New Vehicle Efficiency Standard (NVES) credits

Question

Background: At the RRAT Estimates on 26 May 2026, Transport Department officials gave evidence that while BYD was awarded NVES carbon credits valued at up to $6.3 million and Tesla $2.2 million over just the first six months of the NVES, there is no requirement to invest money earnt from trading those credits in reducing the price of cars sold here, no requirement to spend such money in Australia, nor any prohibition on taking some or all of that money offshore. 1. In February the New Vehicle Efficiency Standard Regulator released the NVES Interim Emissions values for the first half-year of NVES operation in 2025. The result was almost 17.2 million (17,165,783) NVES carbon credits- representing a potential value up to $17.2 million. Has Treasury modelled any tax revenue from the sale of NVES credits? And if so, how much tax revenue has Treasury modelled raising from NVES carbon credit trades over the forward estimates?

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• SQ26-000282 BET232 - New Vehicle Efficiency Standard (NVES) credits.pdf (opens in a new tab)