Second-hand Vehicle Dealers Act Review

Public news

The MTA has been playing crucial role in facilitating discussions between members on recommended changes to be put forward to Consumer Business Services (CBS).

The Working Group met during the LVD AGM on Thursday 27 September. At this session, attendees discussed issues identified during member engagement over the past few months.

The Group agreed that for each change a consumer benefit, dealer benefit and government benefit must each be identified.

The following issues have been identified as those the Group would like to progress with CBS:

- Reduction in statutory warranty from 15 years / 200,000kms to 10 years / 160,000kms. Conversations included whether statutory warranty was even required when ACL is in place anyway. It was determined that it is still of benefit as Australian Consumer Law (ACL) can be somewhat ambiguous and subjective.

- Removal of disclosure requirements for previous owner details and previous vehicle history in relation to rental car / hire car / taxi-cab.

- Amendments to the “Form 16 – Dealer Sale Form” for practicality.

- Changes to the Duty to Repair provisions to harmonise with ACL regarding notification of a defect before the sale. Even though the ACL holds authority it is requested that this be made clear in the Act. Further legal advice will be obtained to confirm any potential implications of this change.

A number of these changes will result in the levelling of the playing field with other states and territories. We have recently met with Dini Soulio, the Commissioner for Consumer and Business Services to emphasise the need for a review of the legislation and to talk about next steps. We are now in the process of drafting our recommended changes for the Department’s consideration. It is hoped that this will initiate a formal consideration and review of the Act.

If you have any questions in regards to the Second-hand Vehicle Dealers Act review, click here to email our Industry Engagement Specialist Nathan Groves or call 8291 2000.