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Manufacturing Tech

Renewed support for Australian automotive research & development

2 min read
automotive research and development

The Morrison Government is improving the automotive sector by extending the automotive research and development tariff concession until 2025. With the extension, they plan on keeping high-end research activities and supporting thousands of high-wage jobs all over Australia.  

Minister for Industry, Science and Technology Christian Porter said vehicle research and development is vital to the nation’s prosperity. He also believes the sector is considered important due to Australia being a significant competitor on the global stage.

By extending the tariff concession, the government supports the ongoing design and development of cars in the country. This also provides job opportunities for Australia’s workforce.  

“We’re supporting highly-skilled Australians such as engineers, designers, technical, automotive and other specialists to remain in these important jobs.” Minister Porter said.  “It’s also evident that, while automotive manufacturing in Australia has changed over the past ten to fifteen years, we still have a healthy sector with well-paid jobs right along the value chain.”

Ford Australia, which employs more than 2500 staff, is a key beneficiary of the tariff concession. Alongside them on the tariff concession are Toyota Motor Corporation Australia and Robert Bosch Australia.  

The tariff concession is a demand-driven system. In fact, it was worth more than $4 million on imported goods during 2018 and 2019. With this extension place on the automotive research and development sector, the Morrison Government capitalises on a significant investment in the automotive sector using 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, the government is reducing the administrative burden for businesses. This makes it easier for them to stay competitive and contribute to Australia’s economic recovery.

The extension to the automotive research and development tariff concession took effect at the beginning of April this year.  


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