Opposition Leader Peter Dutton has reiterated his concerns regarding Labor’s New Vehicle Efficiency Standard (NVES), which was implemented on 1 January 2025. In a press conference on 10 February 2025, Dutton argued that the current standards are overly restrictive and could negatively impact the automotive industry, potentially leading to job losses and economic hardship. He cited concerns about the added cost burden on consumers, suggesting the standards are not economically viable in the current market climate. Dutton further stated that the standards disproportionately impact smaller businesses and independent garages that lack the resources to adapt quickly.
Specifically, Dutton highlighted the potential for significant disruptions in supply chains and production processes. He argued that the abrupt implementation of the standards has placed undue stress on the manufacturing sector, which is struggling to keep pace. Furthermore, the opposition leader referenced similar policies implemented in other countries that have resulted in unforeseen consequences. He emphasized that a gradual, more carefully considered approach to emissions reductions is crucial to minimizing negative impacts. The opposition’s stated goal is to find a path forward that avoids jeopardizing jobs and economic stability while still addressing the need for cleaner transportation.
In response, the government maintains that the NVES will lead to more environmentally friendly vehicles, ultimately benefiting Australians with lower running costs and more vehicle choices. Climate Change and Energy Minister Chris Bowen has emphasized that these changes would save considerable costs by 2050 and provide better, cheaper-to-run cars.
However, there have been reports of exemptions for certain high-polluting vehicles due to measurement challenges, leading to criticism about potential loopholes in the policy. Vehicles with a gross weight of more than 3.5 tonnes and less than 4.5 tonnes are not currently required to have a carbon dioxide test, and so would not initially be covered by the standards. The government plans to amend the relevant Australian Design Rule to include these vehicles in the future.
The debate over the NVES continues, with stakeholders from various sectors weighing in on its potential impacts and effectiveness.
