The Federal Government will today make a multi-million-dollar commitment aimed at securing the future of the car industry beyond 2020.
Convincing voters it can save the car industry is crucial if Labor wants to protect several seats in the car making states of south Australia and Victoria.
Today the Government will commit to $500 million in extra support between now and 2020, and from then on $300 million a year.
Labor says the commitments will be locked in by legislation and reviewed every five years, giving the sector the certainty it needs to invest in Australia.
The Government says a successful automotive industry is important for the country as it creates skilled jobs, drives high-level research and development and supports other sophisticated industries.
But Labor says the plan will not require any new money until after the current budget period.
On day one of the election campaign, Labor committed to a separate $200 million assistance package for the car industry, but denied it was linked to recent changes to the fringe-benefits tax.
Earlier this week Holden workers in Adelaide accepted a three-year wage freeze in order to stop the company closing its production line in 2016.
A planned 3 per cent wage increase from November will now be deferred as the carmaker looks to save $15 million in labour costs in order to remain viable and keep building cars in Australia.