Published 08-04-2021
| Article appears in April 2021 Issue

Automotive manufacturing R&D reignited with tariff concession

Automotive R&D Tariff Concession

Thousands of high-wage jobs and secure research activities will be reignited with the federal government’s moves to extend the automotive research and development tariff concession until 2025.

Newly announced Minister for Industry, Science and Technology Christian Porter said the Morrison Government is supporting the ongoing design and development of cars here at home, and providing ongoing job opportunities for our highly-skilled workforce.

“We’re supporting highly-skilled Australians such as engineers, designers, technical, automotive and other specialists to remain in these important jobs.

“It’s also evidence that while automotive manufacturing in Australia has changed over the past 10-15 years, we still have a healthy sector with well-paid jobs right along the value chain.”

He also added that research and development is vital to the nation’s prosperity with Australia being a significant competitor on the global stage.

Ford Australia, which employs more than 2,500 staff, is a key beneficiary of the tariff concession, along with Toyota Motor Corporation Australia and Robert Bosch Australia.

The tariff concession is demand driven and was worth more than $4 million on goods imported from 35 countries in 2018 and 2019.

This extension capitalises on the Morrison Government’s significant investment in the automotive sector with programs such as the Automotive Transformation Scheme.

“Extending the tariff concessions will also strengthen Australia’s engineering and design capability, which will have flow-on benefits to many other parts of the economy, including manufacturing,” Minister Porter said.

“By retaining the tariff concession we’re also cutting red tape and reducing the administrative burden for businesses, making it easier for them to remain competitive and contribute to Australia’s economic recovery.”


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