THE VEHICLE DEALER’S NEWS SOURCE VOLUME 5 ISSUE 11 JUNE 2019 Industry loathes another ‘lux-tax’ he Australian Automotive Dealer Association, Federal TChamber of Automotive Industry reflects on Industries and the Victorian Au- tomobile Chamber of Commerce are scathing over the Victorian government’s luxury car tax. trumped election The AADA says the Victo- rian budget, which highlights a he Australian automotive industry we were trying to do $2.7 billion debt generated by a has responded with mixed feelings from the Shorten elec- transport infrastructure “blitz”, Tafter the Scott Morrison-led Coali- tion campaign were would unfairly tax vehicles over tion was reinstated as federal govern- worrying us, but they $100,000-retail and cost jobs. ment on May 18. were committed to an “I’ve had friends in dealerships The Australian Automotive Dealer automotive code and saying this could literally mean Association says despite what it thought we really appreciated cutting staff,” chief executive Da- was a sure Labor victory it is glad an- that,” he begins. David Blackhall, vid Blackhall tells AutoTalk. AADA other four years will see stable leader- “We were always The proposed luxury car tax ship and formed relationships on both happy to work with the ALP, but we’re would ask $14 duty for every $200 sides will remain intact. relatively comfortable with the outcome of market value on vehicles from Speaking to AutoTalk last week, de- and this result is probably going to be a $100,000-$150,000, and vehi- parting chief executive David Blackhall bit easier because of the differences in cles costing more than $150,000 says the AADA had almost resigned itself policy.” would incur $18 duty on the same to a Bill Shorten victory but is happy to Blackhall says the promises the ALP $200 market value rate. see a reshuffled Liberal/National govern- made to introduce serious emissions It would exempt low-emission ment staying put. reductions lacked gravitas. passenger cars, vehicles used “Some of the important bits of what Continued on page 3 by farmers in primary produc- tion and farming machinery. But INSIDE Blackhall says what seems like a Finance dividends post royal commission P4 small impost on the luxury seg- Dealer association chief departs for family P6 ment has massive consequences ANCAP says to industry; ‘don’t get comfy’ P9 for dealer bottom-lines. Used market vital for EV hybrid growth P10 4 9 Continued on page 13 Learn EasyCars integration with more Facebook Marketplace FOUNDATION SPONSORS AutoTalk acknowledges the support of our foundation sponsors: Automotive software solutions Driving your business All the Auto Industry HOT NEWS every day as it happens on www.autotalk.com.au Subscribe online for FREE twice weekly updates direct to your email. www.autotalk.com.au 2 | AUTOTALK.COM.AU | JUNE 2019 NEWSTALK Industry reflects on trumped election Continued from page 1 it reflects a lack of polling technique that and Minister for regional services, decen- “Bill Shorten had no idea how he was fails to talk to the right people and misses tralisation and local government is Mark going to deliver 105g of CO2 per kilome- the millennial generation; they’d be chat- Coulton MP. tre for light vehicles,” he divulges. ting to my 90-something mother-in-law Also welcomed by the automotive “He said we’ll do it, without much in the middle of the day, not the younger and transport industries is assistant understanding of what that would mean generation out working,” he says. minister for road safety and freight for the industry, for consumers and for “Everybody got it wrong, which is transport Scott Buchholz, MP for regulations,” Blackhall says. pretty unnerving, but that’s politics,” Wright in Queensland’s south-east. Just this week Liberal MP and federal Blackhall adds. Australasian New Car Assessment energy minister Angus Taylor has been Michael McCormack, MP for Wagga, Program chair Wendy Machin, and described as “disgraceful” by the ALP remains deputy prime minister and Australian Automobile Association chief and Greens for failing to release Austral- minister for infrastructure, transport and executive Michael Bradley, were particu- ia’s official greenhouse emissions data. regional development; Simon Birming- larly pleased with the appointment of a Taylor, sworn into the new role at ham remains trade, tourism and invest- dedicated road safety minister. government house last week, missed ment minister; and Christian Porter MP “There are a number of key road safe- the Senate-enforced deadline to release is minister for industrial relations. ty challenges to face and this provides the December quarter emissions data by Josh Frydenberg remains treasurer clear national leadership,” she says. Friday, May 31. while Michael Sukkar, whose office “It is encouraging to see the impor- “This is a disgrace and shows total has made significant headway on a tance of road safety elevated with Scott disregard to the Australian people and dedicated automotive code of conduct Buchholz MP appointed ... We welcome Senate process,” The Guardian reports and supports the freeing up for service the continuation of Michael McCormack Labor climate and energy spokesman, and repair data access for independent MP as deputy prime minister and minister Mark Butler as saying. workshops, will continue as assistant for infrastructure, transport and regional Australia’s emissions have increased treasurer, as well as housing minister. development,” Machin adds. every year since 2015, with the Coalition MP David Littleproud remains water Bradley says the positioning of road government failing to slow them down. resources minister, while former infra- safety with the second-highest office in Melbourne Greens MP and climate structure minister Paul Fletcher moves the parliament and keeping pre-elec- spokesman, Adam Bandt says: “The to the communications portfolio as the tion promises bode well in the coming release of greenhouse pollution data automotive industry continues to inte- months and in years for reducing road should be automatic and free from min- grate with connected services, mobility trauma. isterial interference. and technology corporations, as well “Allocating Ministerial responsibility for “Emissions data should be no different as foreign giants like Google, Apple and infrastructure, roads and transport to the to other nationally significant data, which Microsoft. second-highest office holder in govern- gets released by the ABS like clockwork,” On the technology front, Karen An- ment is a big win for motorists who are he adds. drews MP will lead the industry, science looking forward to the re-elected Gov- Blackhall says the pre-election ALP and technology portfolio, while juxta- ernment rolling out its transport infra- missed out on connecting with the ma- posing sectors like the resources portfo- structure agenda,” Bradley explains. jority of Australians who are spread far lio keeps Matt Canavan, the aforemen- “Two voices at the cabinet table and wide, as well as the highly publicised tioned energy and emissions reduction through Michael McCormack and oversight of not working hard enough minister is Angus Taylor, and MP Sussan Alan Tudge, who have a large focus for Queensland votes, among others. Ley takes on the role as environment on transport infrastructure, is an ap- “They seriously misjudged who Mr minister. propriate demonstration of the priorities and Mrs middle Australia are – it’s not a Service managers in dealerships facing motorists and commuters across noisy left-wing minority of the Victorian across the country will want to get to Australia,” he says. Labor party – it was bad political judg- know employment, skills, small and fam- The 2019 federal budget promised ment,” Blackhall admits. ily business senator Michaelia Cash, and what the AAA describes as a “much- “But looking at the pollsters, someone assistant minister for vocational educa- needed” $29.6 billion investment in Canberra told me they were invented tion, training and apprenticeships, MP injection into transport infrastructure to make weather forecasters look good,” Steve Irons. and government commitment to direct he jokes. Minister for population, cities and more than half of Australia’s fuel excise “They missed the boat completely and urban infrastructure is Alan Tudge MP, back into land transport infrastructure. AUTOTALK.COM.AU | JUNE 2019 | 3 NEWSTALK AutoTalk Magazine and autotalk.com.au are published by Auto Media Group PO BOX 286 Batman VIC 3058 Phone: 1800 125 620 ABN: 37 51360 734 EDITOR Financial lockdown Scott (Muzza) Murray [email protected] +61 426 365 774 pays dividends ONLINE EDITOR ustralia’s banking and financial Swynyn explains. Geoff Dobson services Royal Commission is “Online finance [email protected] turning up some unexpected con- also now gives deal- +64 21 881 823 A sumer and dealership finance benefits. ers an opportunity The automotive finance caper has to better respond to BUSINESS MANAGER seen the door slammed shut on flex customers and to Dale Stevenson commissions and the deadlock flicked gain and retain their [email protected] on unethical lending practices which put Paul Swynyn, loyalty and trust,” he +64 21 446 214 FICO consumers in economical strife. adds. RECRUITMENT / But a new survey from global credit The survey also PRODUCTION SPECIALIST scoring firm FICO shows disenchanted found a 7% drop in online finance shop- Fran Da Silva Australians are finding trust with fran- ping in favour of a 14% swing to ap- [email protected] chised new car dealers where it was proaching the dealer directly. +64 21 933 279 lost by the banking giants. “It’s surprising when you find out According to their newly released people looking online say the biggest 2018-19 survey, Australian consumers factor that drove them to search online GROUP GENERAL MANAGER are more willing to turn to a dealership was convenience and speed,” Swynyn Deborah Baxter for financing their next new car, but bet- says.