3rd May, 2023 ยท CEO Message

CEO Message No. 86

2 minutes to read

On the night of 13 June, the AADA will be hosting our Chairman’s Dinner in Sydney. The dinner is an annual event which falls on the night before our Convention and is a great opportunity to bring our members together and celebrate the contribution our industry makes to the nation and the lives of so many people. Each and every Dealer Principal and owner of a franchised new car Dealership in Australia has been invited to the dinner. Invitations have been sent through a third-party provider called Greenvelope, so members should look out for the invitation and make sure it’s not caught up in spam filters. A follow up invitation directly from me will be sent in the coming days, but members can also register to attend the dinner by emailing our events team.

It has been a busy time on the policy front in Canberra. A few weeks ago, the Government released its Electric Vehicle Strategy. The main element coming out of the strategy was confirmation that the Government will be developing a fuel efficiency standard. This is something manufacturers support as they believe it will result in Australia being allocated a better range of vehicles by offshore manufacturers. However, it is critical that the standard is not so stringent that it has the opposite effect of improving choice and affordability. The AADA is working closely with the FCAI and other industry groups to ensure that these regulations are fit for purpose – this work will be a key focus as the Government works towards introducing the standard by the end of the year.

There were very few new or surprising initiatives coming out of the strategy. From the AADA’s perspective its worth mentioning what was not included in the strategy. There was no proposal to open up the importation of used EVs and there was no suggestion of banning ICE vehicles. These are both principles the AADA pushed back against, and we are pleased that they were not given any oxygen by the Government despite a number of other groups pushing strongly for their consideration.

Another good outcome this week is confirmation from the Small Business Minister that the Government will be reviewing Australia’s franchising laws in the second half of the year. This will be a key opportunity for the AADA to provide the Government with a new car Dealers perspective on the franchising regulatory regime in Australia and will be a key focus for the Secretariat.

Other changes and policy updates which will be touched on below include the Government’s announcement that it would from July raise the wage level for temporary skilled migrants from $53,900 to $70,000. We have been contacted by many members and are in the process of securing more details from the Government on how this significant increase will be applied. It is also Budget week next week, and while we don’t expect any major announcements, the AADA will have someone present in the Budget lock-up and will provide members with a Budget Briefing.

With the end of the trade interrupted Easter/Anzac period, it’ll be full steam ahead for the industry for the next two months ahead of the EOFY. Remember that while you work to reach respective targets, the AADA is working hard to represent your interests.