Minister Announces New Assistance For Auto Industry

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Federal Government details its $3.4 billion 'New Car Plan for a Greener Future' to bolster the sustainability of local manufacturing
The Federal Government has announced its Automotive Transformation Scheme, aimed at promoting the next generation of automotive technologies but also as a means of ensuring Australian manufacturers get a leg up in the global marketplace.

The $3.4 billion scheme is the centrepiece of the Australian Government's A New Car Plan for a Greener Future, one that Innovation Minister Senator Kim Carr said will equip one of Australia's most important industries to compete for decades to come.

"The auto industry provides high-wage, high-skill jobs to almost 60,000 Australians. It is a critical part of our broad-based national economy," Senator Carr said.

Throughout the GFC, the Australian industry outperformed competitors across the OECD – sustaining vehicle production worth $5.7 billion in 2009, Senator Carr explained. Today, Australia is one of a small handful of nations with the full capabilities to take a car from drawing-board to show-room floor.

"Now is the time to capitalise on those capabilities," he said. "The Automotive Transformation Scheme will help vehicle and component makers get cleaner and greener products to market.

"Innovation is our great competitive edge – and with the right support, our vehicle and component makers can be world leaders."

Assistance is capped at $1.5 billion for Stage One (2011 to 2015) and $1 billion for Stage Two (2016 to 2020), complemented thereafter by an estimated $847 million in uncapped assistance for the production of vehicles from 2011 to 2017.

Carr said the scheme is governed by rigorous conditions and reporting requirements to ensure taxpayers receive value for money. Participants need to demonstrate their commitment to sustainable business operations, building workforce skills and improving environmental outcomes.

For more information on the Automotive Transportation Scheme, visit www.innovation.gov.au