Archives: Dealer Bulletins

The July 2025 edition of the Automotive Insights Report (AIR), produced by the AADA in collaboration with AutoGrab, shows a slight slowdown in used vehicle sales activity following June’s end-of-financial-year peak, alongside continued softening in retained values across most segments.

The Automotive Insights Report is the only comprehensive national reporting of used car sales covering both dealer and private transactions. This national, all-channel view helps dealers, industry, and policy makers understand real demand, track emerging trends, and make better-informed decisions.

Key insights from July include:

• Sales ease after EOFY surge: National used car sales fell to 206,216 in July, down 2.8 per cent month-on-month. WA, TAS, ACT and NT recorded modest increases, while all other states saw declines.
• Dealer inventory remains strong: Dealers accounted for 47.5 per cent of sales and 55.5 per cent of listings. Total active listings rose 2.9 per cent to 339,742 nationally, the highest level so far in 2025.
• Hybrid and EV sales slow: Hybrid sales fell 8.5 per cent month-on-month, while EVs dropped 20.3 per cent. However, hybrid listings increased 13.6 per cent and EV listings rose 4.9 per cent, indicating ongoing supply growth in these segments.
• Days to sell dropped: Average days to sell across all used vehicles fell to 44.6 days in July, down from 47.0 in June, indicating a quicker turnover for vehicles that matched buyer demand.

The results are in line with seasonal patterns, with July often seeing a cooling in sales after EOFY. Stock levels are building, which is positive for consumer choice, but the ongoing softening in retained values is something dealers will be watching.

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 Communications Manager Ashleigh Sykes on asykes@aada.asn.au.

The AADA and AutoGrab are pleased to release the 2025 Mid-Year Automotive Insights Report (AIR), providing insightful data about the dynamic Australian used car market in the first half of the year.

Used car inventory is surging, with 1,589,491 vehicles listed for sale in the first six months of 2025 which represents an over 30 per cent increase compared to the same period in 2024.

This uplift in supply is matched by stable demand, with 1,133,990 used cars sold so far this year, a slight increase on 2024. Notably, the market is experiencing a continued shift back toward dealership sales, with dealer transactions now representing 46.7 per cent of total sales, up from 36.5 per cent last year.

After a year of constrained supply and strong retained values, there appears to be balance returning to the used car market. AutoGrab predicts that the growing inventory surplus is likely to place downward pressure on prices and could result in extended selling times during the second half of 2025. The surge in supply is primarily driven by passenger vehicles and SUVs. While SUVs continue to underpin sales growth and utes are stable, demand for passenger vehicles has shown a noticeable decline.

Low emission vehicle adoption continues to gain momentum. Battery electric vehicle (BEV) sales nearly doubled year-on-year, rising 92 per cent, while plug-in hybrid sales grew by 96 per cent. Hybrids also performed strongly, up 42 per cent on the same period last year.

Other highlights from the 2025 mid-year AIR include:

• BEVs now account for 1.1 per cent of all used car sales, up from 0.8 per cent last year.
• Private sales dropped significantly, now making up 53.3 per cent of all transactions (down from 63.5 per cent).
• Retained values are lower in 2025 compared to last year, but the rate of decline month-to-month is more gradual, indicating a more stable market.
• The Ford Ranger maintained its position as the top selling used model, followed by the Toyota Hilux and Toyota Corolla.
• The average number of days to sell a used vehicle remained steady for dealers, though private sellers are taking longer to sell compared to the same period in 2024.

View the full Mid-Year 2025 Automotive Insights Report here.

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

South Australian new car and truck franchise dealers are advised that RevenueSA have released its 2025-26 Guide to Legislation-Payroll Tax (the Guide).

RevenueSA advise that the Guide provides a general guide for employers of their South Australian payroll tax responsibilities under the Payroll Tax Act 2009 (SA), but it does not constitute a Revenue Ruling.

This document should not be read in isolation to the legislation and does not in any way override the Payroll Tax Act 2009 (SA).

More information
For previous versions of the RevenueSA Guide to Legislation you should visit the RevenueSA Resources and Publications page.

For any matters relating to the Acts and Regulations mentioned in this Guide, SA Dealers should contact RevenueSA on (08) 8226 3750 or visit their website.

The June 2025 edition of the Automotive Insights Report (AIR), produced by the AADA in collaboration with AutoGrab, shows a strong end of financial year lift in used vehicle sales activity even as retained values begin to soften across most segments.

Key insights from June include:

• EOFY drives strong sales growth: National used car sales surged to 212,136, up 10.1 per cent month-on-month. Significant increases were recorded in NSW (12.5 per cent), QLD (11.7 per cent), and VIC (9.1 per cent).
• Dealer activity remains strong: Dealers accounted for 49 per cent of sales and 53.6 per cent of listings. The dealer share of inventory continues to lead, reflecting strategic stock positioning and ongoing consumer confidence in dealer-backed purchases.
• Hybrid and EV momentum continues: Hybrid sales climbed 21.7 per cent month-on-month, PHEVs increased 29.3 per cent, and EVs rose 7.6 per cent, despite a 6 per cent drop in EV listings. The shift reflects increasing consumer demand for fuel-efficient vehicles.
• Days to sell remains stable: Average days to sell across all used vehicles held steady at 47.0 days, consistent with May, suggesting sustained consumer engagement, as stock levels increased slightly by 1.2 per cent to 330,278 listings nationally.

End of financial year activity once again contributed to strong sales performance in June, with motivated buyers and competitive selling driving results. As seen in previous years, this EOFY momentum also placed downward pressure on retained values, with sellers looking to finalise transactions before the close of financial reporting.

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 Communications Manager Ashleigh Sykes on asykes@aada.asn.au.

Dealers were advised in May that the Australian Taxation Office (ATO) had announced the Luxury Car Tax (LCT) thresholds for the financial year 2025-26. In addition, due to an amendment to A New Tax System (Luxury car tax) Act 1999, from 1 July 2025, the definition of a fuel-efficient vehicle will change from a fuel consumption rate that does not exceed 7 litres per 100km to 3.5 litres per 100km.

This bulletin is a reminder for dealerships and their staff to familiarise themselves with the implications of the 2025-26 LCT thresholds and the new definition for a fuel-efficient vehicle, which take effect from 1 July 2025. Dealers are encouraged to consider seeking appropriate professional taxation advice from their preferred taxation and/or professional services firm.

The bulletin in May advised that the vehicle consumer price index (CPI) indexation factor for the 2025-26 financial year is 0.997. Therefore, the car limit and the luxury car tax threshold for both fuel-efficient vehicles and other vehicles remain unchanged.

LCT Thresholds
Financial year	Fuel efficient vehicles	Other vehicles
2025-26	$91,387	$80,567
2024-25	$91,387	$80,567
2023-24	$89,332	$76,950

 

More information on the LCT thresholds and calculation of the LCT can be found on the ATO website.

Yesterday, the NSW Government released its 2025-26 Budget, focused on ‘restoring essential services, rebalancing public finances, and laying the foundation for long-term growth’.

The key priority areas in 2025-26 for NSW include, working across the Federation on the Productivity Commission’s review of the 2018 amendments to GST legislation, road user charging and disaster recovery and resilience funding.

The AADA continues to have strong concerns with the implementation of a state-based road user charge as announced by NSW. Following the invalidation of Victoria’s Road User Charge on EVs, the AADA will continue to advocate for a national approach to road user charging to ensure national consistency.

Key budget announcements for dealers include:

Road User Charges
Announced in 2021, NSW continues to prepare for the introduction of a Road User Charge (RUC) of 2.5c/km for electric vehicles and a 2.0c/km for plug-in hybrid electric vehicles. This RUC will be applied from 1 July 2027 or when EVs make up at least 30 per cent of new car sales.

In the 2025-26 Budget, the Government has revised up its expected revenue from this charge. This upgrade largely reflects a change in the forecast to accurately reflect the annual indexation of the RUC rate from the 2022-23 financial year.

Skills and Training

• $2.8 billion investment in 2025-26 for TAFE to grow the skilled workforce.
• $40.2 million to continue fee-free apprenticeships and traineeships for priority qualifications.
• 44,995 fee-free training places for the formal training component of apprenticeships and traineeships.
• $100 rebate to registered first and second year apprentices through the Apprentice Vehicle Registration Rebate.
• The Vocational Training Assistance Scheme travel and accommodation allowance for apprentices or new entrant trainees who are required to travel more than 120 km round trip to attend day or block-release training.

EV Infrastructure

• A 30 per cent discount on the upfront cost of installing small-scale battery systems through the Cheaper Home Batteries Program (administered by the Australian Government) for eligible households and small businesses from 1 July 2025.
• Increased battery discount from 1 July 2025 through the Cheaper Home Batteries Program.

Yesterday, the ACT Government released its 2025-26 Budget, which focused on ‘Investing in our growing city and delivering for Canberra’.

A key announcement in this budget is the introduction of a new duty rate for vehicles over $80,000. The AADA considers this to be an unprecedented tax grab on new car buyers, which will essentially see the duties collected on cars practically double over the next four years. The AADA has issued a public statement criticising the change.

In the Budget, the Government made a number of announcements related to motor vehicle duties, concessions and taxes.

Duty on Motor Vehicle Registrations and Transfers
From 1 September 2025, the complete concession for motor vehicle duty for zero-emission vehicles will be replaced with a minimum duty of 2.5 per cent and increasing duty rates proportionally based on emissions and vehicle value.

A new tax rate of eight per cent for motor vehicle duty will now apply to the value of vehicles above $80,000, creating a new duty bracket. Previously, duty rates applied to vehicle values below and above $45,000 only.

Motor Vehicle Registration Fees
From 1 July 2024, the ACT vehicle registration system transitioned from a weight-based model to an emissions-based model.

From 1 July 2025, registration fees will be indexed to reflect the ongoing shift to a more efficient vehicle fleet. The Government qualified this announcement by stating that no private vehicle will see a change greater than $50 per year, and no business vehicle more than $75.

Other Car Related Fees
A fee for a full five-year driver’s licence for a licence period commencing on or after 1 July 2025 will increase from $227.70 to $261.70.

As part of previous budgets, 100 per cent registration concessions have expanded to ACT Service Access Card holders and Services Australia Low-Income Health Care Card holders.

Payroll Tax
The Government will reduce the payroll tax-free threshold from $2 million to $1.75 million for national wages and adjust tax rates, from 1 July 2026.

• Firms with national wages between $1.75 million and $20 million will be taxed at 6.75 per cent, lower than the current tax rate of 6.85 per cent.
• Firms with national wages between $20 million and $50 million will be taxed at the current rate of 6.85 per cent.
• Firms with national wages between $50 million and $100 million will be taxed at 7.25 per cent.
• Firms with national wages above $100 million will be taxed at 7.75 per cent.

Property Related Taxes and Fees
In 2025-26, average general rates in the ACT will increase by 3.75 per cent for residential and commercial properties and 3.25 per cent for rural properties, along with the introduction of a new land value threshold for non-units with an average unimproved value of over $1 million.

In addition, the Government is introducing a temporary Health Levy from 2025-26. This levy will be $250 per year, collected along with other levies through rates bills, and will apply for the next four years.

Electric Vehicle TAFE Centre of Excellence
The Government will continue its support to establish a TAFE Centre of Excellence for electric vehicles located at Canberra Institute of Technology’s (CIT) Fyshwick campus, through a $16 million commitment to invest in building upgrades to deliver an EV training lab and specialised equipment.

Extending the Sustainable Household Scheme
The Government will extend the Sustainable Household Scheme by providing $75 million in low-interest loans for battery storage, zero emissions vehicles and chargers, ceiling insulation and energy efficient electric appliances. A 3 per cent interest rate will be applied to all loans written from 1 July 2025 (excluding Home Energy Support and Owners Corporation Program loans).

Continuing the Zero Emissions Vehicle Strategy
The Government will continue to deliver a range of actions under the ACT’s Zero Emissions Vehicles Strategy 2022-30 to promote the uptake of electric vehicles across the ACT including further rollout of charging infrastructure for the Government’s commercial EV fleet and investigating the feasibility of Direct Current fast charging hubs across the ACT.

South Australian dealers are advised that the SA Government’s Consumer and Business Services Department has announced a crackdown on dodgy second-hand vehicle sellers commencing 1 July 2025. The crackdown will reportedly comprise the strongest penalties in the nation including:

• maximum penalties for unlicensed dealing increase from $100,000 to $250,000 and/or two years imprisonment for individuals, and from $250,000 to $500,000 for body corporates (companies).
• a 15-fold increase of the maximum penalty for odometer tampering to $150,000, or for three or more offences, and/or two years imprisonment.
• a new offence for providing false and misleading statements in relation to odometers plus powers to require that altered odometers be rectified.
• allowing courts to order compensation for a consumer impacted by a private seller convicted of odometer tampering.

There are additional changes to the Second-hand Vehicle Dealers Act 1995, set to take effect later in 2025. These reforms will include:

• Dealers no longer allowing a purchaser to waive the dealer’s duty to repair a vehicle.
• Dealers having a duty to disclose defects that will not be subject to the duty to repair, provided that the vehicle is roadworthy.
• Expanding the dealer’s duty to repair to include the main propulsion batteries in hybrid and electric vehicles within the statutory warranty period.
• The removal of the dealer requirement under section 16 (3)(d)(i) of the Act to display the previous owners name and address.

The SA Government has advised that the supporting regulations to the Act are currently being finalised with the intention to commence these in coming months. AADA will advise dealers when those regulations become active.

All of these changes do not impact a consumer’s rights under the Australian Consumer Law.

More information can be found on the Consumer and Business Services Department website.

The attached guidance framework is designed to help dealers to understand what constitutes best practice when entering into agreements with IT system service providers. It was created in collaboration with a group of dealers to assist in establishing fair and reasonable trading arrangements between dealers and the IT systems providers who provide the software that help keep dealerships running.

The framework is not intended to be prescriptive but is designed to help dealers understand some of the risks and issues associated with entering into and managing relationships with IT system providers. This is a working document which will be reviewed and updated from time to time, as new issues are identified.

Please use it as a reference when entering in to or renewing existing agreements and share it with your CIO/CTO.

AADA will be sharing this framework with the larger system vendors in the industry and will also seek to meet with them and discuss the issues dealers are experiencing.

Please note that the attached guidance is not legal advice. If members require expert advice, we recommend that you seek specialised legal advice from suitably qualified lawyers.

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The AADA has today released a new report, ‘New Vehicle Efficiency Standard Impact on Automotive Dealers’. Prepared by the Centre for International Economics, this report comprehensively examines how the New Vehicle Efficiency Standard (NVES) could affect Australia’s more than 3,200 franchised new car dealerships.

The key finding of the report was that the introduction of the NVES could cost Australian dealerships anywhere between $1.1 billion and $2.1 billion between 2025 and 2029, depending on how car manufacturers (OEMs) and vehicle importers decide to meet their emissions targets.

There are several options OEMs have in meeting their compliance obligations. Namely, adjusting their vehicle mix to meet their specified fleet target, purchasing credits from other OEMs to offset any emissions above their fleet target, or paying a penalty for not meeting the target.

In practice, most regulated entities are expected to use a mix of these strategies to meet their NVES obligations, and the approach taken by OEMs to meet the NVES and how costs are shared across stakeholders, will affect the impact on dealers.

The findings of this report are critical in supporting ongoing advocacy for the franchised new car industry, particularly regarding increasing franchising protections for dealers and the importance of shifting the point at which compliance is met with the standard to the point of sale.

The AADA continues to advocate that while dealers are ready to contribute to emission reduction goals; it’s important that OEMs can’t shift risks and financial costs downstream to dealers due to the extensive power they wield in their relationships. Implementation of the NVES should reflect the realities of the automotive retailing industry in Australia, and the compliance burden should lie squarely with the regulated OEM.

 

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