The 2024-25 Federal Budget is focused on delivering cost of living relief and building a ‘future made in Australia’. A surplus of $9.3 billion is expected in 2023-24, an improvement of $10.5 billion since MYEFO. This would be the first back-to-back surpluses in nearly two decades.
The Budget includes some welcome measures for the industry, including $60 million for the Dealer charging fund. The fund is designed to assist new car Dealers with installing EV charging infrastructure in their businesses in support of the transition to selling and servicing electric vehicles.
This investment in Dealers is timely, with the introduction of the New Vehicle Efficiency Standard set for 1 January 2025, Dealers are being asked by the government to make significant investments to support their goals of decarbonising the transport sector.
The Government also announced $3 million to implement its response to the Review of the Franchising Code of Conduct, which will be used to investigate the feasibility of a licensing model and remake and update the Code prior to its expiration in April 2025.
Disappointingly, outdated taxes such as the Luxury Car Tax and Passenger Vehicle Tariff continue to be a large source of revenue with the Government estimated to collect almost $1.7 billion this financial year from these taxes. The AADA continues to advocate for a comprehensive review of automotive taxes, particularly with the accelerated uptake of EVs and low emissions vehicles.
We have prepared the attached 2024-25 Federal Budget Briefing paper for members which provides a summary and brief explanation of the measures that are relevant.
Further details are also available on the Government’s Budget Website.
