The Federal Chamber of Automotive Industries welcomes the confirmation by Treasurer Joe Hockey and Assistant Treasurer Arthur Sinodinos that the Federal Government will not proceed with the previous Government’s FBT change, announced in July.
This means the statutory formula method remains an option for the determination of the FBT payable on motor vehicles.
“With the clarity this announcement gives to consumers, we expects car sales figures will increase in line with the trend in growth we were experiencing prior to the 16 July announcement,” FCAI Chief Executive Tony Weber said.
Car sales have fallen each month since July, when the announcement was made. Earlier today, the FCAI announced that car sales were down 3.1 per cent in October. In September, car sales fell by 2.1 per cent and in August they fell by 0.2 per cent.
Releasing the October 2013 VFACTS report, Mr Weber noted the October data led the FCAI to conclude there was still confusion in the market following the previous government’s FBT proposal. “It is hard to have any other explanation for the 3.1 per cent fall in the automotive market, particularly given a number of positive economic indicators across the broader economy in recent weeks,” Mr Weber said.
For more information, contact:
Sheena Ireland, Communications Manager
02 6229 8221 / 0458 038 555