It’s really not good enough, is it: A modern car should go well beyond the 100,000km mark before the cost of repairs required are higher than the value of the vehicle itself. However, before making a decision either way, I’d be getting a second opinion, because either your dealership has no idea what it’s talking about, or it’s making an attempt to shake you down. So go back to them and tell them – just for starters – that your engine has a timing belt and not a timing chain. Based on that alone, I’d be dubious about any diagnosis made by a workshop that doesn’t know this rather simple fact about the engine in your car. A second opinion might put the situation into an entirely different light financially speaking, too. Try a workshop that isn’t a Volkswagen dealer and start from scratch. I’d also be talking to VW Australia customer service department, because that degree of work on a vehicle with just 96,000km showing is a scandal.