If Australia is to transition to a low emissions future, the Federal Government needs to back the sector that will make it successful – the automotive industry – says the Motor Trades Association of Australia (MTAA).
MTAA lodged its budget priorities for the Federal Government, which presents 16 key recommendations related to tax reform, industry support and skills and training. Energy requirements and the environment are among the most important.
“Australian transportation is experiencing its biggest technological shift in 100 years and the automotive industry needs to adapt, so it makes sense for the Federal Government to help the people who can ensure a successful transition,” MTAA chief executive Matt Hobbs says.
The MTAA 2024-25 pre-budget submission focuses on government support to assist with the increased uptake of Zero and Low Emissions Vehicles (ZLEVs). Considering the recent New Vehicle Emission Standard, this is more important than ever.
“The Australian automotive industry faces challenges around taxation and red tape, end-of-life recycling and low emissions infrastructure, and apprenticeships and skilled labour. The industry deals with these issues every day; it’s time now for the Federal Government to do the same,” Hobbs says.
MTAA’s recommendations include accelerated depreciation on ZLEV purchases, increased funding for ZLEV charging stations (including automotive retail businesses who install charging stations), tax offsets or carbon credits for automotive retail businesses who invest in new tools and safety equipment for ZLEVs, abolishing the Luxury Car Tax to help drive ZLEV sales and a nationally consistent Road User Charging Scheme.
The Federal Government should also allocate funding to a full review of the Road Vehicle Standards Act 2018 and its related online platform ROVER, which is not fit for purpose. To ensure it meets its stated aims, ROVER urgently needs legislative and technical changes.
“Skills and training remain an important component to a thriving automotive retail industry. If the government wants the economy to thrive, we must have a skilled workforce,” Hobbs says.
MTAA recommends the reintroduction of the Boosting Apprenticeship Commencements program, with a rise to 15% in wage subsidies in the first year of an apprenticeship or traineeship along with industry support-led mentoring programs to increase completion rates.
“The automotive industry is experiencing significant change on several fronts. The Federal Government needs to help the industry through this transition so we can have the best outcomes for the economy, the environment, business and motorists,” Hobbs says.
