THE Australian Automotive Dealer Association (AADA) has canvassed the two major parties in the lead-up to the election on their positions and policies as they affect the automotive industry in general and car retailers in particular.

Here are the responses from each party:

The Coalition position …

Q: If elected, how will the Coalition help franchise new car dealers, considering the power imbalance between vehicle manufacturers and dealers?

A: The Coalition considers that domestic car dealers and all franchisees need to be protected against unfair trading practices and against unfair contract terms. As part of our plan for small and family businesses, the Coalition will level the playing field for small and family businesses through strong competition policy and strengthen unfair contract terms for small businesses, leveling the playing field between big and small businesses. 

The former Coalition government worked closely with automobile dealers to strengthen protections through the franchising Code of Conduct if the current system for Australia’s franchise new car dealers is not fit for purpose. 

We will work with industry to develop the regulations or legislation needed to protect against unfair practices. 

Q: What is the Coalition’s policy position on the New Vehicle Emission Standard (NVES). 

A: A Coalition government will work with industry, not against them, to bring to market the cleanest, most fuel efficient models of the cars Australians need and want to drive without punishing consumers with unfair costs. 

The Coalition will retain the NVRs standard act 2024 but abolish the financial penalties in Labor’s legislation, which have been estimated by industry to cost $2.7 billion by 2029 a cost that will be passed directly to consumers. 

We will retain a vehicle efficiency standard to keep pressure on auto manufacturers to develop and supply more fuel-efficient and less-polluting vehicles. We want cleaner, cheaper cars on Australian roads as we head towards net zero by 2050 but forcing unfair penalties on car makers and consumers is not the answer. 

Q: If elected, will the Coalition review the new vehicle emission standard to ensure it takes into current account international trading developments? 

A: Labor’s family car and ute tax is the wrong policy for our country. If elected, the Coalition will keep the emission standard legislation, but repeal the penalties which are being passed on to Australian motorists. 

The Coalition is committed to reducing emissions, and we will work with the industry which wants to see standards, a standard in place to fix Labor’s flawed legislation. 

Q: If elected, will the Coalition support fringe benefits tax concessions for electric vehicles and hybrids? 

A: The Coalition strongly supports Australians’ rights to buy the vehicle that best suits their individual or family circumstances, including hybrids or electric vehicles. 

The government should not be putting its finger ever more heavily on the scales, however, to subsidize the purchase of electric vehicles and penalize the purchase of petrol and diesel vehicles, especially since different vehicles remain better suited to performing some roles than others. 

This is especially true at a time when Labor has made a mess of the budget and is projecting 10 straight deficits so that any FBT concessions would have to be funded through borrowed money, increasing the amount that future generations will have to repay. 

Q: What is the Coalition’s position on the instant asset write off? 

A: A Dutton Coalition government will make the instant asset write off permanent at $30,000 for small businesses with turnover of up to ten million. This policy will deliver a permanent investment incentive for 98 per cent of businesses and encourage businesses to invest, take risks and create jobs and opportunities for all Australians.  

The instant asset write off was introduced by the Coalition in the 2015 budget, and has been extended on an annual basis ever every year since. It allows small businesses to immediately write off investments up to a capped value. This both incentivises investment, reduces small business tax liability and improves small business cash flow and saves compliance costs, meaning many small businesses do not have to deal with the complexity of depreciation schedules. 

Q: If elected, will the Coalition abolish outdated automotive taxes like import tariffs and the luxury car tax? 

A: The Coalition has a proud record of delivering lower, simpler, fairer taxes, and we will always look to improve the efficiency of our tax system and reduce the drag it places on productive private enterprises. 

However, Labor has made a mess of the budget with 10 straight budget deficits now projected, and the Commonwealth debt forecast to reach $1 trillion for the first time ever in 2025-26 and to keep rising well over to well over $1.2 trillion by 2028-29. Since we need to be able to pay for the essential public goods and services we enjoy as Australians, such as public transport, healthcare and education, Labor’s budget mess means that we can’t consider scrapping revenue streams like the luxury car tax until we can reduce Labor’s wasteful spending and get the budget back under control. 

Doing otherwise would unfairly increase the amount of debt and increase the amount of debt and interest future generations have to pay.

The Labor position  …

Q: If elected, how will the Labor Party help franchised new car dealers considering the power imbalance between vehicle manufacturers and dealers? 

A: Labor has made significant announcements to address the power imbalance between large businesses and small businesses, and explicitly between automotive manufacturers and dealers. 

These commitments build on recent reforms to the franchising sector, as part of the government’s response to the Independent Review of the Franchising Code of Conduct by Dr Michael Schaper. 

If re-elected, an Albanese Labor Government will: 

• Extend protections from Unfair Contract Terms and Unfair Trading Practices to businesses regulated by the Franchising Code, including automotive dealers. 

• Provide $7.1 million over 2 years from 2025–26 to strengthen the Australian Competition and Consumer Commission’s (ACCC) enforcement of the Franchising Code of Conduct. 

The global automotive industry is rapidly evolving. Our priority is to ensure Australian-owned dealerships are not left vulnerable to the power imbalance that exists with offshore manufacturers, including being unfairly impacted by international business decisions. 

The campaign acknowledges the advocacy and support of AADA for these protections and enforcement measures. 

Q: What is the Labor Party’s policy position on the New Vehicle Emissions Standard? 

A: The Albanese Labor Government legislated the National Vehicle Efficiency Standard (NVES) following constructive engagement with the sector, including with the AADA. AADA’s engagement informed amendments to the legislation. 

Labor supports an ongoing, well-functioning NVES, which necessitates ongoing engagement with the sector. We will prioritise work to count emissions under the NVES at the point of sale, rather than when a vehicle is imported to Australia. Bringing this work forward now, ahead of a comprehensive statutory review in 2026, signals the Government’s determination to support Australian automotive businesses. 

Q: If elected, will the Labor Party review the New Vehicle Emissions Standard to ensure it takes into current account international trading developments? 

A: Yes. There is work to be undertaken in the short term (where emissions are counted) and the statutory review which will take place in 2026 to ensure the scheme is well calibrated. Both the immediate compliance work and review will take into account international trading developments. We will ensure the sector, including AADA, is closely engaged in both. 

Q: If elected, will the Labor Party support Fringe Benefit Tax Concessions for Electric Vehicles and Hybrids? 

A: Labor supports the measures legislated by the Albanese Labor Government in the Treasury Laws Amendment (Electric Car Discount) Act 2022. The FBT exemptions in that legislation will continue to encourage greater take‑up of electric vehicles and reduce transport emissions as part of Labor’s broader climate action agenda. 

The legislation provides an FBT exemption for eligible cars made available for employees by employers. For example, regarding a model valued at about $50,000, it means a $9,000 benefit to an employer or a $4,700 benefit to an employee using a salary sacrificing arrangement. 

Q: What is the Labor Party’s position on the Instant Asset Write Off? 

A: A re-elected Albanese Labor Government will extend the $20,000 Instant Asset Write Off for 12 months. Under Labor’s extension, small businesses will continue to be able to deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2026. 

Q: If elected, will the Labor Party abolish outdated automotive taxes like import tariffs and the Luxury Car Tax.

A: Labor will continue to monitor global factors in relation to features of the tax system and our recent reforms relating to indexation of the LCT.

By John Mellor