The Federal Government released Budget 2023-24 this evening, which claims to provide targeted cost-of-living reliefs, solid debt management and reforms to Medicare – while also forecasting first surplus after 15 years.
But what’s in it from the auto industry’s point of view, other than pledges to improve household budgets?
With ink barely drying about the recent Federal Government National electric vehicle strategy document and the Promised Fuel Efficiency Standard – designed to free up the already existing supply of electric vehicles – with a major focus on new funding for other parts of the economy.
It’s not surprising that everything is greener, with the Budget overview using the phrase “renewable energy superpower” no less than eight times when referring to the budget’s stance on economic direction of Australia.
Electric vehicle policy and plan
The government has earmarked $20.9 million over the five years from 2022–23 on various initiatives, including $7.8 million over four years to develop the Net Zero Roadmap and Action Plan on Transportation and Infrastructure, will certainly stand out.
There is also $7.4 million over four years to develop the long-promised Fuel Economy Standards (annual exhaust CO2 limit for car brands) and $5.2 million. another four years to develop a tool to map the national charging infrastructure, along with guidance and safety training for emergency service personnel.
This grant will also support research into retrofitting existing multi-residential buildings with electric vehicle charging infrastructure and the potential for a large format battery management, recycling and reuse initiative. in Australia.
There is also mention of additional funding of $21.8 million over three years from 2023–24 to improve the ability of Australia’s National Greenhouse Account to publish better emissions data and to track emissions. Monitor progress towards emission reduction targets.
We should note that the government has already provided more expensive support programs, such as a fringe benefit tax exemption for electric vehicles under $85,000.
While battery electric vehicles currently dominate hydrogen fuel cell cars in the sales race, the government has invested $2 billion in the Hydrogen Headstart scheme to accelerate large-scale renewable hydrogen projects. big – sure Toyota and Hyundai will enjoy.
Roads and safety
The Federal Government’s road transport costs (mainly consisting of grants provided under the Infrastructure Investment Program) are estimated at $10.4 billion by 2023-24.
The new measures include $43.6 million over four years from 2022–23 for a new National Road Safety Action Grant Program to “assist in raising awareness and educating the public, those involved vulnerable traffic, road safety, technology, innovation and First Nations research”.
The budget also allocates an additional $18.9 million over three years for road safety data collection and project evaluation, as well as $16.5 million over five years from 2023–24 for test mode. experience of ANCAP.
There is also $1.8 billion allocated over 10 years including $500 million for the Roads to Recovery Program, $350 million for national road network maintenance, $110 million for the Roads to Recovery Program, and $110 million for the Roads to Recovery Program. Blackspot program, $85 million for the Bridge Renewal Program and $362 million for infrastructure projects in NSW including safety upgrades on the Bells Line of Road.
The government will also increase the Heavy Vehicle Road Toll from 27.2 cents per liter of diesel to 32.4 cents per liter in 2025–26.
Business and tax support
There’s no mention of a temporary full spending plan extension, but businesses with less than $10 million a year in revenue will be eligible for an increase in the $20,000 immediate write off threshold, meaning is that they can immediately deduct the business portion of the expense.
However, because there are so many cars that cost less than $20k, we’ll note that properties over $20,000 (not immediately depreciable) are included in the depreciation and amortization group. depreciation at 15% in the first year of income. and 30 percent each year of earnings thereafter.
The government has allocated $14.8 million over four years to set up the Powering Australia Industry Growth Center, tasked with developing cutting-edge technology and skills as part of the Australian Made Battery Plan .
It will also provide $80.5 million over four years to support the key minerals industry to “build a diversified and competitive supply chain, attract international investment, and transition to net zero.” also put an unspecified amount in the Capacity Investment Plan to underwrite investments in renewable generation and storage (essential for charging electric vehicles).
There is also $392.4 million over four years (and $68.2 million per year consecutively) to support Australian SMEs and startups to “commercialize ideas and grow their operations,” with a focus on the $15 billion National Reconstruction Fund’s priority areas with a focus on a net zero economy.
The government is also planning to invest $57.1 million to help secure a strategic and commercial partnership with our vital mineral resources.
“Sifting, manufacturing, treating, reusing and recycling all offer new industry and job opportunities. For example, large-scale battery use and production will be needed during the transition to net zero and Australia has a rich source of key inputs including lithium, nickel, cobalt, manganese and graphite ,” the Budget article stated.
“Strengthening Australia’s battery manufacturing capacity offers opportunities to create jobs, contribute to economic growth and diversify the geographically focused global battery supply chain.”
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