Each Aussie Household Taxed $100 To Give Every Auto Worker $135,000

Media Release: Each Aussie Household Taxed $100 To Give Every Auto Worker $135,000

*The Commonwealth Government today announced a further $900 million in taxpayer subsidies to car manufacturers in Australia

*There are an estimated 9 million households in Australia (SOURCE: ABS Family Facts & Figures) meaning this scheme will cost each household $100

*Data received by the ATA shows 6,600 people are directly employed in car manufacturing plants in Australia (2,900 in its plants, Toyota 2,500 and Ford 1,200) meaning today’s subsidy is equal to over $135,000 a job

*Regulatory economist Professor Henry Ergas calculated that "each $1 of value added in the car industry was costing the economy $1.40"

*According to the Productivity Commission, the car industry has received some $19 billion in assistance during the past decade, not including other assistance such as protectionist measures, preferred government procurement, and restrictions on second hand imports.

*The Gillard Government announced $5.4 billion subsidy in 2013

*Only three of Australia’s 10 top-selling cars in 2014 were made in Australia (SOURCE: Federal Chamber of Automobile Industries)

*Toyota is the world's 2nd largest car manufacturer, with over $10 billion AUD in profit annually. Holden is a fully owned subsidiary of the US based General Motors, the world’s 6th largest car manufacturer, who had a profit of over $3 billion USD in 2014, and assets over $175 billion USD. Ford Motor Company, based in Michigan, US, is the world’s 4th largest car manufacturer, with a profit of $7.15 billion USD  in 2013 and over $200,000 billion USD in assets (SOURCE: Forbes + Annual Reports)

Responding to today’s announcement Tim Andrews, Executive Director of the Australian Taxpayers’ Alliance said:

“The Federal Government is robbing taxpayers to pay for the failed business practices of multi-national conglomerates. This is a grubby attempt to buy votes we just can’t afford – and every Aussie family will be slugged with the bill. The Federal Government needs to get serious, repair the budget, and stop splashing cash on extravagant corporate welfare”

Notes for Editors:

*The Australian Taxpayers' Alliance is a grassroots activist organisation dedicated to representing taxpayers against special interest groups

*The ATA was founded in 2012 and has over 25,000 members

*The ATA is non-partisan and not affiliated with any political party.

Media Contact: Tim Andrews, Executive Director, Australian Taxpayers’ Alliance.  Email: tandrews@taxpayers.org.au

24 Hour Media Hotline: (02) 8964 8651

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