AADA welcomes budget measures for franchised new vehicle retailers

The Australian Automotive Dealers Association has welcomed the release of the 2025-26 Federal Budget.

“Tonight’s Budget measures to extend protections from Unfair Trading Practices and Unfair Contract Terms to all Automotive Franchised New Car and Truck Dealers will go some way to address the power imbalance between Dealers and vehicle manufacturers,” says AADA chief executive James Voortman.

“The AADA also welcomes the additional funding of $7.1 million over two years to strengthen the ACCC enforcement of the Franchising Code of Conduct.

“The Treasurer’s acknowledgement in his speech of these new budget measures could not have come at a more salient time in the Australian automotive industry. 

“Only last week Holden dealers lost their class action legal case against General Motors for pulling out of Australia. This court loss comes on top of Mercedes-Benz Dealers across the country appealing to the Full Federal Court for Mercedes-Benz forcing them to change their longstanding Australian business model.

“This announcement gives our members the confidence to invest to continue to provide Australian consumers with the vehicles that they love to drive whilst also taking on new brands in what is a very competitive market.

“However, this budget is another reminder of the continuing impost on Australian drivers through automotive taxes such as the Luxury Car Tax and Passenger Vehicle Tariff, with the Government estimated to collect almost $1.55 billion this financial year from these taxes alone.

“We consider these to be outdated taxes, which are a relic from an era when Australia manufactured vehicles here. Particularly the Luxury Car Tax which often applies to more efficient vehicles and applies to optional features which discourage consumer uptake of safety features,” he says.

These figures highlight recent calls made by the AADA, that Australia needs a comprehensive review of automotive taxes, particularly as it seeks to accelerate the uptake of EVs and low emissions vehicles.