As part of the AADA’s ongoing advocacy efforts, we recently wrote to both major political parties ahead of the upcoming Federal Election, asking them to outline their positions on a range of policy areas of specific interest to franchised new car and truck dealers.
We received responses from both The Coalition and The Labor Party. Key takeaways from the correspondence include:
- While both parties acknowledged the need to address the power imbalance in franchising, Labor’s response was more specific in terms of actionable commitments.
- The two parties diverge significantly on key issues such as the New Vehicle Efficiency Standard (NVES), Fringe Benefits Tax (FBT) concessions for electric vehicles, and the Instant Asset Write-Off (IAWO). Notably, Labor has committed to retaining the NVES with a review scheduled for 2026, while the Coalition would remove fines associated with it.
- On FBT, Labor will maintain the current exemption for BEVs but maintain the exclusion of PHEVs, whereas the Coalition has subsequently confirmed since this letter through an updated statement that it will remove the current FBT exemption for electric vehicles.
- The Coalition offers a higher, permanent IAWO threshold of $30,000, compared to Labor’s $20,000 cap, which is subject to annual Budget approval.
- Neither party has made a meaningful commitment toward automotive tax reform, including the removal of remaining tariffs and the Luxury Car Tax (LCT).
To assist members in comparing the policy positions, we’ve summarised the parties’ positions in the table below.
