The 2023 Federal Budget At A Glance
Tonight, the Federal Government has handed down a budget with a range of measures that could have positive implications for the automotive industry. The intent of these measures appear positive, however, more detail is needed to understand whether they will meet the specific needs of our industry.
It's pleasing to see that the Government has recognised and acted upon several of MTA NSW's recommendations in our pre-budget submission.
Here's what we learned tonight, at a glance.
What We Liked
$20m For Jobs and Skills Council
We welcome the response to our pre-budget submission with the announcement of $20m in funding for Jobs and Skills Councils to help address skills shortages and we will continue to work with Government to ensure that funding is appropriately placed.
Improving Apprenticeship Completion Rates
The Government has announced $54.3m over 5 years to redesign support services to improve apprenticeship completion rates and the workforce’s diversity across several sectors. MTA as a Registered Training Organisation is perfectly positioned to support a TAFE system under pressure and improve completion rates in automotive across the board, see how here.
Up To $20,000 Tax Deduction For Small Businesses
The Small Business Energy Incentive Scheme has been announced to support small businesses to fund the installation or replacement of certain types of equipment however there are exemptions that will be clarified by the ATO.
Investment In EV Charging Infrastructure
The Federal Government will invest $39.8m in partnership with NRMA to roll out 117 charging stations nationally, with a focus on rural areas, to reduce range anxiety, although it is unclear what generation of chargers these will be.
Increased Instant Asset Right-Off to $20,000
In response to the MTA NSW pre-budget submission, the government will support small businesses to increase cash flow and reduce compliance costs for small businesses by temporarily increasing the instant asset write-off to $20,000.
Where We Need More Clarity
$7.4m For Fuel Efficiency Standards
Funding for the establishment of fuel efficiency standards is welcomed although the detail and potential impact of the standards are unknown at this stage. MTA NSW will be working to have a seat at the table in the formation of any fuel efficiency standards to ensure the industry is appropriately represented.
Leaving The Industry To Fund Electric & Hybrid Vehicle Training
It is promising that $5.2m has been earmarked for electric vehicle training for emergency services, however, the industry has been conspicuously omitted from the announcement. While it is unclear whether funding will become available, learning to work safely and competently with electric vehicles is essential so MTA NSW will continue to push the Federal and State Governments to help fund this training.
Funding For Net Zero Authority
We welcome the establishment of a Net Zero Authority within the Prime Minister and Cabinet to oversee the transition to net zero. However, more detail is needed to clarify how the automotive industry will fit into this initiative. We will continue to advocate for the automotive industry to be front and centre of the conversation.
$125.8m Over 4 years To Implement Jobs And Skills Summit Outcomes
We applaud the investment and intent of the funding but there are a number of hurdles to overcome to reap the benefits of the announcement in NSW, as licencing requirements (NSW only) impact the ability of this funding to be effective.
What We Didn't Like
The Luxury Car Tax Remains
Despite calls from industry and media pressure the government has retained the Luxury Car Tax with no modification. Effectively a 'tax on a tax' that was created to protect the now dormant Australian car manufacturers, consecutive governments have continued to tax cars over $84,916. With the cost of EVs in Australia this tax is in direct opposition to the National Electric Vehicle Strategy and MTA NSW will continue to lobby to have it removed.
Read The 2023 Federal Budget Papers Here