The Australian Government’s decision to remove the statutory formula method for salary-sacrificed and employer-provided cars has dire consequences for Australia’s vehicle industry, both locally-made and imported.
Automotive manufacturing is a scale industry, which requires long-term planning. The Government’s announcement today, to introduce changes from today, undermines the long-term certainty the Federal Chamber of Automotive Industries and its members have repeatedly called for from Government.
“This change affects all car sales in Australia, both imports and domestically manufactured. And the effects will flow right through the industry, including to dealerships and service centres,” FCAI Chief Executive Tony Weber said.
“I want to know if the Government truly understands the consequences of this decision, and why the industry was not consulted on such a significant change.
“The FCAI is yet to do precise calculations but we estimate, from today, this could impact on around a third of new car sales.
“I fear what this means for domestic manufacturing and I am urgently seeking meetings with the Government to encourage them to reconsider this decision.”
For further information contact:
Sheena Ireland, Communications Manager
P: 02 6229 8221
M: 0458 038 555