
Australia
Australia, officially the Commonwealth of Australia is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania and smaller islands.
One of the major changes occurring in the Australian automotive industry is the ceasing of local vehicle production. Ford stopped assembling in 2016, Toyota and Holden also announced to cease local vehicle production in 2017.
Chapter 1: Economic and business environment
Demographics | 25,319,800 (2019 est.) |
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Capital | Canberra |
Major cities | Sydney, Melbourne, Brisbane, Perth |
Languages | English (en-AU) |
GDP | $52,191 USD (2018) |
Unemployment rate | 5.8% (2018) |
Main industries | GDP Composition by Sector: Industrial Production Growth Rate: Industries: |
Currency | AUD Australian dollar |
Interest rate | 2,71% |
Political key info | Australia is a federal parliamentary constitutional monarchy. Australia ranks as one of the best countries to live in the world by international comparisons of wealth, education, health and quality of life. The sixth-largest country by land mass, its population is comparatively small with most people living around the eastern and south-eastern coastlines. The country's first inhabitants, the Aboriginal people, are believed to have migrated from Asia tens of thousands of years before the arrival of British settlers in 1788. They now make up less than 3% of Australia's 23 million people. Years of mass immigration after the Second World War heralded sweeping demographic changes, making modern Australia one of the world's most multicultural countries. But migration continues to be a sensitive issue politically. In shaping its foreign and economic policy, Australia first looked to Europe and the US but in the last 20 years has developed stronger ties with Asia. It has acted as peacekeeper in the region sending missions to Solomon Islands, East Timor and Papua New Guinea. Although Australia remains part of the Commonwealth, the future role of the monarchy has been a recurring issue in politics. An aging population, pressure on infrastructure and environmental concerns such as climate change are some of the long-term challenges facing the country. |
Inflation | 2.10% (2017) |
Chapter 2 : Automotive market, segments & sales
Total Car park | 18.400.000 vehicles | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New vehicle registrations (Cars, LCV, Trucks) | In 2016, the Australian new vehicle market reached 1.178 million. Update 2018: New vehicle sales by type
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Top 5 brands (total market) | 1. Toyota | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Model preference top 5 (total market) | 1. Toyota Hilux | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dealer network (including fleet dealer network) | The motor vehicle dealers industry in Australia experienced a steep decline in revenue and employment in the immediate aftermath of the global financial crisis. However, the industry bounced back well in 2009-10 with pent-up demand for new vehicles following a period of financial uncertainty and instability. It took a number of years for market to stabilise but now seems to be in a strong place with a gradual increase in establishments forecast in the future. Despite a number of sectors in the automotive industry set to be hit hard by the impending closures of automotive manufacturers, it is predicted that motor vehicle dealers will continue to play a part in the market place as consumers will need an outlet to upgrade and replace vehicles. There is a shift in the types of vehicles being purchased with an emerging preference for new cars with updated technology, smaller, more fuel efficient cars, diesel cars, hybrid and electric cars. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Used car market/renewal cycle | Average lifecycle is 10.8 years.
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Chapter 3: Company car market
Total Fleet Park (company cars)/Fleet penetration in total fleet sales | 1 million, approximately 5% of the total number of vehicles |
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Evolution fleet sales (last 5 years) | Private buyers represent 51% of new registrations, business fleets 41% and governmental sales & rental 8%). |
Top 5 fleet brands (fleet market) | 1. Toyota |
Chapter 4: Taxation & legislation
4.1 Car Taxation | Vehicle Stamp Duty in Australia by State ACT Stamp duty on new vehicles in the ACT is charged as follows: 3% of the vehicle price inclusive of GST up to $45,000 5% for every dollar over $45,000 New South Wales Stamp duty on vehicle purchases is charged as follows: 3% of the vehicle price inclusive of GST up to $45,000 5% for every dollar over $45,000 Example - a car costing $65,000, stamp duty would be charged at 3% of $45,000 plus 5% of $20,000 (the amount above the $45,000 threshold) = $1,350 + $1,000 = $2,350 Queensland Electric/Hybrid (any number of cylinders): 2% All other cars: up to 4 cyl: 3% up to 6 cyl: 3.5% 7 or more cyl: 4% Tractors & mobile machinery: flat rate of $25 Victoria Victoria has three thresholds for stamp duty charges though the percentage applies to the total market value of the vehicle. 2.5% of the vehicle price up to $35,000 4% of the total price where this lies between $35,000 and $45,000 5% of the total price where this is over $45,000 South Australia South Australia has a low threshold that must be observed $60 for the first $3,000 of the purchase price (or part thereof) 4% for every dollar over $3,000 Tasmania Tasmania has a structure based on three price margins 3% of the purchase price up to $35,000 11% for every dollar between $35,000 and $45,000 4% for every dollar over $45,000 Western Australia WA has probably the most complicated stamp duty structure in Australia! 2.75% of the vehicle price up to $20,000 A sliding scale is used between $20,000 and $45,000 from 2.75% to 6.5% 6.5% for every dollar over $45,000 From January 1st 2009, the rates will change to: 2.75% of the vehicle price up to $25,000 A sliding scale is used between $25,000 and $50,000 from 2.75% to 6.5% 6.5% for every dollar over $50,000 Remember that for new vehicles, stamp duty should always be included in any on-road cost. Luxury Car Tax On top of state taxes, the federal government have GST & the luxury car tax (Paid to the ATO). What is the luxury car tax threshold? The luxury car tax threshold is equal to the car limit, which is $57,123 for the 2007–08 financial year. The tax is applied to the Ex GST & ex Stamp duty price. The 2008 budget has raised this tax to 33% Info sourced from: the ATO website. Luxury Car Tax is payable to the Australian Tax Office for all vehicles purchased whose price exceeds the luxury car tax threshold (currently $57,009) except for the cases described below. Luxury Car Tax is payable only on the purchase amount exceeding this limit - not the entire purchase price. In short, Luxury Car Tax is calculated as 33% of the GST exclusive portion of the vehicle purchase price over $57,009. It can be calculated using the following steps: Calculate the amount subject to LCT. Take the full price of the vehicle and subtract $57,123. For example a vehicle whose GST inclusive price is $100,000 has $100,000 less $57,123 which equals $42,877 subject to Luxury Car Tax Find the GST exclusive portion of the above figure. The easiest way to do this is to multiply the figure by 10 and then divide by 11. In the above example: $42,877 x 10 / 11 leaves $38,979 Thirdly multiple this above figure by 33% to calculate the LCT component on the vehicle price. In our example $38,979 x 33% leaves $12,863 of luxury car tax. The Luxury Car Tax should then of course be added onto the GST inclusive price of the car. The supply price for the above example would be $112,863. |
4.2 Income tax – Taxable persons | A car is taken to be available for the private use of an employee on any day that they or their associates: use it for private purposes are allowed to use it for private purposes. If a car is garaged at or near your employee's home, even if only for security reasons, it is taken to be available for their private use regardless of whether or not they have permission to use the car privately. Similarly, where the place of employment and residence are the same, the car is taken to be available for the private use of the employee. Generally, travel to and from work is private use of a vehicle. |
4.3 Company car | For fringe benefits tax (FBT) purposes, a car is any of the following: a sedan or station wagon any other goods-carrying vehicle with a carrying capacity of less than one tonne, for example a panel van or utility (including four-wheel drive vehicles) any other passenger-carrying vehicle designed to carry fewer than nine passengers. |
4.4 Income taxes – drivers’ personal taxation | |
4.5 Electric vehicles | An Australian Tax Office ruling has provided a major boost to the economics of electric vehicles in Australia, just as enthusiasts prepare to queue up to register interest to buy the first mass-market electric vehicle to be offered in serious volume in this country. The ATO ruling means that drivers of electric vehicles will be able to claim the same deductions for business use as they currently do for cars running on internal combustion engines. |
4.6 Future developments | |
4.7 Legal background (import taxes) | Both the Department of Infrastructure and Transportation and the Australian Customs Border Protection Service state categorically, "Do not import a vehicle into Australia before obtaining a vehicle import approval." If the car or any other vehicle meets certain criteria, this permit is available from the Department of Infrastructure and Transport. The Department of Customs then imposes a levy on the car. This has two components - Duty and Goods and Services Tax (GST). These are the figures: Vehicles over 30 years old and motorcycles 0% Duty / 10% GST New and used vehicles up to 30 years old 10% Duty / 10% GST Four wheel drive off road / commercial vehicles 5% Duty / 10% GST If the car you want to import has a GST inclusive value of $57,466 or more (as of 2011), it will be subject to Luxury Car Tax (LCT). This tax is in addition to the other charges listed above and is levied at 33% of the value above the $57,466 threshold. |
Chapter 5: Car policies
Company car entitlement:
Which sectors provide most fleet cars?
Pharmaceutical, Medical, Technical services, Agriculture, Mining, Construction, Telecom
Which job functions often include a company car?
Sales reps, technicians
Reference cars
Entry level / junior sales | Hyundai Accent Active Hatch / Sedan Hyundai i30 Active Hatchback Toyota Corolla Ascent Hatch Hyundai Elantra Active Sedan Ford Focus Trend Hatch/ Sedan |
Senior sales / Management level | Toyota Aurion AT-X Sedan Ford Mondeo Zetec Hatch Hyundai i40 Elite Sedan/Wagon Hyundai ix35 Highlander (AWD) Wagon Ford Falcon XT Sedan Isuzu DMax Dual Cab Utilit |
Executive level | Toyota Aurion Sportivo SX6 Sedan Ford Falcon XR6 Toyota Kluger KX-R (FWD) Wagon |