In a move to boost automotive manufacturing sector in the country, the Australian Government has provided A$200m($180m) support package to the industry.
The new package has been announced following the criticism from automotive industry against changes to the fringe benefits tax on the new vehicles.
Australian government is also proposing a mandated 100% Australian-made target for the purchase of Commonwealth fleet passenger motor vehicles.
For this initiative, the Government will make amendments under the Commonwealth Authorities and Companies (CAC) Act to require all Agencies operating under that Act to comply with the Commonwealth Fleet Vehicle Selection Policy.
The Commonwealth will work with all states and local government through the Council of Australian Governments to direct all state, territory and local governments commit to the target for their passenger motor vehicle fleets.
Australia Senator Kim Carr said that this move of the Government is aimed at increasing the sales of locally made cars.
"We are considering a range of options and will release implementation details following further consultation," Carr added.
"But this is just one part of the package and if the 100 per cent Australian-made passenger motor vehicle fleet target the Australia Government has committed to today was adopted at all levels of government, sales of Australian-made vehicles could increase by over 18,000 units per year. This represents an 8 per cent increase on 2012 production volumes."
