There were some positives for the auto industry in the 2025/26 Federal Budget, according to the VACC.
On the Budget’s provisions for franchising, VACC CEO Peter Jones welcomed the allocation of $7.1 million to enhance ACCC enforcement of the Franchising Code of Conduct. This is seen as a significant win for Victorian automotive retailers.
“The extension of protections from Unfair Trading Practices to franchised new car and truck dealers directly addresses power imbalances our members have faced for too long,” he said.
“This change will create a more equitable operating environment for Victorian dealerships and franchise repair businesses.”
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However, the VACC also highlighted areas where further industry support is needed.
Delivered yesterday by the Treasurer, the Budget includes welcome initiatives such as strengthened support for apprenticeships.
The VACC expressed disappointment over the government’s decision to maintain existing automotive tax structures, including the Luxury Car Tax and Passenger Vehicle Tariff, which are expected to generate nearly $1.55 billion in revenue this financial year.
“These taxes were designed when Australia manufactured domestic vehicles and are now outdated,” Mr Jones said.
“They often apply to more efficient vehicles and those with advanced safety features, ultimately discouraging consumer uptake of better technology.”
EV uptake “miss”
The Budget’s limited support for businesses managing the transition to electric vehicles was also highlighted as a missed opportunity.
“Victorian automotive businesses face substantial capital costs to update facilities and equipment to service electric vehicles. The absence of targeted government support for this transition places an unfair burden on small businesses that are essential to maintaining Australia’s vehicle fleet,” Mr Jones said.
While the $150 small business energy rebate extension until December 2025 provides some relief, VACC noted that this amount is inadequate for energy-intensive automotive operations, such as paint and panel workshops.
In response, the VACC will continue to advocate for: Reform of outdated automotive taxes Support for EV transition infrastructure in repair and service businesses Improved energy cost relief for automotive operations Enhanced investment in apprenticeships and vocational training.
“As we approach the federal election, the VACC will be actively engaging with all sides of politics to ensure Victoria’s automotive industry concerns are addressed in future policy platforms,” Mr Jones said.
“The automotive industry employs thousands of Victorians and is essential to keeping our state moving. We require policy settings that recognise both the challenges and opportunities facing our sector.”