Archives: Dealer Bulletins

The Australian Taxation Office (ATO) have implemented Single Touch Payroll (STP), a new way of reporting tax and super information to the ATO. Small employers (19 employees or less) were required by law to start STP reporting by 30 September 2019.

If your dealership hasn’t transitioned to Single Touch Payroll yet, you can talk to the ATO or a registered tax or BAS agent for help getting started.

If you aren’t sure where to start, there are three pathways you can take:

• Report now: Start reporting now through an STP-enabled payroll solution
• Report quarterly: Apply for a quarterly reporting concession (if eligible): gov.au/stpconcessions
• Report later: Apply for a deferral if you need more time: gov.au/STPdeferrals

For more helpful information to get ready, download the information pack.

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To: NSW AADA MEMBERS

In December 2019 Level 2 water restrictions came into effect in Sydney, the Blue Mountains and the Illawarra region. The restrictions cover the use of drinking water and apply to activities such as car washing. They apply to all residents and businesses including new car Dealers.

Businesses washing a large number of vehicles such as car Dealers can apply for a water restrictions exemption for their business.

If your dealership relies on drinking water use as part of its operations, you’ll need to apply for an exemption by 31 January 2020.

Apply for a water restrictions exemption here.

For more detail on the restrictions and business exemptions visit: https://lovewater.sydney/water-restrictions-for-businesses

Your business doesn’t need to apply for an exemption if the water you use isn’t drinking water.

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The Federal Government has today launched a public consultation on options to improve protections against Unfair Contract Terms.

Many franchised new car Dealers do not currently enjoy these protections because they are excluded on the basis that they employ 20 or more people. As a result, Dealers experience terms in their Dealer Agreements, such as those that allow the Manufacturers to unilaterally vary agreements.

The AADA has for some time been calling for Unfair Contract Terms protections to be extended to new car Dealers as one of the means to assist in levelling the playing field with car Manufacturers.

For more information on this consultation paper, please click here. AADA will be developing a submission to this process and would welcome any feedback from members to assist in the preparation of our document. The deadline for this submission is close of business Friday, 13 March 2020.

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Today, the AADA lodged its submission to the Franchising Sector Reforms Regulation Impact Statement. 

Our submission has urged the Government to strongly consider a structural overhaul of Australia’s franchising regulatory framework. We have also outlined our preferred options to those put forward in the Regulatory Impact Statement and have asked for a formal linkage between capital expenditure and tenure. The submission also expressed the need to re-think the dispute resolution model, and the penalties that can be applied for breaches of the Code. 

Stronger protections for franchisees are an ongoing priority for the AADA and it is expected that these reforms will work together with the Automotive Industry-specific protections under consideration by the Government.

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On 26 November, the AADA met with a number of automotive associations to discuss the operation of the Government’s recent announcement of legislation to compel the sharing of Service and Repair Information with independent repairers.

The AADA will be participating in this process and will be demanding that a number of key elements are included in the legislation and regulations, so that the interests of new car Dealers are protected.

Key among the issues we want considered as part of the legislation is that:

• information is shared on commercially fair and reasonable terms;
• information is released only to repairers who can demonstrate they have the necessary skills, training and equipment required to complete the job;
• information pertaining to vehicle safety, security and emissions is restricted or withheld where necessary;
• independent repairers disclose when they conduct repairs using non-genuine parts;
• that there is government oversight of the scheme and that in operation it will always include Dealer representation.

While there is still considerable detail to be resolved, as a group we were able to come to an agreement regarding many important issues and the structure of the operational model required to support the scheme.

The five bodies, AADA, AAAA, MTAA, FCAI and the AAA are planning to write to the Assistant Treasurer by the end of the year to inform him of the progress made and seek government support for a proposed model.

This initiative is a first for the automotive industry and represents a significant milestone for the organisations involved, who have come together to collaborate and deliver a scheme which is the first of its kind in Australia.

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Expressions of interest are now open for a Western Australian representative to fill a casual vacancy on the AADA Board.

Candidates are invited to stand for a casual vacancy, which will be confirmed at the 2020 AADA AGM. The closing date for nominations is 9 December 2019.

Directors must be an owner or part owner, CEO or MD of an authorised new car business.

AADA Directors serve in an entirely voluntary capacity and donate their time and experience to give back to the industry. There are approximately four face-to-face meetings and four teleconference meetings per year. Directors are eligible to claim travel expenses.

Please register your interest or direct any enquiries to Sharnee Pardy, Communications & Operations Manager, Australian Automotive Dealers Association Ltd.

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AADA Secretary Vinesh George (Principal of VS George Lawyers) is hosting the “2019 Thought Leadership Breakfast” for Dealer Principals in Sydney. Amongst others, the breakfast will feature an Update on the Federal Government’s Commitment on Automotive Franchising by AADA CEO, James Voortman. See more details on the Agenda below.

 

Date: Friday, 6 December 2019

Time: 7:30am to 9:30am

Where: RACA, 89 Macquarie Street, Sydney

 

AGENDA

• Feature Industry Panel Discussion: The OEM Sales Target. Is it Fair? Is it Lawful? Hosted and moderated by Vinesh George, Panel members: James Voortman (AADA CEO), Ken Thomas (Head Officer of Hyundai National Dealer Council), The Hon. Kevin Lindgren AM QC (Retired Judge of the Federal Court of Australia).
• Case studies exploring OEM Warranty Audits and the Begovic v Northpark Berwick Investments Pty Ltd & Mitsubishi Motors Australia Pty Ltd.
• Update on the Federal Government’s Commitment on Automotive Franchising by James Voortman.

Find more information or register here.

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The Morrison Government has today announced that it will be pursuing a range of reforms to automotive franchising arrangements. This is the strongest commitment yet from the Government that it will be proceeding with reforms which provide franchised new car Dealers with a separate Automotive Code of Conduct or similar protections enshrined in a schedule to the existing Franchising Code.

The announcement comes after the Department of Industry, Innovation and Science released a Regulatory Impact Statement on Automotive Franchising in December 2018 followed by a public consultation which concluded before the Federal Election.

The Government has said they are committed to “creating a level playing field” and “ensuring everyone gets a fair go, including our small and family car Dealers”.

Although the Government’s public statement did not go into any great detail there was a commitment to “provide for more transparent and cooperative end of term and capital expenditure arrangements”.

AADA has welcomed the announcement as progress and has committed to working with the Government to get the best possible outcome for new car Dealers.

We will be insisting that any reforms include:

• linkages between tenure and capital investment
• obligations on OEMs to buy back stock in the event of non-renewal
• inclusion of a framework for claims under the Australian Consumer Law

The Federal Opposition has publicly criticised the Government’s announcement saying it does not provide enough detail and have questioned whether they are backing down.

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Ministers Media Release

The Queensland State Government has announced 1 September 2019 as the start date for the new Lemon Laws to take effect.

These new laws cover consumers buying a defective car, motorbike, caravan or motorhome. The level for claims handled by the Queensland Civil and Administrative Tribunal (QCAT) has lifted from $25,000 to $100,000.

Additionally, 30-day or 1,000 km warranties for motorists buying a vehicle more than 10 years old or with 160,000 km or more on the odometer are being reinstated. This warranty will sit with the current statutory warranty, which provides a three months or 5,000 km warranty for second-hand vehicles bought from a motor dealer that are no more than 10 years old and have travelled less than 160,000 km.

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