The MTA NSW says the Federal Budget falls short in a number of areas concerning the paint and panel sector, including: the energy bill rebate being inadequate, the absence of any direct funding support to workshops for the tooling upgrades required for EVs and a failure to extend the Fringe Benefits Tax exemption for plug-in hybrids.
He said despite the continued support for the interim Australian Apprenticeship Incentive System for a further six months, which was welcomed, there remains a lack of real action when it comes to addressing EV training for technicians and skills shortages.
"While we appreciate the government's focus is on cost of living pressures, further support is needed for the many small and family-owned automotive businesses, which our industry is made up of and who form the backbone of the Australian economy,” MTA NSW CEO, Stavros Yallouridis, said.
“The $150 rebate for small business energy bills falls dramatically short of supporting our sector. For energy-intensive businesses like automotive workshops, especially in paint and panel, this minimal relief barely scratches the surface of the economic challenges they face.
“The absence of direct subsidies or tax incentives for workshop equipment and tooling, to service and repair electric vehicles represents a critical oversight. Automotive businesses already have thin margins, and the cost of updating their workshops, installing charging infrastructure, and putting their employees through the necessary skills training is costly and prohibitive. The financial barriers are significant and our industry needs support to ensure we can safely and effectively service the next generation of vehicles.
“We're also disappointed that the Fringe Benefits Tax exemption for plug-in hybrids has not been renewed. These vehicles provide an accessible pathway to reduced emissions, particularly for rural communities facing limited charging infrastructure and families grappling with range anxiety and escalating cost of living expenses.
“MTA NSW supports the Government’s $77.8m commitment to extend the current interim Australian Apprenticeship Incentive System for a further six months. With automotive jobs consistently featuring on skills shortage lists, further investment in the vocational education sector is integral to address the critical talent gap, which continues to cripple our industry. We also welcome the $4.7 million commitment to the vocational educational training regulator (ASQA) to counter fraud”
“We encourage further investment in the national industry school pathway. Comprehensive workforce development is essential for our future, and without strategic investment, our industry is at risk of being left behind.
"With the federal election weeks away, we will continue to advocate for these changes, and we call on both major parties to recognise the vital role of the automotive sector. We need meaningful policies that cut red tape, provide genuine incentives, and support our industry in becoming more efficient and competitive.
"While we acknowledge the tight fiscal environment, this budget misses crucial opportunities to invest in our industry's future. From electric vehicle transition support to skills training, the automotive sector requires more than incremental funding – we need a comprehensive, forward-looking strategy."