Archives: Dealer Bulletins

Today, the Prime Minister Scott Morrison has announced a new Future Fuels Strategy backed by $250 million in government funding. It is expected that the public and private sectors will match this figure with an equal contribution, creating a $500 million combined fund. The Government expects with this strategy in place, PHEVs and EVs will comprise 30% of the new car sales market by 2030.

One of the key components of the strategy is a focus on improving and growing the EV recharging network and infrastructure though it also supports the adoption of hydrogen fuel and the integration of EVs into the electricity grid. The strategy avoids direct subsidies and consumer incentives and instead is designed to make the choice of an EV or PHEV easier for buyers.

The AADA welcomes the Future Fuels strategy, however notes that there is an opportunity for the Federal Government to co-ordinate the strategy with the various state and territory EV programs that are being rolled out. We also believe that the strategy highlights the need for a thorough review of all automotive taxes and duties, including the LCT and Passenger Vehicle Tariff scheme which add to the cost of many EVs.

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The NSW State Government is introducing incentives from its EV Strategy to encourage motorists to purchase full battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (FCEVs). From 1 November 2021, purchasers of eligible BEVs and FCEVs will be able to claim back a rebate and their stamp duty exemption from the NSW Government.

ELECTRIC VEHICLE REBATES

New full BEVs and FCEVs with a dutiable value of less than $68,750 (incl. GST) will be eligible for a $3,000 rebate from the NSW Government for the first 25,000 vehicles sold through the program.

• Individuals can claim one rebate for an eligible BEV or FCEV
• Small businesses or organisations with a fleet of less than 10 vehicles can claim up to 2 rebates for two eligible vehicles.

The full list of eligibility criteria for claiming one of the 25,000 rebates will be provided prior to 1 November 2021 on https://www.nsw.gov.au/electric-vehicle-reform.

 

STAMP DUTY EXEMPTION

In addition to the rebate, NSW residents and businesses who purchase a new or used full BEV or FCEV with a dutiable value up to and including $78,000 (inc. GST) can also claim a stamp duty refund.

The full list of eligibility criteria for a stamp duty exemption refund will be provided prior to 1 November on https://www.nsw.gov.au/electric-vehicle-reform.

 

PROCESS FOR CLAIMING A REBATE AND/OR STAMP DUTY EXEMPTION

The rebate and stamp duty exemption are available retrospectively for eligible vehicles purchased and registered from 1 September 2021 and can be claimed by the customer via the NSW Government online portal after the sale has been finalised and the vehicle registered.

The program is designed to apply directly to buyers of eligible BEVs and FCEVs and will not be managed by dealers. Buyers are responsible for determining their eligibility under the scheme and for claiming any rebate or stamp duty exemption to which they may be entitled.

Members are advised to direct all enquiries from customers and potential customers to NSW Government EV Strategy webpage at: https://www.nsw.gov.au/electric-vehicle-reform

From this page, customers will be able to access the online portal from 1 November 2021. The online portal will take consumers through the process of allowing them to determine their eligibility and then register for the program so that they can claim both the rebate and stamp duty exemption they may be entitled to on their vehicle.

Further information about the operation of the scheme is available on the above website, which will be updated as the program is rolled out.

Many members have reported that they are experiencing a shortage of skilled staff across their Dealerships. These shortages are especially evident in Dealer workshops where there is a shortage of skilled technicians but may also be an issue in other parts of the Dealership.

The AADA has been engaging with the Federal Government on the issue of skills shortages and through this representation, has now been asked to respond to the Skills Priority List (SPL) national survey, conducted by the National Skills Commission (NSC). The SPL identifies occupations that are in shortage across Australia and is an important source of information which enables the government to develop policy responses on migration shortages, training funding and employer incentives.

To ensure that our response is as accurate as possible, we are asking members to assist us by answering the following survey questions. We estimate that it should take Dealers about 6 minutes to provide answers to the following 12 questions.

Please click the button below to take the survey and thank you for your assistance.

TAKE SURVEY

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To: All NSW AADA Members

The state of NSW has now reached 70% of the eligible population fully vaccinated. Achieving this first vaccination milestone triggers an easing of restrictions for those who are fully vaccinated and the commencement of the Reopening Roadmap, from 11 October. The 70% milestone includes the reopening of non-critical retail, with density limits.

Further details of the eased restrictions are available on the NSW Government website.

To assist businesses to reopen, the NSW State Government have provided advice for employers regarding their rights and obligations.

The advice deals with important issues such as:

• Can employers direct employees to be vaccinated.
• What businesses need to do to prepare for re-opening.
• What businesses can do to ensure only fully vaccinated staff and customers attend a business.
• Can employers ask employees and staff for proof of vaccination.
• Are there penalties for non-compliance.

The Australian Fair Work Ombudsman has also provided advice on “COVID-19 vaccinations: Workplace rights and Obligations“ which members may find helpful.

 

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Businesses in NSW that do not qualify for any of the current support packages, but are experiencing financial hardship as a result of COVID-19 related public health orders, can apply for assistance through a new Hardship Review Panel.

The panel will assess applications on a case-by-case basis, considering factors such as employment levels, decline in turnover, whether a business has incurred unavoidable costs or is in a badly affected LGA. Businesses that have previously been refused assistance under available support schemes may also be eligible to apply for assistance though this program.

For more detail, please refer to the NSW Government media release or visit the Service NSW website.

In welcome news for NSW residents and businesses, the NSW Government has delivered a Roadmap to Recovery, providing further detail on the easing of restrictions as we approach the end of the year. The recovery roadmap is largely predicated on achieving an 80% double-dose vaccination rate among the eligible population.
Of relevance to Dealers are the following key points, scheduled to come into effect on the Monday following 80% of those eligible (aged 16 and over) being fully vaccinated:

• Retail stores can operate at one person per 4 sqm indoors, providing those individuals are fully vaccinated.
• Restrictions will ease around social gatherings allowing 10 people in homes and 20 outdoors (for those fully vaccinated).
• Unrestricted travel between Greater Sydney and regional NSW is permitted.
• Masks will remain mandatory indoors but do not have to be worn outdoors, except for hospitality staff.
• Employers continue to allow fully vaccinated employees to work from home if practicable.

The NSW Government is also planning on easing restrictions further from 1 December 2021 when masks will no longer be required indoors and retail stores can operate with one person per 2 sqm and working from home will be at the employer’s discretion. Current predictions for the state are that the 70% fully vaccinated mark will be reached on 11 October 2021, and 80% by the end of October.

The NSW State Government announcement and further details can be downloaded below.

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Members should be aware of two significant regulatory changes occurring in the finance and insurance departments on 5 October 2021.

• The Deferred Sales Model (DSM) for the sale of add-on insurance products will commence. This does not affect the sale of comprehensive car insurance. It does also not include the sale of extended warranties at this stage.
• The Design and Distribution obligations will also commence and may affect Dealers providing finance or insurance, extended warranties and scratch and dent products.

Members are strongly advised to work closely with their finance, insurance and product providers to ensure they are ready to comply with the new regulations and have the required consumer information.

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To: All NSW Members

As you know, many dealerships affected by the NSW lockdown are currently ineligible for important Government assistance payments due to the turnover threshold and the grouping of Dealerships which results in all Dealerships within a group exceeding the threshold. The AADA have been urging the NSW Government to review the thresholds and recognise that despite the high turnovers, Dealers are low margin businesses which require assistance. We have also been urging them to look at Dealerships individually rather than as part of a group.

To achieve this, we are encouraging Dealers to write to their local State Member of Parliament or the NSW State Treasurer to make them aware of the severe financial impact the current lockdown and trading restrictions are having on dealerships in the State and the threat that exists to jobs.

We have drafted the attached letter which you can use as a template. There are some sections highlighted in yellow, which allow you to personalise the letter to your individual circumstances and to add data about your dealership.

Download the letter template here.

To find your Member’s contact details go to https://www.aph.gov.au/Senators_and_Members and put your postcode in the search term.

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