Important Update on NSW Tolls Payment Processes

New South Wales (NSW) dealers are advised of an important update to the process for managing tolls incurred by other drivers when a dealership remains listed as the registered owner of a vehicle. AADA has received advice from the NSW Government outlining a new process intended to reduce the financial and administrative burden.

The NSW Government has recognised the concerns raised by AADA on behalf of NSW motor vehicle dealers about unpaid toll liability where vehicles have been sold but the transfer of the vehicle registration has not yet been completed. While the previous nomination process is no longer available, dealers can object a Toll Payment Demand (TPD) and provide evidence that the vehicle had been sold or was no longer under their control when the toll was incurred.

Evidence may include a Notice of Disposal (NOD). Where the evidence demonstrates that ownership transferred before the toll was incurred, the relevant toll service provider can remove the dealer’s liability.

Following engagement with AADA, NSW Motorways has developed a revised business fact sheet explaining:

  • the available objection pathways
  • the evidence businesses can provide
  • practical steps for managing Toll Payment Demands and unpaid tolls

MANAGING TOLL PAYMENT DEMANDS FOR SOLD VEHICLES

DEALER PROCESS: PREVENT AND RESPOND TO TOLL PAYMENT DEMANDS (FLOW CHART)

Five critical points that NSW dealers must understand

  1. A NSW Licensed Motor Vehicle Dealer (LMVD) may receive a TPD for a vehicle that has already been sold by their dealership. This can occur if the NOD was not successfully lodged, or the ownership information available to the tolling system had not been updated, when the demand was issued. It is critical that dealerships follow their obligation under Regulation 38(2) of the Road Transport (Vehicle Registration) Regulation 2017 (NSW) and immediately submit a NOD through Dealer-on-Line (DoL) at the time of sale. The AADA recommends that this occur before the customer drives the vehicle from the dealership.
  2. Where a vehicle has been sold by a dealership and the new owner incurs toll charges before an NOD is lodged through DoL, any resulting TPD may initially be issued to the dealership.
  3. A purchaser cannot be nominated at the TPD stage; however, an objection process remains available where the vehicle was sold, stolen or otherwise not under the dealership’s control. LMVDs should contact the toll provider shown on the TPD and lodge an objection before the due date. Evidence must be provided in support of the objection which may include:
    • successfully lodged Notice of Disposal
    • Dealer Online or Service NSW receipt
    • vehicle sale invoice or contract
    • sale & delivery date and any other information requested by the toll provider
  4. The toll provider will assess the objection. Where the evidence demonstrates that ownership transferred and a NOD was submitted before the toll was incurred, the provider may remove the dealership’s liability. Where that occurs, the TPD will be re-directed to the new vehicle owner instead of the LMVD after the NOD has been successfully lodged through Dealer Online. Further information about the objections process can be found here: Lodge an objection | NSW Government
  5. Alternatively, LMVDs may also make their own arrangements with purchasers, and/or pursue available debt collection processes, for the recovery of any toll costs incurred after ownership transferred and a NOD was submitted.

Previous payment of TPD incurred in the dealer’s name

For toll fees paid by a dealer, where the dealer had followed the process as required under Regulation 38(2) and immediately completed and lodged a NOD, and the vehicle had not yet transferred in name to the new owner at the time the toll was incurred, a dealer can lodge an objection within 60 days after the liability to pay the toll is incurred. The same evidentiary requirements as outlined above will be required.

Loan and demonstrator vehicles

It is recommended that LMVDs ensure they have an internal process in place that will allow for the recovery of toll fees incurred by a consumer who was provided with a demonstrator or service loan demonstrator vehicle. Loan and demonstrator vehicles should also be linked to the dealer’s toll account.

AADA acknowledges the contribution and willingness to act by NSW new car dealers on this issue. Many gave time and provided critical data to help arrive at a workable alternative. Those dealers have assisted in delivering an outcome that will assist the entire NSW dealer cohort.

Round 3 of the DRIVEN Program Expands Scope to Support EV Uptake

The Australian Government has expanded the DRIVEN Charger Rebate Stream beyond chargers to now include EV-specific PPE, workshop equipment, tools and lifting equipment in Round 3, adopting recommendations put forward by the AADA to support franchised new car dealers in the transition to electric vehicles.

To support increased EV uptake through greater consumer confidence, the DRIVEN Charger Rebate Stream 2026 to 2029 will provide $18.8 million to automotive dealerships and EV repairers for the purchase and/or installation of fixed smart EV charging units, portable DC EV charging units and EV-specific equipment.

Key changes under Round 3 include:

  • Expanded scope covering up to 80 per cent of eligible costs for EV-specific PPE, workshop equipment, tools and lifting equipment purchased on or after 12 May 2026.
  • Increased rebate cap to $50,000 per site across all rounds, with previous recipients able to apply again for eligible expenditure up to the overall cap.
  • Have at least $5,000 of eligible expenditure per site, per claim, to receive a rebate.

The rebate stream will continue to provide:

  • Rebates up to $3,000 per eligible EV charging plug purchased on or after 26 March 2024, within a cap of $21,000 per site.
  • A maximum of $250 to cover third-party administrative fees for application assistance.

It is important to note that dealerships operating under multiple franchisee agreements out of the one rooftop site may make an application for each vehicle manufacturer they have a franchise agreement with.

Applications for Round 3 close on the 30 April 2027 at 5:00 pm AEST.

The Department will be hosting three information sessions covering the same content and to support the program’s expansion to include EV-specific workshop equipment.

  • Information Session #1
    When: Tuesday, 22 September 2026
    Time: 10:00 pm – 10:45am (AEST)
    Registration: To attend the session, please register using the following link.
  • Information Session #2
    When: Wednesday, 7 October 2026
    Time: 1:00 pm – 1:45 pm (AEST)
    Registration: To attend the session, please register using the following link.
  • Information Session #3
    When: Thursday, 22 October 2026
    Time: 3:00 pm – 3:45 pm (AEST)
    Registration: To attend the session, please register using the following link.

Changes to Card Surcharging Rules from 1 October 2026

The Reserve Bank of Australia (RBA) has completed its review of merchant card payment costs and surcharging. As a result, card networks including Visa, Mastercard, American Express and eftpos will introduce a ‘No Surcharge’ rule for card payments.

This will mean that businesses can no longer apply surcharges to prepaid, debit or credit card payments, even though merchant processing costs will still apply.

The RBA has also reduced interchange fee caps to help offset the loss of surcharge revenue. You can read the RBA’s ‘Review of Merchant Card Payment Costs and Surcharging’ conclusions paper here.

When will the changes take effect?

The new No Surcharge rules will take effect from 1 October 2026. You can continue to apply a surcharge to credit or debit card transactions up until this date.

About the ‘No Surcharge’ rule

The new rules will be enforced by card networks and payment service providers through their scheme rules and merchant contracts, not by the ACCC. However, the ACCC and state and territory regulators will continue to enforce Australian Consumer Law requirements, including prohibitions on misleading pricing practices.

The changes do not apply to all surcharges

The changes only affect surcharges related to card payments that are separate from a consumer paying with a particular card and do not affect other fees or surcharges your business may choose to apply. Examples of other fess can include delivery fees, booking fees, weekend surcharges and public holiday surcharges. Fees such as these can still be charged where appropriate but should be clearly disclosed to customers.

How should dealerships consider preparing for the changes?

To prepare for the changes dealers may wish to consider some of the options below:

  • Absorbing card processing costs.
  • Reviewing merchant service fees and negotiating with card providers for a better deal.
  • The ACCC advise that businesses can continue to recover the cost of accepting card payments by incorporating that cost into their overall pricing for the products or services they sell. You must be careful not to mislead consumers about the reasons for any price increase.
  • Working with your card providers to make the appropriate adjustments to card payment terminals.
  • Introducing a clearly communicated minimum transaction value for credit or debit card payments.
  • Considering alternative payment arrangements where appropriate.

Each option carries different risks and benefits, so dealerships should assess what best suits their business.

More information

Dealers can find more information on what their options may be and how they may consider introducing them by vising the ACCC website.

AADA Annual Report 2025-26

We are pleased to share the 2025–26 edition of the AADA Annual Report, providing an overview of the Association’s work over the last financial year.

This year’s report highlights a year of significant activity across advocacy, policy, research, member services and industry engagement. From our work on the Australian Consumer Law and franchising protections to expanding services for members and strengthening our engagement with government, the report captures the breadth of AADA’s work on behalf of dealers.

Inside you’ll find:

  • Key advocacy and policy outcomes across franchising, NVES, consumer affairs and other priorities.
  • The AADA’s independent ACL Review and its implications for dealers and consumers.
  • Expanded member services, including our new legal assistance offering and ongoing industry research.
  • The growth of the AADA Dealer Academy since its launch in October 2025.
  • Highlights from the 2026 AADA Convention & Expo and recognition of our Lifetime Achievement Award recipients.

The Annual Report provides members with a snapshot of the work undertaken by AADA throughout 2025–26, and our continued focus on advocacy, member support and ensuring the dealer voice is heard.

DOWNLOAD FY 25-26 ANNUAL REPORT

AADA Releases Independent Buchan Review of the ACL and AADA Reponse

On 3 December 2025, Australian new car franchise dealers were advised that the Australian Automotive Dealer Association (AADA) had commissioned Emeritus Professor Dr Jenny Buchan to undertake an independent Root and Branch Review of the Australian Consumer Law (ACL) and the Franchising Code of Conduct (the Code) as they apply to the new vehicle retail sector.

Today, the AADA is releasing both Professor Buchan’s findings and AADA’s response to the Review to Australian dealers.

VIEW BUCHAN REVIEW

VIEW AADA RESPONSE

AADA Position on Professor Buchan’s Report

AADA welcomes Professor Buchan’s report. The publication of the Review and AADA’s response comes at a critical time for the automotive retail sector. When AADA commissioned the Review, the objective was not to advocate for a particular outcome or validate a predetermined position. Rather, it was to facilitate an independent examination of how the consumer guarantee framework operates in practice for consumers, dealers and Original Equipment Manufacturers (OEM) within the sector. AADA believes Professor Buchan has successfully achieved that objective.

AADA Response to the Review

AADA’s analysis of the Review has helped identify key areas requiring reform and outlines the implications of the findings for consumers, dealers and OEMs. The AADA response presents a practical pathway for improving the current regulatory framework.

Key Reform Measures Recommended by AADA

The findings of the Review demonstrate that the challenges identified are not isolated issues but rather symptoms of broader structural problems within the existing framework. In response, AADA recommended pathways to reform include:

  • Mandatory and earlier OEM participation in manufacturing defect claims.
  • A comprehensive review to ascertain that the current ACL framework reflects the realities and equity of the new vehicle market as it applies to the allocation of responsibilities between dealer and OEM.
  • Targeted reform of the ACL consumer guarantee framework for motor vehicles, including addressing the ambiguity of key ACL concepts such as major fault, reasonable time and the rejection period.
  • Action to ensure full OEM indemnification for all dealer costs incurred and the treatment of depreciation in vehicle buybacks.

AADA Acknowledgements

The Review was conducted independently and drew on face-to-face interviews and written evidence delivered from a broad range of stakeholders. Naturally those stakeholders included a large cohort of dealers from almost every Australian state, who played a crucial role by sharing their experiences and providing evidence to the reviewer. AADA sincerely thanks those dealers for hosting Professor Buchan and contributing their time and insights to the process.

Expected Media Interest

AADA anticipates a notable short-term increase in media commentary following the public release of the Review tomorrow, particularly regarding its implications for Australian consumers and dealers. AADA will support any dealer approached by media outlets who are seeking a dealer comment or interview. Dealers are encouraged to refer all media enquiries directly AADA wherever possible.

Next Steps

The final Review provides additional momentum for AADA’s engagement with key government departments and ministers. However, this represents only the first strategic step in AADA’s pursuit of reform to the ACL and the Code. As a strategic next step, AADA will commission an economic assessment for consideration by the Australian Government. This assessment will include a cost-benefit analysis quantifying the impact of maintaining the status quo.

More Information

AADA members are encouraged to contact AADA with any questions, feedback or insights regarding the Review’s findings, AADA’s strategic approach to ACL reform or other issues.

NSW Motorways Changes to Toll Liability – Effective 1 July 2026

Registered Vehicle Owners to Become Responsible for Unpaid Tolls

From 1 July 2026, NSW Motorways have introduced a significant change to the management of unpaid toll fees. Under the new arrangements, the registered vehicle owner (i.e. ‘the dealer’) will be responsible for the initial payment of all unpaid toll charges and associated fees, regardless of who was driving the vehicle at the time. The previous ability to routinely transfer toll liability via a nomination to another driver via provision of a statutory declaration is no longer an option for NSW dealers.

It is the view of the AADA-NSW State Dealer Advisory Group (SDAG) that if the Government’s objective is to improve toll recovery, the focus should remain on ensuring timely registration transfers by new owners and improving information-sharing processes between Transport for NSW and toll operators. This will be a reform measure that the AADA-NSW SDAG will pursue.

What does this mean for dealerships in NSW?

For dealerships, this means toll notices on dealer owned trading stock, demonstrator vehicles, service loan cars and test-drive vehicles will become payable directly by the dealer to the tollway operator. The dealer will need to pursue the driver of the vehicle for reimbursement.

Will the changes result in a financial and administrative burden for NSW dealers

Undoubtedly the change creates a requirement for increased administrative resources to reconcile toll fees and reissue invoices to third parties, increased financial exposure and administrative workload for dealerships. The likelihood of customer service disputes in this regard is also to be factored.

Immediate Actions Recommended by AADA

AADA recommends that NSW dealers review their current processes and documentation as the changes have already taken effect. Key priorities include ensuring all dealership-owned vehicles are linked to a toll account, updating loan-car, test-drive and rental agreements, and introducing clear authority to recover tolls and administration fees from vehicle users. AADA will pursue guidance from the NSW Government on what best practice in this regard entails. Dealers may also choose to seek their own professional advice regarding employee vehicle-use arrangements and payment of toll fees from employees.

AADA – Next steps

AADA remains concerned that the new approach transfers financial risk, administration, recovery costs and dispute management away from government and toll operators and onto registered vehicle owners.

AADA will engage with the relevant NSW Minister, the NSW Motorways Customer Advocate, NSW Tollway Ombudsman and Transport for NSW to pursue better outcomes for NSW dealers and lessen the impact on dealerships.

Notice of 2026 Annual General Meeting

This is to advise members of the upcoming annual general meeting of the members of the Australian Automotive Dealer Association Limited. The details of this meeting are as follows:

  • Date: Tuesday 28 July 2026
  • Time: 4:30pm (AEST)
  • Place: Sofitel Sydney Darling Harbour or via video conference (details provided upon registration)

REGISTER FOR AADA AGM

At the meeting, members will be asked to consider and vote to:

  • accept the director’s report
  • accept the auditor’s report
  • accept the annual financial statements

Members may appoint a proxy and the proxy:

  • Does not have to be a member of the company but must be a delegate or alternate delegate of another member, an authorised representative or an individual person who is a member.
  • Must be delivered to the AADA at least 48 hours prior to the AGM.

Please see below a link for the 2026 AADA AGM Proxy Form.

DOWNLOAD NOTICE OF AGM & PROXY VOTING FORM

If you have any questions please contact the below AADA team member:

Brian Savage
Company Secretary & Deputy CEO
Australian Automotive Dealer Association
E: bsavage@aada.asn.au

Review of the 2026-27 Queensland State Budget

The AADA and MTAQ have reviewed the 2026-27 Queensland State Budget from the perspective of the franchised new car retail sector.

This bulletin refers to some of the key measures that may be relevant to Queensland motor vehicle dealers such as enhancements to the Queensland motor vehicle Registration and Licensing system, increased funding to supply new motor vehicles to Queensland Public Service and law enforcement agencies, an increase in resources to ease the burden in civil court matters, law and order investment as well as broader economic and fiscal trends that may influence consumer confidence and vehicle demand across the state.

What the Queensland Treasurer Said

The Queensland Treasurer, David Janetzki MP has advised that his 2026-27 “strengthens” on the foundations the government laid last year and this Budget has delivered the “largest ongoing cost-of-living relief package” in the state’s history. Further the Treasurer claimed that the government was delivering lower debt with a pathway to surplus. Pleasingly for Queensland dealers and consumers there are no new, or increased, taxes or duties.

The Treasurer also advised that a credit downgrade was inevitable.

The Budget announces a $6.2 billion operating deficit in 2026-27, whilst projecting another deficit of $6.18 billion in 2027-28. The states total debt is expected to climb to $216.47 billion by the end of forward estimates in 2029-30.

Debt this year will be $142.4 billion, a $5.4 billion reduction on last year’s budget.

Key Outcomes from the Queensland Budget

  • An expected income stream of $6.9 billion from coal royalties in 2026-27.
  • A projected $8.35 billion in transfer duty revenue is expected to be raised in 2026-27. This is down from $325 million from the year before, with the Treasurer attributing the drop in revenue to ‘Canberra uncertainty’, citing fallout of the proposed changes to negative gearing the CGT Discount as announced in the May 2026 Federal Budget.
  • The Queensland Government will spend $4 billion on its Hospital Rescue Plan. The plan is forecast to cost the state $18.5 billion over 5 years.
  • Investment in infrastructure will see a capital program deliver $119.2 billion in a four-year period up to 2029-30 that will support investment in critical infrastructure.
  • A further $417 million has been earmarked for 2032 Olympic Games Venue development of which the Federal Government will contribute $59.3 million.
  • A total of $23 million in 2026-27 on the recruitment of police officers to boost frontline presence.

Motor Vehicle Related Information

1. In the QLD Budget Paper No.2 Budget Strategy and Outlook the following has been announced:

  • Motor vehicle registrations are forecast to be responsible for 9.2 percent of tax revenue for 2026-27 whilst ‘other duties’, such as vehicle registration duty and insurance duty, are forecast to account for 9.5 percent of the state’s taxation revenue.
  • Motor vehicle registration fees have returned to expected levels after a one-off reduction which was temporarily funded in the 2024-25 Budget and ceased as scheduled from mid-September 2025.

2. In the QLD Budget Paper No.3 Budget Capital Statement it is announced that:

  • The Queensland Ambulance Service have been allocated $52 million to commission 200 new and replacement ambulances.
  • The Queensland Police Service have been allocated $57.4 million for new and replacement vehicles.

3. In the QLD Budget Paper No.4 Budget Measures it is announced that:

  • The Government have committed to the provision of additional funding toward modernising the Transport Registration and Integrated Licensing System. It is advised that partial funding has been allocated from the Queensland Government Digital Fund. The budgeted amount is not displayed as contracts have not been awarded.
  • The Government is also dedicating additional funding for additional judicial resources to the tune of $11.0 million over five years, and $2.4 million per annum ongoing to appoint additional Supreme and District Court Judges. This allocation addresses an increasing demand to deliver faster access to justice for victims and to facilitate the expeditious finalisation of civil matters.

Other

Queensland members are encouraged to provide their feedback to Michael McKenna with concerns and policy reform measures about the Budget and to provide feedback for areas of concern to be included in the AADA 2027-28 Queensland Budget Manifesto. The AADA will continue to collaborate with the Motor Trades Association of Queensland (MTAQ) on dealers issues of national significance.

Review of the 2026-27 NSW State Budget

The AADA has reviewed the 2026-27 NSW State Budget from the perspective of the franchised new car retail sector.

This bulletin refers to some of the key measures that may be relevant to New South Wales (NSW) motor vehicle dealers, including vehicle taxation and registration settings, government investment, road infrastructure funding, and broader economic and fiscal trends that may influence consumer confidence and vehicle demand across NSW.

What the NSW Treasurer Said

The NSW Treasurer, The Hon Daniel Mookhey MLC has advised that this Budget is about building a state working Australians can afford and that the budget aims to ‘attack the cost of living from every angle.’ The Treasurer also commented that the budget reflected the immediate aftermath of the May Federal Budget.

The budget announces a $2.3 billion deficit in 2026-27. This is more than was predicted at the NSW Government half yearly update. The budget does however predict a return to surplus of $1.1 billion in 2027-28, a surplus of $1.76 billion in 2028-29 and $1.88 billion in 2029-30. This will be achieved despite a reduction in stamp duty and land taxes of more than $8 billion.

By June 2026, NSW gross debt will be $178.5 billion, $4.9 billion lower than forecast in 2023.

Key Outcomes from the NSW Budget

  • A $10.3 billion increase to health services.
  • Households to be eligible to apply for funding from a new $557.1 million fund to access energy saving technologies, including $480 million in interest free loans.
  • Regional NSW does not get to enjoy the full benefit of some cost-of-living expenses addressed in the budget such as the lowering of the weekly toll cap.
  • However, the Government will spend $2.3 billion over 4 years for new schools in the Illawarra and the Hunter.
  • An investment of $6.5 billion over 10 years to deliver thousands of electric buses.
  • There is no rise on the rates of motor vehicle duty for 2026-27.

Motor Vehicle Related Information

1. In the 2026-27 Budget Paper No.01-Budget Statement the following has been announced:

  • A $561 million transport affordability package to help ease travel costs. This will include cutting $100 off private vehicle registration and $80 off private motorcycle registration. This will cost the NSW taxpayer $435 million. Added to this is a temporary reduction to the weekly toll cap to $50 (from $60) for 2026-27.
  • Motor vehicle taxes have been revised down by $280.2 million over the four years to 2029-30 from the time of the 2025-26 Half-Yearly Review.
  • Based on current electric vehicle uptake rates, the Electric Vehicle Road User Charge is expected to commence on 1 July 2027, per the Electric Vehicles (Revenue Arrangements) Act 2021. Future revenue may be affected by developments in national road user charging reform.
  • Motor vehicle registration duty has been downgraded by $50.0 million in 2025-26 and $282.0 million over the four years to 2029-30 compared to the 2025-26 Half-Yearly Review.
  • Higher interest rates and a sharp increase in petrol prices have contributed to a decline in vehicle registrations that is expected to continue as ongoing cost-of-living pressures weigh on new vehicle demand.

2. In Budget Paper No.02 Performance and Wellbeing Statement the following has been announced:

  • That the rate of motor vehicle theft has has reduced by 59.5 percent in the period 2005-2025.

3. In Budget Paper No.03 Infrastructure Statement the following has been announced:

  • The delivery of the toll-free M12 Motorway, connecting the Western Sydney airport to the Aerotropolis.
  • $45.0 million for upgrading M1 Pacific Motorway Upgrade between Wahroonga and Beresfield.
  • The NSW and Australian Governments are funding the 15-kilometre M1 Pacific Motorway extension to Raymond Terrace project with a commitment of $1.9 billion.

Other

NSW members are encouraged to provide their feedback to Michael McKenna with concerns and policy reform measures about the Budget and to provide feedback for areas of concern to be included in the AADA 2027-28 NSW Budget Manifest.

Victorian Dealers State Revenue Office Drive-Away Deals 2026-27

The Victorian State Revenue Office (SRO) has released information about how dealers should be calculating the dutiable value of new and used motor vehicles sold as a drive-away deal from 1 July 2026. This information is now available on the SRO website.

What is the purpose of the SRO information?

The information provides guidance on the calculation of the dutiable value of ‘Drive-away deals’ for new and used motor vehicles where the date of registration or transfer is on or after 1 July 2026.

What information does the SRO information confirm?

The updated SRO information advises on key factors and provides figures when calculating the dutiable value of a motor vehicle that is subject to a ‘Drive-away deal’.

Information that has been updated includes:

  • Calculating Motor Vehicle Duty for drive-away deals.
  • Calculating the dutiable value of new passenger duty under a drive away deal.
  • Calculating the dutiable value of used passenger duty under a drive away deal.

Information about Luxury Car Tax (LCT) and duty payable on demonstrator and used vehicles is included in the SRO bulletin. You can read more about LCT here.

What should dealers do to prepare?

Dealers should ensure that their Dealer Management System is updated to ensure that any necessary adjustments are made to reflect this change from 1 July 2026.

How can I find out more about motor vehicle duty?

To find out more about motor vehicle duty on the SRO website, please click here or alternatively, contact the SRO direct on 13 21 61 or via email at contact@sro.vic.gov.au.