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Auto principles guide to deliver for consumers

11 December 2020

Joint media release with the Minister for Industry, Science and Technology the Hon Karen Andrews MP and the Assistant Treasurer and Minister for Housing the Hon Michael Sukkar MP

The Morrison Government has today launched a set of principles to guide agreements between car dealers and manufacturers, as part of our commitment to deliver the best outcome for Australian consumers.

The six principles are designed to help steer contract negotiations and build on the historic introduction of a separate schedule to the Franchising Code of Conduct for the auto industry on 1 June 2020.

Those reforms were the biggest for the industry in years and included extending the notice needed to terminate agreements, as well as regulations to improve transparency and communication.

The Government’s response to the ‘Fairness in Franchising’ report in August this year also included reforms that allow auto-dealers to have a fair, effective and accountable framework while still encouraging competition in franchising.

This included doubling the maximum fiscal penalty applying to a breach of the Franchising Code and implementing more accessible, enforceable and effective dispute resolution.

The Government’s work on Unfair Contract Terms will also benefit dealers by making unfair contract terms unlawful, and giving courts the power to impose civil penalties.

The Morrison Government has worked to balance the need to better protect car dealers with an environment that is attractive to manufacturers to invest in our nation – as well as ensuring the best deal for everyday Australians buying vehicles.

The Government acknowledges that this is a dynamic and changing industry and will review the relationship between car dealers and manufacturers in two years.

For more details on the principles visit industry.gov.au/principles-for-new-car-dealership-agreements

Media contacts:
Minister Andrews' office 02 6277 7070
Minister Cash’s office 02 6277 7610
Minister Sukkar's office 02 6277 7230