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Reforming the new car retail market

14 February 2020

Joint media release with the Minister for Employment, Skills, Small and Family Business Senator the Hon Michaelia Cash

The Morrison Government is working to foster more competitive new car retailing, with the release of draft regulations to improve transparency and fairness in the market.

Car manufacturers, new car dealers and customers now have an opportunity to comment on the draft regulations that introduce changes for the sector under the Franchising Code of Conduct.

Minister for Industry, Science and Technology Karen Andrews said the Government is committed to ensuring car dealers are given a fair go and that consumers have access to a wide range of vehicles that meet their needs.

“We’ve been working closely with industry experts on developing these draft regulations and now we’re calling on all stakeholders to have their say on what we propose and how we plan to implement the changes,” Minister Andrews said.

“Introducing an automotive specific section to the Franchising Code of Conduct will allow the sector to have tailored requirements, while ensuring it remains consistent with the Franchising Code that is currently under review.

“The franchise sector makes a significant contribution to the Australian economy, and we know when they are supported more jobs are created for hardworking Australians.”

 Minister for Employment, Skills, Small and Family Business Michaelia Cash said the consultation process demonstrated the Morrison Government’s commitment to introducing continued reforms that enable small and family businesses in the franchising sector to thrive and grow.

“These proposed regulations, along with the work of the Franchising Taskforce, will strike the right balance between franchises and franchisors to ensure the continued development and success of the sector,” Minister Cash said.

“The Morrison Government will develop an achievable and carefully considered plan for the reform of the franchising framework, ensuring that it is fair, effective and accountable for both franchisors and franchisees, while avoiding unnecessary red tape. We want to make sure there are protections while ensuring businesses continue to innovate, develop and employ more Australians.”

The Government is also pursuing a number of other reforms that are applicable to motor vehicle dealerships including investigating warranties, unfair contract terms and the sharing of vehicle repair information. These are being progressed by the Assistant Treasurer Michael Sukkar.

The draft regulations have been released for consultation on the Department of Industry, Science, Energy and Resources Consultation Hub. Consultations close on 13 March.

Media contacts:
Minister Andrews' office 02 6277 7070
Minister Cash's office 02 6277 7610