The Australian Government has released today the Automotive Review Final Report. The review was led by the Hon Steve Bracks and is focused on the manufacturing and component suppliers sector of the industry. If the recommendations are largely followed by the Federal Government and the States and Territories are persuaded to comply with the ones impacting on them, benefits should follow through to the motor dealer sector.

Summary of recommendations

  • replacing the current Automotive Competitiveness and Investment Scheme with a new and retargeted Global Automotive Transition Scheme designed to support research, development, design and export with Funding to be provided by the Government of $1.5 billion over 5 years;
  • bringing forward to 2009, and doubling to $1 billion if successful, the Government's Green Car Innovation Fund ;
  • contributing to a short-term restructuring fund to assist the automotive supply chain to improve economies of scale;
  • reducing the passenger motor vehicle tariff from 10 to 5 percent by 2010, making Australian car tariffs the third-lowest amongst major automotive-producing economies in the world;
  • including road transport in an emissions trading scheme;
  • encouraging automotive exports through expanded free trade agreements, particularly with the Gulf States, ASEAN and South Africa;
  • expanding access to overseas automotive supply chains through a 'Team Australia' approach using eminent automotive ambassadors;
  • harmonising, and in some cases reducing, state and territory passenger motor vehicle taxes, while encouraging governments to support an environmentally sustainable Australian industry; and
  • increase of grants on the purchase of factory fitted new LPG vehicles from the current $1000 to $2000.

The report proposes the implementation of the recommendations by legislation where required in 2009 to take effect from 1 January 2010.

A full copy of the report can be downloaded from the following website www.innovation.gov.au/automotivereview/Pages/ReviewofAustralia'sAutomotiveIndustry.aspx

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