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Extra Government Support For Australia's Car Industry…But…..


The FBT situation for Australia’s struggling local manufacturers hasn’t improved, even with the recent announcement of $200 million dollars going towards Ford, Holden and Toyota and a mere $7 million towards car suppliers, ignoring the areas that currently also needs assistance; the retail sector. The Victoria Automotive Chamber of Commerce has hit out against the Federal Government for ignoring the retail aspect, with brokers and suppliers feeling the backlash and laying off staff. VACC Executive Director David Purchase said “Our members are sick of so-called automotive industry discussions and decisions that fail to even consider the repair, service and retail sector. In this most recent example, the Federal Government has announced an automotive industry package, but failed to include the retail sector. The changes to the FBT system have hit car retailers hard and fast, with many experiencing cancelled orders and job losses. And yet, the Government’s response fails to even mention retailers, let alone compensate them.”FBT

Mr Purchase also says that it’s pleasing the manufacturing and parts supply partners will be getting support and adds that nationally there’s 100, 000 small businesses employing 320, 000 and turning over $208 billion dollars, a significant contribution. There’s a measure of frustration  as well, with Mr Purchase saying “Claims the FBT statutory formula produces a tax rort, that salary packaging companies have a business based only on a tax break, that only wealthy people take advantage of vehicle leasing or salary packaged cars, that the cars involved are luxury models and that the whole system needs cleaning up are all wrong. Clearly, the FBT changes are not about closing a tax loophole or tax rort. They are not about being even-handed. They are not about equity. The changes are all about raising revenue to fill serious budgetary holes and have been made without proper consultation and forethought.

Now that the election has been confirmed for September 7, it remains to be seen how much change will happen after that date and what damage to affected industries has been done.