27th March, 2020 · bulletin

CALL TO ACTION: COVID-19 – Lack
of Stimulus Measures for Dealers

2 minutes to read

New car Dealers are missing out on many aspects of the various government stimulus packages due to large staff numbers and high turnovers.

To get our message heard, we encourage all Dealers to get in contact with their local MP to make them aware of a lack of stimulus measures for Dealers.

The key points Dealers should address with their local MP are:

  • The new car retail industry is doing it very tough.
  • Our industry is spread across virtually every city and country town.
  • The sales of new cars in Australia have been declining for 23 months in a row, a period more sustained than the downturn experienced during the global financial crisis (15 months).
  • The 2019 calendar year was the worst ever recorded contraction in sales.
  • COVID-19 has an additional negative impact on new car sales as people put off large purchases.
  • Over the course of this downturn Dealerships have closed and jobs have been lost.
  • The stimulus measures announced to date at a state and federal level have done next to nothing for franchised new car Dealers.
  • Almost all new car Dealers have been excluded from the subsidy for apprentices as very few would meet the definition of less than 20 employees.
  • Similarly, the cash flow assistance has been restricted to entities with aggregated annual turnover under $50 million and that excludes many Dealers.
  • It is important to understand that turnover does not equal profit. In fact, the profits Dealers make are on average less than one per cent of turnover.
  • The Government needs to urgently extend cashflow assistance to Dealers as it will assist them in keeping their businesses open and their staff employed.
  • The Government should provide wage subsidies as have been introduced in the UK and New Zealand. Wage subsidies will help Dealers retain staff while reducing the dependency on overloaded Centrelink offices.
  • Other measures to be considered should be stamp duty holidays, extending payroll relief to Dealers, or incentives for consumers such as incentives making servicing one’s vehicle tax deductible.
  • We need to urgently breathe some life into an industry that is on its knees.

 

The AADA has developed supporting materials to include:

 

Useful links:

You can find a contact list for Senators and Members on the Parliament of Australia Page. Or follow the link below to download the list from the Parliament of Australia website:

When writing to a Senator or Member, please follow the Guidelines for Contacting Senators and Members published on the Parliament of Australia Page.

Download Dealer Bulletin

Bulletins