The hollowing-out of auto

15 November 2019

A sad legacy for a proud industry

Sharply rising land tax bills have seen many automotive business owners sell up and move out of local communities.

The effect is two-fold and neither outcome ideal for you.

Firstly, motorists must travel further to access service and repair work, or maybe lose access altogether.

Secondly, fully-equipped auto workshops get converted into mobile mechanics. This isn’t all bad, but it does lead to tighter segmentation of skill sets that each mobile service provider brings: one for radiators, one for brakes…

The generalist centre, that could fix almost anything, is disappearing. But where have the people gone – the technicians, apprentices and support staff? Mostly, they just don’t work in those roles anymore.

And what of your future auto go-to, the local teen looking for an apprenticeship? The very thing apprentices need – an employer with a business – is vanishing. 

Why do auto businesses have to pay taxes that reflect the improved value of the land (i.e. yet another apartment complex) when the business’ purpose is to serve a local community and employ people?

A recent VACC survey found land taxes for automotive workshops in metropolitan Melbourne have risen by 130 percent on average in the last two years. It’s causing businesses to leave, creating a vacuum of important consumer and business services in the areas they operate.

Business owners just want to fix cars, but the pressures of local and state taxes shout out 100 reasons to take the money and run.

That’s bad news for everyone.

Words: VACC CEO, Geoff Gwilym. As featured in the Herald Sun 15 November 2019.

Share your thoughts! E: ceo@vacc.com.au