More cars are being driven to the shops for repairs and other parts.
The Federal Government announced it will impose tougher fuel excise and vehicle registration requirements for vehicles registered before 1 August 2018.
The new measures will also apply to new and existing cars sold in Australia.
Affected car dealers will also have to give the Federal Government information about the vehicles they sell and the car owners’ incomes.
This will include vehicle information such as how long the vehicle has been used and the mileage.
The changes also mean the registration of cars with a total value of more than $200,000 will be required.
New car sales have slumped over the past year, with car dealerships reporting sales fell more than 70 per cent in the year to July.
Finance Minister Mathias Cormann said the measures were necessary to prevent the “robust demand” for car repairs and parts.
He said it was a cost-saving measure for the industry.
“The measures we’ve announced today will help ensure our roads are safe and we’ll continue to work closely with our industry to support the continued development of new technologies and advanced manufacturing in Australia,” Mr Cormann told reporters in Sydney.
“We’ll continue our work to make sure our roads remain safe and reliable, but we need to do it right, and the measures we’re announcing today will make sure that happens.”
Read more from the ABC’s Today program: The Government has already announced the introduction of a 10 per cent fuel excise on new cars and trucks, including a 5 per cent GST on all imported cars.
More measures to boost car sales will be announced in the coming weeks.
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