Scott Morrison
The Australian federal government has announced measures to stimulate the country’s economy following the coronavirus Covid-19 spread and declaration as a pandemic, the move welcomed by the auto industry including EV representatives.
The $17.6 billion economic plan aims to keep Australians in jobs, keep businesses going and to support households and the Australian economy as the world deals with Covid-19.
The economic move has been welcomed by the Australian Automotive Dealer Association (AADA).
“The new car market has been in recession for almost two years and dealers will be hopeful that these measures breathe some life into an industry that is on the ropes,” AADA chief executive James Voortman says.
“The expanded instant asset write-off is most welcome and will allow many more businesses to make use of the scheme to invest in a much larger range of vehicles,” Voortman says.
This measure will run until June 30.
Voortman says the AADA will be urging the Australian federal government to extend the instant asset write-off beyond June 30 and to consider additional measures to encourage consumers to purchase new cars.
“Similarly, while we welcome the announcement of a time-limited 15-month investment incentive, the downturn in our industry means investment programs will likely remain subdued.”
The AADA urges all Australian state governments to follow the federal government’s lead and adopt stimulatory measures.
“Stamp duty exemptions on the sale of new cars would facilitate renewal of the fleet, leading to safer, cleaner and more efficient vehicles,” Voortman says.
“Dealers have high turnovers due to the high value of their products, but profit margins are incredibly slim at less than 1%. Due to these higher turn-overs dealers have missed out on some of benefits announced for smaller businesses. We would urge the government to consider our unique circumstances.”
The AADA says it will keep the government up-to-date on the latest sales trends and will inform it on the need to extend or re-evaluate on the recently announced measures.
The Australian Trucking Association (ATA) is also pleased with the measures.
“The Covid-19 pandemic has hit the trucking industry hard,” ATA chair Geoff Crouch says. “Container operators are reporting drops in volume of 70 to 80%. Interstate freight, which was already low, has plummeted in the last few weeks.”
Meanwhile, actor Tom Hanks and wife Rita Wilson have tested positive for Covid-19 while filming on the Gold Coast for a production about Elvis Presley.
Hanks confirmed the virus finding on Instagram on March 12.
The virus is now Australia-wide.
