Vehicles and fuels

The Department of Climate Change, Energy, the Environment and Water is developing the National Electric Vehicle Strategy (the Strategy) which will support the transition to low and zero emission road transport vehicles. In addition to the productivity benefits of reduced fuel consumption, the transition to electric vehicles provides greater driver comfort and reduced maintenance costs for transport businesses.

The Strategy is also looking at opportunities for the manufacturing industry. These include manufacturing of battery chargers, parts and components, recycling, and hydrogen production and refuelling infrastructure development and installation. The Strategy complements other government priorities such as the broader agenda on critical minerals, the $15 billion National Reconstruction Fund, the National Battery Strategy, Rewiring the Nation, and A Future Made in Australia.

The transition to lower emissions transport under emissions targets presents opportunities for the transport industry to benefit from improvements in vehicle technology, including electric vehicles. To support the industry, the Driving the Nation Fund (funded through the Australian Renewable Energy Agency (ARENA)) is expanding electric vehicle charging infrastructure on major roads and establishing hydrogen highways for heavy vehicles.

Initial investments under the fund include:

$39.8 million over 4 years for a National EV Charging Network, 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 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 Australian Government provides a range of information and support to help people reduce fuel costs, carbon emissions and pollution from vehicles. This includes the Green Vehicle Guide and the Truck Buyers Guide.

The Clean Energy Finance Corporation (CEFC) provides financing to drive uptake of low emissions vehicles. Under the 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

Electric Car Discount Australian Government

Emissions Reduction Fund Australian Government

Fuel Consumption Label Australian Government

Fuel Tax Credit for Heavy Diesel Vehicles Australian Government

Green Vehicle Guide Australian Government

National Electric Vehicle Strategy: consultation paper Australian Government

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