The Motor Trades Association of Australia (MTAA) has welcomed today’s announcement of the Australia–European Union Free Trade Agreement (FTA), describing it as a significant step forward for Australia’s automotive industry, consumers and broader trade relationships.
MTAA Interim Executive Director Peter Jones said the agreement presents meaningful opportunities for car dealers and automotive businesses, while also delivering clear benefits for Australian consumers.
“This agreement strengthens Australia’s access to one of the world’s most advanced automotive markets and opens the door to greater choice and more accessible vehicle options for Australian consumers,” Mr Jones said.
“For dealers, particularly those representing European brands, reducing tariffs and trade barriers will make it easier to bring a broader range of vehicles to market and better meet evolving consumer demand.”
Mr Jones said the agreement comes at a critical time for the automotive sector, as it continues to navigate global change and the transition to low- and zero-emissions vehicles.
“Europe is at the forefront of automotive innovation, particularly in electric and advanced vehicle technologies. Strengthening trade ties will help accelerate the availability of these vehicles in Australia and provide consumers with more accessible pathways to adopt them.”
Mr Jones said the agreement also highlights the need to modernise Australia’s automotive tax settings to ensure consumers fully benefit from improved trade access.
“This agreement underscores the need to modernise Australia’s automotive tax settings, particularly the Luxury Car Tax, which is a legacy tax that no longer reflects today’s market,” he said.
“The LCT was introduced to protect a local manufacturing industry that no longer exists. Today, it acts as a barrier to consumer choice and limits access to many of the vehicles this agreement is intended to make more accessible.”
“If we are serious about delivering the full benefits of this agreement to Australian consumers, then reform — and ultimately the abolition — of the LCT must be part of that conversation.”
The MTAA also noted the importance of ensuring the agreement is implemented in a way that supports Australian automotive businesses, including dealers, repairers and supply chain operators.
Mr Jones said the agreement represents a broader strengthening of Australia’s economic relationship with Europe and reinforces the importance of the automotive sector within that partnership.
“It recognises the global nature of the automotive industry and the importance of ensuring Australian businesses and consumers remain connected to international innovation and supply.”
The MTAA will continue to engage with government and industry stakeholders as the agreement is finalised and implemented, to ensure the best possible outcomes for Australia’s automotive sector.
ENDS
Media contact
Andrew Molloy
Manager Marketing & Communications
Victorian Automotive Chamber of Commerce
P: 03 9829 1248 | M: 0457 188 375
E: amolloy@vacc.com.au
