MTA NSW has formally lodged its submission to the Australian Treasury consultation on Unfair Trading Practices Protections for Small Businesses, calling for stronger protections against unfair commercial practices that can place small automotive businesses at a significant disadvantage.
The consultation is examining whether the proposed general prohibition on unfair trading practices should be extended to small businesses, addressing conduct that may be clearly unfair or one-sided but does not currently meet the high legal threshold required to establish unconscionable conduct.
Representing the automotive industry
MTA NSW's submission was made on behalf of the broader automotive industry, including mechanical repairers, body repair businesses, towing operators, dealerships and other automotive businesses.
Importantly, evidence and real-world examples provided by MTA NSW members helped inform the submission and demonstrate how unfair commercial practices can affect businesses at an operational level.
The body repair sector provides particularly strong examples of the market imbalance that can arise between small businesses and significantly larger organisations.
MTA NSW's submission highlighted practices including:
- Policy steering through complex Product Disclosure Statements
- Suppressed labour rates
- Outdated or inadequate repair time guides
- Forced parts procurement arrangements
- The transfer of downstream consumer liabilities and commercial risk onto independent repair businesses
While these practices can have significant consequences for automotive businesses, they may fall within a regulatory "grey area" below the current statutory threshold for unconscionable conduct.
MTA NSW is advocating for reforms that would close this gap and provide small businesses with clearer and more effective protections against unfair trading practices.
What happens next?
With the consultation period now closed, Treasury will review stakeholder submissions and consider whether regulatory intervention is warranted.
This process is expected to include preparation of a Decision Regulation Impact Statement, which will assess the case for reform and inform whether the Australian Government proceeds with legislative amendments.
If legislation is proposed, further stages may include the release of draft legislation for consultation, introduction of a Bill into Federal Parliament and potential consideration by a parliamentary committee.
MTA NSW will continue to advocate throughout this process to ensure the practical experiences of automotive businesses are represented and that any proposed legislation provides meaningful protections for small business.
This submission forms part of MTA NSW's broader advocacy work to address structural market issues affecting automotive businesses and ensure members operate within a fairer and more balanced commercial environment.