Vehicle selection policy

When selecting vehicles within the Commonwealth fleet, procurement officials must ensure that the vehicle:

• is a low emission vehicle (LEV) for passenger vehicles, with the preference for a zero emission vehicle (ZEV)
• has a five-star Australasian New Car Assessment Program (ANCAP) rating with a date stamp within three years
• meets minimum fit-for-purpose requirements
• provides value for money, with consideration given to environmental and climate change impacts.

If no operationally suitable vehicle meets all these requirements, the entity must prepare a business case for approval by the accountable authority or their delegate. The business case must explain the operational reasons why one or more requirements cannot be met.

Low emission vehicles

When selecting a vehicle, entities should prioritise a LEV, with a ZEV preferred where possible. LEVs include battery electric vehicles (BEV), hydrogen fuel cell vehicles (FCEV) and plug-in hybrid vehicles (PHEV). ZEVs include BEVs or FCEVs.

Under the first policy requirement, entities must apply an ‘if not, why not’ approach when selecting a LEV. For passenger vehicles, entities should prioritise a ZEV. A PHEV should only be selected in exceptional circumstances, such as when substantial regional travel is required.

This policy does not apply to vehicles used for operational law enforcement, covert activities, defence, or national security purposes.

Executive Vehicle Scheme

Accountable authorities are responsible for developing and managing any Executive Vehicle Scheme policy within their entity.

Commonwealth entities that operate an Executive Vehicle Scheme should consider this policy’s content when developing their own policy or guidance. Entities should also consider any advice issued by the Australian Public Service Commission.

Federal Parliamentarians

The Remuneration Tribunal is responsible for deciding whether Commonwealth-leased private-plated vehicles are provided to federal parliamentarians.

The Department of Finance sets the list of vehicles that may be selected by parliamentarians. Parliamentarians are encouraged to select vehicles that align with the principles in this policy.

Transparency and reporting

The Government committed to reducing carbon emissions by setting a target of 75% of new passenger vehicle orders, including sports utility vehicles, to be LEVs by 2025.

This target supports the Australian Public Service commitment to reach net zero emissions by 2030.

Transitional low emission vehicle targets of 25 per cent for 2022–23 and 50 per cent for 2023–24 have been achieved. These targets were set to track progress toward the 2025 target.

Low emission vehicle orders for 2024–25 were over 75 per cent, achieving the 2025 target.

The full low emission target scope and results are published on the Low Emission Vehicle Target page.

Additional information

• To receive a five-star ANCAP safety rating, a vehicle must achieve the highest performance across all crash tests and assessments. The policy requires that selected vehicles have an ANCAP date stamp within the last three years. For this policy, the year the rating was issued is not included in the three-year period. Further guidance and information on the ANCAP rating term is available to Commonwealth entities.
• Commonwealth entities must define fit-for-purpose requirements based on the minimum requirements to meet operational needs. This helps reduce choices based on personal preference. An entity may only select a vehicle that goes beyond its fit-for-purpose requirements when this does not affect compliance with the remaining fleet vehicle selection policy requirements. Guidance is available to help Commonwealth entities determine their fit-for-purpose requirements.
• When selecting a vehicle, officials must assess value for money in line with section 4 of the Commonwealth Procurement Rules (CPRs). The assessment must consider:
  • Efficient and ethical use of public resources
    Public resources must be used in a way that is efficient, effective, economical, and ethical, and consistent with Commonwealth policies.
  • Whole-of-life costs
    Officials must consider whole-of-life costs over the lease term or ownership period, including fuel and maintenance costs. 
    Commonwealth entities should obtain a fully maintained and budgeted monthly lease quote from the fleet services provider. These quotes support consistent comparison of owned and leased vehicles.
    Monthly lease quotes do not include charging infrastructure or electricity quotes.
  • Environmental and climate impacts
    Officials must consider environmental and climate change impacts, as required by the CPRs and the Government’s commitment to reduce carbon emissions. 
    Commonwealth entities should prioritise the selection of a LEV. If a LEV is not selected, the delegate must be satisfied that a LEV cannot meet the operational needs. 
    The Green Vehicle Guide is a useful tool to inform Commonwealth entities about the environmental credentials of vehicles.
• Commonwealth entities may lease or purchase vehicles. Where an entity chooses to lease a vehicle, it must lease through the Commonwealth’s fleet services provider, which is currently SG Fleet.
• More information is available through the GovTEAMS community or by contacting woagfleet@finance.gov.au.