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Supporting a competitive new car retailing sector

20 December 2018

The Liberal National Government is committed to ensuring Australian car dealers are given a fair go, and consumers have access to a wide range of vehicles that meet their needs, with a public consultation opening today.

The Regulation Impact Statement has been released for consultation on the Department of Industry, Innovation and Science’s Consultation Hub.

Minister for Industry, Science and Technology Karen Andrews said car manufacturers and new car dealers will have an opportunity to highlight improvements to franchise arrangements.

“The Liberal National Government is committed to fostering a competitive new car retailing sector, which makes a significant contribution to our economy,” Minister Andrews said.

“Around 1.2 million new cars were sold in 2017 through 3,500 retail outlets employing over 67,000 people and generating nearly $63 billion in revenue.

“We want to hear how we can best support car dealers and manufacturers to thrive in the changing business environment, ensuring long-term business growth.”

Minister for Small and Family Business, Skills and Vocational Education, Michaelia Cash said the consultation process will help the government better understand the current challenges faced by car dealers and manufacturers. Currently, the Franchising Code of Conduct applies to dealings between car manufacturers and new car dealers.

The Parliamentary Joint Committee on Corporations and Financial Services is reviewing the Franchising Code with a report due on 14 February 2019.

“The Committee has heard from the new car retailing industry with a number of options advanced by dealers to address their concerns. Any solutions must be considered carefully, in consultation with the industry,” Minister Cash said.

“It’s important government intervention provides appropriate protection for franchisees, without creating unnecessary regulatory burden or restricting the sector’s ability to adapt to business conditions and consumer preferences.”

Consultations close on 13 February 2019. For more information visit: https://consult.industry.gov.au/industry-growth/franchise-relationships-between-distr/

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