MOTOR VEHICLE STANDARDS ACT 1989
Vehicle Standard (Australian Design Rule 81/02 —
Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 5
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
and Transport
September 2011
1. Legislative Context for ADR 81/02
Vehicle Standard (Australian Design Rule 81/02 – Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 5 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 81/02 Amendment 5
Australian Design Rule (ADR) 81/02 prescribes the fuel consumption labelling requirements for light vehicles and test procedures for determining the fuel consumption and carbon dioxide emission results reported on the label. Schedule 1 of Amendment 5 amends ADR 81/02 to allow vehicles certified to one of the new emissions ADRs (ADR 79/03 or ADR 79/04) to submit test results in accordance with the test procedures defined in the version of United Nations Economic Commission for Europe Regulation 83 adopted in those ADRs.
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.
New standards, or significant changes that increase the stringency of existing standards, are subject to consideration by Ministers of the Australian Transport Council (ATC)[1], with the Minister for Infrastructure and Transport having ultimate responsibility to determine the new or amended standards under the Act.
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 as published in the Best Practice Regulation Handbook and the Council of Australian Governments Principles and Guidelines for National Standard Setting and Regulatory Action for Ministerial Councils and Standard-Setting Bodies.
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
The amendments outlined in Section 2 of this explanatory statement represent minor changes which do not change the intent or stringency of the ADR.
As the amendment to ADR 81/02 is of an administrative nature, clearance by the Office of Best Practice Regulation was not required.
[1] ATC’s work will be subsumed into the work program of the Standing Council on Transport and Infrastructure (SCOTI).
Overview
The Motor Vehicle Standards Act 1989 was enacted to establish nationally uniform standards for road vehicles, whether manufactured in Australia or imported, to ensure safety, performance, and environmental protection. The Act empowers the Minister to determine vehicle standards, including those for fuel consumption labelling. In 2008, Amendment 5 to Australian Design Rule (ADR) 81/02, which prescribes the fuel consumption labelling requirements for light vehicles, was introduced to align test procedures with new emissions standards (ADR 79/03 and ADR 79/04), thus improving the accuracy of fuel consumption and carbon dioxide emission reporting on vehicle labels. The amendment reflects a commitment to environmental sustainability and consumer protection by ensuring that labelling reflects the latest and most accurate emissions data. This amendment was made under the authority of the Minister for Infrastructure and Transport, following consultation with relevant industry and government stakeholders.
Scope and Application
The Motor Vehicle Standards Act 1989 applies to road vehicles, including those manufactured in Australia or imported as new or second-hand vehicles, establishing nationally uniform standards. This legislation empowers the Minister to determine vehicle standards, which includes setting requirements for fuel consumption labelling as outlined in Australian Design Rules (ADRs). The ADR 81/02 Amendment 5, made under this Act, refines the labelling requirements for light vehicles, allowing certification based on new emissions standards (ADR 79/03 or ADR 79/04). The amendment ensures that vehicles can comply with updated test procedures as per the United Nations Economic Commission for Europe Regulation 83. The Act’s jurisdictional reach is national, affecting all states and territories in Australia, with no exclusions specified for the labelling requirements themselves. However, the consultation process and regulatory impact assessments may vary based on the significance of the proposed changes. This Act extends its application through subordinate instruments, such as ADRs, which are subject to periodic amendments to align with international standards and regulatory best practices.
Key Provisions
The Motor Vehicle Standards Act 1989 (the Act) provides the framework for establishing uniform standards for road vehicles supplied in Australia, whether manufactured locally or imported. Section 7 of the Act specifically empowers the Minister to determine these vehicle standards. The Vehicle Standard (Australian Design Rule 81/02 — Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 5, made under the Act, further refines the fuel consumption labelling requirements for light vehicles and the procedures for determining the fuel consumption and carbon dioxide emission results reported on the label. The Australian Design Rule (ADR) 81/02 is amended to allow vehicles certified under the new emissions ADRs (ADR 79/03 or ADR 79/04) to submit test results in line with the procedures defined in the relevant version of the United Nations Economic Commission for Europe Regulation 83 adopted in those ADRs.
The Act imposes obligations on parties involved in the supply of road vehicles in Australia to ensure compliance with the established standards. These obligations include adhering to the specified fuel consumption labelling requirements and test procedures as outlined in ADR 81/02 and its amendments. Manufacturers and importers of light vehicles must ensure that their vehicles meet these standards before they are supplied to the market. The Act also necessitates a collaborative approach to consultation and standard setting, with active involvement from Australian, state/territory governments, industry, and consumer groups.
For breaches of the standards set out in the Act, there are potential civil and criminal consequences. While specific penalties are not detailed in the explanatory statement, breaches of vehicle standards under the Act could lead to enforcement actions, fines, or other penalties as prescribed by relevant laws. The severity of these consequences would depend on the nature and extent of the breach, as well as any associated harm or risk to public safety.
The consultation process for new or amended vehicle standards is robust, involving consideration by the Australian Transport Council and adherence to the Best Practice Regulation Handbook. For the amendments to ADR 81/02, since they were minor and did not alter the intent or stringency of the ADR, formal clearance by the Office of Best Practice Regulation was not required. However, significant proposals are subject to a Regulation Impact Statement to ensure they meet the necessary regulatory standards.