subsection 4(1) of the Exemption Determination to mean the end of the day on 30 June 2027, if the vehicle is required to comply with ADR 114/00 or ADR 81/03. If the vehicle is not required to comply with one of these ADRs, the NVES Integration Date will remains as the end of the day on the 31 December after an ADR on Carbon Dioxide Emissions applies to the vehicle.

·        Amend the definition of ADR on Carbon Dioxide Emissions at subsection 4(3) of the Exemption Determination to explicitly include ADR 81/03 and ADR 114/00.

·        Amend subsection 6(1) of the Exemption Determination to clarify that a vehicle type that was not currently required to comply with an ADR on Carbon Dioxide Emissions immediately before 1 July 2026 retains exempt vehicle status until the NVES Integration Date. This exemption would remain in effect for the life of the vehicle, even if a vehicle complies with an ADR on Carbon Dioxide Emissions before that date. This means that a vehicle over 3.5t GVM was supplied before 1 July 2027 will have exempt vehicle status and will not be included in the calculation of a regulated entity's' interim emissions value under the NVES Act, even if the vehicles complies with ADR 81/03 or ADR 114/00.

As a CO2 test procedure has not been specified for vehicles with a gross vehicle mass over 3,855kg, these vehicles will retain exempt vehicle status until 31 December 2029. The Australian Government is planning to undertake further consultation in 2026-2027 to determine what CO2 testing requirements should apply to these vehicles, to enable their inclusion in the NVES from 1 January 2030.

[1] As defined in clause 4.1 of ADR 114/00

[2] As defined in clause 4.2 of ADR 114/00