ALP Promises $200m Boost For Australian Car Industry: Federal Election

Trevor Collett | Aug 5, 2013

The Australian Labor Party (ALP) has kicked off its federal election campaign by promising a further $200million in assistance for Australia’s struggling car industry.

Further to this, the ALP has also outlined plans to ensure that Commonwealth fleet buyers purchase Australian made cars, wherever possible.

This would provide the Australian car industry with a very welcome shot-in-the-arm - an additional 18,000 sales per year, according to ALP figures.

Speaking with ABC radio, care-taker Prime Minister Kevin Rudd outlined the importance of supporting the local car industry.

"I have said before that I do not believe manufacturing is an industry just for the past, it's an industry for the future," Mr Rudd said.

But the ALP has come under attack from the Coalition and others, with claims that the $200 million boost will not be enough to undo the sales damage caused by new fringe benefits tax (FBT) laws.

Federal Coalition leader, Tony Abbott, has promised to scrap the FBT changes if elected, but the Coalition is yet to announce an assistance package for Australian carmakers of its own.

The Australian-built Holden Commodore, Ute and Cruze models along with Toyota’s Camry and Aurion would all be likely to benefit from the ALP policy.

Ford’s locally built Falcon and Territory models would also benefit, but the new policy would be unlikely to reverse Ford’s decision to cease production in Australia in 2016.

Stay tuned to TMR for more proposed policies from the federal political parties, and other news leading up to the 2013 federal election.

Filed under: federal government, australia, australian automotive industry, News, Australian government, labor, election, coalition, federal funding

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  • Kermit says,
    1 year ago
    1 like
    Nothing has changed. Knee jerk, back flip, promise, disappoint
    • Ian says,
      1 year ago
      4 likes
      I can't get over how stupid their FBT decision was. At least with the FBT tax incentive, people had incentive to buy a new car, whilst working (read being productive) to pay for the car.

      Now we have these ideological nutters removing a tax that actually generated revenue, jobs, and car sales, and they have replaced it with funds from general revenue to keep the industry alive.

      To add salt into the wounds of the Australian taxpayer, the taxes these idiots hope to raise from the FBT changes will not eventuate as people simply won't salary sacrifice their cars anymore.

      We had the FBT tax breaks brought in by an ALP "World's Greatest Treasurer", Paul Keating. Then in 2012(?) we had another ALP "World's Greatest Treasurer" remove some of the incentive to help "save the planet", apparently, by stopping people from driving. Now in 2013 we have a self proclaimed "Australia's Biggest Ego" PM saying its a rort for the rich (never knew my Swift was a rich man's car, no wonder I get funny looks as a 100kg man driving it; people are jealous!!!)

      To cover up their mess they now take tax payers money, borrowed from a dictatorial Chinese government, to hide the mess they created.

      My eight year old will be paying the bill till she's 60 ; if she doesn't emigrate to a country that appreciates hard work, study, and skills, rather than declaring such types "rich" and then treating them as a cash cow for those who are lazy.

      A Doctor friend of mine was telling me yesterday how obese people now qualify for the disability pension. As a declared rich person, I think I'll stop going to the gym, stop working hard, and eat my way onto the taxpayer teat. I think I will become a ALP dependent Pig.

      Portugal, Italy, Greece, Spain; here comes Oz. Kruddonomics 101.
  • Poisson says,
    1 year ago
    I don't understand the outrage over the FBT changes, which apparently haven't had any impact on car sales anyway if the record sales in July are any guide.

    If you genuinely use your car for work, all you need to do is keep a logbook for a 12 week period once every five years. Hardly onerous and no different from the previous arrangements.

    If you don't use your car for work, then why should I as a hard-working taxpayer subsidise the private use of your car?

    Seems to be a lot of LNP hypocrisy going here.
    • Ian says,
      1 year ago
      Yes like the hypocracy that has already cost 300 workers their jobs in the car leasing industry with more to follow. The July sales are before the fact. Lets see what August figures look like, given the way car orders dropped off a cliff when the FBT changes were announced.

      Also, if it is all "hypocrisy", why has KRudd needed to plow in $200mil into the local industry? Why are Holden workers having to vote on decreasing their pay and conditions, I mean you ALP types keep telling us the economy is booming and all??
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