Archives: Dealer Bulletins

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.

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

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.

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.

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.

AADA is in communication with VicRoads with regards to the current issues being experienced by dealers on the myVicRoads Partner Portal.

A few quick things for your information

1. The only way right now for a new vehicle to be registered is to complete the registration manually (similar to what you would do with a used motor car).
2. Send the information via the back office (as per the used car process).
3. DTP has advised that, in the current circumstances, manual registration will result in a lag to having that vehicle being shown on the LEAP database as a registered vehicle. DTP has consulted with Vic Police and other law enforcement agencies to ensure they are aware the current issues. The advice from DTP is for dealers to please ensure that your customer has copies of the registration papers, registration certificate and a copy of the sale contract on hand.
4. Below is a Failed Transaction report to be used for any failed registration transactions that eventuated yesterday.
5. Please be assured VicRoads and DTP are aware of the urgency of resuming normal service and are frantically working towards a solution.

Dealers will be kept updated as we move forward. Please feel free to contact Mick McKenna.

VIEW VIC DTP COMMUNICATION

FAILED TRANSACTION REPORT

Victorian dealers are advised of the attached communication from the Victorian Department of Transport and Planning (DTP) with regards to system issues affecting the myVicRoads Partner Portal that is resulting in intermittent systems access and unstable performance. You can refer below to a series of FAQs sent by DTP this afternoon.

If any Victorian dealers are experiencing undue hardship regarding this, you are asked to contact Mick McKenna.

AADA is directly communicating DTP with regards to timelines.

VIEW VIC DTP COMMUNICATION

Dealers are advised that the Australian Taxation Office (ATO) had announced the Luxury Car Tax (LCT) thresholds for the financial year 2026-27.

This bulletin is a reminder for dealerships and their staff to familiarise themselves with the implications of the 2026-27 LCT thresholds and the new definition for a fuel-efficient vehicle, which take effect from 1 July 2026. Dealers are encouraged to consider seeking appropriate professional taxation advice from their preferred taxation and/or professional services firm. Dealers are also encouraged to make the appropriate changes to their Dealer Management Systems.

The Consumer Price Index (CPI) indexation factor for the 2026-27 financial year is 1.003. Therefore, the car limit and the luxury car tax threshold for both fuel-efficient vehicles and other vehicles will increase.

LCT Thresholds
Financial year	Fuel efficient vehicles	Other vehicles
2026-27	$91,661	$80,809
2025-26	$91,387	$80,567
2024-25	$91,387	$80,567

 

Dealers can read the ATO’s definition of a Fuel Efficient Vehicle here.

More information on the LCT thresholds and calculation of the LCT can be found on the ATO website below.

VIEW ATO WEBSITE

The AADA and VACC were advised in December 2025 of proposed changes to the Motor Car Traders Act 1986 (Vic) (the Act) and Motor Car Traders Regulations 2018 (Vic) (the Regulations) that would significantly expand regulatory discretion, weaken existing safeguards for dealers and expose LMCTs to broader compliance, licensing and financial risk. However, due to confidentiality arrangements the regulators were unable to genuinely consult with industry. The proposed reforms were announced yesterday in the Victorian Legislative Assembly.

You can read the Consumer Legislation Amendment Bill 2026 and Explanatory Memorandum by taking the highlighted link.

What are the major changes for dealers to be aware of?
Some of the major changes that will impact dealers as Licensed Motor Car Traders (LMCT) are:

• That the role of determining consumer claims to be removed from the Fund Claims Committee and will be determined by the Director of Consumer Affairs Victoria (CAV).
• New regulation making powers to enable additional claims against the Fund to be prescribed.
• In the event that VCAT makes a monetary order against a LMCT in favour of a consumer, the Business Licensing Authority (BLA) will have the option to suspend or impose conditions on the Dealers trading licence.
• A modernisation to the prescribed used car warranty period.
• LMCTs being required to take reasonable steps to identify odometer tampering.
• Further expanding the requirements on auction houses to identify  individual purchasing vehicles at auction and to notify CAV when a single party is involved in four or more sales per year.
• Other compliance and enforcement approaches.

About the Reforms
The AADA and VACC were neither consulted nor invited to participate in the development or review of these reforms before the Bill was tabled in the Victorian Parliament. That lack of consultation is deeply concerning given the breadth of the proposed changes and the direct operational, financial and reputational consequences they may have for Victorian dealers. The Bill shifts decision-making power away from existing checks and balances, broadens future regulation-making powers, and introduces new compliance burdens without any demonstrated evidence that the existing framework is inadequate.

The AADA and VACC are strongly concerned that the Bill, if passed in its current form, will materially disadvantage franchise dealers. The proposal to remove consumer claim determinations from the Fund Claims Committee and vest that authority in the Director of CAV reduces independence and risks concentrating too much discretion in a single office. The new regulation-making powers create uncertainty by allowing further classes of claims to be added later without the same level of parliamentary scrutiny. The ability for the BLA to suspend or impose conditions on a dealer’s licence following a monetary order by VCAT is a disproportionate response that could punish dealers beyond the tribunal process itself and threaten business continuity. Changes to warranty settings, new expectations around detecting odometer tampering, expanded reporting obligations on auction houses and other broader compliance and enforcement measures collectively point to a more punitive regime for LMCTs, with increased red tape and legal exposure but little assurance of better consumer outcomes.

The AADA and VACC will be working with all Victorian Parliamentarians with a view to securing a more balanced, evidence-based and pragmatic outcome.

Next Steps
The reforms have been scheduled to be introduced on 1 December 2027.

In his speech when delivering the second reading in the Victorian Legislative Assembly on the 4 June 2026 the Minister for Consumer Affairs Paul Edbrooke MP advised that any changes made by the regulations will be subject to consultation and a Regulatory Impact Statement .

The AADA and VACC  will make submissions on behalf of our Victorian LMCT members.

Victorian franchise new car dealers (dealers) who complete vehicle roadworthiness testing as Licensed Vehicle Testers (LVT) are advised that the Department of Transport and Planning (DTP) have announced that the new Electric Vehicle (EV) category originally scheduled for implementation on 1 June 2026 has had its launch delayed until 1 September 2026.

About the Delay
The delay in implementation provides franchise dealers with an opportunity to complete the required training and submit their applications. Conversations with DTP have revealed that there has only been a moderate response from Victorian dealers in undertaking the prescribed training and applying to have the EV category added to their LVT licence.

Next Steps
Over the coming weeks DTP and AADA will be visiting Victorian dealerships who have not submitted an application to assist in this regard.

More Information
Victorian dealers are encouraged to refer to the DTP LVT EV Update #5 below for further details.

MORE INFORMATION