Repeal of the Financial Transaction Reports Act

Parliament has recently passed the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill.

In addition to amending the AML/CTF Act, the Bill repeals the Financial Transaction Reports Act 1988 (FTR Act).

The FTR Act mostly affects solicitors and motor vehicle dealers who act as insurers or insurance intermediaries. This means obligations these businesses have under the FTR Act will end when the FTR Act is repealed.

The repeal will take effect 28 days after the AML/CTF Amendment Bill gains Royal Assent.

What this means for Dealers

At the moment, Dealers have obligations to submit transaction reports under the FTR Act which may include significant cash transaction reports (SCTRs) and suspect transaction reports (SUSTRs).

After the FTR Act is repealed, Dealers will not need to submit reports about transactions that occur on or after the repeal date. Dealers will still need to report transactions that occur before the repeal.

AUSTRAC recommends Dealers start preparing for the change now and should start reviewing their processes and standard operating procedures, and prepare their staff for the change.

This change does not affect any obligations that Dealers have under other legislation, such as the AML/CTF Act, and the AADA advises Dealers to seek their own advice regarding ongoing reporting obligations.

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AIR: October Used Car Sales Figures

The Automotive Insight Report (AIR) for October saw another fall in used car sales, dropping by 3.2% to 202,355 compared to last month. Meanwhile, used car listings have grown by 1% to 317,861, indicating a buyers’ market as used car supply continues to outpace demand.

The average days to sell has increased to the highest point since December last year to 49 days, up from 46.4 days last month.

Across fuel types, petrol and diesel remain the top choice among buyers accounting for over 95% of all sales. However, consumer preferences are gradually shifting toward more fuel-efficient alternatives, driven by an expanding range of options and better affordability. Sales of conventional petrol and diesel vehicles have declined by 4.5% and 2.3%, respectively. In contrast, PHEVs remain the most popular choice, with EVs following closely – both categories experiencing significant sales increases of 27.1% and 22.3%, respectively.

In the states, used car sales declined everywhere except Victoria, which recorded a modest growth of 0.2%.

For the first time, the October AIR report includes a snapshot of Australia’s used EV market. This included a breakdown of EV sales across the states, which showed increases in listings and sales in every state except the Northern Territory. The average time to sell used EVs has increased to 67.3 days, up from a low point of 55 days in August. Turning to top EV makes and models, the MG4 EV was by far and away the best selling used EV in October, recording sales growth of almost 85% on the previous month and selling double the units of its next closest competitor.

Retained values remain on a downward trajectory with every vehicle segment across every age category experiencing a drop in value for the month. Retained values of used EVs in the 1-3 year old category have declined while the older models appear to hold their value better.

Small vehicles in the passenger segment maintain their lead in strongest value retention, with the Kia Picanto replacing the Audi RS3 from last month, at 95.6% in the 2-4 category. The Toyota Yaris remains unbeatable in the 5-7 year old category at 95.4%. In the SUV category, the Suzuki Jimny continues to lead in the 2-4 year category at 113.4% while regaining top position in 5-7 year old category at 114.0%. 

HIGHLIGHTS FROM THE AIR FOR OCTOBER

  • 202,355 vehicles were sold in October, a decline of 3.2% compared to the previous month.
  • Victoria was the only state to observe a jump in sales by 0.2% to 49,463.
  • 317,861 used cars were listed for sale in September, an increase of 1 % from the previous month.
  • Northern Territory was the only state to observe a significant decline in sales of used EVs.
  • Average time to sell a used car has increased to 49 days.
  • Every vehicle segment across every age category experienced a drop in retained value for the month.
  • The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.
  • In EVs, MG MG4 was the best-selling vehicle followed by the popular Tesla Model 3.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

If you are a Dealer of a contributing brand and would like access to the monthly report please email Policy and Communications Officer Urmika Deb on udeb@aada.asn.au.

2025 Women at the Wheel Global Study

AADA encourages all women working in the automotive industry to participate in the Women in Automotive Global Industry Study.

The survey will assist in creating a more inclusive and equitable automotive sector with the insights being used to generate Deloitte’s Women in Automotive Report, launching in early 2025.

This initiative will provide data to better understand the unique challenges and opportunities facing women in the industry and try to help create a more inclusive environment for all.

The survey takes just 15 minutes to complete and will explore:

  • Perceptions of the automotive industry’s future
  • Barriers to retention and advancement for women
  • Recommendations for creating a more inclusive and equitable workplace

VIEW SURVEY

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AIR: September Used Car Sales Figures

The Automotive Insight Report (AIR) for September shows a modest uptick in used car sales, while used car listings continued to increase continuing a trend of month-on-month increases in listings since May.

Listings of used cars increased by 5.2% to 314,672 while sales increased by 1% to 209,102.

The average days to sell has increased to 46.4, the highest it has been since January. This suggests that sellers are feeling the impact of a growing used vehicle supply, and with retained values dropping, it’s an ideal time for motivated buyers to secure a deal in this market.

Supply has increased in every state except the Northern Territory, however demand for used vehicles is a mixed bag, with some states recording substantial decreases (ACT down 11.2%) and others recording moderate increases (NSW up 3.5%).

Sales of used EVs have surged by 17.3% compared to last month, marking the highest monthly increase observed this year. However, EVs are still the most oversupplied fuel type, a trend further compounded by a 23% increase in EV listings in September.

Retained values continue to fall, with almost every vehicle segment across every age category experiencing a drop in value for the month. With more granular retained values data released this month, it is evident that Utes hold their value best at the two-year mark but are quickly surpassed by passenger vehicles in the 3-7 year age range.

Small vehicles in the passenger segment continue to demonstrate the strongest value retention, with the Audi RS3 claiming the top position at 101.9% in the 2-4 category, breaking Toyota’s longstanding reign. However, the Toyota Yaris maintains the lead at 94.7% in the 5-7 year old category. In the SUV category, the Suzuki Jimny remains dominant in the 2-4 year old category at 113.0%, while the Toyota Land Cruiser has taken the top spot in the 5-7 year-old segment at 88.3%.

HIGHLIGHTS FROM THE AIR FOR SEPTEMBER

  • 209,102 vehicles were sold in September, recording a jump of 1.1% compared to the previous month.
  • Northern Territory was the only state to observe a decline in supply by 9.1% to 1558 compared to August.
  • 314,672 used cars were listed for sale in September, an increase of 5.2% from the previous month.
  • ACT (-11.2%) and NT (-6.0%) continue to be the worst performers in terms of used car sales.
  • Average time to sell a used car is 46.4 days, just under the high point of 47.7 this year in January.
  • Retained values have consistently declined with passenger vehicles holding their value best in the 3-7 year old category and utes holding their value best in the 2 year old category.
  • The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

If you are a Dealer of a contributing brand and would like access to the monthly report please email Policy and Communications Officer Urmika Deb on udeb@aada.asn.au.

Implementation of Franchising Code Review Recommendations

The Federal Government has opened a consultation seeking views on the exposure draft of the Competition and Consumer (Industry Code‑Franchising) Regulations 2024.

The draft regulations remake the Franchising Code of Conduct to implement the Government response to the Independent Review of the Franchising Code of Conduct and also make amendments to update and clarify various provisions.

Earlier this year the Government responded to the Review and agreed with or in principle with all 23 recommendations made by Dr Michael Schaper in his report.

Key changes in the Code for franchised new vehicle dealers are:

  • Capturing service and repair work conducted by motor vehicle dealerships
    The Government response requires that the new Code clarify that service and repair work performed by motor vehicle dealerships is within the scope of the Code. The revised definition of ‘motor vehicle dealership’ contained in section [6] explicitly captures any servicing or repairing of motor vehicles conducted by dealers or associated with a dealership agreement that buy, sell, exchange or lease motor vehicles. This ensures that service and repair businesses that are a franchise, but do not engage in the other aspects of the ‘motor vehicle dealership’ (i.e. do not buy, sell, exchange or lease motor vehicles) will not be subject to Part 6 and the additional requirements that it imposes.
  • Reasonable opportunity for return on investment
    The Government response provides for there to be a requirement that all franchise agreements provide the franchisee with a reasonable opportunity to make a return on their investment during the term of the agreement. This requirement which is currently set out under Part 5 as applying to new vehicle dealership agreements, will appear in Part 4 of the new Code and apply to all franchise agreements, including truck, motorcycle and farm machinery dealers.

The Schaper Review also recommended that the Government look into the feasibility of introducing a licensing regime for the franchising sector. The Government agreed with this recommendation in its response and this week, notified the AADA that in coming weeks, the Taskforce will publish a discussion paper and invite submissions as part of this process.

The AADA has made it clear to the Government that neither the Schaper Review nor the Government response goes far enough to protect franchised Dealers from predatory franchisors. We are continuing to pursue further protections to level the playing field between Dealers and OEMs.

The AADA will be making a comprehensive response to both consultations and if members have any specific areas of concern or comments you would like the AADA to make, please advise the Secretariat by 24 October 2024.

You can view the Exposure Draft, Explanatory Statement and Information paper below.

VIEW DRAFT AND INFORMATION

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New Car Dealers Seeking Election to the VACC Executive Board

AADA Dealer members in Victoria, who are also members of the VACC, should be aware that the election period for the 2024 VACC Executive Board is set to commence on October 10 and will close on 15 November 2024.

There are two franchised new car Dealer candidates running in the election, Sid Cetindag and Paul Hopper.

The VACC is among the most powerful automotive advocacy bodies in Australia and it has a very active Dealer Division, VADA, which works tirelessly for Dealer members in the state of Victoria.

AADA would urge all eligible Victorian Dealer members to consider voting in support of the two Dealer candidates standing for Executive Board positions. Please also note that some Dealers are entitled to more than one vote based on their membership arrangements, so you may want to check this for yourself if you think this applies to your organisation.

Dealers should have received voting forms in the mail. If you have not received them and wish to vote, please contact the VACC.

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Dealer and Manufacturer Obligations Under the Australian Consumer Law

The AADA has sought and obtained guidance for Dealers with regard to the obligations Dealers
and manufacturers have when handling consumer guarantee claims under the Australian
Consumer Law.

The attached guidance also clarifies the indemnity obligations the Dealers have with
manufacturers.

This Bulletin has been prepared with the assistance of HWL Ebsworth Lawyers and is provided
for information purposes only. It is not intended to be legal advice given by AADA or HWL
Ebsworth to be relied upon by dealers. Dealers should obtain independent legal advice if they
have any queries in respect of their rights and obligations under the ACL, including against
manufacturers and distributors.

We would strongly advise all Dealers to read and understand the attached guidance.

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AIR: August Used Car Sales Figures

The Automotive Insight Report (AIR) for August shows softening used car sales with the exception of hybrids, which are proving popular for cost conscious buyers.

Listings of used cars increased by 4.9% to 299,147 while sales dropped by 3.6% to 206, 804.

The average days to sell have continued to decrease, reaching a new low of 42.7 over the past 12 months, indicating sellers are motivated and buyers are ready to snap up a good deal.

Used car demand has decreased in all states except South Australia and Tasmania, On the supply side, Western Australia saw a 15.1% increase to 31,015 listings, while the Australian Capital Territory and Northern Territory recorded significant supply drops of 15.4% and 14.9%, respectively.

Supply of used cars increased across all categories, with SUVs and LCVs rising the most by 6.8% and 10.2%, respectively. This surge could partially be explained by the sharper decline in retained values for these vehicles compared to passenger cars, prompting sellers to hold onto them for shorter periods.

There are some correlations to the new car market in terms of the growing popularity of hybrid vehicles, with hybrid sales increasing by 0.6% to 8,435 compared to July, while petrol (-3.7%) and diesel (-3.9%) both experienced a decline in sales.

Compared to July, the used EV market is now facing an oversupply, with sales seeing the largest drop among all fuel types, down 8.3% to 1,637. This could lead to more competitive pricing, influencing buyer preferences as disposable incomes erode.

Retained values continue to decline steadily. Small vehicles and performance vehicles in the passenger segment continue to hold their value the best, with the Toyota 86 replacing the Toyota Corolla for the top position at 98.4% in the 2-4 year old category and the Toyota Yaris maintaining the lead at 94.8% in the 5-7 year old category. In the SUV category, the Suzuki Jimny continues to dominate, holding the top spot in both the 2-4 (114.0%) and 5-7 year old (116.4%) SUV categories.

HIGHLIGHTS FROM THE AIR FOR AUGUST

  • 206,804 vehicles were sold in August, a decrease of 3.6% compared to the previous month.
  • Western Australia recorded the highest jump in supply of used cars, rising by 15.1% to 31, 015 whereas South Australia and the Northern Territory were the only two states where demand increased, by 0.3% and 1.8% respectively.
  • 299,147 used cars were listed for sale in August, an increase of 4.9% from the previous month.
  • Sales were weakest in ACT (-29.1%) and Northern Territory (- 37.4%), reflecting a significant drop in sales compared to last month.
  • Average time to sell a used car is 42.7 days, the lowest it has been over the past 12 months.
  • Retained values continue their gradual decline with passenger vehicles holding their value best in the 2-4 year age bracket (81.1%) as well as for the older 5-7 year category (67.3%).
  • The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

If you are a Dealer of a contributing brand and would like access to the monthly report please email Policy and Communications Officer Urmika Deb on udeb@aada.asn.au.

Notice of Annual General Meeting of Australian Automotive Dealer Association

This is to advise you 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 15 October 2024
  • Time: 2:00pm (AEDT)
  • Place: Video conference (details provided upon registration)

REGISTER FOR AADA AGM

At the meeting, members will be asked to consider and vote to:

  • accept the annual report
  • accept the director’s report
  • accept the auditor’s report
  • accept the annual financial statements
  • accept the outcome of the election of directors

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Notice of 2024 AADA Board Elections and Nominations

The new AADA was established in 2014 by its Founding Members.

In 2024, the representative positions up for election in your state are:

  • Queensland: Nick Pappas – Standing for re-election
  • Australian Capital Territory: Peter Axiom – Standing for re-election
  • Northern Territory: David Hayes – Standing for re-election
  • Victoria: Nominations received in the notice period which concluded on 06/09/2024. The successful candidate will be announced at the 2024 AGM.
  • Western Australia: Nominations received in the notice period which concluded on 06/09/2024. The successful candidate will be announced at the 2024 AGM.

Suitably qualified and experienced motor vehicle Dealers are invited to stand and contest the election for Queensland, Northern Territory and the Australian Capital Territory in the forthcoming elections. The closing date for nominations is COB 1 October 2024.

If no other candidate contests the election in the States listed then those who have nominated for re-election above or any single nominee will be duly elected and serve a three year term.

Parties interested should confirm their desire to stand for election in writing to the AADA Returning Officer, Vinesh George – vinesh@vsgeorge.com.au

All candidates must comply with the AADA Code of Practice regarding Elections, which will be provided upon a candidate standing.

AADA Directors serve in an entirely voluntary capacity and donate their time and experience to give back to the industry. More details of the role and likely time required to fulfil the role can be provided by the AADA.

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Queensland EV Rebate Ends Tonight

Please be aware that the Queensland Government’s Zero Emission Vehicle Rebate Scheme will close at 11:59pm tonight, Monday 2 September 2024.

Initially planned to run for three years, the scheme has proven popular, finishing in just over two years with the Queensland Government announcing on 31 August 2024 that the program will close as the funding has been exhausted.

The scheme has been in effect since 1 July 2022, and on 1 July 2023, the Queensland Government increased the rebate from $3,000 to $6,000 for eligible individuals who met a household income threshold, and increased the vehicle threshold from $58,000 to $68,000 (inclusive of GST).

The AADA had confirmed with the Queensland Rural and Industry Development Authority that consumers are able to receive the rebate if they have purchased a vehicle and submitted an application by the 11:59pm deadline tonight.

More information can be found in the media statement.

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