In response to changes to the NSW Motor Dealers and Repairers Regulations 2025, the AADA has prepared a set of member-only fact sheets to assist franchised new car dealers in understanding their obligations under the new rules.
The Regulation commenced on 1 September 2025, following extensive consultation with industry stakeholders. While several key proposals (such as a new EV repair licence class) did not proceed, there are a number of important changes dealers must comply with.
Fact Sheet 1 – Online selling Requirements
New provisions now govern the sale of motor vehicles online. Dealers currently operating online have until 1 December 2025 to notify NSW Fair Trading and meet all other requirements. Dealers who commence online selling after 1 September 2025 must notify NSW Fair Trading at least 20 business days before starting sales.
DOWNLOAD FACTSHEET 1 – ONLINE SELLING REQUIREMENTS
Fact Sheet 2 – Compensation Fund Changes
The Regulation also expanded the Motor Dealers and Repairers Compensation Fund, lifting the maximum claim limit from $40,000 to $100,000 and extending coverage to older vehicles, motorcycles and trailers. It also clarifies the types of conduct that may trigger compensation, while NSW Fair Trading retains oversight of the Fund and authority to adjust levies.
DOWNLOAD FACTSHEET 2 – COMPENSATION FUND CHANGES
Fact Sheet 3 – Other Regulatory Changes
The Motor Dealers and Repairers Regulation 2025 also introduced additional reforms, including extending dealer guarantees to trailers from September 2026, longer recordkeeping obligations, new rules for trade show participation, tougher recycler restrictions, and higher penalties for odometer tampering and unlicensed trading.
DOWNLOAD FACTSHEET 3 – OTHER REGULATORY CHANGES
What Dealers Should Do
Dealers should review their online sales and compliance processes ahead of the December 2025 deadline, update recordkeeping systems, and ensure staff are across the new obligations.