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| | VACC workshop incentive plan for EV growth | GoAuto News,
Sandringham
by Neil Dowling
| 24 Apr 2024 | | General News - Page 22 - 749 words - ID 2063624732 - Photo: Yes - Type: News Item - Size: 531.00cm2 | |
Submission calls for new funding sources to promote EV use and workshop skills
By NEIL DOWLING AUSTRALIA'S planned new vehicle efficiency standard (NVES) must be part of a package of incentives to improve affordability and support for the electric vehicle sector that should include government incentives for car dealers to invest in new safety equipment and tools In its 'Transition to EVs' submission to the federal government in response to the House of Representatives' Standing Committee on Climate Change, Energy, Environment and Water's inquiry into EV transition the Victorian Automotive Chamber of Commerce (VACC) said such incentives could be funded by tax offsets, carbon credits, price subsidies, rebates and other means.
The VACC said that the government needed to understand that central to the introduction of NVES and the transition to electrification of Australia's vehicle fleet, the changes needed will bring challenges.
"Government needs to understand these challenges and, where possible, provide support to industry along this journey," said the VACC submission, which s was released after the government decision to greenlight NVES.
"Without this support, the government may fall short of its stated targets and objectives." GoAutoNews Premium spoke to the VACC's industry policy advisor John Khoury and the MTAA's CEO Matthew Hobbs on dealer incentives to stimulate investment at the workshop level.
Both said that funding could be sourced from initiatives including a relatively infrequently used tax offset and carbon credit programs, which showed the breadth of finding financial solutions to pushing NEVS.
Mr Hobbs said, however, that federal government funding for EV workshops was still at the discussion point and there were "still critical questions to answer." Among these is the need for an Australian skills code in EV repair and he said the MTAA was looking at a code developed in Canada for EV skills.
The VACC said central to the need to support NEVS and the aim for reduced transport emissions was for financial support for workshops that would increase "the affordability and accessibility of EVs for consumers".
"Australia is essentially a 'technology taker' dependent on global manufacturers to supply products to our shores," it said.
"Australia is also a right-hand drive market and small by international standards. Australia lacks the scale of infrastructure and financial incentives offered by other countries, which has seen manufacturers prioritise the supply of EVs to these (other) markets.
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Continued from previous page "Further, the VACC contends that the policy settings from federal and state governments, to date, have been unsuccessful in stimulating significant increases in consumer demand and manufacturer supply of EVs." Supporting its call for federal government support for EV workshops and skills training, the VACC and MTAA said international experience showed that countries with a much higher uptake of EVs, compared with Australia "have spent billions of dollars investing over the longer term in EV infrastructure, including the availability of generous EV price subsidies, rebates, tax credits and other incentives to facilitate a change in consumer behaviour." The submission's recommendations comprised 17 points, with six key points relating to issues including the offering of incentives for dealerships to boost EV safety and equipment levels and skills; and ways of improving EV affordability and supply.
It also calls for the federal government to: Address the chronic skills shortage of EV technicians and automotive trade professionals in general Boost employer incentives to upskill the existing automotive trade workforce, including funding for EV apprenticeship training Expand eligibility criteria for the installation of EV charging stations and charging ports, with greater exemptions or incentives for regional Australia to allow for automotive retailers such as dealers, aftermarket service and repair workshops and service stations to apply Abolish the Luxury Car Tax (LCT) to stimulate sales of zero and low emission vehicles and improve reductions in vehicle emissions.
The VACC submission stated that the Australian automotive industry contributed $45.9 billion or 2.1 per cent of total industry output to the Australian economy in 202122 and employed 392,000 workers representing about 2.9 per cent of the total employment.
The biggest two sub-industries are listed as motor vehicle and motor vehicle parts retailing, and automotive repair and maintenance.
Together, these two accounted for 60 per cent of industry output in 2021-22 and 66 per cent of employment.
The top five occupations by employee in the Australian automotive industry are: motor mechanic (79,300 workers); parts interpreters and parts sales (17,600 workers); motor vehicle or caravan sales (14,500 workers); service station attendant (13,200 workers); and automotive electrician (10,800 workers).
Caption Text:
John Khoury
Matthew Hobbs
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