Today, the Victorian Automotive Chamber of Commerce released a landmark Pre-Budget Submission for 2025-26, calling for urgent government intervention to support the state's automotive industry. As Victoria's peak automotive body, we've outlined comprehensive reforms needed to address the challenges of zero-emission vehicle adoption and severe skills shortages facing the sector.
In what represents the most significant reform package in recent years, VACC has put forward 16 key recommendations spanning crucial areas, including taxation, industry support, consumer protection, skills and training, and workplace relations.
VACC CEO Peter Jones emphasises the critical nature of this submission: "The automotive industry is the backbone of Victoria's transport system. Every day, our members ensure millions of Victorian motorists can safely travel to work, transport goods, and keep our economy moving. But this vital industry is at a crossroads."
Critical Transition Period
The industry faces unprecedented challenges as Victoria aims to achieve 50 per cent zero-emission vehicle sales by 2030. VACC members, particularly small businesses and independent repairers require substantial support to invest in new equipment and upskilling to meet these targets.
Recent research has revealed concerning trends, with 35 per cent of motorists currently postponing vehicle servicing due to cost-of-living pressures. This trend is particularly worrying in regional areas and among vulnerable communities, where delayed maintenance could significantly impact road safety.
"We're calling for a subsidised vehicle maintenance scheme targeting vulnerable motorists," Mr Jones explains. "Road safety cannot be compromised due to financial constraints. The potential consequences of neglected vehicle maintenance extend beyond individual vehicles to impact the broader community's safety."
Comprehensive Reform Package
The submission outlines several critical recommendations, including:
Financial assistance packages to support automotive businesses transitioning to service zero-emission vehicles Reforms to land tax and the elimination of Super Luxury Duty Creation of a dedicated government task force to address organised crime in private car sales Enhanced funding for vocational education and training in thin markets Additional support measures for the Victorian Workers Compensation Scheme
"These measures are interconnected and designed to address both immediate challenges and long-term industry sustainability," Mr Jones notes. "Without comprehensive reform, we risk undermining the industry's capacity to support Victoria's transport needs."
Industry at a Crossroads
The automotive retail sector's current situation presents significant concerns about the future of many small businesses without adequate government support and policy reform. "This isn't just about business survival – it's about maintaining a robust automotive industry that can effectively serve Victorian motorists and support the state's transition to cleaner transport," Mr Jones adds.
Representing over 5,000 members across Victoria and 20 retail automotive sectors employing more than 50,000 Victorians, VACC continues its century-long tradition of advocacy. The Chamber remains committed to promoting policies supporting business sustainability and public safety.
For more information about the Pre-Budget Submission for 2025-26, Download a copy here.