Federal Minister for Industry Ian Macfarlane has responded to this week's Productivity Commission report, saying the government's work with the sector on a transition plan would be ongoing.
Mr Macfarlane said the government would continue to purchase locally-built cars for its fleets (for as long as they are available), and its existing assistance packages would remain unchanged.
“The government is focussed on ensuring Australian automotive workers, component makers and small businesses in the manufacturing supply chain have the opportunity and support to take advantage of new jobs and new markets where Australia has an international competitive edge,” Mr Macfarlane said.
Mr Macfarlane also highlighted the Commission’s recommendation that current regulations around second-hand imported vehicles (‘grey’ imports) be somewhat relaxed.
He said the issue would be considered as part of the Government’s review of the Motor Vehicle Standards Act 1989.
"[The Federal Government is] mindful of the need to maintain the highest safeguards for consumers and the impact of any changes on the domestic car retail market”, Mr MacFarlane said.
He added that Australia will not become a “dumping ground” for grey imports.
The report recommends a new process for grey imports no more than five years-old prior to the date of application and sourced from countries with similar design rules to Australia; but a new scheme should not commence before 2018.