FCAI interim statement—PC report

26th August, 2014

The FCAI welcomes the Australian Government’s comments, today, that they have no intention of allowing Australia to become the dumping ground for other countries’ old second-hand vehicles.

The comments follow the release of the Productivity Commission’s final report for their Inquiry into Australia's Automotive Manufacturing Industry.

The Productivity Commission asserts that relaxing the restrictions on the importation of second-hand vehicles would deliver benefits in the form of lower prices and/or improved features and greater choice for vehicle buyers.

Responding to this, FCAI Chief Executive Tony Weber said Australia has the most competitive new car market in the world and this competition brings with it the very latest environmental and safety technologies for consumers.

“With the significant year-on-year improvements in vehicle technology, it goes without saying that a newer motor vehicle fleet is better for consumers as newer cars are safer, more environmentally friendly and more reliable,” Mr Weber said.

“The high level of competition is benefiting consumers, with a vast majority of models sold in Australia at a cheaper price than other right-hand drive markets. On 2 August I released research supporting this. Further highlighting this, the most recent CommSec Car Affordability index shows that car prices in Australia are at their lowest since the index began in 1976.

“We will continue to engage with the Government about this matter. This includes through our response to the Motor Vehicle Standards Act Review.”

The FCAI supports the Productivity Commission’s recommendation that the Luxury Car Tax be removed. “This poorly designed tax distorts vehicle purchase decisions and adversely impacts safety and environmental outcomes. We welcome the Government’s in principle support for this recommendation and we look forward to further consideration in the Government’s Taxation White Paper.”

For more information, contact:
Sheena Ireland, Communications Manager
02 6229 8221 / 0458 038 555
Sheena.ireland@fcai.com.au