The AADA is treating seriously the current and likely future impacts of the COVID-19 pandemic. The pandemic comes, of course, in the footsteps of two years of declining sales for the automotive industry, the demise of General Motors Holden in Australia, and the disastrous bushfires that affected the East Coast of Australia over summer.
We have been working tirelessly on your behalf and engaging the Federal Government to develop and strengthen protections for our industry; and gain better recognition of the critical place of new car Dealerships in the business and community life of urban, regional and remote Australia. In some cases, radio interviews such as the one with Alan Jones on 19 March have also opened new avenues of influence with Government as he undertook to carry our message of need directly to the Prime Minister.
We have also been engaging with Government, both directly and through our advisors in an attempt to:
- allow businesses seeking to purchase cars to be entitled to the total threshold of $150,000 under the expanded instant asset write off scheme.
- allow Dealerships regardless of employee numbers and turnover thresholds to access support mechanisms for their staff/apprentices and investment allowances.
This is a sensitive time in which many people and industries are understandably anxious, but AADA will continue to pursue the best possible policies to assist our members during this difficult time.
In summary, our actions so far include:
- 10 March 2020 – The Automotive Industry is already in Recession and needs Urgent Stimulus
- 12 March 2020 – Dealers Welcome Measures to Stimulate the Australian Economy
Letters to Government:
- 13 March – Letter to the Commonwealth Treasurer from AADA, FCAI, and NALSPA:
We congratulated the Treasurer on his first response package to the pandemic and asked him to monitor sales over the coming months to gauge if additional specific measures were needed to support our industry.
- 16 March – Letter to the Commonwealth Treasurer:
We welcomed the stimulus measures already announced and sought expansion and more clarity on three issues:
- Clarity on what vehicles qualify under the instant asset write-off;
- Consideration of extending the stimulus measures to all new car Dealerships;
- Consideration of incentives for consumers to buy a new vehicle.
- 20 March – Letter to State Treasurers:
We sought specific support measures to assist the automotive industry through measures such as Stamp Duty exemptions for new vehicle sales and Payroll Tax relief for new car Dealers.
Media Articles and Appearances:
- 10 March 2020 – Car dealers demand stimulus, by Leith van Onselen, Macrobusiness
- 11 March 2020 – New car sales drop ‘worse than GFC’, by David McCowen, Cairns Post
- 12 March 2020 – Dealers welcome Australian economy stimulation measures, by Geoff Dobson, AutoTalk
- 13 March 2020 – CEOs hail stimulus as vital for cash flow, by Patrick Durkin, Australian Financial Review
- 16 March 2020 – Industry welcomes stimulus package, by Neil Dowling, GoAuto News
- 18 March 2020 – Car industry braces for coronavirus impact, by David McCowen, NewsCorp Australia
- 18 March 2020 – Is Rich Lister Nick Politis signalling the bottom?, by Simon Evans, Australian Financial Review
- 18 March 2020 – Car dealers call for intervention as job losses loom, by Richard Ferguson, The Australian
- 19 March 2020 – Federal Government’s $150,000 instant asset tax write-off may not apply to cars, industry warns, by Joshua Dowling, Car Advice
- 19 March 2020 – 2GB, Alan Jones, AADA CEO James Voortman