The Government intended for the Clean Car Discount scheme to be self-funding. Due to the Clean Car Discount’s stronger than expected uptake, the Government is making changes to ensure it is financially sustainable.
CloseThe existing eligibility thresholds were reviewed and recalibrated taking into account a number of factors including the:
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. For vehicles first registered in New Zealand, fees and rebates are applied according to the CO2 emission of vehicles. The higher the CO2 emission value the greater the fee because of the increased environmental and economic costs they are imposing. The lower the CO2 emission value the greater the rebate. Vehicles with moderate emissions do not incur a fee or be eligible for a rebate.
CloseZero and low emission vehicles may be eligible for a rebate based on their emissions if they are below 146 CO2 grams per kilometre.
CloseFees for vehicles 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.
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 7 more years reducing CO2 emissions and therefore is considered more valuable.
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.
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).
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 a 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 popular 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 used from a home or business overnight to charge an EV 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 regulates importers to reduce CO2 emissions of vehicles entering New Zealand to specific standards.
CloseThe Clean Car Standard incentivises 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.
CloseNew Zealand is well behind some countries, including the United Kingdom and Japan, which have already achieved our 2025 target.
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?”
CloseThe Clean Car Standard is a charge or credit on vehicles imported into New Zealand based on their annual CO2 target. If the CO2 value of your vehicle sits above the annual target you will be required to pay a charge or receive a credit in your CO2 account.
The Clean Car Discount is a fee or rebate on vehicles being registered for the first time in New Zealand based on their CO2 emission value. If your vehicle has high emissions it will be charged a fee at the time of registration. If your vehicle has low emissions you may be eligible to apply for a rebate.
CloseClean Car Discount values are based on a sliding CO2 scale that determines the fee or rebate amount. For Clean Car Standard, the CO2 value is compared to a weight adjusted target to determine the result. This means the comparative weight to the CO2 value makes a big difference to the outcome.
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