THE Victorian Automotive Chamber of Commerce (VACC) has welcomed initiatives in the federal government’s 2025-26 Budget such as strengthened franchising protections and apprenticeship support, but has declared that the Budget falls short on addressing the industry’s transition to electric vehicles and relief from operational cost pressures.

VACC CEO Peter Jones said the allocation of $7.1 million to enhance ACCC enforcement of the Franchising Code of Conduct represents a significant win for Victorian automotive retailers.

VACC CEO Peter Jones

“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,” Mr Jones said. 

“This change will create a more equitable operating environment for Victorian dealerships and franchise repair businesses.”

But the VACC said it was disappointed 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“These taxes were designed when Australia manufactured domestic vehicles and are now outdated. They often apply to more efficient vehicles and those with advanced safety features, ultimately discouraging consumer uptake of better technology,” Mr Jones said.

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 this amount is inadequate for energy-intensive automotive operations such as paint and panel workshops.

The VACC will continue to advocate strongly for:

• Reform of outdated automotive taxes
• Support for EV transition infrastructure in repair and service businesses
• Improved energy cost relief for automotive operations
• Enhanced apprenticeship and vocational training investment

“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.”