Regulation of the Relationship Between Car Manufacturers and Car Dealers in Australia
MTA NSW has great pleasure in notifying our NSW Motor Dealer Members, the announcement of the Senate Education and Employment References Committee Report, entitled 'Driving a fairer deal: Regulation of the relationship between car manufacturers and car dealers in Australia'.
Please find attached the Senate Report release announcement of these proposed changes from the Honourable Senator Michaelia Cash, Minister for Employment, Skills, Small and Family Business Deputy Leader of the Government in the Senate.
The important announcement of the Mandatory Franchising Code of Conduct will be now strengthened. The Government as per their announcement on 12th March 2021 is introducing new and significant financial penalties for wrong doing under the Franchise Code. Manufacturers who breach the Franchising Code may face penalties up to $10 million dollars (or higher if they are large companies) for not complying with the Code. This will also include protections to keep pace with changes in the business practices by recognising that dealers operating as a manufacturers agent in relation to new vehicle sales are also protected by the Franchising Code. These changes according to the office of Minister Cash will be implemented by the middle of this year.
Please find attached the link to the Announcement from Senator Cash and the Report from the Education, Employment Reference Committee, “Driving a fairer deal: Regulation of the relationship between car manufacturers and car dealers in Australia”