AUSTRALIAN car dealers have seen a big increase in their contribution to the nation’s economy, according to data contained in the latest edition of the AADA’s summary of the economic contribution of dealers to the nation and to their communities.

The latest data from the Australian Automotive Dealer Association says that dealers’ total contribution to the economy was $18.6 billion, up from $12.8 billion in 2020.

Sales turnover was $73.9 billion up from $65.5 billion in 2020.

Dealer rooftops are at 3179, the highest this decade, and dealer wages were $7.3 billion, up from $5.1 billion in 2020.

Dealer employment in 2023 was 55,917 people, roughly the same as in 2020 at 55,815 people although dealerships had clearly added staff when the number in 2022 reached 59,669. 

Workshop jobs completed came to 48 million and 476,978 finance contracts were facilitated through dealerships. 

Dealers were training 5530 apprentices in 2023, up from 4463 in 2020 and the commitment to training investment in 2023 was $31 million.

Dealers paid $6.8 billion in tax last year off the back of record margins, up from $2.07 billion in 2020 which would have reflected the tough trading conditions of 2019.

Meanwhile, the data shows that the industry continues to be a cash cow for governments with total tax and duty collections coming to $35 billion in 2023, up from $ 32.2 billion in 2020.

Fuel tax continued to be the major draw on road transport pockets with $10.4 billion in excise on fuel in 2023 although this was less the $11.9 billion collected in 2022 and the $11.7 billion collected in 2021. 

Registration fees attracted $8.9 billion in revenue (up from $8.2 billion in 2021) GST associated with automotive purchases at $5.4 billion (up from $4.2 billion in 2021) stamp duty at $3.7 billion in 2023 (up from $2.9 billion in 2021) and tolls at $3.2 billion (up from $2.6 billion in 2021).

Automotive FBT collected $905 million and licence fees generated $731 million.

James Voortman

The CEO of the AADA James Voortman said: “This data backs up what everyone in the industry knows, that dealers make an enormous economic contribution to their local communities and to Australia as a whole.

“The industry is currently undergoing rapid change, but dealers remain dynamic and innovative and their contribution to our country’s economy has gone from strength to strength.

“There are so many people and businesses whose livelihoods are linked to the retail automotive sector.

“The data, which is assembled by BDO, is crucial in demonstrating the importance of our industry, especially to governments which need to understand the impact that policies and regulations have on our sector.”