Australia: New Vehicle Standard (Australian Design Rule 81/03 – Energy Consumption Labelling)

 

The Australian Transport agency is proposing the adoption of a New Vehicle Standard (Australian Design Rule 81/03 – Energy Consumption Labelling).

This notification presents the Agency’s proposal for the Australian Government to adopt a new Vehicle Standard — Australian Design Rule (ADR) 81/03 – Energy Consumption Labelling for Light Vehicles (2025) — which would introduce a mandatory energy consumption label for new light-duty passenger and commercial vehicles with a gross vehicle mass (GVM) up to 3,500 kg. Vehicles with a GVM between 3,500 and 4,500 kg would also need to comply if they display a label providing details on fuel consumption, CO₂ emissions, energy consumption, and/or driving range.

A new label format is being proposed to align with the test procedures adopted in ADR 79/05. Under this proposal, ADR 81/03 would require all new light-duty passenger and commercial vehicle models approved from 1 July 2026, and all such vehicles supplied from 1 July 2028, to carry the new energy consumption label. Manufacturers would be required to report fuel consumption, CO₂ emissions, energy consumption, and battery range values determined in accordance with either the Worldwide Harmonized Light Vehicles Test Procedure (WLTP) or 40 CFR 600 (the U.S. EPA test procedure).

Because the WLTP does not provide equivalent urban or extra-urban fuel consumption values for internal combustion engine vehicles, the new label design is based on the format currently used for electric and plug-in hybrid vehicles under ADR 81/02, with minor modifications to make it applicable to all vehicle types, regardless of fuel source.

The proposed standard also establishes a conversion procedure allowing vehicles tested under the WLTP or U.S. test procedures to meet the requirements of the New Vehicle Efficiency Standard (NVES) Act 2024. As the CO₂ emission targets under the NVES Act are based on the testing method set out in UN Regulation No. 101 (the New European Driving Cycle – NEDC), Appendix B of the draft ADR 81/03 specifies how to calculate an equivalent CO₂ emissions value for vehicles tested under WLTP or 40 CFR 600. This value would be reported on the Register of Approved Vehicles (RAV) for NVES compliance purposes.

This conversion approach was developed by the Australian Government, with support from the International Council on Clean Transportation (ICCT) and in consultation with the Emissions Testing Technical Working Group, which includes representatives from vehicle manufacturers and other stakeholders engaged in the New Vehicle Efficiency Standard. A comparable method is already in use in New Zealand, under the Land Transport Rule: Vehicle Efficiency and Emissions Data 2022 (available at: NZTA link).

Manufacturers who choose not to apply this conversion procedure may instead test vehicles directly in accordance with UN Regulation No. 101 to determine the CO₂ emissions value reported on the RAV for NVES compliance.

Objective and Rationale

Australia’s transport sector currently contributes approximately 21% of national greenhouse gas (GHG) emissions, with light-duty passenger and commercial vehicles accounting for the majority share. The proposed measure aims to help achieve Australia’s updated Nationally Determined Contribution (NDC) under Article 4 of the Paris Agreement. By mandating clear and consistent labelling of fuel consumption, CO₂ emissions, energy consumption, and battery range, ADR 81/03 will ensure that consumers have access to accurate and comparable information for all light vehicle models sold in Australia, thereby supporting more informed and sustainable vehicle purchasing decisions.

Proposed Implementation Timeline

• Proposed date of entry into force: 1 December 2025
• Mandatory compliance:
  • For newly approved light-duty passenger and commercial vehicle models: from 1 July 2026
  • For all new light-duty passenger and commercial vehicles supplied: from 1 July 2028

To find out more about vehicle regulations in Australia, please do not hesitate to contact the Institute for Global Automotive Regulatory Research.