Govt. Clean Car Rebate Changes - July 2023

The Clean Car Programme consists of rebates and fees based on CO2 emissions for new and used eligible vehicles the first time they are registered in New Zealand. The higher the CO2 emissions, the greater the fee; the lower the emissions, the greater the rebate. Vehicles with moderate emissions will not incur a fee or be eligible for a rebate.

The recently announced government changes to the Clean Car Rebate programme effective 1st July, mean an overall reduction highest rebate amount, fewer new cars will qualify for a rebate, an increase in the number of vehicles that will incur a fee, plus an increase in the fees and maximum fee applied for larger cars. The Government Clean Car programme changes mean that from July ’23 all New Cars purchased will be more expensive for customers in NZ.

The rebates for brand-new EVs and low-emitting vehicles have been reduced, neutral vehicles that did not incur a fee will in many cases now have a fee applied, and high emitting vehicles will face increased fees up to $6,900.

Vehicles that have rebates available, the maximum rebate is reducing.
For brand-new electric vehicles (EVs) under $80,000, the maximum rebate will be reduced from $8,625 to $7,015, a decrease of $1,610.

Plug-in Hybrids that emit between 1 and 100 grams of carbon dioxide per km (usually plug-in hybrids), the rebate will be reduced from $1,500 to $1,700. The calculation for this rebate has also changed. Instead of having separate ranges for emissions levels, there will be a base rebate of $1,725 applied to a vehicle that emits 100 grams of CO2 per km, and an additional $57.50 for every gram less than that, up to a maximum rebate of $4,025.

The vehicle rebate CO2 range has reduced
The “zero band” of 149g and 192g which currently incurs no rebate or fee is moving lower to 101 to 149g/km of CO2. Vehicles that emit between 101g and 149g will no longer receive a rebate, and cars between 149g and 192g that currently do not currently attract a fee will incur a clean car fee from 1st July.

Vehicles that will incur a fee.
For new vehicles that emit 149g to 192g of CO2 per km, there will be a new fee calculated as a base charge of $575, plus $57.50 for every additional gram of CO2.

For new vehicles that emit above 192g of CO2 per km, the maximum fee will increase from the current limit of $5,175 to a new maximum of $6,900.

Overall, the changes mean that rebates for brand-new EVs and low-emitting vehicles have been reduced and in turn, high-emitting vehicles will face higher fees will be applied to them.

Used Imported Vehicles first registered in NZ.
Used imported vehicles first registered in NZ are also impacted by the same CO2 range changes with less vehicles qualifying for rebates, lower rebates, more vehicles incurring a fee and fee levels increasing.

Govt. Clean Car Rebate Changes
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