Federal Government announces reform to address dealer manufacturer power imbalance

Public news

2021 has been a major year of reform for the benefit of the automotive industry. In March, the Prime Minister and the Minister for Employment, Skills, Small and Family Business, Senator Michaelia Cash made a commitment to franchise reform and addressing the power imbalance between vehicle dealers and manufacturers.

The changes include increased penalties of $10 million, up from $66,000, for car manufacturers found guilty of systemic misconduct, making current voluntary principles compulsory obligations, and ensuring ‘agent’ type agreements are covered by franchising and competition regulations, provide increased protections for Australian car retailing businesses and their thousands of employees.

These are landmark changes which follow many years of strong advocacy from the MTA, including recent meetings and discussions with Minister Cash's Chief of Staff as well as federal MPs on the Senate Committee looking into GM Holden and other manufacturer brands operating in Australia. The MTA has also made representations every step of the way through a number of written submissions and media opportunities.

The insights and advice of our dealer members has been critical in securing reform and we thank them for their continued support. Moving forward, the MTA will monitor the implementation of these reforms and continue to work with the government to ensure Australian dealers are protected.

Dealer Regulatory Reform Guide Launched

The MTAA, state industry associations and FCW Lawyers launched Navigating recent automotive regulatory reforms - A road map for car dealers and dealer councils.

The guide is a game changer for the automotive industry which breaks the reforms down into practical advice for dealers and dealer councils. Notably, the guide provides a roadmap for how dealers and dealer councils can use various reforms to effectively and efficiently improve their bargaining position.

Click here to download your copy of the guide.

Click here for a high level one page overview of the roadmap.