The Clean Car Programme - what you need to know

Thursday, 31 March 2022

The Clean Car Programme came into full effect on April 1. Here is what you need to know about the new discounts and fees. (Video first published on March 31, 2022)

On April 1, the Clean Car Programme gets an upgrade. Here’s what you need to know about the full scheme.

First off, the previous “EVs get the full rebate, PHEVs get half the rebate, and everything else gets nothing” approach is being ditched in favour of a sliding scale based on emissions. This means that low-emission vehicles – even ones without extra electricals – might be able to qualify for a rebate.

It is also when a fee for high-emitting vehicles (the so-called “ute tax”) comes into play, with all newly-registered new and used light vehicles (a car, SUV, ute, van or truck weighing no more than 3.5 tonnes) that emit more than 192g/km of CO2 attracting a penalty that must be paid at the time of registration.

The full Clean Car Programme kicks in from tomorrow.

Likewise, the discount applies to all light vehicles registered in New Zealand for the first time, that cost less than $80,000 (including GST and on-road costs) and have a safety rating of 3 stars or more on the Rightcar website. The rebate can be applied for at the time of registration as well.

**READ MORE:

Press Drive photo January 05 Dave MooreExhaust emissions: New regulations in Europe.

* What exactly does the Clean Car Discount mean for car buyers?

* Second-hand EVs surge in popularity

* When will an EV cost the same as a petrol car?

* Car taxes and rebates - who wins and who loses

So what vehicles get a discount and which ones will attract a fee? That literally comes down to how much carbon they pump out of their exhausts:

0g/km of CO2

Obviously, fully electric vehicles get the full $8625 ($7500+GST) rebate still, because they don’t produce CO2 during driving.

1 to 56g/km of CO2

Any new car that emits between 1 and 56g/km of CO2 will be eligible for a rebate of $5000+GST, while a newly-registered used car in the same band will be eligible for a $2000+GST rebate. This will mainly be made up of plug-in hybrids.

57 to 146g/km of CO2

Any new car that emits between 57 and 146g/km of CO2 will attract a rebate calculated by taking the full amount of $7500+GST and deducting the result of “emissions X $50 X 130/145”. This means a car that emits 123g/km of CO2 will get a rebate of $1987+GST.

The equation for freshly-registered used imports is “emissions X $20 X 130/145” deducted from the maximum rebate of $3000+GST, meaning a used import emitting the same 123g/km of CO2 will get a rebate of $750+GST.

Hybrids, plug-in hybrids, mild hybrids and smaller ICE vehicles will mostly feature here.

147 to 192g/km of CO2

The next new addition to the Discount is the ‘zero band’, which is where vehicles that emit between 146g/km and 192g/km sit. They don’t get a rebate or incur a fee. This applies to both new cars and newly-registered used imports.

193g/km of CO2 and above

Finally, April 1 is also when the high emitters get more expensive: basically, every gram of CO2 over 186 will attract a fee of $50, capped at a maximum of $4500+GST.

This means a new vehicle that emits 193g/km of CO2 would attract a fee of $350+GST, while something that emits 250g/km of CO2 will attract a fee of $3200+GST.

For newly imported used vehicles the fee-per-gram is $37.50, up to a maximum of $2500+GST.

It needs to be remembered, however, that you can't necessarily do your own calculations straight off the current claimed CO2 figures on a manufacturer’s website, as they can come from any number of global testing regimes (including WLTP, NEDC, ADR, Japanese JC08 mode or 10-15 mode, CAFE test cycle, etc).

The CO2 figures used to calculate the rebates and fees need to be from the WLTP3 test cycle, and the Government has supplied manufacturers a standard calculation for conversion of the various figures from other test cycles to this standard.

Many cars are available with a variety of emission levels, so it makes sense to do some research and find a vehicle that fits your needs with the lowest emissions to reduce your impact on the environment and your bank balance. The Rightcar website has information about most vehicles in New Zealand, including an indication of where they sit on the new sliding scale.

From the start of April car dealers will also be required to display the CO2 emissions of every vehicle, as well as whether they attract a fee or rebate.