Archives: Dealer Bulletins

The 2023-24 Federal Budget is focused on “Stronger foundations for a better future”. There is a strong focus on delivering cost of living relief, growing the economy, and relieving inflationary pressures.

We are disappointed that the instant asset write off/temporary expensing scheme will not continue beyond 30 June 2023, as it has allowed businesses to invest in modern, safer, and cleaner vehicles.

Dealers will soon be asked by the government to make significant investments in clean energy infrastructure, to support their goals of boosting renewable energy generation and distribution. An extended scheme would have not only provided a much-needed stimulus for Dealer’s businesses but would also have helped incentivise the uptake of more fuel-efficient vehicles, which would align with the government’s broader clean energy objectives. The government’s decision to not extend the scheme is therefore seen as a missed opportunity to support small businesses in their efforts to transition to cleaner energy alternatives.

AADA will be engaging with the Government to try and get considerations for those vehicles that were ordered under the current instant asset write off scheme, however, due to the shortages and associated delivery delays, may not be delivered before the scheme is now due to expire in less than two months’ time.

Other support initiatives aimed at small business have been limited to those businesses with a turnover of less than $50 million, so may not be applicable to many Dealers.

We have prepared the attached 2023-24 Budget Briefing paper for members which provides a summary and brief explanation of the measures that are relevant.

Further details are also available on the Government’s Budget Website.

 

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The Federal Court has issued notice that the Honourable Justice Jonathan Beach will hand down judgement in the second half of July 2023.

We will keep members informed of any further updates on this case, a landmark case for the automotive industry in Australia.

 

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The Minister for Small Business, the Hon Julie Collins has written to the AADA and advised that the Government intends to commence a coordinated franchising review process in the second half of 2023.

This is a statutory review of the automotive schedule to the Competition and Consumer (Industry codes – Franchising) Regulation 2014 (Franchising Code) enacted in 2020, and the amendments to the New Car Dealerships provisions enacted in 2021.

This review process will seek to ensure that there are appropriate regulatory settings in place to support Australia’s franchising sector, including by evaluating the effectiveness of previous reforms.

The AADA met with Treasury officials last week to discuss the review process and outline a number of key areas of interest to AADA members.

As part of the review, the AADA will highlight:

• The need for franchising protections to be expanded to truck Dealers and other automotive franchised Dealers.
• Improving access to justice that doesn’t involve litigation for Dealers.
• Expansion of Unfair Contract Terms (UCT) protections to ensure all franchise agreements qualify for UCT protections, irrespective of the number of employees or annual turnover.
• General issues with the move to an agency model in the automotive industry.
• Ensuring appropriate tenure of agreements.

The AADA will inform members when the review gets underway and engage strongly with members to ensure ample opportunity for feedback to be provided as part of the review.

 

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On Thursday 27 April, Home Affairs Minister Clare O’Neil delivered a speech to the National Press Club of Australia where she announced the release of the long awaited review into Australia’s migration system, the Migration System Final Report.

The Report highlighted that Australia’s migration program is not fit for purpose as it fails to attract the most highly skilled migrants and Australia must have a more targeted, simpler migration system.

The Government considered the review’s findings which it used to inform its response in the form of an outline of the Migration Strategy.

During May and June 2023, the Federal Government will consult with key stakeholders on the outline of the Strategy, which the AADA will engage in.

Two key initiatives have been announced:
• An increase of the Temporary Skilled Migration Income Threshold (TSMIT) from $53,900 to $70,000 from July 1.
• A pathway to permanent residency for all temporary skilled workers by the end of 2023.
The AADA expects the Government to release a more comprehensive outline of the changes announced as part of the review in the coming weeks.

Further detail on the above changes is not yet available. The AADA has made requests to the Department for more information, particularly if these changes will apply to current Visa holders and will keep members updated.

The Government plans to release the final Migration Strategy later in 2023.

More information on the review can be found at the link below.

REVIEW OF THE MIGRATION SYSTEM

 

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The Queensland Government has announced extra financial assistance as part of the Zero Emission Vehicle Rebate Scheme.

Today’s announcement will see new eligibility requirements and an increased rebate available, making electric vehicles more affordable for Queenslanders.

Changes include:

• An increase to the rebate from $3000 to $6000 for eligible households earning up to a total gross household income of $180,000 per year.
• Applicants who have already applied and received a $3000 rebate under the earlier scheme, and who are under the total gross income threshold, are eligible for reassessment and additional payment of $3000 rebate (totalling $6000 per eligible application).
• An increase to the eligibility threshold for vehicles, which will now exclude dealer delivery fees from determining ‘dutiable value’ from $58,000 to $68,000 (inc. GST).

To assist customers, Dealers should advise that details of the new requirements, and an updated application form will be available online at the Queensland Rural and Industry Development Authority website from 1 July.

Dealers should also advise that any person who purchases a new EV is encouraged to record proof of purchase to access the rebate.

 

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The Australian Government has passed the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022.

This legislation amends the Fair Work Act to change a number of existing rules and introduces a range of new workplace laws relating to bargaining, job security, gender equality, compliance and enforcement, workplace conditions and protections, and workplace relations institutions.

As part of the AADA’s membership of the Australian Chamber of Commerce and Industry (ACCI), AADA members have access to the below Employer Guide.

This guide is intended to help employers navigate these changes and offer practical advice for complying with new obligations. The guide should serve as a starting point for understanding new obligations and considering potential vulnerabilities for individual businesses. It does not cover every single aspect of the legislative changes, but rather the substantive provisions. Further advice should always be sought for the resolution of specific issues.

You can also view the changes at the Fair Work Commission website.

 

ACCI/AADA EMPLOYER GUIDE

 

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The Federal Government has released its long-awaited National Electric Vehicle Strategy.

The Strategy seeks to accelerate the uptake of zero and low emission vehicles and focuses on three key areas, increasing supply of EVs, infrastructure to support uptake, and encouraging an increase in EV demand.

A key element of the Strategy is consultation on a Fuel Efficiency Standard for light vehicles which has opened today. Fuel efficiency standards require global vehicle manufacturers and suppliers to improve the average fuel efficiency of new cars over time, with a goal of achieving net zero by 2050.

The AADA will participate in this consultation process, to ensure that the fuel efficiency standard is ambitious, but achievable, allowing Australians to access state of the art fuel-efficient vehicles, without reducing vehicle affordability or choice.

Other measures outlined in the Strategy include;
• Undertaking of research to inform an EV and other large format battery recycling, reuse and stewardship initiative.
• Expansion of the rollout of charging infrastructure through the $500 million Driving the Nation Fund and the National EV Charging Network.
• Establishment of hydrogen highways (hydrogen refuelling networks) for key freight routes.
• The Clean Energy Finance Corporation’s commitment of up to $20.5 million to make green car loans cheaper.

You can read the full National Electric Vehicle Strategy here.

 

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AADA would like to draw members attention to recent developments regarding the Privacy Act, and risks that Dealers face in the area of cyber security.

Firstly, you may be aware that in December 2022 the Federal Government passed amendments to the Privacy Act to significantly increase penalties for breaches of customer privacy. The changes include fines of up to $50 million for serious or repeated breaches. The penalties apply to any organisation that handles personal information, which can include Dealers.

The Privacy Act and Australian Privacy Principles (APPs) apply to businesses with an annual turnover of more than $3 million. Most small businesses are exempt; however, many Dealers are likely to be captured by this threshold and consequently, must comply with the Privacy Act and mandatory APPs.

In light of these changes, it is more important than ever for Dealers to ensure that they are compliant with the Privacy Act. This means taking steps to protect the personal information of customers and employees, including implementing strong data security measures and obtaining consent before collecting and using personal information.

Secondly, it isn’t just breaches of privacy that Dealers need to be wary of. The Australian Competition and Consumer Commission (ACCC) have released their latest Targeting Scams Report that shows the Australian business community saw a 73 per cent increase in scam losses in 2022, totalling $23.2 million in losses. Australians lost over $3 billion last year to scams and cyber-attacks.

ACCC recommends business stay vigilant and educate themselves and their staff about common types of scams. By taking proactive steps to protect personal information and staying alert to potential scams, businesses can reduce their exposure to legal and financial risks.

In the coming months AADA will be tackling the issue of cyber security from a franchised new car Dealers perspective. We will commission research and develop some practical guidance material that Dealers can use to identify and mitigate cyber security risks.

 

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Dealers in Western Australia are reminded that as of 1 January 2022 the prescribed words of the vehicle sales agreement changed in the Motor Vehicle Dealers (Sales) Regulations 1974.

Clause 8 of Schedule 5 of the regulations prescribes the maximum customer cancellation fee that can be listed in a contract of sale is currently 5 per cent. This is a reduction from the previously regulated 15 per cent prior to 1 January 2022.

The words prescribed in schedule 5 of the regulations must be used in vehicle sales agreements.

In a recent media statement WA Consumer Protection announced that they will be enforcing the regulations and have already issued infringement notices to Dealers after buyers signed outdated Dealer contracts which stated the old 15 per cent cancellation fee. Consumer Protection also stated there will be ‘zero tolerance’ for Dealers who continue to use outdated contracts.

Dealers are advised to familiarise themselves with the Act and Regulations and check their contracts for the use of the up to date and correct wording in order to comply with Section 42A of the Act using Schedule 5 of the regulations.

 

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Grants of up to $25,000 are now available for small and medium sized businesses across Australia to improve energy efficiency, save on energy bills, and bring down emissions.

These grants will support businesses to upgrade or replace inefficient equipment to improve their energy efficiency and are available for small and medium sized businesses with an employee headcount of 1 to 199 employee averaged over any consecutive 12-month period since 1 July 2019.

The grants cover up to 100% of eligible project expenditure. There is a total of $16 million available for this grant opportunity.

For more information about the Energy Efficiency Grants and how to apply, visit: business.gov.au.

 

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