For Australia to successfully transition to a low emissions future, the Motor Trades Association of Australia (MTAA) emphasizes the crucial role of government support for the automotive industry. In its budget priorities submission to the Federal Government, the MTAA outlines 16 key recommendations spanning tax reform, industry support, and skills and training, with a focus on energy requirements and environmental concerns.
MTAA CEO Matt Hobbs said: "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.”
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.
Challenges facing the Australian automotive industry, such as taxation, regulatory burdens, end-of-life recycling, and low emissions infrastructure, underscore the need for government action said Hobbs. Among MTAA's recommendations are accelerated depreciation for ZLEV purchases, increased funding for ZLEV charging stations, tax incentives for automotive businesses investing in ZLEVs, and the abolition of the Luxury Car Tax to boost ZLEV sales.
Additionally, MTAA calls for funding to conduct a comprehensive review of the Road Vehicle Standards Act 2018 and its associated online platform, ROVER, to ensure their efficacy and alignment with industry needs. Skills and training initiatives are also highlighted, including the reintroduction of wage subsidies for apprenticeships and support for industry-led mentoring programs.
“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,” said Hobbs.
Read the full submission here.