The Victorian Automotive Chamber of Commerce (VACC) has called on the Victorian Government to implement crucial reforms to support the state’s automotive industry through its transition to zero-emission vehicles (ZEVs).
The comprehensive submission outlines 16 key recommendations across taxation, industry support, consumer protection, skills and training, and workplace relations.
VACC CEO Peter Jones said the automotive industry faces unprecedented challenges as it adapts to new technologies and market demands.
“These challenges are compounded by on-going workforce shortages and increasing regulatory pressures,” he said.
“The automotive industry is the backbone of Victoria’s transport system. Every day, our members ensure millions of Victorian motorists can safely travel to work, transport goods, and keep our economy moving. But this vital industry is at a crossroads.
“With the Victorian Government’s target of 50 per cent of all light vehicle sales in Victoria to be ZEVs by 2030, we need immediate action to ensure our industry can meet this ambitious goal. Many of our members, particularly small businesses and independent repairers require substantial support to invest in new equipment and up skilling.”
The submission highlights concerning data showing that 35 per cent of motorists are delaying vehicle servicing due to cost-of-living pressures, creating significant safety risks on Victorian roads.
“We’re calling for a subsidised vehicle maintenance scheme targeting vulnerable motorists. Road safety cannot be compromised due to financial constraints,” Jones said.
“The potential consequences of neglected vehicle maintenance extend beyond individual vehicles to impact the broader community’s safety.”
Adding to these industry pressures is the significant burden of land tax on Victorian automotive businesses, with some VACC members reporting increases of over 224 per cent between 2018 and 2025.
“These substantial land tax rates are severely impacting our members’ ability to invest in new technology and training,” Jones said.
“When businesses are paying more in land tax annually, it becomes challenging to invest in critical projects needed for skills development and equipment upgrades.”
Jones emphasised that the recommendations represent a holistic approach to industry reform. “These measures are interconnected and designed to address both immediate challenges and long-term industry sustainability. Without comprehensive reform, we risk undermining the industry’s capacity to support Victoria’s transport needs,” he said.
“The automotive retail sector is at a critical juncture. Many small businesses face an uncertain future without adequate government support and policy reform. This isn’t just about business survival – it’s about maintaining a robust automotive industry that can effectively serve Victorian motorists and support the state’s transition to cleaner transport.” Jones added.
Key recommendations include:
- Financial assistance for automotive businesses transitioning to service zero-emission vehicles
- Reforms to land tax and the removal of Super Luxury Duty
- Establishment of a government task force to combat organised crime in private car sales
- Enhanced funding for vocational education and training in thin markets
- Additional support for the Victorian Workers Compensation Scheme
The full submission is available on the VACC website.