29th March, 2022 ยท Media Release

Fuel Relief Welcome but Structural
Reform of Auto Taxes Needed

The peak body representing franchised new car Dealers has welcomed the Federal Budget’s provision of fuel tax relief but called on the Government to commit to structural tax reform in the automotive industry.

“While today’s Budget responds to the current cost-of-living pressures being experienced by so many car owners, we desperately need a national plan for the major changes facing the automotive industry,” AADA CEO James Voortman said.

“In the lead up to the reintroduction of the full fuel excise in September 2022, the Government should consult widely on reforming this heavily taxed sector,” he said.

“Dealers’ customers provide tens of billions in taxes annually to federal, state and territory governments. Halving the fuel tax for motorists for six months will relieve some pressure in the short term, but what is desperately needed is a wholesale review of the automotive taxation system in Australia,” said Mr Voortman.

“This budget shows that motorists will be paying billions in taxes, such as import tariffs, the luxury car tax, fringe benefits tax, GST and excise. With Australia no longer manufacturing passenger vehicles and with the emergence of low emissions vehicles (LEVs), it is questionable whether our current automotive taxation regime is fit for purpose,” he said.

“This is a time of immense change in the automotive industry, and we are seeing state and territory governments follow their own paths on crucial issues such as provision of incentives for LEVs, vehicle taxation and road user charging. We simply need national leadership,” said Mr Voortman.

 

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