Chair’s Report

MTA CHAIR, FRANK AGOSTINO

Following consecutive interest rate increases, combined with ongoing inflationary pressures, consumer sentiment is currently lower now than during the height of the COVID pandemic. Households are tightening their budgets and reassessing disposable income. As a point of reflection, it means our industry must sharpen our focus on the products and services we offer against evolving consumer demand and expectations.

This reinforces how important it is for the Motor Trade Association to be available to support you. It remains a priority of the organisation to continue delivering high-quality services, skills and employment solutions to help automotive businesses navigate economic, workplace and labour headwinds.

In both the short and long-term, skill shortages are persisting and often top of mind. No business is immune to the tight labour market. To assist overcome this challenge the MTA is deploying a range of strategies – a one size fits all approach does not cut it in 2023. This includes renewing the MTA’s presence at local events, such as the recent Alice Springs Careers Expo, to highlight the diverse and rewarding career pathways across our industry.

And as you know – once apprentices embark on their trade it is also important we provide the right support for them to complete it. The MTA’s Automotive Industry Mentoring Program is making great strides by boosting apprentice retention rates. Apprentices will be supported to finish their qualifications where they will have access to external support to discuss both work and personal matters in depth with our careers mentor who can assist them. Northern Territory Industry Careers Mentor Phil Wyley continues to sign new apprentices up to this initiative.

On the fiscal front, it appears we are now well and truly in a postCOVID economy. Recent Federal and Territory Budgets have affirmed that governments are prudently managing their finances. To this end, the MTA was disappointed that the Federal Government’s Instant Asset Write Off Scheme decreased to $20,000 from 30 June 2023. Small business could previously claim for a piece of new equipment, including a vehicle or machinery, worth up to $150,000. In coordination with other state and territory counterparts, the Motor Trade Association of Australia formally requested the government to allow the current $150,000 Instant Asset Write Off to be claimable for vehicles ordered over the past 12 months but not yet delivered due to supply chain constraints. The Budget measure will render these investments ineligble under the new Instant Asset Write Off arrangements.

On an operational level, I have been impressed with CEO Darrell Jacobs, his executive staff and the wider MTA team. The MTA exists to serve its members. Please continue to call on their expertise where no job should be too large or too small to assist with.

I would also like to recognise the significant contribution of outgoing Motor Trade Association of Australia (MTAA) Chair Neville Gibb. Having been an MTA Member for more than five decades, he has been a longstanding contributor to the automotive industry culminating in board appointments, including most recently as Chair of the MTAA. I would like to thank him for his dedication and achievements on behalf of our industry. On a personal level he has been somebody I could always rely on and this is why I am humbled to succeed him as MTAA Chair. Having two appointments from within our organisation serve this national position further underpins our own efforts locally to stand up for members and your businesses.

Finally, I look forward to joining Darrell and the MTA team when we visit the Northern Territory shortly this month to engage with stakeholders and meet members.