The Rudd Labor Government will invest in the future of Australia’s automotive manufacturing industry with a New Car Plan for the 2020s. Under the new industry plan, Federal Labor will increase government support by $500 million to 2020, giving the industry the critical certainty it needs.
With Australia entering tougher economic times as the China resources boom comes to an end, Federal Labor claims that the manufacturing sector will be more important than ever.
The New Car Plan for the 2020s, will see Labor expand Government support for the industry providing $300 million per year on an ongoing basis. This equates to an additional $500 million from 2016 to 2020. Importantly, this will be locked in by legislation, to ensure investment certainty.
This additional support will be ongoing past 2020 to provide the industry with the certainty and support it needs and will be reviewed every 5 years. As part of the New Car Plan for the 2020s, the Rudd Labor Government also commits to:
- Provide support to Motor Vehicle Producers (MVP), and the automotive supply chain including component producers and service providers;
- Provide support through a co-investment program for automotive production, plant and equipment, tooling, innovation and design and engineering services; &
- Have a specific legislative objective of integrating the automotive supply chain into local and global non-automotive markets.
Australia’s car industry directly employs around 50,000 people, makes the largest research and development investment in the manufacturing sector and supports an extensive supply chain of component producers.
The New Car Plan for the 2020s will be funded from within the existing funding allocation and no new funds will be required for the program until 2018.