Following a State Government review of the Motor Dealers and Repairers Act 2013 (MDRA) and consultations with industry beginning in 2022, on 11 October 2023 the NSW Parliament passed new laws amending the MDRA.
It is important to note that the 2023 Amendment Bill does not include the contentious online sales guarantee amendments proposed in the 2022 Draft Bill.
Section 68 of the MDRA provides a Dealer Guarantee for defective vehicles in NSW, and the Australian Consumer Law provides overarching nationally harmonised consumer protections. The Dealer guarantee provisions of the MDRA in section 68 remain unchanged and unamended.
Dealers should note that no action is required at this stage. The laws have passed however the regulations are yet to be finalised and commencement dates have not been decided.
The NSW Department of Customer Service have advised they will be taking a staged approach to commencing the Bill. Some aspects will commence soon, prior to the end of 2023, however the more complex reforms will require further development and consultation. AADA will continue consulting with The Department to ensure sufficient notice is provided to Dealers before implementation and will update Dealers accordingly.
The Motor Dealers and Repairers Amendment Bill 2023 updates the MDRA 2013, and includes changes to the following:
- Online trading is recognised and regulated for Licensed Dealers
- Dealer websites to include MD license numbers displayed prominently
- Dealer advertising must carry the MD license number
- Online purchasers must be given an opportunity to inspect vehicles
- Maximum deposits for online purchases
- Penalties for offences under the Act are increased
- Odometer tampering penalties increase to a maximum of $156,500
- It is now an offence to possess or fit odometer tampering devices
- Prohibition of cash purchases of vehicles by recyclers
- Expanded list of prohibited persons
- New provisions for disqualified persons
- Cooling off for vehicles purchased online and Dealer financed
- Streamlined recordkeeping will allow digital records and remove duplication
- Administrative changes to trade show applications
The MDRA Regulations will also be updated to reflect the 2023 amendments.
AADA will provide further information to Dealers when commencement dates are announced, and the regulations are available.
