Auto sector wants levy

The Motor Trade Association is planning to ask the State Government to implement a $5 annual levy on motor vehicle registrations to fund an industry training scheme.

It is aiming to establish a training fund similar to the Building and Construction Industry Training Fund, which raises about $14 million per year through a levy on building and construction projects.

MTA executive director Peter Fitzpatrick said the motor industry also wants a major shake-up of the training system, which he said was rooted in the 1950s.

Mr Fitzpatrick said up to 40 per cent of apprentices dropped out before completing their four years of training.

“Lots of workshops up north are running at around 60 per cent capacity because the people can earn more money in unskilled labouring jobs,” he said.

Mr Fitzpatrick said he wanted to see increased use of traineeships, which typically run for 12 to 18 months, and accreditation for prior training so people could progressively upskill during their career.

Mr Fitzpatrick said the MTA had concluded that a direct industry levy, which was the Government’s preferred option, would be almost impossible to administer or would result in only parts of the industry contributing.

He said a levy on car registration would be the most practical and sensible option.

Like the building industry levy, the cost would ultimately be borne by consumers.

Alcock/Brown-Neaves director Dale Alcock said an issue with the building industry scheme was the Federal Government’s practice of taxing training subsidies, specifically the $4,000 payment under the New Apprenticeship scheme and the $9,000 payment from the BCITF.

Of these amounts, 30 per cent goes back to Canberra as tax.

“The feds gave us $4,000, took $3,900 back, so there is $100 for every apprentice in building and construction,” he said. “Now that is crap.”