The Government is accelerating the response to climate change to achieve a carbon neutral target for New Zealand by 2050. The Clean Car Discount aims to help bring down transport emissions by making the purchase of zero and low-CO2 emission vehicles more affordable.
CloseThe Clean Car Discount encourages the purchase of zero and low emission light vehicles by reducing the cost of eligible new and used vehicles coming into New Zealand and putting a fee on high emission vehicles from 1 April 2022. For vehicles first registered in New Zealand from 1 April 2022, fees and rebates will be applied according to the CO2 emission of vehicles. The higher the CO2 emission value the greater the fee in recognition of the increased environmental and economic costs they are imposing. The lower the CO2 emission value the greater the rebate. Vehicles with moderate emissions will not incur a fee or be eligible for a rebate.
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CloseFrom 1 April 2022, zero and low emission vehicles may be eligible for a rebate based on their emissions if they are below 146 CO2 grams per kilometre.
CloseThe Clean Car Discount fund for rebates is not expected to run out. Fees incurred after 1 April 2022 by purchasers of imported vehicles the first time they are registered in New Zealand with high CO2 emissions are expected to fund zero and low emission vehicle rebates. In this way the scheme is intended to be cost neutral. However, if funds are exhausted at any given time, rebates will not be paid out. Once the rebate scheme restarts, only vehicles registered from the restart date that meet the eligibility requirements will qualify for a rebate.
CloseWaka Kotahi NZ Transport Agency administers the Clean Car Discount programme.
CloseFrom 1 April 2022 the Clean Car Discount is based on CO2 emission values. There is a zero band in the emission values with no rebates and no fees. A vehicle with a CO2 emission value above the zero band incurs a fee. The further above the zero band, the greater the fee up to a maximum value. Vehicles with CO2 emission values below the zero band are eligible for a rebate, up to a maximum.
| Vehicle carbon emissions* (grams per kilometre) | Used vehicle rebates (excluding GST) | New vehicle rebates (excluding GST) |
|---|---|---|
| 0 (zero emissions) | $3000 | $7500 |
| 1 to 56 | $2000 | $5000 |
| 57 to 146 | $3000 less (emissions X $20 X 130/145) | $7500 less (emissions X $50 X 130/145) |
Note: All figures are exclusive of Goods and Services Tax (GST). Final amount of rebate paid will however include GST, except for public authorities, which cannot claim the GST.
|
Vehicle carbon emissions* (grams per kilometre) |
Used vehicle fees (excluding GST) |
New vehicle fees (excluding GST) |
|
192 or more |
(emissions* - 186) x $37.50 Capped at $2500 |
(emissions* - 186) x $50 Capped at $4500. |
Note: All figures above are exclusive of GST. The fee (including applicable GST) must be paid to the Registrar of Motor Vehicles at the same time as the person pays for the registration of the vehicle.
*The CO2 emissions of the vehicle must be calculated in accordance with the Land Transport Rule: Vehicle Efficiency and Emissions Data 2022.
CloseWaka Kotahi will work with Energy Efficiency and Conservation Authority New Zealand (EECA) and the Ministry of Business, Innovation and Employment (MBIE) to ensure dealers comply with labelling regulations.
Visit the Rightcar website to look up a specific vehicle and find out if it will be eligible for a rebate or will incur a fee. www.rightcar.govt.nz(external link)
CloseThe fee is paid to Waka Kotahi at the time of registration, and a vehicle will not be registered until payment has been made.
CloseRebate applications will be accepted up until 30 November 2022 for eligible light battery electric vehicles (BEVs) and light plug-in hybrid electric vehicles (PHEVs) registered for the first time in New Zealand between 1 July 2021 and 31 March 2022
CloseTo save people money on the purchase of an imported new or used light EV or PHEV as soon as possible, a flat rate rebate was made available until 31 March 2022. This rebate supported those people choosing to buy an eligible low emission vehicle while the full Clean Car Discount was being established.
CloseThere are four rebates available, based on electric vehicle type and whether it is a used or new vehicle:
|
1 July 2021–31 March 2022 (GST incl) |
New vehicle |
Used import |
|
Battery electric vehicle (BEV) (zero emission) |
$8625 |
$3450 |
|
Plug-in hybrid electric vehicle (PHEV) (low emission) |
$5750 |
$2300 |
GST is included in the rebate except for public authorities.
The vehicle must be registered for the first time in New Zealand between 1 July 2021 and 31 March 2022.
The vehicle must have a safety rating of 3-stars or more on the Rightcar website:
www.rightcar.govt.nz(external link)
The vehicle must have been purchased for less than $80,000 (New Zealand dollars), including GST and on-road costs (the purchase price).
CloseYou can apply online once the vehicle has been registered and allocated a number plate. The rebate will be paid into the registered person’s bank account, except for lessors, who may be eligible when they are not the registered person.
To apply, fill out the application form on the Waka Kotahi website and upload the required supporting information – you will need the vehicle plate number, a copy of the vehicle sale agreement and your bank account details. Registered motor vehicle traders will also need to provide the required statutory declaration. Lessors will also need to provide the Acknowledgment of Lease agreement.
CloseYes. If the application was declined due to an error, this can be corrected, and the application resubmitted. If it was declined due to ineligibility, the application won’t be successful if resubmitted.
CloseDisability vehicles, which means a light vehicle that is used for the transportation of a person with a disability and is modified to do either or both of the following:
Disability vehicles are exempt from fees, but not rebates.
Dealers are eligible for a rebate for a vehicle they own and use as a company, courtesy or demonstration vehicle. The registered motor vehicle trader must not sell, or offer to sell, that vehicle within 3 months of first registration. All other eligibility criteria will also need to be met.
CloseThe buyer will not be eligible for a rebate because they will not be the first registered person to the vehicle. This is because rebates are only payable to the first registered person (except for when the vehicle is registered to a lessee – in which case the lessor may be eligible instead).
CloseThe average used imported vehicle is 7 years old when it arrives in New Zealand. A new low emitting vehicle will on average spend seven more years reducing CO2 emissions and therefore is considered more valuable.
CloseYes. The Clean Car fee is based on the registration date, not the purchase date.
CloseIf first registered after 1 April 2022, plug-in hybrid electric vehicle (PHEV) rebates for individual vehicles will vary according to their CO2 emission value.
CloseYou can go to www.rightcar.govt.nz(external link) to search for a vehicle and it will indicate whether a fee or rebate is applicable to that vehicle.
CloseIf you've applied for your rebate and your vehicle was first registered between 1 July 2021 and 31 March 2022, the rebate amount will not change.
CloseNo. Unless it's a fully electric vehicle which can then be registered as an EV, the original emissions data for that vehicle will be used to calculate the fee.
CloseYou will need to discuss this with your registered motor vehicle trader (dealer).
CloseRather than retaining the fixed PHEV rebate used from 1 July 2021–31 March 2022, we’ve moved to a system based on the CO2 emissions of specific vehicles.
CloseIf you're bringing a high emission vehicle into New Zealand, this has environmental and economic costs and therefore a fee applies. However, if you bring a zero to low emission vehicle into New Zealand you may receive a rebate.
CloseA hybrid vehicle gets its energy simultaneously from an internal combustion engine (ICE) and an electric motor. The ICE and the electric motor work together to power the car, which reduces petrol consumption and CO2 emissions. The ICE uses petrol to recharge the vehicle’s battery, which powers the electric motor.
A plug-in hybrid electric vehicle (PHEV) also uses an internal combustion engine (ICE) and an electric motor, but it has a larger battery and electric motor than a hybrid. The battery can be plugged in and charged, and usually gives the vehicle a short electric-only range – up to 50km at lower speeds. When vehicle speeds or power demands are higher, or the battery is running low the ICE provides most of the power to the vehicle. The battery is recharged both from a plug-in charger and the ICE. Once the battery is mostly depleted the vehicle operates like a conventional hybrid until plugged in and charged again.
In both a hybrid and a PHEV the battery is also charged as the vehicle slows down by using regenerative braking. This further reduces fuel usage and emissions.
CloseA light vehicle is car, SUV, ute, van or truck with a gross vehicle mass (GVM) of no more than 3.5 tonnes. The GVM is the weight of a vehicle plus the maximum weight it can carry. See eligibility criteria for details.
CloseTo avoid luxury vehicles receiving unnecessary subsidies.
CloseNo. The most common electric vehicles dating back to 2012 are generally above 3-stars in the star safety ratings. With all vehicles, there are always less safe models and we recommend buyers use the Rightcar website to help choose the safest vehicle affordable. www.rightcar.govt.nz(external link)
CloseBy later this decade more than 50% of monthly vehicle sales in New Zealand need to be electric. This target requires a jump from about 6000 electric vehicles (bought in 2020) to annual sales of 150,000 electric vehicles.
CloseCurrently, the upfront cost tends to be higher. That’s why the Government has introduced the Clean Car Discount – to help make zero and low emission cars more affordable. However, the charging and running costs of EVs has been proven to be much less than the costs associated with internal combustion engine vehicles.
CloseEVs are cheap to drive. On average, electricity from a home or business overnight is equivalent to fuel costing 40c per litre.
CloseApplicants should contact the IRD or their tax adviser for guidance on any tax implications associated with receipt of the Clean Car Discount, including in relation to fringe benefit tax, income tax and depreciation treatment.
CloseThe Clean Car Standard is a government target that will regulate importers to reduce CO2 emissions of vehicles entering New Zealand to specific standards.
CloseThe Clean Car Standard will incentivise importers/distributors to supply cleaner cars to those living in New Zealand. If more vehicle buyers purchase electric vehicles because there are more low-emission options available, the vehicle carbon emissions in New Zealand will be reduced, helping achieve the Government’s target of being carbon neutral by 2050, and its commitment to the Paris Agreement on climate change.
CloseNew Zealand is well behind some countries, including the United Kingdom and Japan, which have already achieved our 2025 target.
CloseThe goal is for New Zealand to be carbon neutral by 2050 and we have committed to reducing greenhouse gas emissions (primarily carbon dioxide CO2) to 50% below 2005 levels by 2030.
In New Zealand, approximately half of CO2 emissions come from transport, of which two-thirds come from light vehicles. Transport emissions have been rising faster than other sectors, almost doubling between 1990 and 2020.
CloseIt will save the economy money rather than place costs on it, and help New Zealand achieve its emission targets.
ClosePublic consultation was carried out in 2019. There was strong support for the Clean Car Standard from 85% of the 967 submitters who responded to the discussion document question: “Is a Clean Car Standard appropriate for New Zealand?”
Close