Legal Research
Legislations
Vehicle Standard (Australian Design Rule 81/01 - Fuel Consumption Labelling for Light Vehicles) 2005 Amendment 1

Vehicle Standard (Australian Design Rule 81/01 - Fuel Consumption Labelling for Light Vehicles) 2005 Amendment 1

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2008L02123 Not in force Legislative Instrument

Select Document

MOTOR VEHICLE STANDARDS ACT 1989

Vehicle Standard (Australian Design Rule 81/01 —
Fuel Consumption Labelling for Light Vehicles) 2005 Amendment 1

E X P L A N A T O R Y S T A T E M E N T

Issued by the authority of the Minister for Infrastructure,
Transport, Regional Development and Local Government

May 2008

1. Legislative Context for ADR 81/01

Vehicle Standard (Australian Design Rule 81/01 – Fuel Consumption Labelling for Light Vehicles) 2005 Amendment 1 is made under the Motor Vehicle Standards Act 1989 (the Act). The Act enables the Australian Government to establish nationally uniform standards for road vehicles when they are first supplied to the market in Australia. The Act applies to such vehicles whether they are manufactured in Australia or are imported as new or second hand vehicles.

The making of the vehicle standards necessary for the Act's effective operation is provided for in section 7 which empowers the Minister to "determine vehicle standards for road vehicles or vehicle components".

2. Content and Effect of ADR 81/01 Amendment 1

ADR81/01 prescribes the requirements for the measurement of vehicle fuel consumption and carbon dioxide (CO2) emissions, and the design and application of fuel consumption labels to vehicles.

Schedule 1 amends the applicability clauses of ADR81/01 to state that vehicles complying with the new updated fuel consumption labelling standard (ADR81/02) need not comply with ADR81/01. As both instruments will be in force during a transition period, the amendment makes it clear that only one or the other standard applies and facilitates early compliance with ADR81/02. The amendment also ensures that ADR81/01 ceases to have effect once ADR81/02 is fully implemented.

3. Consultation Arrangements

3.1 General Arrangements

It has been longstanding practice to consult widely on proposed new or amended vehicle standards. For many years there has been active collaboration between the Australian and the State/Territory Governments, as well as consultation with industry and consumer groups. Much of the consultation takes place within institutional arrangements established for this purpose. The analysis and documentation prepared in a particular case, and the bodies consulted, depend on the degree of impact the new or amended standard is expected to have on industry or road users.

A Memorandum of Understanding (MOU) between the National Transport Commission (NTC) and the National Environment Protection Council (NEPC) sets out the consultative arrangements governing the development of vehicle emissions and noise standards and other vehicle/environmental issues. NEPC has since been renamed the Environment Protection and Heritage Council (EPHC). The MOU established the Land Transport Environment Committee (LTEC) (consisting of four representatives each from transport and environment agencies), to undertake an agreed work program consistent with the MOU.

Depending on the nature of the proposed changes, consultation may involve the Transport Emissions Liaison Group (TELG), Transport Agencies Chief Executives (TACE), the EPHC and the Australian Transport Council (ATC).

TELG is the main consultative group that supports LTEC. It contains representatives of:

 transport and environment agencies ;

 the manufacturing arms of the vehicle and fuels industry (including the Federal Chamber of Automotive Industries, the Truck Industry Council and the Australian Institute of Petroleum);

 road user organisations (the Australian Automobile Association and the Australian Trucking Association); and

 the National Environment Consultative Forum.

TACE consists of the chief executives of national and State/Territory departments of transport and road vehicle administrations.

ATC consists of the Commonwealth, State/Territory and New Zealand Ministers with responsibility for transport issues. EPHC consists of Commonwealth and State/Territory Ministers with responsibility for environment issues.

New standards, or significant changes that increase the stringency of existing standards, are subject to consideration by ATC Ministers. Unless disapproved by a majority of ATC Ministers, the Minister for Infrastructure, Transport, Regional Development and Local Government can then determine the new or amended standards. Proposals that are regarded as significant need to be supported by a Regulation Impact Statement meeting the requirements of the Office of Best Practice Regulation.

In November 2005, ATC agreed to streamlined arrangements for processing ADRs which removed the need for a formal ATC vote where the ADR proposals are non‑controversial and harmonised with international regulations.

3.2 Specific Arrangements for this ADR

This is a minor administrative change flowing from the introduction of a later standard (ADR81/02). It does not change the intent of the vehicle standard and no consultation was required.

Overview

The Motor Vehicle Standards Act 1989 was enacted to provide a legislative framework for establishing and enforcing uniform standards for road vehicles and vehicle components supplied in Australia. This Act addresses the need for consistent regulatory standards across the country, whether vehicles are manufactured domestically or imported. The policy objective of the Act is to ensure the safety and environmental performance of vehicles, which is achieved through the establishment of standards that govern various aspects of vehicle design and operation. One such standard is the Australian Design Rule 81/01 (ADR 81/01), which was updated by the 2005 Amendment 1 to facilitate the transition to a new fuel consumption labelling standard (ADR 81/02). This amendment was necessary to clarify that vehicles complying with the new standard need not also comply with the older one, ensuring a smooth transition and maintaining the overall effectiveness of the regulatory framework. The amendment was introduced by the Minister for Infrastructure, Transport, Regional Development and Local Government, reflecting the government’s commitment to enhancing vehicle standards to better protect consumers and the environment.

Scope and Application

The Motor Vehicle Standards Act 1989, as amended by the Vehicle Standard (Australian Design Rule 81/01 – Fuel Consumption Labelling for Light Vehicles) 2005 Amendment 1, applies to all light vehicles, regardless of whether they are manufactured in Australia or imported, and mandates the establishment of nationally uniform standards for these vehicles. This Act is designed to ensure that all vehicles meet specific fuel consumption and carbon dioxide emission labelling standards when they are first supplied to the market. The Act provides the legislative basis for the Australian Government to set these standards through the Australian Design Rules, and it ensures that both domestically manufactured and imported vehicles must comply with these standards. The Act's scope includes the design and application of fuel consumption labels, thereby affecting the vehicle manufacturing industry, importers, and ultimately, consumers by providing them with transparent information about fuel consumption and emissions. The legislation does not specify exclusions or exemptions, except for vehicles complying with the updated ADR81/02, which are exempt from ADR81/01 requirements. The Act's application extends across the Commonwealth, ensuring uniformity in vehicle standards nationwide.

Key Provisions

The Motor Vehicle Standards Act 1989 establishes uniform standards for road vehicles supplied to the Australian market, whether they are manufactured domestically or imported. Section 7 (2) of the Act allows the Minister to determine vehicle standards, including those related to fuel consumption labelling for light vehicles. The Australian Design Rule 81/01 (ADR 81/01) specifies the requirements for measuring vehicle fuel consumption and carbon dioxide (CO2) emissions, as well as the design and application of fuel consumption labels. ADR 81/01 Amendment 1 modifies the applicability of ADR 81/01 to ensure that vehicles complying with the updated fuel consumption labelling standard (ADR 81/02) are not required to meet the older standard. This amendment also ensures that ADR 81/01 will cease to be effective once ADR 81/02 is fully implemented. Under the Motor Vehicle Standards Act 1989, manufacturers, importers, and suppliers of light vehicles must ensure that their vehicles comply with the relevant Australian Design Rules, including ADR 81/01 and its amendments. This includes correctly measuring fuel consumption and CO2 emissions and correctly applying the appropriate fuel consumption labels. Vehicle registration authorities and other relevant bodies must verify compliance with these standards during vehicle registration and ongoing inspections. Failure to comply with the standards set out in ADR 81/01 or its amendments can result in enforcement actions under the Motor Vehicle Standards Act 1989. While specific offences and penalties are not detailed in the explanatory statement, the Act provides for fines and other penalties for non-compliance with vehicle standards. The severity of the penalties would depend on the nature and extent of the non-compliance, as well as any resultant harm caused to the public or the environment.

Area of Law: Environmental Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Reporting & Disclosure Obligations; Regulatory Standards

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

Legislation content