Major Reduction of CCS Fees from 1 January 2026

Posted by Renata Mendes
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If you haven’t heard the GREAT news already, the Government has announced a significant change to the Clean Car Standard (CCS). From 1 January 2026, the CCS cost per gram will be reduced from the current $27 to $7.50 per gram.

As the CCS target tightened from 133.9g in 2024 to 112.6g in 2025, it became increasingly difficult for dealers to import mid-size vehicles essential for Kiwi families such as SUVs, people movers, and brands like Subaru that are well suited to New Zealand roads and driving conditions. The reduction of CCS penalties to $7.50 will make the importing of such models economically viable for dealers and kiwi families alike.

Behind the scenes, Greig, Kit, and Malcolm from the VIA have been actively lobbying the NZTA and Government to address the shortcomings of the CCS and its impact on used vehicle importers, the many business and thousands of people employed in support of the industry, and the wider public who rely on Japanese-imported vehicles for safe, reliable, and affordable transport.
I can honestly say that the VIA has saved our industry.

There is more legislation that could impact vehicle importing in the future so as an industry we need the VIA to continue advocating on behalf of all used vehicle importers. If you are not currently a paying member of the VIA, I strongly encourage you to join. The organisation’s work benefits the entire industry, yet it is funded by only a small portion of it.

Please do the right thing and support the people who are supporting us.
Sign up today at: https://via.org.nz/

Below is a press release from the VIA

The Government will reduce the Clean Car Standard (CCS) penalty to $7.50 per gram of CO2 from 1 January (for 2026-27) and has signalled a major CCS review in 2026.
We also expect this change to sit alongside the legislation currently before the House that (1) extends credit life and (2) enables trading of credits between new-vehicle and used-vehicle accounts, with both measures set to begin from 1 January 2026.
These outcomes reflect VIA’s sustained advocacy and the data you’ve shared on real-world impacts. Thank you – that evidence has been key in getting movement.

What it means:

  • Relief on penalties: Around 70% of used imports are penalised, with roughly half of those penalties over $1,000. Lowering the rate should ease retail pricing pressure and keep buyers in the market.
  • Better fleet turnover: More price-fit options in the $10-$15k bracket supports faster fleet refresh, improving emissions and safety.
  • Pathway to structural fixes: The 2026 review is the moment to address the weight adjustment so vehicles are judged on their merits, and to bed in credit trading so value can flow to consumers.

VIA next steps:

  • Press for early, practical algorithm changes (remove/neutralise weight adjustment for passenger vehicles).
  • Work with officials on rapid implementation of credit-life extension and cross-sector credit trading from 1 Jan 2026.
  • Prepare for a major review in 2026.

We are keen for members to keep sharing data on penalties and buyer behaviour to strengthen VIA’s case through the 2026 review.

VIA comment:

“The penalty reduction is a sensible circuit-breaker. Coupled with longer-life credits and trading between new and used from 1 January 2026, it will stabilise pricing and support faster fleet replacement while the full review fixes the architecture.” – Greig Epps, Chief Executive, VIA