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Media release

Durable vehicle emissions policy needed


The Federal Government must be transparent about the impacts of its proposed New Vehicle Efficiency Standard if it is to deliver lasting change that can provide long-term certainty.

Australia’s peak motoring body encourages the Federal Government to provide the detail and clarity needed to deliver broad community and political support for its proposed fuel efficiency standard.

The AAA has long supported an efficiency standard as a means of ensuring Australians have access to a first-world vehicle fleet and feared that until such regulation is in place, carmakers will not prioritise Australia when allocating their most advanced vehicle technologies. The AAA has also sought transparency on the detail of any standard for the Australian market, as a poorly designed standard would deliver bad outcomes for both consumers and the environment.

The AAA looks forward to understanding how the Government’s proposed New Vehicle Efficiency Standard will affect Australian consumers via their future vehicle choices and prices.

The AAA also encourages the Government to clearly explain whether its revised proposal now aligns Australian regulation with the USA Government’s approach, including the Biden Administration’s significant changes of last week.

The AAA wants to emphasise that a bipartisan approach to vehicle emissions policy is crucial to remove policy uncertainty and associated sovereign risk, and to deliver desperately needed private sector investment in Australia’s EV re-charging network.

AAA Managing Director Michael Bradley said: “The AAA is pleased the Government has settled upon its preferred proposal, and we encourage both sides of politics to pass legislation containing targets that are ambitious and achievable.

“The introduction of a fuel efficiency standard would represent a significant economic reform after years of unhelpful politicking about EVs and climate policy in general.

“Investors need political parties to work together in the national interest, and policy settings that can live beyond changes of Government.”

The AAA believes a bipartisan approach to Australia’s adoption of new vehicle technologies will also facilitate more timely responses to pressing associated issues such as industry skill development, and tax reform that address the growing inequality and unsustainability of Australia’s fuel excise-based road user charging regime.

“Settling on a preferred model is an important first part of the job, but now the Government should seek robust bipartisan political support and, more importantly, support among motorists,” Mr Bradley said. “Transparency and openness on impacts will be critical if the Government is to succeed in delivering durable change that can provide long-term certainty.’’

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