12 July 2017



Car Carbon Tax Chokes Industry

The Motor Trade Association of South Australia today slammed the latest illogical move by the Federal Government to introduce a car specific carbon tax.

MTA CEO Paul Unerkov said the car carbon tax idea is just the latest in a long line of piecemeal thought bubbles put up by the Federal Government designed to put a handbrake on the automotive industry.

“In the last 2 years the Federal Government has targeted the automotive industry, particularly the new car retailing sector, with a raft of changes that will make vehicles more expensive, cut jobs and hurt consumers,” Mr Unerkov said.

“Personal Importation of new cars, restrictions on commission payments, the ACCC inquiries into fuel emissions and warranties, lemon laws, the Luxury Car Tax, failure to respond to the Senate Inquiry into the Automotive Industry recommendations, and now a damaging car carbon tax, taken together, are an attack on a sector that employs over 5,760 South Australians.”

“There is no basis for the government’s ongoing attacks on the automotive sector, one of Australia’s major employers and economic contributors.”
 “The effects of a car carbon tax will not only hurt dealerships but also those who rely on vehicles to do their jobs, such as tradespeople and passenger transport providers.”

“It does not fit within any robust carbon reductions framework or benefit consumers in any way.”
“An extra $5,000 cost on business and families, when South Australia already faces high electricity costs and high unemployment, will only further hurt those people trying to make ends meet.”

 “Continuing to squeeze automotive industry, which is actually one of the innovation success stories the government wants to promote, will lead to harmful consequences not just for our industry but all industries that rely on vehicles as part of their work. "

“The fact that this idea was retracted after 48 hours is proof that there is no long term plan for the industry and there has been no meaningful consultation with the industry.”

“The Federal Government must positively engage with the automotive retail, service and repair sector to develop a plan to drive automotive growth, rather than throwing up ad hoc ideas that harm automotive businesses that are creating and sustaining local jobs,” Mr Unerkov said.