Archives: Dealer Bulletins

Today, the ACCC has granted a class exemption which will enable franchised new car Dealers regardless of their size to collectively negotiate with suppliers and franchisors, without having to first seek ACCC approval. This first ever class exemption introduced by the ACCC is due to commence in early 2021.

The class exemption is granted to all franchisees governed by the Franchising Code of Conduct and will allow Dealer Councils to represent Dealer interests and negotiate with the Manufacturers on behalf of their Members without having to go through ACCC’s ‘authorisation’ or ‘notification’ processes. Collective bargaining is available on a voluntary basis and bargaining groups will now only have to complete a one-page form and provide it to the ACCC.

More information about the collective bargaining class exemption can be found at the ACCC’s website.

Download Dealer Bulletin

On 27 September, the Victorian Premier announced the move to the Second Step of restrictions for Metropolitan Melbourne. The changes include an easing of some restrictions and the removal of the curfew, but disappointingly, do not allow the re-opening of Dealer showrooms at this stage.

Further details are available at the Victorian Government’s website.

In a more positive step, the Transport, Postal and Warehousing section of the permitted industries list does now specify that as of 28 September the following mechanical services are allowed:

• Mechanical services that includes safety inspections, maintenance and repairs for safe operation, including scheduled / logbook inspections

The Premier also announced that the State would be moving away from fixed dates on the Roadmap and instead rely on case numbers as trigger points for further action.

Based on current infection rates, this means it is possible that future decisions about current restrictions will be brought forward to 19 October 2020.

Download Dealer Bulletin

The Federal Government have announced significant changes to the responsible lending laws designed to free up credit and get trade moving again. These changes should result in substantially improved outcomes for Dealers with small businesses and consumers now more easily able to obtain credit to purchase cars.

The reforms will be introduced through changes to the Credit Regulations and are scheduled to occur from   1 April 2021. Stakeholder consultations will be scheduled prior to the changes being finalised.

The key points of the reforms are as follows:

• These are the most significant reforms to Australia’s credit framework in a decade and will increase the flow of credit to households and businesses, reduce red tape and safeguard consumer protections.
• The changes will reduce the cost and time it takes for consumers and businesses to access credit.
• Billions of dollars in new credit will be extended to households and businesses in Australia each month.
• The Government will simplify the system by moving away from a “one size fits all” approach while at the same time strengthening consumer protections for those that need it.
• These changes will make it easier for the majority of Australians and small businesses to access credit, reduce red tape, improve competition, and ensure that the strongest consumer protections are targeted at the most vulnerable Australians.
• In the era of COVID-19, it is critical that unnecessary barriers to accessing credit are removed so that consumers can continue to spend and businesses can invest and create jobs.
• Maintaining the free flow of credit through the economy is critical to Australia’s economic recovery plan.

The AADA has been urging the Government to review consumer credit laws, which many members have complained are too restrictive. The AADA Pre-Budget submission argued strongly for this in Section 6, which called on the Government to review responsible lending laws. It is commendable that the Government have recognised the constraints on trade that the Responsible Lending Obligations (RLO’s) have caused and introduced changes critical to a post-pandemic economic recovery.

The changes also include reforms of the laws around Small Amount Credit Contracts (SACC’s) and consumer leases, designed to better protect consumers of these products.

Further details are available for download on the Treasury’s website.

A copy of the AADA Media Release is available on AADA’s website.

Download Dealer Bulletin

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 10 NOVEMBER 2020
• Time: 2.30pm
• Place: ONLINE CONVENTION
  (Due to Covid-19 and pursuant to Covid-19 emergency legislation this year’s AGM will be conducted electronically by live video conferencing during the online convention. Please register using the button below.)

 

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

NOTICE OF AGM & PROXY VOTING FORM

 

NOTICE OF 2020 AADA BOARD ELECTIONS & NOMINATIONS

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

The AADA Constitution provides that 2020 is the fifth year that Members are invited to vote for their representative.

In 2020, the representative positions that comes up for election in your state is:

• Queensland: Nick Pappas standing
• Victoria: Nicholas Strauss standing
• ACT: Peter Axiom standing
• Northern Territory: David Hayes standing

Suitably qualified and experienced motor vehicle Dealers are invited to stand and contest the election to represent their State in the forthcoming elections. The closing date for nominations is 2 October 2020.

Interested parties should confirm their desire to stand for election in writing to the AADA Returning Officer, Vinesh George at PO BOX 4236, Bexley North, Sydney, 2207, NSW or by email vinesh@vsgeorge.com.au.

If no other candidate contests the election in the States listed then the proposed candidates (above) or any single nominee will be duly elected and serve a 2 year term.

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.

NOTICE OF 2020 BOARD ELECTIONS &NOMINATIONS

To: VICTORIAN AADA MEMBERS

In welcome news for Victorian Dealers, the Victorian Government has released updated information regarding an easing of restrictions covering motor vehicle routine maintenance and repairs. This change will allow Dealer workshops to resume limited activity, working to other restrictions which remain in place, including adhering to a COVID Safe plan.

The advice is contained in the FAQ section of guidance material provided by the Victorian Government.

The specific advice, which comes into effect as of today, is as follows:

Routine maintenance (i.e. logbook or scheduled maintenance) is permitted as a standalone service for safety purposes only, including for repairs and product recalls. Under the current guidance, automotive, machinery and equipment repair and maintenance are permitted to operate:

• • where service providers are providing support to a permitted service or industry or
  • where it is required to maintain the health and safety of Victorians at home or at work (e.g. routine maintenance, vehicle repairs and critical maintenance including disinfection).

While no explanation for the change has been provided, it more than likely stems from the collaborative messaging and pressure applied by the AADA, FCAI and in particular, the VACC who have lobbied strongly on behalf of the industry and remained in close contact with the Victorian Government.

It is evident that the Victorian Government now understands that vehicle repair and maintenance activity can occur safely and represents an extremely low level of risk when performed in adherence with a COVID Safe plan. We strongly believe that the same circumstances apply to Dealer showroom activity, which also represents a very low risk to the community. The AADA will continue working to convince the Victorian Government for an earlier than scheduled easing of the restrictions on Dealer showrooms.

 

Download Dealer Bulletin