Vehicles and fuels

The Department of Climate Change, Energy, the Environment and Water is developing the National Electric Vehicle Strategy (the Strategy) which will provide a national framework to reduce road transport emissions by helping Australians shift to low and zero emission vehicles.

Transport is Australia’s second largest source of national emissions. Most transport emissions are from road vehicles. Reducing these emissions will be critical to achieving Australia’s emissions reduction target of 43% on 2005 levels by 2030 and reaching net zero emissions by 2050.

The time has come for Australian households and businesses to reap the benefits of cheaper, low emissions transport that is fit for the 21st century. In addition to the productivity and air quality benefits of reduced fuel consumption, the transition to electric vehicles provides greater driver comfort and reduced maintenance costs.

As part of the National Electric Vehicle Strategy consultation, the Australian Government consulted on whether fuel efficiency standards could help improve the supply of new electric vehicles into the market and reduce transport emissions. This consultation also sought input on what design features government should consider in more detail.

Feedback will help shape a truly national Strategy to ensure Australians can access the best transport technologies and help meet our emission reduction targets. The Strategy will aim to provide social, economic, business, health and environmental benefits. This will make sure we capture opportunities and have an orderly transition to transport electrification.

The Strategy complements other government priorities such as:

the $15 billion National Reconstruction Fund
the National Battery Strategy
Rewiring the Nation
A Future Made in Australia
the broader agenda on critical minerals.

Existing actions and commitments

The Department of Infrastructure, Transport, Regional Development, Communications and the Arts manage policy and standards development on vehicle emissions, vehicle noise and fuel consumption labelling. It administers the Australian Design Rules which are national standards for vehicle safety, anti-theft and emissions.

The Department of Climate Change, Energy, the Environment and Water and the Australian Renewable Energy Agency are supporting the uptake of electric vehicles with the over $500 million Driving the Nation Fund. The Fund will support projects to expand electric vehicle charging and hydrogen refuelling infrastructure across Australia.

Initial investments under the fund include:

$39.8 million over 4 years for a National EV Charging Network with 117 chargers, to be delivered by the NRMA
$89.5 million over 4 years for a national expansion of hydrogen highways.

The Electric Car Discount is making electric cars cheaper by exempting eligible electric cars from fringe benefits tax and import tariffs.

The government is also working towards improving fuel quality and noxious emissions standards for light and heavy vehicles, which will help to bring safer and more fuel-efficient vehicles to Australia.

The government provides a range of information and support for people to reduce fuel costs, carbon emissions and pollution from vehicles. This includes the Green Vehicle Guide.

The Clean Energy Finance Corporation provides financing to drive uptake of low emissions vehicles.

Under the Clean Energy Regulator’s Emissions Reduction Fund (ERF), businesses earn carbon credits by:

changing to lower emissions vehicles
changing fuel sources
improving vehicle efficiency.

The Department of Infrastructure, Transport, Regional Development, Communications and the Arts manages policy and standards development on vehicle emissions, vehicle noise and fuel consumption labelling. It administers the Australian Design Rules which are national standards for vehicle safety, anti-theft and emissions.

Australian Design Rules Australian Government

Clean Energy Finance Corporation Australian Government

Electric Car Discount Australian Government

Emissions Reduction Fund Australian Government

Fuel Consumption Label Australian Government

Fuel Efficiency Standards Australian Government

Fuel Tax Credit for Heavy Diesel Vehicles Australian Government

Green Vehicle Guide Australian Government

National Electric Vehicle Strategy: public submissions Australian Government

Truck Buyers Guide and Options for saving fuel Australian Government and the NSW and Victorian governments