Delivering a fair and competitive car retailing sector

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

The Morrison Government will reform the new car retailing sector, to make the system fairer for consumers, dealers and manufacturers.

Minister for Industry, Science and Technology Karen Andrews said a range of reforms to automotive franchising arrangements will be considered, after a recent public consultation.

“We have heard the concerns of those within the sector and are committed to creating a level playing field. It’s about ensuring everyone gets a fair go, including our small and family car dealers,” Minister Andrews said. 

“Most players in the sector are already doing the right thing but when the few don’t, the consequences can be significant.”

The Morrison Government’s reforms will provide for more transparent and cooperative end of term and capital expenditure arrangements. These changes will strike an appropriate balance between the concerns raised by new car dealers and the flexibility car manufacturers require to manage their dealership networks.

The Morrison Government has also established an inter-agency Franchising Taskforce to carefully consider the Parliamentary Joint Committee’s Fairness in Franchising report. The Committee considered broader reforms across the franchising sector.

Minister for Employment, Skills, Small and Family Business, Senator the Hon Michaelia Cash, said the Morrison Government is committed to helping Australian small and family businesses, including those in the franchising sector, to grow and prosper.

"The franchise sector has been a powerhouse, helping to drive economic growth in this country for many years. We know when they are supported, more jobs are created for hardworking Australians,” Minister Cash said.

“There are over 1,300 franchisors operating in Australia and around 97,000 franchisees, which are predominantly made up of small and family businesses. They make a significant contribution to the economy, with revenue in excess of $182 billion dollars and employ over 594,000 people."

The Morrison Government will consult industry on draft automotive regulations in the coming months.

Media contacts:

Minister Andrews' office 02 6277 7070

Minister Cash's office 02 6277 7610