The Motor Trades Association of Australia (MTAA) has welcomed key measures in the 2026–27 Federal Budget that will support small business investment, fuel resilience and workforce capability, while warning further automotive-specific reform is still needed.
MTAA Interim Executive Director Peter Jones said the Budget contained several practical measures that would assist automotive businesses facing rising operating costs, ongoing skills shortages and rapid technological change.
“The permanent extension of the $20,000 instant asset write-off, continued loss carry-back arrangements and broader productivity reforms will provide welcome support for small and family-owned automotive businesses across Australia,” Jones said.
“These measures improve cash flow, support investment confidence and help businesses continue upgrading equipment, tooling and technology.”
Jones said the Budget’s focus on reducing regulatory burden and improving productivity was particularly important for the automotive sector, which is dominated by small businesses operating in highly competitive environments.
“Automotive businesses are managing increasing compliance obligations while also investing in new technologies, training and equipment,” he said.
“Any measure that improves business certainty and frees up capital for investment is positive for the sector.”
MTAA also welcomed the Government’s $14.8 billion fuel resilience package, including temporary fuel excise relief and the temporary reduction of the heavy vehicle road user charge.
“Fuel security remains a critical national issue, particularly for regional and remote Australia,” Jones said.
“Automotive businesses form part of the essential infrastructure that keeps Australians moving – from freight and logistics operators through to workshops, towing operators and service stations.”
While the Budget included further support for Australia’s transition to electric vehicles through the expanded DRIVEN program and changes to the Electric Car Discount, Jones said the industry had consistently highlighted the importance of ensuring businesses had the capability to support the transition.
“EV readiness is not simply about vehicle sales,” he said.
“It requires investment in workshop infrastructure, charging capability, specialised tooling, diagnostic equipment and – most importantly – skilled technicians.”
MTAA said workforce development remained one of the automotive industry’s most pressing long-term challenges and welcomed broader Budget measures supporting skills, training and workforce participation.
“Australia’s automotive industry cannot transition successfully without a strong pipeline of skilled apprentices and technicians,” Jones said.
“Businesses need practical support to attract, train and retain apprentices, particularly in regional areas where skills shortages are already acute.”
MTAA said several priorities identified in its 2026–27 Pre-Budget Submission remain unresolved, including automotive apprenticeship reform, Luxury Car Tax reform, end-of-life vehicle stewardship schemes and stronger national protections to address insurer-repairer conduct.
“This Budget contains several positive steps for small business, fuel resilience and industry investment,” Jones said.