New rules to bring more and cheaper EVs to Australia   

January 1, 2025
The Age

New rules promising cheaper, cleaner electric vehicles and a wider choice of models under the Albanese government’s fuel efficiency standards, which for the first time impose minimum pollution standards on carmakers, have begun.   

Dubbed the new vehicle efficiency standard (NVES), the rules apply only to new car sales and limit the average emissions of a carmaker’s overall fleet of vehicles sold each year, measured in grams of carbon dioxide per kilometre.

Chinese car maker BYD launched its Shark 6 plug-in hybrid ute in Australia in October.


Companies must pay a penalty of $100 for each gram per kilometre the caps are exceeded. Every developed economy around the world except Russia has similar rules in place, and they encourage carmakers to increase their offering of electric vehicles and efficient combustion-engine vehicles.

“Australians will benefit from both more choice in EVs and lower prices through increased competition,” said Electric Vehicle Council head of legal, policy and advocacy Aman Gaur.

“The NVES will lower our fuel bills, offer a wider choice of the latest, most fuel-efficient cars, and improve the air we breathe by reducing emissions.”


Australia has one of the world’s most polluting car fleets. Motorists generate an average 170 grams of carbon dioxide per kilometre travelled – 20 per cent higher than the US, 15 per cent higher than New Zealand, and 40 per cent higher than the European Union.   

The Albanese government has claimed that its new rules, which began on January 1, to encourage cleaner cars will result in more efficient vehicles for motorists and will save the average new car buyer $1000 a year in fuel costs by 2028.

Despite potential fuel savings, the purchase price of new EVs is a significant point of difference with petrol and diesel vehicles. There are only six EV models available under $40,000, an MG4 being the cheapest at about $30,000. Ten hybrid electric vehicles retail for under $40,000, the cheapest at $30,000.



Carmakers and industry players say US President-elect Donald Trump’s tough stance on Chinese imports could bring new EV models priced under $30,000 to Australia.

Trump, whose inner circle includes Tesla founder Elon Musk, has said he would raise tariffs on Chinese EV imports to 200 per cent to protect US cars from competition. China is the world’s biggest EV maker and the loss of the US market would increase availability globally, especially in Australia.



Chinese automakers plan to launch electric vehicles in Australia

A wave of Chinese automakers have plans to launch affordable electric vehicles in Australia.

“If the US restricts imports, I think we can expect to see increased supply to Australia and quality EVs in our market under $30,000,” Gaur said in November.

The new year rings in another green reform as Treasurer Jim Chalmers’ changes to the Corporations Act kick off to force big companies to publish their annual greenhouse gas emissions.

Following the European Union’s lead, Australia requires big companies to submit an annual climate statement to the Australian Securities and Investment Commission, which includes a comprehensive emissions budget.

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Significantly, the budget must include scope 1, 2 and 3 emissions – that means pollution generated by their businesses as well as by their customers when using their products. For example, a miner would report the emissions caused in other countries that burn their coal.

Big companies must also report financial risks and opportunities related to climate action, their strategies to deal with these issues, as well as any emissions reduction targets the company has set for itself.

Companies captured by the new laws must meet two of these three criteria: consolidated gross assets of $1 billion or more, at least 500 employees, and revenue of at least $500 million.

Yeah and nothing about the charging infrastructure that needs to be upgraded. Or anything about the extra electricity that homeowners will incur, but "we'll save on fuel costs"

For to long we have been the worlds dumping ground for unwanted cars ... and we've had to pay through the nose for them. This will bring us in line with most of the rest of the developed world