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Press Releases

Lack of Consultation on FBT Changes is Worrying Given Forthcoming Federal Election

The Australian Motor Industry Federation (AMIF) and its Members, are disappointed by today’s announcement that the rules concerning the calculation of Fringe Benefit Tax on applicable vehicles, is to be changed without any consultation with industry, or with regards for the impact of this change.

“It is a disgrace that the Rudd Government has elected not to consult the Australian automotive industry before making its decision to make significant changes to the FBT rules” said Mr Richard Dudley.

“Had the industry been consulted, we could have provided input into alternative FBT arrangements that would have assisted the Government in achieving its objectives towards the ETS, while supporting the domestic automotive industry and continuing to provide surety to small business operators.”

Instead we are left with another policy-on-the-run announcement that provides little detail in terms of the new arrangement’s and the added insult of an immediate extra burden upon consumers and that also increases the compliance burden upon small business.” He concluded.

It is for these reasons that AMIF announced during its recent National Press Club address, that urgent government engagement in the form of a Green Paper, was required to ensure that a cohesive and coordinate response to automotive industry issues and policy can be developed.

In this vein, AMIF is supportive of comments made by the Federal Chamber of Automotive Industries.

For further comment, please contact Mr Richard Dudley, CEO on 0412 146 82

An Industry at Crossroads - the Australian Motor Industry Federation's plan for the future survival of the Australian automotive industry

The Australian Motor Industry Federation (AMIF) today demanded an automotive industry Green Paper/ White Paper process be undertaken to address unprecedented change impacting the entire automotive industry not just car manufacturing.

During an address the National Press Club in Canberra, AMIF CEO, Richard Dudley, said the industry was facing a ‘perfect storm’, where every sector of the automobile industry is undergoing generational change.

‘For too long, successive Governments have failed to recognise that the domestic automotive industry does not begin and end with vehicle and component manufacturing and that a new approach is needed that includes the other 75% of the industry who employ 320,000 Australians in 100,000 businesses.

‘2700 people left car and car component manufacturing in 2011/12 but more than 13,000 people left the automotive service and repair sectors over the same period,’ Mr Dudley said:

Mr Dudley said recent research showed there to be a shortage of 19,000 skilled mechanics in Australia now. Those shortages, coupled with the effects of globalisation, environmental protection policy, rapid technological advances, shifting consumer behaviour and the maturation or decline of business life-cycles are creating a maelstrom that will have catastrophic consequences on the entire industry and the sustainability of its services to the community.

‘There must be a different approach to policy planning for the future. For too long, successive Governments have failed to recognise that the domestic automotive industry does not begin and end with vehicle and component manufacturing. This is why we continue to see ineffective, ad-hoc policy that fails to address the critical issues all of the automotive industry is facing.

‘Given that the automotive retail, service, repair and recycling sectors make up the largest concentration of small business in Australia, and depth of Australia’s reliance on the motor vehicle, it is irresponsible to consider any policy mechanism outside of a White Paper/Green Paper to develop comprehensive, evidence based policy to guide and sustain the medium and long term future of the Australian automotive industry." Mr Dudley concluded.

For further information, please contact Mr Richard Dudley CEO of AMIF on (02) 6273 8222 or 0412 146 828.

AMIF’s position paper Automotive 2018 – An Industry at Crossroads can be viewed at www.amif.com.au.

AMIF Welcomes the ACCC Authorisation of the End-of-Life Tyre Stewardship Scheme

The determination by the Australian Competition and Consumer Commission represents a landmark decision and the culmination of more than a decade of work towards the implementation of a joint Industry Tyre Stewardship Scheme.

Mr Richard Dudley, C.E.O. of the Australian Motor Industry Federation says:

“This is a historic moment for the Australian Automotive Industry. This outcome illustrates the shared commitment of key participants, including the Government, towards reducing the impact of motor vehicles on our nation’s landscape and our community.

In practice today’s Determination by the A.C.C.C. allows the establishment of Tyre Stewardship Australia, a non-for-profit body funded by an end-user contribution equivalent to 25 cents per passenger car tyre. The main purpose of T.S.A. will be to reverse current unsustainable practices associated with the collection and the disposal of end-of-life tyres." He said.

In a comment regarding the determination, ACCC Deputy Chair Dr Michael Schaper provided a clear and encouraging message for all present and future players in the Scheme:

“The ACCC is satisfied that the Scheme is likely to result in a benefit to the public by reducing the volume of used tyres entering the domestic waste stream or being exported overseas and burned for fuel in an environmentally unsustainable way...This will reduce the environmental and health and safety hazards associated with such disposal methods”.

In the words of Mr Silvio de Denaro, Secretary of the Australian Tyre Industry Council: “The Scheme will establish better ways of collecting and disposing of end-of-life tyres ensuring that over time this resource acquires a positive value and is actively sought by recyclers. New markets for tyre-derived products will be encouraged and developed: we very much look forward to working with other important Industry players such as the Australian Motor Industry Federation in developing and implementing this Stewardship Scheme.

For further information please refer to http://www.accc.gov.au/media-release/accc-approves-national-tyre-stewardship-program or contact: Mr Richard Dudley, Chief Executive Officer of AMIF on (02) 6273 8222 or 0412 146 828.