VACC - Blogs, Land Tax, Making Cars, Buying Parts, & Apprenticeships
A sad legacy for a proud industry 15 November 2019
Sharply rising land tax bills have seen many automotive business owners sell up and move out of local communities.
The effect is two-fold and neither outcome ideal for you.
Firstly, motorists must travel further to access service and repair work, or maybe lose access altogether.
Secondly, fully-equipped auto workshops get converted into mobile mechanics. This isn’t all bad, but it does lead to tighter segmentation of skill sets that each mobile service provider brings: one for radiators, one for brakes…
The generalist centre, that could fix almost anything, is disappearing. But where have the people gone - the technicians, apprentices and support staff? Mostly, they just don’t work in those roles anymore.
And what of your future auto go-to, the local teen looking for an apprenticeship? The very thing apprentices need - an employer with a business - is vanishing.
Why do auto businesses have to pay taxes that reflect the improved value of the land (i.e. yet another apartment complex) when the business’ purpose is to serve a local community and employ people?
A recent VACC survey found land taxes for automotive workshops in metropolitan Melbourne have risen by 130 percent on average in the last two years. It’s causing businesses to leave, creating a vacuum of important consumer and business services in the areas they operate.
Business owners just want to fix cars, but the pressures of local and state taxes shout out 100 reasons to take the money and run.
That’s bad news for everyone.
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
The effect is two-fold and neither outcome ideal for you.
Firstly, motorists must travel further to access service and repair work, or maybe lose access altogether.
Secondly, fully-equipped auto workshops get converted into mobile mechanics. This isn’t all bad, but it does lead to tighter segmentation of skill sets that each mobile service provider brings: one for radiators, one for brakes…
The generalist centre, that could fix almost anything, is disappearing. But where have the people gone - the technicians, apprentices and support staff? Mostly, they just don’t work in those roles anymore.
And what of your future auto go-to, the local teen looking for an apprenticeship? The very thing apprentices need - an employer with a business - is vanishing.
Why do auto businesses have to pay taxes that reflect the improved value of the land (i.e. yet another apartment complex) when the business’ purpose is to serve a local community and employ people?
A recent VACC survey found land taxes for automotive workshops in metropolitan Melbourne have risen by 130 percent on average in the last two years. It’s causing businesses to leave, creating a vacuum of important consumer and business services in the areas they operate.
Business owners just want to fix cars, but the pressures of local and state taxes shout out 100 reasons to take the money and run.
That’s bad news for everyone.
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
Making cars makes us all smarter 6 December 2019
Only a couple of years ago, Australia was included in a handful of nations capable of designing, developing and mass manufacturing motorcars. That made me and many Australians proud.
My disappointment with the loss of Australia’s passenger vehicle manufacturing industry was sadly rekindled recently when reading an article about the Harvard Kennedy School’s Center for International Development study, Atlas of Economic Complexity.
The study highlighted Australia’s dismal ranking, falling from 57th to 93rd between 1995 to 2017 in the global economic complexity stakes, while Japan and Switzerland have consistently led the pack.
What this means for us as a country is, we’re not that clever. While we’ve been digging rocks out of the ground, countries like India and Turkey - in a very short time - have leapfrogged us with their superior technology and manufacturing capability.
The study pointed out what many of us feel is obvious: if we don’t make complex things, with lots of high-level technology, we run the risk of being relegated to a largely minerals-based export market. Why is it we need big studies to tell us the obvious?
When the government encouraged passenger vehicle manufacturing to leave Australia, we dug a big economic hole in this country by reducing our economic complexity and industrial bandwidth.
Matched only by the big hole we make digging up things from the ground, it was a bad idea with longer term consequences we’re only now just experiencing.
My hope is that we can get back in the game as electric vehicles become mainstream.
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
My disappointment with the loss of Australia’s passenger vehicle manufacturing industry was sadly rekindled recently when reading an article about the Harvard Kennedy School’s Center for International Development study, Atlas of Economic Complexity.
The study highlighted Australia’s dismal ranking, falling from 57th to 93rd between 1995 to 2017 in the global economic complexity stakes, while Japan and Switzerland have consistently led the pack.
What this means for us as a country is, we’re not that clever. While we’ve been digging rocks out of the ground, countries like India and Turkey - in a very short time - have leapfrogged us with their superior technology and manufacturing capability.
The study pointed out what many of us feel is obvious: if we don’t make complex things, with lots of high-level technology, we run the risk of being relegated to a largely minerals-based export market. Why is it we need big studies to tell us the obvious?
When the government encouraged passenger vehicle manufacturing to leave Australia, we dug a big economic hole in this country by reducing our economic complexity and industrial bandwidth.
Matched only by the big hole we make digging up things from the ground, it was a bad idea with longer term consequences we’re only now just experiencing.
My hope is that we can get back in the game as electric vehicles become mainstream.
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
Buying parts online could be a false economy 20 December 2019
The internet is so convenient for shopping around and finding the best price on any given article. But when it comes to purchasing vehicle parts, it’s buyer beware.
It may seem like a good idea to buy what you need online, then go to your mechanic and ask them to fit it. You might save some money, right? I can’t blame you for thinking so, but there are some things to keep in mind.
Research from Incopro states that 60 percent of online search results connect consumers with sellers of counterfeit products, which includes car parts purchased online and brought into Australia.
There are plenty of honest sellers online, but lots of dishonest ones too. Can you tell the difference?
Asking a mechanic to fit a part to your vehicle that you cannot verify puts them in a tricky position – and my advice to mechanics in that position is: Don’t do it.
But guess what? In the end it is you, the consumer, that is liable if things go wrong.
The best course of action is to buy only from trusted sources – and that usually means from the manufacturer, a well-known retailer, or your mechanic. If buying online, you’ll have to pay freight and duty, so it’s unlikely you will find genuine parts at much of a discount. It’s best to leave it to those who know.
Putting a part on your vehicle that isn’t fit for purpose can be very dangerous and may void your warranty. Just don’t risk it.
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
It may seem like a good idea to buy what you need online, then go to your mechanic and ask them to fit it. You might save some money, right? I can’t blame you for thinking so, but there are some things to keep in mind.
Research from Incopro states that 60 percent of online search results connect consumers with sellers of counterfeit products, which includes car parts purchased online and brought into Australia.
There are plenty of honest sellers online, but lots of dishonest ones too. Can you tell the difference?
Asking a mechanic to fit a part to your vehicle that you cannot verify puts them in a tricky position – and my advice to mechanics in that position is: Don’t do it.
But guess what? In the end it is you, the consumer, that is liable if things go wrong.
The best course of action is to buy only from trusted sources – and that usually means from the manufacturer, a well-known retailer, or your mechanic. If buying online, you’ll have to pay freight and duty, so it’s unlikely you will find genuine parts at much of a discount. It’s best to leave it to those who know.
Putting a part on your vehicle that isn’t fit for purpose can be very dangerous and may void your warranty. Just don’t risk it.
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
Who is VACC? 3 January 2020
Some people think the Victorian Automobile Chamber of Commerce is a regulator or part of a government service. This is understandable. Given its branding has been around for over 100 years and many people see VACC’s ‘accreditation’ signs, they assume the association has more of a policing role in the industry.
In reality, VACC is an employer association dedicated to advocating for the best possible policy position for the automotive industry. This includes dealerships, independent mechanics, panel beaters and many specialist operations, like tyre retailing and engine reconditioning.
VACC spends a lot of time talking to the government and preparing policy documents that help inform governments and regulators about the industry and the potential effects of any proposed policies.
A large part of the industry is made up of small businesses, so it doesn’t take much for government intervention to have a profound impact on ‘mum and dad’ operations. Big businesses can be badly impacted as well.
It’s VACC’s job, on behalf of its more than 5000 business members, to ensure any policy movements are balanced and don’t negatively impact the industry.
Many things VACC achieves for its members have a positive knock-on effect for consumers: things like being able to pay vehicle registration fees in installments.
VACC is the voice of the automotive industry, ensuring business owners are heard by politicians and regulators. While we live in a world of individualism, sometimes a collective voice can’t be beaten when it’s time to get something done.
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
In reality, VACC is an employer association dedicated to advocating for the best possible policy position for the automotive industry. This includes dealerships, independent mechanics, panel beaters and many specialist operations, like tyre retailing and engine reconditioning.
VACC spends a lot of time talking to the government and preparing policy documents that help inform governments and regulators about the industry and the potential effects of any proposed policies.
A large part of the industry is made up of small businesses, so it doesn’t take much for government intervention to have a profound impact on ‘mum and dad’ operations. Big businesses can be badly impacted as well.
It’s VACC’s job, on behalf of its more than 5000 business members, to ensure any policy movements are balanced and don’t negatively impact the industry.
Many things VACC achieves for its members have a positive knock-on effect for consumers: things like being able to pay vehicle registration fees in installments.
VACC is the voice of the automotive industry, ensuring business owners are heard by politicians and regulators. While we live in a world of individualism, sometimes a collective voice can’t be beaten when it’s time to get something done.
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
Fuel is a numbers game 14 February 2020
It used to be simple. At a fuel station, you’d either fill up with Super or Standard. Today, there’s wider selection, with outlets using brand names for premium fuels. It’s all good, but with greater choice can come confusion.
So, which fuel is right for your vehicle? Let’s tease it out.
Petrol is rated by RON (research octane number). Regular was typically between 88-92 RON and Super was 94-97. Now you can get 91, 93 (ethanol-blended E10), 95 and even 98 RON.
Basically, the higher the octane rating, the more compression the fuel can withstand before detonation. It’s not important to understand the technicalities, except that different engines are designed to perform best using certain fuels.
The first point of reference for your vehicle’s required RON is the car’s handbook, which should be in your glovebox. There’s often advice printed on the inside of your vehicle’s fuel flap, too. If you have neither, contact your vehicle manufacturer.
Generally, most vehicles are fine using 95 RON. If you’re at the forecourt and don’t know what to do, go with a higher rating. Higher RON is more expensive but not necessarily better for your engine, if it’s not required. However, using a higher rating than needed probably won’t hurt your engine, so it’s better to be safe than sorry.
Using a rating lower than required could cause ‘pinging’ or ‘knocking’ – that dreaded sound that can lead to catastrophic engine failure if ignored. And you don’t want to hear that…
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
So, which fuel is right for your vehicle? Let’s tease it out.
Petrol is rated by RON (research octane number). Regular was typically between 88-92 RON and Super was 94-97. Now you can get 91, 93 (ethanol-blended E10), 95 and even 98 RON.
Basically, the higher the octane rating, the more compression the fuel can withstand before detonation. It’s not important to understand the technicalities, except that different engines are designed to perform best using certain fuels.
The first point of reference for your vehicle’s required RON is the car’s handbook, which should be in your glovebox. There’s often advice printed on the inside of your vehicle’s fuel flap, too. If you have neither, contact your vehicle manufacturer.
Generally, most vehicles are fine using 95 RON. If you’re at the forecourt and don’t know what to do, go with a higher rating. Higher RON is more expensive but not necessarily better for your engine, if it’s not required. However, using a higher rating than needed probably won’t hurt your engine, so it’s better to be safe than sorry.
Using a rating lower than required could cause ‘pinging’ or ‘knocking’ – that dreaded sound that can lead to catastrophic engine failure if ignored. And you don’t want to hear that…
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
Mechanics are in huge demand here and abroad 21 February 2020
As far as bulletproof jobs go, being a mechanic isn’t a bad idea. It’s an occupation that’s constantly in demand and provides a great platform for global employment.
Most vehicle models built by a brand – cars, motorcycles, commercials and trucks – are similar irrespective of where they’re sold around the world. Manufacturers have purposely designed them to be as common as possible, across their fleet, to maximise production efficiencies and to reduce global deployment costs.
That’s great news if a mechanic is a brand specialist and has a real appetite for travel. In particular, apprentices that have trained in dealerships often develop highly-focused vehicle product and model skills that are valuable anywhere that brand of vehicle is sold around the globe.
National figures indicate the Australian automotive industry requires an additional 35,000 skilled workers. Skills shortages are affecting almost half of the industry – including mechanical – limiting business investment, employment, planning and growth. That means there’s a lot of opportunity for people that can repair vehicles or want to learn how. Automotive business owners and by extension Australia’s 19.5 million motorists benefit too. Overseas, it’s a similar story.
The automotive skills shortage is a complex issue. I don’t like the idea of losing our precious skilled tradies, but if they spend a bit of time overseas and come back with even more expertise and knowledge then that’s a benefit to the individual, and to the broader Australian economy. So that’s good for all of us.
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
Most vehicle models built by a brand – cars, motorcycles, commercials and trucks – are similar irrespective of where they’re sold around the world. Manufacturers have purposely designed them to be as common as possible, across their fleet, to maximise production efficiencies and to reduce global deployment costs.
That’s great news if a mechanic is a brand specialist and has a real appetite for travel. In particular, apprentices that have trained in dealerships often develop highly-focused vehicle product and model skills that are valuable anywhere that brand of vehicle is sold around the globe.
National figures indicate the Australian automotive industry requires an additional 35,000 skilled workers. Skills shortages are affecting almost half of the industry – including mechanical – limiting business investment, employment, planning and growth. That means there’s a lot of opportunity for people that can repair vehicles or want to learn how. Automotive business owners and by extension Australia’s 19.5 million motorists benefit too. Overseas, it’s a similar story.
The automotive skills shortage is a complex issue. I don’t like the idea of losing our precious skilled tradies, but if they spend a bit of time overseas and come back with even more expertise and knowledge then that’s a benefit to the individual, and to the broader Australian economy. So that’s good for all of us.
Share your thoughts! E: [email protected] Words: VACC CEO, Geoff Gwilym. https://vacc.com.au
