The 1932 Australian Grand Prix was a motor race held at the Phillip Island circuit in Victoria, Australia on 14 March 1932.[1] It was the fifth Australian Grand Prix and the fifth to be held at Phillip Island.[1]
The race was organized by the Light Car Club of Australia, formerly known as the Victorian Light Car Club, and was limited to cars having an engine with a piston displacement of 2000cc or less.[1] It was the first Australian Grand Prix to be decided on a straight handicap basis,[2] with the winner being the first car to complete the 31 laps.[1] The two "scratch" competitors had to concede starts ranging up to 29 minutes, equating to an advantage of four laps.[3] The previous practice of cars contesting four classes was discontinued.[1] Weather conditions were reported to be "ideal".[3]
The race, in which there were 18 starters,[3] was won by Bill Thompson driving a Bugatti.[1] Thompson was also awarded the Herald Trophy for recording the fastest time of the race.[1]