Australian Car Industry undergoing a dramatic realignment, with The Australian Government instructing the Productivity Commission to undertake an inquiry into public support for Australia's automotive manufacturing industry, including passenger motor vehicle and automotive component production.

 

The Commission has been asked to:
• examine national and international market and regulatory factors affecting the industry
• identify and evaluate possible alternative public support mechanisms
• identify any significant transition issues or adjustment costs that may arise from alternative support mechanisms or policy changes and how they might be best managed
• assess the significance of the capabilities within the industry, its direct employment and economic benefits, and its secondary impacts on other sectors of the economy
• quantify the costs and benefits of existing and alternative assistance mechanisms.

The Commission is to undertake public consultation, inviting public submissions and releasing a preliminary findings report to the public.

 

The Commission will provide a final report to the Government by 31 March 2014.
The terms of reference may well include analysis of the merits of salary Packaging and the relevant Fringe Benefit treatment.
The Automotive industry will no doubt wait with baited breath for the final report to be released next month.