Victorian Truck Dealers: Your Retail and Fleet Operators Should Know About the VFDC Program

The Victorian Freight Decarbonisation Co‑Investment (VFDC) Program is a Victorian Government initiative supporting the road freight sector to transition to low‑emissions freight vehicles, while maintaining productivity, resilience, and economic strength. The VFDC Program is designed to assist small and medium sized Victorian‑based freight operators only.

Why the Program Matters

Victoria’s freight and logistics sector is critical to the state economy. As freight volumes grow, the VFDC Program helps industry reduce transport emissions, build long‑term capability, and improve environmental and community outcomes along freight routes.

Role of Victorian Truck Dealers

The VFDC Program is only available to Victorian businesses who engage in land freight operations. Victorian Franchise Truck Dealers are not eligible for funding but play a key supporting role by supplying eligible vehicles, coordinating modifications to new freight vehicles, and assisting eligible freight operator clients who may wish to make an application or who may have an eligible project. The role of your retail or fleet sales operations could assist your dealership in ensuring your clientele are aware of the VFDC Program opportunities when considering the purchase or lease of a low or zero emission freight vehicle or have a zero or low emissions freight vehicle fitted out or retrofitted for its freight task.

Program Objectives

The VFDC Program objectives include:

  • Supporting freight decarbonisation and emissions reduction.
  • Preparing fleets for next‑generation vehicles and infrastructure.
  • Improving long‑term productivity and operating efficiency.
  • Enhancing community amenity through cleaner and quieter transport.

Funding Available

There are intricate criteria with regard to the grants. These include:

  • Grants of up to $300,000 per project.
  • Negotiated, contestable co‑investment grants.
  • Applicant financial co‑contribution required (in‑kind contributions not permitted).

The Victorian Department of Transport and Planning are awarding the grants

Eligible Applicants

The program is intended for small and medium sized Victorian‑based freight operators. Full eligibility requirements are detailed in the VFDC Program Guidelines.

Key Dates, Information and How to Apply

It is important to note that the Expressions of Interest close on 22 April 2026.

Further details and directions on how to apply can be found via the VFDC Investment Program Guidelines.

Release of Tasmanian Small Business EV Transition Resource

The Australian Automotive Dealer Association (AADA) and Tasmanian Automotive Chamber of Commerce (TACC) have been advised by the Tasmanian Government of a recently released Small Business EV Transition Resource to support small businesses with the decision to transition their vehicles to electric.

About the Small Business EV Transition Resource

The Small Business EV Transition Resource answers common questions consumers may have about electric vehicles. It may also assist AADA and TACC members when in dialogue with potential EV purchasers.

The resource includes information for small businesses on:

  • reasons to switch to electric vehicles.
  • understanding electric vehicles.
  • assessing your vehicle needs.
  • making an electric vehicle transition plan.

Other support from the Tasmanian Government

The Tasmanian Government have also developed and printed small postcards to advertise the Resource that feature a QR code and URL for easy access to the resource online.

The Tasmanian Government have invited AADA and TACC Tasmanian new car dealers to participate in the awareness of the Resource and will supply a quantity of the postcards for your dealership(s) to keep on hand for any interested clients. To participate, Tasmanian dealers should email climatechange@recfit.tas.gov.au and request that the Department of State Growth post a bundle of 25 postcards to them.

NSW Dealership Service Managers Advised of Crackdown on Illegal Issuing of Pink and Blue Slips

New South Wales dealers who are signatories to the Transport for NSW (TfNSW) Authorised Inspection Scheme (AIS) are advised of the April 2026 edition of Drive Lite- Authorised Inspection Scheme (AIS).

The April 2026 TfNSW DRIVE Lite edition has a focus upon:

  • A TfNSW crackdown on sight-unseen inspections and the illegal issuing of sight-unseen pink and blue slips.
  • Advice to AIS participants that they must only conduct inspections and issue an inspection report for vehicle classes they are authorised to inspect.
  • An update on vehicle standards which will be effective from 1 July 2026.

Dealer Principals and Service Managers are urged to make themselves aware of the current focus areas announced by TfNSW.

EU – Australia FTA Delivers on Tariff Relief but Fails on LCT Reform

The AADA notes the announcement today of a Free Trade Agreement (FTA) between Australia and the European Union (EU), which includes changes impacting the automotive sector.

The FTA includes two key measures relevant for franchised new car dealers;

  • Introduction of a new Luxury Car Tax (LCT) category for zero emissions vehicles (ZEV), with a threshold of $120,000 (indexed annually).
  • Removal of the 5 per cent Passenger Vehicle Tariff (PVT) for vehicles imported from the EU.

The ZEV LCT measure will require legislation and is expected to take effect from 1 July 2027, while the removal of the passenger vehicle tariff will occur following ratification of the agreement, which may take up to 24 months.

The AADA welcomes the removal of the PVT, which is expected to impact approximately 8 per cent of the new vehicle market. However, it is disappointing that the changes to the LCT fall short of the broader reform that the AADA has continued to advocate for.

The LCT change appears limited in scope, meaning the immediate impact on the market is likely to be modest. While increasing the LCT threshold for ZEVs provides a narrow benefit, it does not address the structural issues with the tax as a distortionary measure and a relic of an era when Australia manufactured vehicles.

The AADA considers that this is a missed opportunity to implement a more comprehensive approach to reforming this tax through complete removal or ensuring it only captures vehicles that would reasonably be considered ‘luxury’, including vehicles commonly used by small businesses and consumers in regional areas such as the LandCruiser.

The AADA will continue to engage with government and advocate for broader LCT reform, including targeting the tax to genuinely luxury vehicles, removing its application to accessories, and ensuring a smooth and orderly transition for implementing any changes.

The AADA will provide further updates as more detail becomes available.

Dealernomics 2026: The Numbers Behind Australia’s Dealer Network

The AADA is pleased to release the 2026 edition of Dealernomics, our annual statistical snapshot of Australia’s franchised automotive retail sector.

Dealernomics provides members with a comprehensive picture of the industry – from dealership networks and vehicle sales to taxation, consumer trends and benchmarking insights. The report continues to highlight the scale, resilience and economic contribution of Australia’s franchised new car and truck dealers.

The latest edition shows the sector remains a major contributor to the national economy, including:

  • 3,910 franchised new car and truck dealerships operating across Australia
  • $21.5 billion in economic activity generated by the sector
  • More than 64,000 people employed by dealerships nationally
  • 7,508 apprentices working across the dealer network

Together, the data reinforces the vital role franchised dealers play in Australia’s economy and communities providing employment, training opportunities and essential services to motorists across the country.

While the industry continues to evolve, the AADA will continue advocating on behalf of members, including pushing for franchising reforms to address unfair trading practices and contract terms, and ensuring the New Vehicle Efficiency Standard is implemented in a way that works for dealers and consumers.

Members can download the 2026 Dealernomics Automotive Statistics booklet below.

DOWNLOAD 2026 DEALERNOMICS

2025 NVES Performance Results Released

Yesterday, the Government published the first round of performance results for the New Vehicle Efficiency Standard (NVES). The first performance period started on 1 July 2025 and ended on 31 December 2025. Going forward, the Government will report on a full calendar year.

The 2025 NVES performance results show that two-thirds of regulated entities/OEMs have met their targets, generating a net surplus of 15.9 million NVES units. The OEMs may now choose to trade these units with another regulated entity under a commercial agreement or hold them for up to three years to help meet stricter future emissions targets.

While the initial results paint a positive picture of the industry, with brands like Toyota, Kia, Ford, and Isuzu meeting their targets, they are based on vehicles imported into Australia rather than those registered or sold.

The AADA notes that the initial period of the NVES, marked by lower targets, is relatively manageable, but the scheme is expected to become more challenging in the later years unless compliance mechanisms are improved.

The AADA has been monitoring market trends and tracking brand performance at the point of sale. In the coming weeks, we will be providing further analysis and comparing the Government results with sales data.

To view full 2025 performance results, click below:

VIEW RESULTS

VIEW MEDIA RELEASE

Strengthening Member Support for Franchised Dealers

The AADA is pleased to announce the launch of a new member support service that represents a significant enhancement to how the Association supports franchised new car and truck dealers across Australia.

The AADA recognises that dealers are operating in an increasingly complex regulatory and commercial environment with different state and federal laws, particularly in relation to the Australian Consumer Law (ACL) and franchising code of conduct.

Member Support Service

The new member support service has been introduced to ensure members have access to stronger, more direct and practical legal guidance and support tailored specifically to the realities of dealership operations and OEM relationships.

Effective immediately, members will be able to access guidance from AADA’s recently appointed General Counsel Kathy Zdravevski who will strive to deliver prompt, practical and commercially focused guidance to support your dealership compliance, manage risk, and resolve issues as they arise.

This service will support members with:

  • Practical guidance on ACL and consumer guarantee obligations.
  • Support in managing consumer complaints and disputes.
  • Assistance with ACL compliance and risk management.
  • Guidance on bilateral obligations and concerns under the Franchising Code of Conduct.
  • High level guidance on franchise dealer agreements, including renewals, variations, and termination.
  • Support with dealer communications involving consumers, OEMs and regulators.
  • Insight into regulatory trends and enforcement priorities affecting franchised dealers.
  • Advice to members regarding consumer claims raised in civil appeals tribunals (VCAT, QCAT, etc).

This initiative reflects AADA’s strong commitment to standing with dealers, strengthening your position in an evolving market, and ensuring you are supported by guidance and information that is practical, informed and industry specific.

Please note, that this service provides early stage guidance and support, it is not intended to replace the need for independent, specialist legal advice in complex or contentious matters.
In the meantime, please contact Kathy Zdravevski for any assistance via email at kzdravevski@aada.asn.au.

AADA remains firmly committed to advocating for, protecting and supporting franchised new car and truck dealers and to delivering services that add genuine value to your businesses.

Payday Super – New Payment Rules From 1 July 2026

Australian franchised new car and truck dealers are advised that from 1 July 2026 a new law comes into effect that makes it a legal requirement to pay their employees’ superannuation guarantee at the same time as their salary or wages. The new system is known to the Australian Taxation Office as Payday Superannuation (Payday Super).

The Australian Government advises that the new law will:

  • Require employers to ensure super contributions are received by the employee’s fund within seven business days of payday, or they will be liable for the superannuation guarantee charge.
  • Help the ATO enforce the law and more quickly identify employers not making contributions.
  • Redesign the superannuation guarantee charge to be fit for purpose and make Payday Super work.

Factsheet and practical guidance on Payday Superannuation

A detailed factsheet prepared by the Australian Chamber of Commerce and Industry (ACCI) is available via the link below. The ACCI factsheet includes information on the following:

  • Advice on deadlines for superannuation payments.
  • Which workers or employees’ does Payday Superannuation apply to?
  • The impact on not making the Payday Superannuation payments on time.
  • A handy list of ‘Steps to get ready” before the 1 July 2026 start date.

ACCI PAYDAY SUPER FACTSHEET

More Information

If you remain unsure of your dealership’s obligations under the Payday Super law, you are encouraged to seek your own professional services advice, refer to your preferred superannuation fund or contact your respective state Motor Trade Association or Chamber of Commerce’s industrial relations team.

Design and Distribution Obligations for Automotive Dealers in Australia

In preparation for the Australian Securities and Investments Commission’s (ASIC) upcoming detailed findings being released regarding their review of Australia’s motor vehicle finance sector, the Australian Automotive Dealer Association (AADA) wishes to remind its members of their Design and Distribution Obligations (DDO).

AADA has previously developed a series of guidelines regarding the DDO regime to provide dealer context on:

For dealers as distributors DDO introduced significant responsibilities to make sure products are offered only to consumers within the appropriate Target Market Determination (TMD).

ASIC has increasingly moved from overseeing the creation of TMDs to scrutinising ongoing compliance and governance frameworks which began on October 5, 2021. Recent enforcement action, such as against Firstmac Limited highlights ASIC’s focus on whether distributors have effective internal systems to ensure real-world compliance with DDO rather than merely having compliant documentation. This was ASIC’s first successful civil penalty action against a distributor for breaching DDO rules.

Below are the dealer core DDO’s to remind you of your responsibilities and we encourage any dealer to contact their motor vehicle finance providers on all areas connected with the DDO.

Dealers are encouraged to seek their own legal or financial advice on how to ensure they are remaining compliant with the DDO. AADA will provide further information to dealers once ASIC’s review is released and we will include information on how lenders have responded to ASIC’s prior recommendations. 

Webinar for South Australian Dealers: Stamp Duty on Vehicles

Following engagement with AADA and MTA SA/NT, RevenueSA will be hosting an industry webinar for South Australian dealers, providing a clear overview of how stamp duty applies to vehicle transactions in SA.

This session is designed to support dealers and staff by walking through when stamp duty is payable on vehicle registrations and transfers, how it is calculated and paid, and the key compliance considerations dealers should be aware of.

Webinar details

Topic: Stamp duty on vehicles
Date & time: 11:00am (ACDT) Thursday 19 February 2026

What the webinar will cover:

  • When stamp duty applies to vehicle registrations and transfers
  • How stamp duty is calculated and paid
  • Valuation rules for new and used vehicles
  • Common compliance issues and practical considerations for dealers

Registration
Dealers are encouraged to register to attend. If you are unable to join the live session, a recording will be made available on the RevenueSA website following the webinar.

REGISTER TO ATTEND