VACC Believes Stamp Duty Rebate Could Revitalise New Car Sales

The Victorian Automotive Chamber of Commerce has put the acid on the state government to cut the cost of stamp duty on new vehicles, recommending the cuts in its pre-budget submission 2009-2010 to Victorian Treasurer John Lenders.

At present, Victorian car buyers pay stamp duty of $5 for every $200 on a new vehicle up to $57,009.  Beyond that threshold, the figure jumps to $10 per $200.

VACC Executive Director David Purchase said a meaningful rebate of $500 would make a genuine difference in the decision to buy.

“A similar scheme in the residential housing market, involving the introduction of a first home owners grant has successfully encouraged some buyers into the market place who otherwise would not have been able to purchase property.

“We feel a ‘new vehicle rebate’ could do the same for the new car market,” Mr Purchase said.

In addition to the above, VACC has put forward the following recommendations:

• Retail automotive industry roundtable to encourage consultation and cooperation
• No new taxes or charges for business (including land tax rises) and reduce Workcover premiums
• Reduce payroll tax and plan to repeal progressively over two terms of Parliament
• Cut GST collected on fuel excise
• Increase Small Business Commissioner funding
• Establish an Office of Small Business regulation review
• Additional funding for automotive trade training
• Support promotion of workplace vehicle safety
• Enhance motorcycling and scooter licensing laws to encourage greater use of this efficient and economical two wheeled powered form of transport
• Fund extension of Melbourne Exhibition Centre
• Split vehicle registration activity away from VicRoads
• Increase funding for enforcement on unlicensed motor car traders

Mr Purchase said that the retail automotive sector is of great importance to the Victorian economy, with some 52,000 people employed in the sector.

“Many businesses exist on low profit margins and due to the global financial crisis, are now facing the prospect of reduced cash flow, tightening credit and increasing costs. Unfortunately some have closed and employees made redundant.

“Therefore it is critical for both business and government to recognise and react to the effects of the global financial upheaval. Strong partnership between VACC and the Victorian Government will be important in navigating the challenges which will be faced by the retail automotive industry,” Mr Purchase said.