s 1Short title
This Act is the New Vehicle Efficiency Standard Act 2024.
This Act is the New Vehicle Efficiency Standard Act 2024.
Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information | ||
|---|---|---|
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this Act | 1 January 2025. | 1 January 2025 |
This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
The objects of this Act are to:
establish a vehicle emissions standard covering certain vehicles, that will:
create economic incentives for the manufacturers and suppliers of such vehicles to provide models to the Australian market that emit less carbon dioxide; and
provide consumers in Australia with a choice of vehicles that meet their work and lifestyle needs while also meeting the environmental expectations of the community; and
be transparent, flexible and able to be calibrated over time according to policy needs; and
be robust and based on the best available evidence and data; and
reduce carbon dioxide emissions in the transport sector, thereby contributing to the achievement of Australia’s greenhouse gas emissions reduction targets; and
give effect to certain obligations that Australia has as a party to the following:
the Climate Change Convention;
the Kyoto Protocol;
the Paris Agreement.
This Act establishes a vehicle efficiency standard to regulate the carbon dioxide emissions of certain road vehicles. The standard works by setting emissions targets for vehicles covered by the standard.
A person to whom the standard applies in a particular year must ensure that their final emissions value for the year is zero or less. Failure to achieve this may result in a civil penalty.
A person’s final emissions value for a year is their interim emissions value for the year minus the number of units they have extinguished for the purpose of reducing their final emissions value.
A person’s interim emissions value for a year measures the performance of the person’s vehicles against the emissions targets set by the standard for the year. A positive value indicates that the vehicles have collectively underperformed against their targets, whereas a negative value indicates overperformance.
If a person has a negative interim emissions value for a year, the Secretary must issue units to the person. The person may extinguish some or all of those units to reduce their final emissions value for another year. Alternatively, they may transfer some or all of those units to another person who may extinguish them to reduce their own final emissions value for that year or another year.
Units may also be issued in respect of vehicles covered by the standard in other, limited circumstances.
All transactions involving units are made through a registry.
There are a number of offences and civil penalties in relation to the vehicle efficiency standard and the registry. A range of compliance and enforcement powers are provided for, primarily by applying the Regulatory Powers Act.
The Minister may make rules and certain legislative instruments in relation to the vehicle efficiency standard and the registry.
This Act binds the Crown in each of its capacities.
This Act does not make the Crown liable to be prosecuted for an offence.
This Act extends to the external Territories.
This Act extends to acts, omissions, matters and things outside Australia.
This Act relies on the Commonwealth’s legislative powers under paragraph 51(xxix) of the Constitution to give effect to Australia’s obligations under one or more of the following international instruments:
the Climate Change Convention;
the Kyoto Protocol;
the Paris Agreement.
In addition to section 8, this Act also has effect as provided by this section.
Corporations
This Act also has the effect it would have if a reference in this Act to an activity were expressly confined to an activity undertaken by or on behalf of a corporation to which paragraph 51(xx) of the Constitution applies.
Trade and commerce
This Act also has the effect it would have if a reference in this Act to an activity were expressly confined to an activity undertaken in the course of trade or commerce:
between Australia and places outside Australia; or
among the States; or
between a State and a Territory; or
between 2 Territories.
Territories
This Act also has the effect it would have if a reference in this Act to an activity were expressly confined to an activity undertaken in a Territory.
In this Act:
adverse publicity order: see subsection 83(2).
Australia, when used in a geographical sense, includes the external Territories.
Australia’s greenhouse gas emissions reduction targets has the same meaning as in the National Greenhouse and Energy Reporting Act 2007.
civil penalty provision has the same meaning as in the Regulatory Powers Act.
Climate Change Convention means the United Nations Framework Convention on Climate Change done at New York on 9 May 1992, as amended and in force for Australia from time to time.
The Convention is in Australian Treaty Series 1994 No. 2 ([1994] ATS 2) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
Climate Change Department means the Department administered by the Climate Change Minister.
Climate Change Minister means the Minister administering the Climate Change Act 2022.
concessional RAV entry approval has the same meaning as in the Road Vehicle Standards Rules 2019.
covered vehicle: see section 12.
designated MIRO: see subsection 24(1).
destroyed vehicle adjustment: see subsection 41(6).
emissions number: see section 20.
emissions target: see section 21.
engage in conduct means:
do an act; or
omit to perform an act.
Environment Department means the Department administered by the Environment Minister.
Environment Minister means the Minister administering the Environment Protection and Biodiversity Conservation Act 1999.
exempt vehicle: see section 16.
Federal Court means the Federal Court of Australia.
Federal Register of Legislation means the Federal Register of Legislation established under the Legislation Act 2003.
final emissions value: see section 18.
final reconciliation day: see subsection 17(2).
headline limit: see section 22.
heavy off‑road passenger vehicle: see subsection 15(1).
held: a unit is held in a registry account if there is an entry for the unit in the account.
inefficient vehicle, for a person for a year, means a covered vehicle for the person for the year whose emissions number for the year is greater than its emissions target for the year.
inspector means a person appointed as an inspector under section 71.
interim emissions value: see section 19.
interim reconciliation day, for a year, means the first 1 February after the end of the year.
The interim reconciliation day for 2025 is 1 February 2026.
introductory period means the 5‑year period beginning on 1 January 2025.
Kyoto Protocol means the Kyoto Protocol to the United Nations Framework Convention on Climate Change done at Kyoto on 11 December 1997, as amended and in force for Australia from time to time.
The Protocol is in Australian Treaty Series 2008 No. 2 ([2008] ATS 2) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
light off‑road passenger vehicle: see subsection 15(2).
lower breakpoint: see section 25.
mass adjustment factor: see section 23.
MIRO number: see subsection 24(2).
national road vehicle standard has the same meaning as in the Road Vehicle Standards Act 2018.
Paris Agreement means the Paris Agreement done at Paris on 12 December 2015, as amended and in force for Australia from time to time.
The Agreement is in Australian Treaty Series 2016 No. 24 ([2016] ATS 24) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
personal information has the same meaning as in the Privacy Act 1988.
RAV (short for Register of Approved Vehicles) has the same meaning as in the Road Vehicle Standards Act 2018.
reference MIRO: see section 27.
registered holder, of a unit, means the person in whose registry account there is an entry for the unit.
Registry means the New Vehicle Efficiency Standard Unit Registry established under section 51.
registry account: see subsection 55(5).
Regulatory Powers Act means the Regulatory Powers (Standard Provisions) Act 2014.
relevant court means:
the Federal Court; or
the Federal Circuit and Family Court of Australia (Division 2); or
a court of a State or Territory that has jurisdiction in relation to matters arising under this Act.
road vehicle has the same meaning as in the Road Vehicle Standards Act 2018.
road vehicle type approval has the same meaning as in the Road Vehicle Standards Act 2018.
rules means the rules made under section 92.
Secretary means the Secretary of the Department.
this Act includes:
the rules and any other instruments made under this Act; and
the Regulatory Powers Act as it applies in relation to this Act.
type 1 vehicle: see section 13.
type 2 vehicle: see section 14.
unit means a unit issued to a person under Division 2 of Part 3.
upper breakpoint: see section 26.
vehicle category means a vehicle category that is specified in a national road vehicle standard that specifies categories of road vehicle.
In 2024 the Vehicle Standard (Australian Design Rule — Definitions and Vehicle Categories) 2005 specified categories of road vehicle.
vehicle subcategory means a subcategory of a vehicle category that is specified in a national road vehicle standard that specifies subcategories of categories of road vehicle.
In 2024 the Vehicle Standard (Australian Design Rule — Definitions and Vehicle Categories) 2005 specified subcategories of categories of road vehicle.
year means calendar year.
This Part establishes the new vehicle efficiency standard.
The standard applies to any person who has a covered vehicle for a year beginning on or after 1 January 2025. Generally, a covered vehicle for a year is a passenger or light commercial vehicle that is entered on the Register of Approved Vehicles for the first time during the year (or during the second half of the year in the case of a covered vehicle for 2025).
Some vehicles are exempt from the standard. Any vehicle with a gross vehicle mass exceeding 4.5 tonnes is exempt. The Minister may also determine that other classes of vehicle are exempt.
A person to whom the standard applies in a particular year must ensure that, on the third 1 February after the end of the year, their final emissions value for the year is zero or less. Failure to achieve this may result in a civil penalty.
A person’s final emissions value for a year is their interim emissions value for the year minus the number of units they have extinguished under Part 3 for the purpose of reducing their final emissions value.
A person’s interim emissions value for a year is worked out by comparing, for each covered vehicle for the person for the year, the carbon dioxide emissions of the vehicle entered on the Register of Approved Vehicles against an emissions target. The target takes into account the vehicle’s particular characteristics. If the vehicle produces fewer emissions than its target, a negative number is generated; if not, a positive number or zero is generated. These numbers are summated to obtain the person’s interim emissions value for the year.
A positive interim emissions value for a year indicates that a person’s vehicles have collectively underperformed their emissions targets, whereas a negative value indicates overperformance. If a person has a negative interim emissions value for a year, the Secretary must issue units to the person under Part 3.
The Minister may determine, by legislative instrument, a range of matters relevant to the vehicle efficiency standard.
Before making such a determination, the Minister must consult with the public.
Type approval pathway
A vehicle is a covered vehicle for a person for a year if:
the vehicle is a type 1 vehicle or a type 2 vehicle; and
the person holds a road vehicle type approval that applies to the vehicle; and
the person (or another person authorised, in writing, by the first‑mentioned person to enter vehicles on the RAV under the approval) enters the vehicle on the RAV:
if the year is 2025—between 1 July 2025 and 31 December 2025; or
otherwise—during the year; and
that entry of the vehicle on the RAV is the first time the vehicle is entered on the RAV.
Concessional RAV entry approval pathway
A vehicle is also a covered vehicle for a person for a year if:
the vehicle is a type 1 vehicle or a type 2 vehicle; and
the person holds a concessional RAV entry approval in respect of the vehicle; and
the vehicle is entered on the RAV:
if the year is 2025—between 1 July 2025 and 31 December 2025; or
otherwise—during the year; and
that entry of the vehicle on the RAV is the first time the vehicle is entered on the RAV; and
the vehicle is in a class of road vehicle that is determined to be covered by this paragraph in an instrument in force under section 28.
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