Federal Government to End Temporary Full Expensing Measure Today

The Motor Traders’ Association of NSW, MTAA and other major automotive industry associations, met yesterday with representatives from the Federal Government to discuss the impacts of the Government’s decision to end the ‘Temporary Full Expensing Measure’ as of 30 June 2023.

The Government’s decision in the May budget to end this measure means that vehicles delivered after 30 June 2023 – regardless of purchase date – will be ineligible to claim the ‘Temporary Full Expensing Measure'.

The automotive industry in Australia has suffered through factors that are out of the control of the local industry, such as backlogs at Australian ports, international supply chain issues and equipment shortages, all of which have hampered the delivery of vehicles to Australia.

Since the Government’s announcement in the May budget on removing the TEF, the Motor Industry Organisations have argued that these external forces should have been factored into the Treasury’s and Government’s thinking before applying the end date to the scheme.  

It is disappointing that the arguments put forward on behalf of the motor industry have failed to be acknowledged and adequately facilitated for a change to be applied by the Government on this policy.

We are concerned that this measure will lead to a major uptick in cancellations of vehicles, placing unnecessary pressure on dealerships and other parts of the industry and further adding to a major cost shift for Australian businesses.

MTA NSW and MTAA will continue to advocate on matters that impact upon the Motor Industry and engage with the State and Federal Government on decisions that affect Members.


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