The Australian Automotive Dealers Association (AADA) has welcomed the 24-25 Federal Budget allocation of $60 million for the dealer charging fund and $3 million to implement the government’s responses to the review of the franchising code of conduct.
However, it wants a review of the Luxury Car Tax (LCT) and the Passenger Vehicle Tariff, calling them outdated and a relic from an era when Australia manufactured vehicles.
“This budget includes some welcome measures for our industry. The $60 million fund will help new car dealers install EV charging infrastructure in their businesses to support the transition to selling and servicing electric vehicles,” AADA chief executive James Voortman says.
“We also welcome the $3 million fund which will be used to investigate the feasibility of a licensing model and remake and update the Code before its expiration in April 2025.
“While the AADA would have liked to see a resurrection of the previous scheme, we welcome the 12-month extension of the current small business instant asset write-off scheme,” he says.
In contrast, the AADA says this budget highlights the continuing impost on Australian drivers through automotive taxes such as the LCT and Passenger Vehicle Tariff, with the Government estimated to collect almost $1.7 billion this financial year from these taxes alone.
“We consider these to be outdated, particularly the LCT which often applies to more efficient vehicles and applies to optional features which discourage consumer uptake of safety features,” Voortman says.
“These figures highlight recent calls made by the AADA, that Australia needs a comprehensive review of automotive taxes, particularly as we seek to accelerate the uptake of EVs and low emissions vehicles,” he says.
