There has been a meeting between South Australian Premier Jay Weatherill and Independent Senator Nick Xenophon on the future for Holden operations in northern Adelaide.
Both politicians are urging the federal Coalition to overhaul the Fringe Benefit Tax (FBT) on cars, even though the Liberals have pledged not the make any changes.
Federal Labor announced FBT changes just ahead of the federal election but Mr Weatherill did not back them, nor did Senator Xenophon or the automotive industry, all parties fearing the tax changes would affect sales for struggling Holden, which manufactures at Elizabeth in Adelaide.
Mr Weatherill said that while he did support federal Labor's plan, continuing with the existing tax system would not be ideal either.
"That current system disadvantages Australian-made vehicles," he said.
"There are some inbuilt advantages for foreign-made vehicles in the FBT system.
"Something like 70 per cent of the vehicles that go into those novated leases are foreign-made vehicles. We think some important changes could be made."
Mr Weatherill and Senator Xenophon left their meeting at Parliament House in Adelaide vowing to campaign together to secure Holden's manufacturing future.
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