Archives: Dealer Bulletins

To: ALL AADA MEMBERS

The Australian Government, through the Department of Treasury, is conducting a consultation on the effectiveness of the consumer guarantees under the Australian Consumer Law (ACL) and the indemnification provisions that suppliers, including franchised new car Dealers, are entitled to.

The AADA lodged our submission last week and have offered to participate in any meetings or roundtables.

We appreciate all the members who took part in our indemnification survey which has been referenced throughout the submission and summarised in an attachment. We will be following up with Treasury in the near future and keeping Members updated with any developments in the space.

 

AADA SUBMISSION

To: AADA QLD MEMBERS

The AADA is pleased to report that the Queensland Education, employment and training committee handed down its findings from an inquiry into the operation of the Trading (Allowable Hours) Act 1990 and recommended no changes to the trading arrangements for Queensland motor vehicle Dealers. The AADA prepared a submission and appeared at a hearing of the Committee.

The AADA argued that extensions to trading hours for motor vehicle Dealers would be detrimental to business and employees, while not providing meaningful benefits to customers. We also declared that opening on Sunday’s would result in increased costs, but would not increase sales or jobs, and would intensify the industry’s skills shortage, which has become more serious during the pandemic.

The AADA would like to acknowledge the work of MTAQ on this important issue over a long period of time. By working together, we have demonstrated to the state government that this was an industry wide concern.

The committee has made nine recommendations including a proposed amendment to the Act, which will keep the current trading hours unchanged until the end of August 2023, to account for the disruptions caused by the COVID-19 pandemic.

 

AADA SUBMISSION

COMMITTEE HEARING TRANSCRIPT

COMMITTEE MEDIA RELEASE

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ATTENTION:

• Dealer Principals
• Fixed Operations Managers

The Australian Government, through the Department of Treasury, is conducting a consultation on the effectiveness of the consumer guarantees under the Australian Consumer Law (ACL) and the indemnification provisions that suppliers, including franchised new car Dealers, are entitled to.

The Indemnification provisions of the ACL require that Dealers are compensated for repairs, replacements or refunds made under the consumer guarantee requirements of the ACL. The ACL protections preclude all other warranty provisions meaning the requirement to indemnify Dealers remains, irrespective of whether repairs are performed under the ACL or factory warranty.

Following earlier reports by the ACCC, and several enforceable undertakings given by OEMs to the ACCC for failures to meet their ACL obligations, the Government is particularly concerned that consumers are denied their entitlements because of a failure by OEMs to compensate Dealers for repair, refund, or replacement of effected vehicles.

This consultation is an important opportunity for Dealers to have their say on warranty policies, practices, and the right of indemnification that Dealers have. The AADA is preparing a submission to the Treasury, and we require further information from members to assist us. We have created a survey and estimate that it should take Dealer Principals or Service Managers about 6 minutes to provide answers to the 12 questions.

All responses to the survey will remain confidential. We would appreciate your completion of the survey but would also welcome any case studies that you are able to provide detailing failures to indemnify Dealers. If you have any examples that you are able to share, please contact Brian Savage who will take a record of the details for the submission.

The survey is for completion by AADA members only. A Dealer Bulletin containing a link to the survey has been sent to all AADA members however if you did not receive it or would like it re-sent to you, please contact Brian Savage.

 

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The Australian Automotive Dealer Association’s 2022 Convention & Expo at the Brisbane Convention & Exhibition Centre has been rescheduled until Thursday 2 and Friday 3 June 2022. The decision to reschedule has been made in consultation with our members, sponsors, and industry partners, and due to the significant staffing issues and operational impact that the COVID Omicron variant has presented for all businesses throughout Australia.

The AADA Convention & Expo is an important industry event that has provided Dealers a platform to ensure that their issues are heard. Our members face a range of threats in the immediate future, those include the ongoing challenges in the franchise relationship, skills shortages, new vehicle inventory supply, used vehicle supply, declining F&I revenues and regulatory oversight, these are all vital issues to new car franchised Dealers that will be covered at the 2022 AADA Convention & Expo.

The AADA Convention & Expo program will provide an engaging and comprehensive overview of the market, it’s strengths and weaknesses together with a detailed analysis of the issues affecting new car Dealers. The Convention also presents a world class expo of the latest products and services.  Registrations are open and group bookings are welcome.

AADA CONVENTION WEBSITE

We look forward to seeing you in June at the 2022 AADA Convention & Expo.

2022 AADA Convention & Expo

Venue:   Brisbane Convention & Exhibition Centre
Dates:    Thursday 2 and Friday 3 June 2022

 

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Assistant Treasurer Michael Sukkar has announced a consultation period and issued a consultation Regulatory Impact Statement paper titled “Improving the effectiveness of the consumer guarantee and supplier indemnification provisions under the Australian Consumer Law”. The paper and further information is available on the Treasury website.

This is a welcome consultation and will provide the AADA and members with an opportunity to raise important issues around unfair or prohibitively burdensome warranty processes and procedures, clawbacks, and instances of indemnification failures for Dealers who have acted to honour their ACL consumer obligations by rectifying and repairing vehicles.

The consultation paper is economy wide in scope, however, does specifically recognise problems occurring in the new motor vehicle sector and calls for feedback from Dealers, among other stakeholders, on issues that have an impact on their businesses. The Government is seeking to build a better understanding of proposed penalty regimes for suppliers not meeting their obligations and for Manufacturers who fail to indemnify suppliers or penalise them for performing consumer guarantee remedies.

The AADA will be preparing a comprehensive submission to the Treasury and will be seeking input and detailed case studies from various members to build the case.

Submissions are due on 11 February 2022.

 

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Reminder of NSW Government Electric Vehicle Strategy Eligibility Criteria

In late October we advised members of the recently announced NSW Government Electric Vehicle Strategy.

The Strategy contains a number of important incentives which will help stimulate interest in Electric Vehicles (EVs) and encourage their uptake among new car buyers.

The Strategy is proving very successful, generating demand for EVs, but it is critical that members understand all of the scheme rules and how they apply so that consumers have a full understanding of the benefits and eligibility criteria.

We have recently received feedback from the NSW Government that some consumers have been told by Dealers that demonstrator vehicles are eligible under the NSW EV rebate scheme, which is not correct. The NSW EV rebate scheme treats demonstrators as second hand and only new vehicles are eligible. We have also had feedback that some consumers have not been advised by their Dealer that the vehicle they have purchased has been registered previously as a Dealer demonstrator and is therefore ineligible for the NSW EV rebate scheme.

Full battery EV Dealer demonstrator vehicles are eligible for a stamp duty exemption if they have a dutiable value of up to $78,000.

We would also like to reiterate that vehicles purchased under leasing arrangements, including novated leases, are not eligible for the NSW Government rebate.

Members should refer to, and direct customers to, the NSW Government EV Strategy Webpage for further information, but a summary of the Strategy is as follows:

• From 1 September 2021, the NSW Government rebate and stamp duty exemption are available to buyers of new eligible battery and hydrogen fuel cell EVs.
• The rebate of $3,000 applies to new full battery EVs and hydrogen fuel cell EVs with a dutiable value of less than $68,750 (inc. GST) for the first 25,000 vehicles sold.
• From 1 September 2021 stamp duty for full battery EVs and hydrogen fuel cell EVs with a dutiable up to $78,000 is removed and refunded to customers.
• From 1 July 2027 or when EV sales make up 30% of new car sales, all EVs including plug-in hybrid EVs are stamp duty exempt and a road user charge will be introduced for those EVs that have received a stamp duty exemption.
• Incentives are also available for small fleets.
• The NSW Government will invest $171 million in charging infrastructure over the next four years.

Process For Claiming a Rebate and/or Stamp Duty Exemption

The rebate and stamp duty exemption are available retrospectively for eligible vehicles purchased and registered from 1 September 2021 and can be claimed by the customer via the NSW Government online portal after the sale has been finalised and the vehicle registered.

The Strategy is designed to apply directly to buyers of eligible battery EVs and hydrogen fuel cell EVs and will not be managed by Dealers. Buyers are responsible for determining their eligibility under the scheme and for claiming any rebate or stamp duty refund to which they may be entitled.

Members are advised to direct all enquiries from customers and potential customers to the NSW Government EV Strategy webpage to review the eligibility criteria prior to purchasing their vehicle.

On this page, customers are able to access the online portal. The online portal will take consumers through a series of questions about their purchase before accessing the portal to submit their application.

Further information about the operation of the scheme is available on the above website, which will be updated as the Strategy is rolled out.

 

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We are pleased to announce that the AADA Board has elected David Blackhall as the Australian Automotive Dealer Association’s new Chairman, commencing his duties as an independent director following the AADA Annual General Meeting this afternoon.

David has excellent industry experience through a long and successful career in the automotive industry. As the former CEO of the AADA (2016-2019), David also has extensive experience in working with the Government and industry. During his time as the AADA CEO, he made some significant gains for the AADA and its members. Since 2019, David has continued to provide valuable support to the AADA and its members as an independent consultant, supporting the AADA in its fight for better automotive franchising regulations.

Separately, the AADA is also welcoming two new Directors to its Board. Edwina Gilbert, Executive Chair of the Phil Gilbert Motor Group, will be joining the Board as a Director for New South Wales and David Reynolds, Managing Director of the Steinborner Automotive Group, will be joining as the Director for South Australia. Both Edwina and David have extensive experience in the automotive industry and have served on the Australian Motor Dealer Council. Their appointment will take effect immediately, following approval at the AGM today.

Finally, we would like to acknowledge outgoing Chairman Terry Keating for his leadership and guidance over the past six years. Terry has played a significant role in making AADA the peak Dealer body in Australia, recognised by Dealers, other industry bodies, regulators, and the Government. Terry was instrumental in convincing the Dealer councils to commit to an adequate level of funding for the AADA. He has presided over several major achievements, including the hard-fought reforms to automotive franchising laws and the reversal of plans to allow for parallel imports of new vehicles to name a few.

Terry’s time as Chair comes on the back of a lifetime of service to the automotive industry including roles as the President of MTA-NSW, a director of the MTAA, Chair of the Ford National Dealer Council and Chairman of the BMW National Dealer Council.

Terry has chaired his final Board meeting today and the industry will formally honour him in person at the AADA Chairman’s Dinner in March 2022.

 

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15 & 16 November

In June, the AADA informed Victorian Dealers about the State Governments subsidy for consumers purchasing a new electric vehicle. The subsidy is designed to encourage the uptake of electric vehicles in Victoria and contribute to a target of 50% of light vehicle sales by 2030, outlined in the Zero Emissions Vehicles Roadmap.

Solar Victoria is managing this program and has created an online portal for car Dealerships to utilise. This portal will apply the subsidy as a discount for individual and business customers at the point of sale.

To use the subsidy portal, Dealers must register with Solar Victoria as a participating Zero Emissions Vehicle Trader. Solar Victoria has acquired a list of Dealers currently selling eligible electric vehicles; and invitations have been sent to Dealers to participate in upcoming training.

Dealers who would like to participate in the program need to send an expression of interest to Solar Victoria, showing evidence that they:

• Hold a valid/current motor car trader’s licence
• Are a participant of VicRoads Dealer certification scheme
• Are authorised by an Original Equipment Manufacturer to trade a ZEV

Details can be found at Information for Zero Emissions Vehicle (ZEV) traders | Solar Victoria

With the launch of the new portal, the current post-sale subsidy application process will be closed. From 17 November, the portal will be the only way customers will be able to access the subsidy for eligible new ZEV deliveries. Customers who have already taken delivery of and registered their eligible ZEV must apply for the subsidy on the Solar Victoria website by Friday 10 December 2021.

An information session will be held to inform Dealers on:

• An update on the ZEV Subsidy program.
• The required Solar Victoria portal training.
• How Solar Victoria will be moving to the new payment process.

The online training sessions will take place on Monday 15 November, 2.00pm – 3.30pm or Tuesday 16 November, 11.00am – 12.30pm.

You can join the portal training session on your computer or mobile Teams app via the links below. Dealers do not have to register for the training session but simply click on the links at the designated times to join the session.

MONDAY 15 NOVEMBER, 2.00PM

TUESDAY 16 NOVEMBER, 11.00AM

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The Australian Taxation Office (ATO) has issued a taxpayer alert in an effort to stop structured Luxury Car Tax (LCT) avoidance schemes.

The alert outlines the ATO’s concerns with some arrangements involving the sale of new and second-hand luxury cars. These kinds of arrangements involve illegitimate car Dealers or agents selling luxury cars cheaper than genuine Dealers by setting up structures to avoid paying LCT and improperly obtaining refunds.

Dealers should be aware of participating in these arrangements when asked to move cars through their books or to claim the LCT back from the ATO in exchange for a commission or fee.

The ATO now reviews every LCT refund claim and will stop and investigate all claims that appear higher risk. Entering into these arrangements, including knowingly buying a car that is part of an arrangement, may also result in penalties or sanctions.

More information about the LCT and getting claims right is available at ato.gov.au/getLCTright.

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