Industry Policy Matters

4 April 2022

With 2022 well and truly underway, VACC’s policy team is also full steam ahead. In the lead up to the likely May Federal Election, VACC has launched its Federal Election manifesto REVolution: The automotive industry’s policy priorities for the next Australian Government, which outlines the automotive industry’s key policy priorities for the next Australian Government. Culminating in 35 recommendations, the manifesto covers nine important areas for reform.

It will come as little surprise that skills shortages and access to qualified labour is the biggest issue facing our industry and tops our policy list. While the automotive industry is no stranger to skills shortages, the added pressure of COVID-19 and closed borders has exacerbated an already tenuous situation. VACC’s modelling predicted a labour deficit of approximately 31,000 positions in 2020-21. Updated analysis forecasts this figure to rise to almost 39,000 throughout 2022-23. These are alarming numbers.

VACC is demanding urgent government action in three ways: 1) prioritise automotive motor mechanics for visa processing, 2) reinstate permanent and temporary skilled migration at a heightened level; and 3) implement greater training incentives and support for automotive apprentices and employers – including support for the training of a Zero and Low Emissions Vehicle (ZLEV) workforce. While it’s acknowledged there are no ‘quick fixes’ when it comes to skills shortages, VACC is doing all it can to support members and work towards a workable solution that will allow members to employ and grow.

Further to the skills crisis, COVID-19 business recovery is also a priority. VACC argues that any future government COVID-19 relief or stimulus packages should be equitably distributed. Research conducted by VACC found at the height of the pandemic in 2020, approximately 70 per cent of dealers, nationally, did not qualify for three of the Federal Government’s key relief packages. This was based on the criteria of aggregated turnover, insufficient loss of business turnover (70 per cent in some instances) or staff levels being too high. As we move into the third year of the pandemic, it is essential the next Australian Government learns from previous experiences and ensures equitable support is delivered.   

Rounding out our top three issues is the imperative to future proof the Australian automotive retail industry. The industry has a significant role to play in the sustainably of our environment, which includes the promotion, sale and servicing of ZLEVs. As the phasing out of internal combustion engines (ICEs) draws closer, it is crucial government and industry is prepared for the changes (and challenges) this will have on supply chains, businesses and the public purse. VACC argues that the next Australian Government must to take a leadership role, in collaboration with the automotive retail industry, in the implementation of a national ZLEV policy. 

This will provide clarity and harmonisation across jurisdictions as the country moves to upskill technicians, provide adequate infrastructure, align incentives (if any) and bridge tax shortfalls brought about by lost excise.

Other areas covered in the manifesto include: tax reform, red-tape reduction, environmental considerations, workplace relations and the need for fairer competition for some parts of the industry. It is a detailed document that, in our view, covers the many areas requiring urgent attention as we move towards a new post-COVID world. The document has been sent to all state and federal members of parliament and relevant stakeholders. It will also be accompanied by a comprehensive communication campaign, so please stay tuned and feel free to connect with any of the policy team to discuss any of its content.

I invite members to download REVolution from the VACC website to read our priorities at your leisure. Once again, I thank those members who were actively engaged in providing feedback. Your input was absolutely essential and has meant our policy manifesto genuinely reflects the voice of our members. As the election draws closer we will ensure the voice of the automotive service, retail and repair industry continues to be heard. 

Download: REVolution: The automotive industry’s policy priorities for the next Australian Government

Words: VACC Lead, Strategy and Policy, Dr Imogen Reid. As featured in Australasian Automotive April 2022.