In response to the crisis facing Farm Machinery, Commercial Vehicle and Motorcycle Dealers (FIMDA) division members, and at the request of the Victorian Automobile Dealers Association (VADA) Executive Committee, VACC and the Motor Trades Association of Australia have submitted a paper to the Australian Government, entitled The case for exemptions from threshold and staff criteria in Federal Government COVID-19 relief packages for automotive dealer franchises. VADA Executive Committee members provided feedback and guidance, further strengthening content.
Read submission: The case for exemptions from threshold and staff criteria in Federal Government COVID-19 relief packages for automotive dealer franchises.
About the paper
This data-driven submission supports previous lobbying efforts and policy positions put forward prior to the COVID-19 situation and after government relief packages were announced. VACC CEO, Geoff Gwilym has been in dialogue with Treasurer of Australia, Josh Frydenberg, and other Federal Cabinet members calling for support and putting forward the case for dealers.
Key recommendations:
- Automotive dealer franchises be exempt from staffing and turnover thresholds, as currently mandated in Boosting Cash Flow for Employers relief, apprentice subsidy and commercial tenancy packages
- Automotive franchise dealers with an annual turnover of $1 billion or more be exempt from the 50 percent turnover downturn criteria mandated within the JobKeeper wage subsidy
- Australian Government advises the National Cabinet that automotive franchise dealers should also become eligible for all state-sponsored relief and stimulus packages
- Australian Government extends the deadline to the enhanced instant asset write-off until 30 September 2020.
Additionally, a position paper to the Victorian Government has been developed, focusing on threshold and staff level criteria (impacting 70 percent of the Victorian Dealer cohort). Read the submission here: The case for exemptions from the threshold and staff criteria in the Victorian Govt COVID-19 relief packages for automotive dealer franchises and LMCTS.