New car sales in Australia are expected to drop by 10 per cent or more annually, if the Rudd Government continues with its commitment to eliminate the FBT statutory formula method for salary-sacrificed and employer-provided cars.
“This is terrible news for car makers—importers and local manufacturers—who rely on volume to be viable in this country,” Federal Chamber of Automotive Industries (FCAI) Chief Executive Tony Weber said.
“The FCAI has undertaken analysis and even more concerning is that when we look at our local manufacturers alone, we expect the drop in their sales to be significantly higher—averaging almost 20 per cent.
“It has already been a very difficult time for local manufacturing in this country. I fear the Government’s decision to change the FBT policy for vehicles could have a dire effect on Australian car production, including the manufacturing supply chain.”
Mr Weber also reiterated the strong impact the FBT change will continue to have on the entire car industry, including importers, dealerships and finance companies.
“Once again I call on the Government to reconsider this decision,” Mr Weber said.
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