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$200m in funding and 100% Australian-made fleet target to boost sale of locally made cars

05 Aug 2013

The Australian Government today announced additional measures to ensure Australia's automotive manufacturing sector has a strong future and continues to provide high-skill, high-wage jobs for Australians.

This includes $200 million in funding, fully offset from the contingency reserve, and a mandated 100 per cent Australian-made target for the purchase of Commonwealth fleet passenger motor vehicles.

"The automotive industry is vital to Australia's economic future and we are determined to increase sales of locally made cars," Senator Carr said.

"The Government provides a range of support measures to the automotive industry and today we are adding to that by putting $200 million on the table and introducing a 100 per cent target for Australian made cars for Commonwealth fleets.

"I will continue my discussions with industry as to how this additional funding can best support growth in sales. We are considering a range of options and will release implementation details following further consultation.

"But this is just one part of the package and if the 100 per cent Australian-made passenger motor vehicle fleet target the Australia Government has committed to today was adopted at all levels of government, sales of Australian-made vehicles could increase by over 18,000 units per year. This represents an 8 per cent increase on 2012 production volumes.

"The motor vehicle manufacturing industry in this country provides thousands of jobs, billions of dollars in export income and investment and benefits in research and development.

"Our actions will provide crucial ongoing support for an industry that has been under considerable pressure with a high Australian dollar over an extended period and an increasingly competitive global market."

To assist the Commonwealth fleet meet the target, amendments will be made to regulations made under the Commonwealth Authorities and Companies (CAC) Act to require all Agencies operating under that Act to comply with the Commonwealth Fleet Vehicle Selection Policy. An exemption would only be allowed where a special circumstance required a fit-for-purpose vehicle.

The Commonwealth will continue to work with all states and local government, particularly Victoria and South Australia, through the Council of Australian Governments to advocate that all state, territory and local governments commit to a similar target for their passenger motor vehicle fleets.

Media contact: Minister's office 02 6277 7070
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