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2024-25 Federal Budget: Impact on retail auto sector

15 May 2024

The new federal budget has delivered some key support measures for the retail motor trade as it prepares for major changes on the horizon. With new vehicle emissions standards coming in and more people switching to electric vehicles (EVs), the industry is facing a transformative period.

Recognising the challenges ahead, the government has allocated funding to assist businesses in making this transition to the new automotive landscape. Here are some of the major initiatives:

$84.5M to implement the NVES
To establish a regulator to administer the NVES, including capturing emissions data, establishing a credit trading platform and undertaking monitoring and compliance activities

Training for EV Maintenance and Repair

With new automotive technologies like EVs emerging, we need mechanics and motor trade professionals with specialised skills to service these vehicles. Funding has been provided for training programmes and new facilities to upskill workers in EV maintenance, repair and servicing.

General Transition Support

Acknowledging the widespread impacts this industry shift will have, the budget offers transitional assistance to help businesses adapt their operations and business models to the changing landscape as electric and emissions compliance becomes the norm.

While the government didn't address every request from motor trade bodies, this budget represents a positive step in the right direction. Groups like the Motor Trades Association of Australia (MTAA) and state/territory associations engaged extensively with policymakers this past year, participating in over 60 meetings to advocate for their members' needs.

Looking ahead, these organisations will continue to work closely with the government to secure further support measures in future budgets and policy decisions as the transition gathers steam.

For all the details on how the 2024-25 Budget impacts the motor trade, check out our comprehensive report: VACC-Budget Overview 24-25

 

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