Vehicle Fuel Efficiency Standards - It's time to get real

21 March 2024

The recently announced Australian Government discussion paper on New Vehicle Efficiency Standards (NVES) has proposed several options to drive the uptake of low and zero CO2 emission vehicles in Australia.

This isn’t a surprise given many countries have introduced what is in effect a CO2 vehicle tax, however, there seems to be a big hole in the grand plan. While options outlined in the discussion paper flow neatly into what the government calls its ‘preferred option’, it highlights that the government has been graceful enough to use the US vehicle efficiency standard, rather than the more onerous EU or UK standards.

The problem is, the NVES has left out any discussions on the same application of consumer incentives used to encourage US citizens to buy EVs. This is odd, given that almost every country that is successfully transitioning their car fleets has done so with positive consumer incentives.

Ministers responsible point to the fringe benefits tax offsets that are available in Australia for workers with company-backed car lease plans as the great giveaway, but this misses the mark with most workers who don’t have this option available to them.

While the initial upsurge in EVs has been driven by those who can most afford it, the government has to delve far deeper into its pockets if it wants motorists to help reach our shared aspirational CO2 reduction targets.