The Victorian Automotive Chamber of Commerce (VACC) has expressed significant concern over the 2025-26 State Budget’s failure to deliver essential electric vehicle infrastructure and small business support, despite the Government’s ambitious 2030 EV targets.
While the absence of new motor vehicle taxes provides temporary relief, the Budget represents a missed opportunity to future-proof Victoria’s automotive industry during its most transformative period.
“While we welcome the absence of new taxes on the automotive sector, this won’t drive the industry forward at a time when transformative support is desperately needed,” VACC CEO, Peter Jones, said.
The Budget’s glaring omission is any meaningful policy or infrastructure investment to support Victoria’s transition to electric vehicles, despite the Government’s own ambitious targets for EV adoption by 2030.
“The Victorian Government has set bold targets for electric vehicle uptake, yet this Budget provides no roadmap for how we’ll get there. Without significant investment in charging infrastructure and consumer incentives, these targets remain nothing more than aspirational figures on paper,” Jones said.
VACC is particularly concerned about the lack of targeted support for small automotive businesses, which make up the majority of the sector and are facing unprecedented technological disruption.
“Small automotive businesses across Victoria are navigating the most significant technological transition in the industry’s history. Many will not survive without dedicated government support to upskill workers and adapt their operations for an electric future,” Jones said.
The VACC’s comprehensive Pre-Budget Submission outlined specific recommendations to address these challenges, including enhanced apprenticeship support, an automotive business transition fund, and investment in regional charging infrastructure.
“We presented the Government with a clear plan to support the automotive industry through this critical transition period. Unfortunately, our recommendations have been largely ignored, placing both the industry and the Government’s own EV ambitions at risk,” Jones stated.
The VACC calls on the Victorian Government to urgently reconsider its approach to supporting the automotive industry and to engage in meaningful consultation with industry representatives to develop a comprehensive transition strategy.
“Without immediate and significant action, Victoria risks falling behind other states in the race to modernise our transport system. We urgently need a comprehensive strategy that aligns government policy with industry capabilities to deliver real outcomes,” Jones said.
Despite these concerns, VACC remains committed to constructive engagement with the Victorian Government.
“The VACC will continue to work collaboratively with the Government on important industry issues, including skills development, infrastructure planning, and transition support. We believe that through meaningful partnership, we can still achieve Victoria’s ambitious automotive goals, but the clock is ticking, and decisive action is needed now,” Jones concluded.