2026–2027 VES Bands: How to Read Your Car’s Emissions Adjustment
Understand the revised VES labels, the worst-pollutant rule and how emissions adjustments interact with ARF and EV incentives.
VES changes the registration-tax calculation according to a car’s approved emissions band. Check the exact variant and registration date: an old band label or a generic model description can produce the wrong amount.
The band labels changed in 2026
The 2026–2027 bands are A, B, C1, C2 and C3. Under the announced relabelling, the previous A1 maps to A, A2 to B, B to C1, C1 to C2 and C2 to C3. The pollutant thresholds in the announcement remained unchanged; the band names and financial treatment changed.
Do not mix old labels with new rates. In particular, the new neutral band is B. There is no basis for the earlier article’s mixed B1/B2 or Band D table.
The worst-performing pollutant determines the band
The scheme considers carbon dioxide, hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter. A favourable result for one pollutant does not establish the final band if another is worse.
Use the approved emissions information for the exact variant. A marketing term such as “hybrid,” a brand or a model family is not sufficient to calculate its VES treatment.
Read VES alongside EEAI
In 2026, eligible electric cars can receive a combined ARF reduction of up to $30,000 under VES and EEAI. The announced maximum becomes $20,000 in 2027 when EEAI ceases. These are ceilings; the zero ARF floor can limit the actual amount usable.
The EV deadline guide provides the worked 2026–2027 comparison. For a quotation, ask for gross ARF, each adjustment and actual ARF after adjustments.
Understand the later rebate consequence
PARF uses actual ARF paid under the applicable original COE cohort. A large upfront ARF reduction can therefore leave a smaller PARF base. Do not calculate the upfront benefit on adjusted ARF and then incorrectly calculate disposal proceeds on gross ARF.
Compare the payable package
If a final quote already includes VES and EEAI, subtracting them again understates the price. Check registration timing, the seller’s responsibility if delivery slips and whether a claimed saving is already included. A change in an incentive ceiling also does not guarantee an equal change in the COE premium.
Sources and review date
Reviewed on 13 September 2026. Historical results retain their exercise dates; worked budgets are assumptions, not quotations.