Last week marked a significant milestone for Australian motorists as the Federal Parliament passed legislation enacting the country’s first New Vehicle Efficiency Standard, set to take effect from January 1, 2025.
The Standard sets CO2 targets for automotive manufacturers, aiming to deliver more fuel-efficient petrol, diesel, hybrid and electric vehicles for Australian motorists through a credit and penalty scheme.
The MTA, together with our national body the Motor Trades Association of Australia have worked hard to secure improvements to the Standard to reflect local vehicle preferences and regional considerations more accurately.
Key improvements include:
- Recognition that some utes, vans and 4WDs are more appropriately classified in the light commercial vehicle category
- Adjusting the efficiency limits for trucks, vans and some 4WDs to more achievable settings
- A later staging of the proposed penalty scheme to commence in mid-2025 rather than immediately at the start of 2025
- Increased upper weight limits for both light commercial vehicles and passenger vehicles
There will undoubtedly be challenges and opportunities for the more than 5,500 businesses in South Australia and the Northern Territory’s automotive retail, service and repair industry.
Above all, the MTA will continue to advocate for continued industry support to ensure local businesses and Australian motorists are not left behind.
