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The peak body representing franchised new car Dealers welcomes the passing of the Treasury Laws Amendment (Electric Car Discount) Bill through the Senate.

The AADA supports the introduction of measures and incentives that encourage the uptake of zero or low emissions vehicles by Australian consumers.

“This is a good outcome which delivers on the Government’s election commitment to exempt eligible electric vehicles from fringe benefits tax,” said AADA CEO James Voortman.

“The passage of this Bill will come as welcome relief to all employers and their employees who have leased an eligible EV since 1 July and it will also give certainty to those who are considering doing so in the future,” said Mr Voortman.

“We would have preferred to see the Bill pass without sunsetting provisions for plug-in hybrid vehicles (PHEVs), but we acknowledge this represents a consensus position,” he said.

“We believe PHEVs provide a good solution for many Australian families with certain mobility needs, particularly in regional areas. We should not lose sight of the fact that PHEVs enjoy significant emission reduction benefits over internal combustion engine vehicles,” he said.

“It is imperative that employees taking out a lease on a PHEV before 1 April 2025 are provided with the FBT concessions across the life of their lease, so the latest amendments proposed by the Australian Greens and Senator David Pocock are critical,” said Mr Voortman.

“This Bill represents a good first step for the National Electric Vehicle Strategy, and we look forward to working with the Government and our automotive industry colleagues to progress the transition to net zero,” he said.

 

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The peak body representing franchised new car Dealers welcomes the new Net Zero Unit established in the Department of Infrastructure, Transport, Regional Development, Communication, and the Arts.

“The AADA congratulates the Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, for leading this initiative and advancing coordination towards Net Zero within Government and between Government Departments,” said AADA CEO James Voortman.

“We hope that the Net Zero Unit will provide stakeholders from across the automotive industry with an opportunity to offer input to the Government as it develops initiatives to lower transport emissions,” he said.

“New vehicle retailers will play an important role in the transition to Net Zero by selling zero and low emissions vehicles and educating consumers on these new technologies,” he said.

“There is an expectation that the transition to lower transport emissions will be carefully managed so that change occurs in an orderly manner and with the best possible results for the ultimate goal which is the decarbonisation of transport,” he said.

“Dealers support an ambitious, but achievable transition to lower emissions and electrification. Franchised new car Dealers work closely with their Manufacturers in developing inventory which reflects market preferences, and as this preference transitions to EVs our members will respond to the market,” said Mr Voortman.

“We look forward to working closely with the Net Zero Unit to ensure the voice of Australia’s more than 3,000 automotive Dealers and their 59,000 employees are taken into account,” he said.

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The peak body representing new car Dealers welcomes the announcement by the Federal Government that it will consult on the establishment of a national electric vehicle strategy.

“The AADA looks forward to contributing to the consultation process on behalf of Australia’s more than 3,100 new car Dealerships and their 59,000 employees,” said AADA CEO James Voortman.

“New car Dealers support action on lowering vehicle emissions, and consultation with industry is an encouraging sign that Australia will have a fit for purpose, nationally led, electric vehicle strategy,” he said.

“As zero and low emissions vehicles (ZLEV) become more prevalent, new car Dealers will play an important role in supplying those vehicles to the market. They will also play an important role in demonstrating ZLEV cars to their customers and educating them on issues such as range, charging and performance,” said Mr Voortman.

“It is incredibly important that the thousands of small and family automotive businesses which employ people, train people, invest in our economy and provide Australians with transport play a major part in the development of this strategy,” said Mr Voortman.

“While the automotive industry can agree that a vehicle emissions standard is an important step forward, the devil is in the detail and we should be guided by a sensible evidenced-based approach, taking into account Australia’s unique features,” he said.

“A vehicle emissions standard will accelerate the emergence of ZLEVs, bringing many opportunities for business and benefits to the community, but in the US and Europe such standards have been complemented by generous financial incentives and industry have been given an appropriate timeframe to adjust,” said Mr Voortman.

“Australia is a very small right-hand drive vehicle market in global terms, and it is situated at the end of a long and complex supply chain. Australia’s vehicle emissions standard needs to be realistic, achievable, and should not unduly punish consumers or motorists who cannot afford the transition,” he said.

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The automotive industry supports the need for a vehicle emissions standard but restricting the sale of internal combustion engine vehicles by 2035 is a risky approach for Australia and its unique circumstances.

Statements being issued suggesting that in developing a standard, the Government should ignore the automotive industry are incredibly concerning and completely inappropriate.
AADA CEO James Voortman said, “Dealers, Manufacturers, independent repairers and other automotive businesses employ hundreds of thousands of Australians and should not be ignored.”

“Industry expertise will be crucial in informing Government policy which is achievable.”

“The industry supports a vehicle emissions standard, but it needs to be one that is realistic and does not unduly punish consumers or result in motorists holding on to their older vehicles for longer,” he said.

“We keep hearing calls for Australia to implement vehicle emissions standards which are in line with those that exist in the US and Europe. It is a fact that such standards have been in place in the US and the EU place for well over a decade, allowing those countries an appropriate and achievable transition period,” said Mr Voortman.

“It is also a fact that in the US and the EU vehicle emissions standards are complemented by generous incentives for consumers. In a market like Germany, you can get up to $13,000 (AUD) in up-front incentives before tax benefits. This level of incentive is not available to consumers in Australia, and it does not appear to be on the horizon,” he said.

“Australia is a very small right-hand drive vehicle market in global terms, and it is situated at the end of a long and complex supply chain. These factors need to be taken into account when developing a vehicle emissions policy which is fit for purpose,” Mr Voortman said.

 

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Australia’s peak National, State and Territory automotive representative organisations have reached a historic agreement at an Industry Summit on critical positions and pathways to achieve the considered and practical transition and electrification of the national motor vehicle fleet.

Representing thousands of businesses that make, sell, distribute, provide novated leasing, service, repair, supply aftermarket parts, components, and accessories, dismantle, recycle, and train tens of thousands of automotive professionals, the peak organisations developed and agreed to more than 25 principles including:

• Embracing the electrification of the Australian motor vehicle fleet.
• Mandating CO2 targets, not Electric Vehicles (EV) targets.
• Supporting the Federal Government in developing a National Zero and Low Emission Vehicle (ZLEV) Electrification Transition Strategy.
• Considering the entire registered vehicle fleet and the needs and requirements of Australians who own and operate them.
• Maintaining the safety, security, service, repair, and efficiency of the legacy Internal Combustion Engine (ICE) fleet.
• Opposing the introduction of bans that limit consumer choice and remove options for meeting car owners’ needs and Australia’s emission reduction targets.
• Ensuring Government targets and milestones are ideally Federally led (or at least nationally consistent), are realistic, supported by facts and sound qualitative data, and applied to an Australian context.

The organisations welcomed and congratulated the Albanese Labor Government for its decisive action in fulfilling its Fringe Benefits Tax exemption for Electric Vehicles promise. The legislation was in the first batch of 13 Bills introduced to the Parliament and will encourage the uptake of EVs once passed.

Automotive Organisation leaders shared and discussed comprehensive global and domestic data analysis on the future production and delivery of ZLEVs past 2030 (particularly to the Australian market); impacts and use of targets, milestones, incentives, subsidies, and penalties; jobs and skills; tariffs and taxation; fuel standards and security; legacy fleet management and maintenance; and awareness and education.

Over the coming weeks, the automotive organisations will engage with stakeholders, governments, and communities and share critical data and information to better balance discussion and partner with the Commonwealth Government to plan the actions necessary to reduce motor vehicle-sourced CO2 and GHG emissions.

 

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The peak body representing franchised new car Dealers notes the official release of the ACT Government’s Zero Emissions Vehicles Strategy 2022-30.

AADA acknowledges the strategy contains a number of good initiatives which support the transition to EVs and should help make ZEVs more affordable, but remains concerned about the proposed ban on ICE vehicles from 2035.

“We still hold concerns around the foreshadowed phase out of light internal combustion engine vehicles from 2035, but are pleased that the Government has said it will review this milestone to 2035,” said AADA CEO James Voortman.

“In other global markets ICE bans have been preceded by vehicle emission standards and generous incentives, neither of which currently exist in Australia,” he said.

“If we have learned anything in the past two years it is that the new vehicle supply chain is incredibly fragile. While we hope that we are able to supply 100% ZEVs by 2035, there are too many unknown variables to say with confidence that we can – reviewing this target in the lead up to 2035 is a sensible commitment,” he said.

“We agree with the ACT strategy that the Federal Government should take a leadership role on the emergence of ZEVs and would urge a national approach on areas such as emissions standards, vehicle taxation and vehicle standards – leaving it to the individual state and territory governments to set their own policies is not in the best interest of consumers or businesses,” he said.

We welcome the ACT Government’s commitment to work with industry to reach the targets outlined.

 

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The peak body representing franchised new car Dealers is concerned over reports the ACT Government will ban internal combustion engine (ICE) vehicles by 2035.

 

“We have serious concerns that this policy will have adverse consequences for the automotive industry, the people they employ and consumers in the ACT,” said AADA CEO James Voortman.

 

“Electric vehicles are currently more expensive and at present there is a distinct lack of choice in available makes and models. These factors may well change by 2035, but this ban has been foreshadowed in an environment where there is great uncertainty,” he said.

 

“The big risk is that people hold onto their older, more polluting cars for longer which will do nothing for reducing emissions.”

 

“It is unclear how the ACT will enforce this ban and prevent consumers from simply purchasing an ICE vehicle across the border and re-registering it here as a used car,” said Mr Voortman.

 

“Rather than a crude ban on ICE’s, the best way to lower emissions is to put a technology-agnostic CO₂ standard in place, so that Manufacturers have a clear understanding of what they need to achieve and are given the freedom to deploy any technology to achieve that goal.”

 

“The transition to low emissions vehicles will have major consequences for Canberrans and all Australians and it is critical that we develop a national strategy to facilitate the transition,” he said.

 

“This is another example of why the transition to low emissions vehicles should be led by the Federal Government, which controls the importation of new vehicles into the Australian market,” Mr Voortman said.

 

“Disappointingly, there has been no consultation on this major change and automotive businesses in the ACT are left scratching their heads and asking what the future holds for them.”

 

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The Motor Vehicle Information Scheme (MVIS) comes into effect as of tomorrow, 1 July 2022, allowing independent repairers the option of purchasing vehicle service and repair information from car Manufacturers and other information providers.

The scheme will create a level playing field in the automotive service and repair market, allowing independent repairers to obtain the information OEMs share with their Dealers on fair and reasonable commercial terms.

“Franchised new car Dealers welcome the competition. Our technicians are factory trained in the latest service and repair techniques and they have the most up to date Manufacturer specified tools and equipment. Franchised Dealers have and always will have an important role to play in the service and repair market,” said AADA CEO James Voortman.

“Dealers already have good relationships with their local independent repairers to whom they regularly sell genuine parts and accessories. There are over 20 million registered cars in Australia and keeping them safe and reliable is a job bigger than any one sector of the service and repair industry,” he said.

“The AADA is proud to have played a part in establishing the scheme, working collaboratively with our industry colleagues at the FCAI, AAAA and MTAA. Together, our respective organisations have formed the Australian Automotive Service and Repair Authority (AASRA) which has been appointed by the Australian Government as the Scheme Adviser, responsible for managing the scheme and reporting to government on its progress. Never before have our organisations worked so closely together and this serves as a powerful example of what we can achieve when we work co-operatively,” he said.

The AADA commends Assistant Minister for Competition, Charities and Treasury, Dr Andrew Leigh, for his long standing support of the scheme. We look forward to working with the Government and our fellow automotive industry bodies in implementing these regulations.

 

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