NSW Fair Trading has confirmed that the new Motor Dealers and Repairers Regulation 2025 will commence on 1 September 2025, following an extended period of consultation with industry stakeholders.
The AADA notes the limited notice regarding the release of these regulations. We were advised of the changes by NSW Fair Trading late on Friday and are sharing this update with members at the earliest opportunity.
Importantly, the Regulation does not proceed with the previously proposed introduction of a separate electric vehicle (EV) technician repair class or additional mandatory EV training requirements.
Key Information – Summary of Changes
The Regulation introduces a range of new requirements for licensed motor dealers, repairers, and recyclers. Dealers should be aware of the following key changes.
Online Sales Framework
- Dealers must notify NSW Fair Trading if they sell wholly or partly online (using a prescribed form).
- Online dealers must:
- Use an “.au” domain name.
- Display their dealer licence number on websites and advertising.
- Allow buyers to inspect vehicles prior to delivery/collection.
- Limit deposits to 10% of the vehicle price before possession.
- Observe a cooling-off period until 5pm the next day.
- Compliance with these changes is required by 1 December 2025, with Fair Trading taking an ‘educational’ compliance approach in the interim.
Retention of Dealer Notices
- Licensed motor dealers must retain dealer notices for 6 years from sale. This is an increase from the previous 3-year requirement.
Compensation Fund
- Coverage expanded to:
- Vehicles over 35 years old.
- Motorcycles over 10 years old or not used mainly for private purposes.
- Trailers and towable vehicles.
- Maximum claim amount increased from $40,000 to $100,000.
Other Relevant Changes
- Trade shows: motor vehicle dealers who do not hold a licence in NSW may be able to participate in a NSW trade show, provided the show is a ‘declared trade show’.
- Qualifications: motor vehicle tradesperson certificate requirements now set administratively, rather than prescribed in the Regulation, to reflect VET system changes.
- Motor vehicle recyclers: banned from using cash payments and from trading vehicles/parts with removed or defaced identifiers.
- Penalties increased for odometer tampering and unlicensed trading.
- From 1 September 2026, the dealer guarantee will extend to trailers and towable vehicles.
The Regulation commences 1 September 2025, with a grace period for online sales requirements until 1 December 2025. Dealers should review their online sales arrangements, recordkeeping systems, and compliance processes ahead of the deadline.
The AADA is working closely with NSW Fair Trading to provide further guidance and ensure the rollout of the new Regulation is practical for dealers.