The AAA says newer (and therefore safer) cars would become more affordable if import tariffs were scrapped, as nine out of ten new cars sold in Australia last year were imported.
“With local manufacturing coming to an end it is only fair that tariffs on imported vehicles must also stop,” AAA Chief Executive Andrew McKellar said.
“If tariffs were designed to help protect the local industry then there is no longer any justification to maintain them.”
Mr McKellar said that the average new-car buyer could save between $1000-$2000 on the cost of a vehicle if tariffs were abolished, and called on the Federal Government to use the May Budget to announce an end to the scheme.
“The Government must use the upcoming Federal Budget to announce the end of vehicle import tariffs in order to improve motoring affordability,” Mr McKellar said.
The import tariff on new cars is currently at five percent.