** This is not intended to be taken as legal advice. Any comments are of a general nature and provided for dealers to be aware of the new laws**
From 1 January 2026, Australia will be moving from a voluntary merger clearance regime to a mandatory merger notification regime for certain transactions meeting monetary thresholds (or other specific industry thresholds). The new notification regime draws its legislative authority from the Competition and Consumer Act 2010 (Cth).
To help dealers understand more about the Australian Competition and Consumer Commission (ACCC) Merger and Acquisitions regime as it applies from 1 January 2026, we attach a high-level summary developed by the Automotive Industry Group at HWLE Lawyers.
The high-level summary includes advice regarding:
- When ACCC notification is required.
- Advice on the actual monetary thresholds associated with the new regime.
- Pre-notification to the ACCC and where to find the prescribed notification forms.
- Filing fees associated with the new regime.
- Further potential charges.
What will this mean for dealers?
From 1 January 2026, any dealership merger or acquisition that exceeds the turnover thresholds will trigger a requirement to notify the ACCC. In essence, dealers will need to gain clearance from the ACCC for those transactions to take effect.
What happens if a dealer does not comply?
If you do not obtain clearance from the ACCC penalties of up to $50m or 30 per cent of the Australian group turnover may apply.
What is AADA’s position?
The AADA believes the new merger regime will capture the overwhelming majority of dealership merger or acquisitions. This will come at great cost and complexity for an industry which is not concentrated and is characterised by intense inter and intra-brand competition. We are meeting with Treasury next week and are in the process of commissioning research to demonstrate the effect of this regime on the automotive industry.
AADA advises dealers to take the appropriate legal or professional services advice when entering into dialogue about a merger or acquisition.