To: ALL AADA MEMBERS
Members may recall that in June last year we issued a Bulletin on playing licensed music in Dealerships and the need to obtain a licence from APRA AMCOS.
The process for licensing of music in Dealerships has now been simplified and is now handled through OneMusic Australia.
Further information and details for obtaining a license can be found on the OneMusic website. The website also has an information sheet and licence agreement form.
To: ALL AADA MEMBERS
New powers granted to ASIC earlier in the year allow it to intervene in individual financial products, or entire classes of products. Under these powers, ASIC can take a number of actions including banning a product or product feature, imposing sale restrictions, amending product information or choice architecture.
Media reports suggest that “junk insurance” policies may be among the items receiving early attention. ASIC in its submission to the Financial Services Royal Commission called for a ban on Tyre and Rim Insurance. It has also previously labelled other types of ‘add-on’ automotive insurance as “not fit for purpose”, and products that may cause significant consumer detriment. As such, they would fall within the remit of these new powers.
The AADA will continue to communicate with ASIC and provide members with as much notice as possible should any relevant products be affected by these intervention powers.
ASIC has released a Consultation Paper and a Regulatory Guide, with requests for input by early August. The AADA will be making a submission as part of the consultation process.
The process envisioned by ASIC for the use of these powers includes a lengthy consultation process with those likely to be affected prior to the issue of any intervention order. Such an order would have an initial duration of 18 months. The order may then be extended, amended, or made permanent with approval of the Minister.
The consultation process on these new powers will run until September 2019, when a Regulatory Guide is expected to be issued. It is not expected that ASIC will use these powers until well after that date.
Consumer Affairs Australia New Zealand (CAANZ) have forwarded advice as attached, regarding changes to the mandatory text to be included in all consumer “warranties against defects”. The new requirements come into force on 9 June 2019.
Warranties already include mandatory language as prescribed by Regulation 90 (Australian Consumer Law).
The new mandatory text that will need to be included from 9 June 2019, covers written warranties provided to consumers for the supply of:
The mandatory text that will be required for each of the two types of warranties specified in the bullet-points above is contained in the CAANZ letter dated 9 April (and the ACCC’s website). The purpose of this amendment to regulation 90 is to make the mandatory text more applicable in relation to warranties provided to consumers for both the supply of services and the supply of goods combined with services.
The amendment to regulation 90 does not impact the operation of the ACL’s consumer guarantee provisions, which will continue to interact with warranties in the same way as before the amendment to regulation 90 comes into effect on 9 June 2019. The amendment to regulation 90 does not supersede or affect the ACCC’s factsheet titled “Just bought a new car?”, which members should continue distributing to consumers.
To: ALL AADA MEMBERS
The Federal election occurred over the weekend with the Coalition retaining government. There are still a handful of seats which have yet to be decided, but it seems the Coalition will form a majority government with at least 77 seats.
It will take a few weeks for the Senate results to be finalised, but it appears that once again the balance of power will be held by a range of minor parties, meaning each piece of legislation will require negotiation.
The result is a major surprise and runs counter to every major national opinion poll published in the run up to the election. The result validates the AADA’s approach to seeking bi-partisan support for the Automotive Code of Conduct. The secretariat will still have to work hard to make sure that the Code stays on the agenda of the Government and bureaucracy while still enjoying support from the Opposition.
In the coming weeks the Prime Minster will announce his new ministry and after that we will need to wait for charter letters which will articulate which Ministers are responsible for which policy areas. Once the new ministry is known, the AADA will begin the task of developing relations with all the relevant ministers as well as new members of parliament.
In the meantime, the AADA will reengage with the various government departments, now that the caretaker period is over. In particular, we will meet with the Department of Industry to ensure that the work which has already been done on an Automotive Code of Conduct proceeds. We will also be meeting with Treasury around issues such as the Royal Commission implementation and the Access to Service and Repair information work.
The AADA will provide further updates to members over the coming weeks, but if there are any queries in the meantime, please feel free to contact James or Brian.
To: ALL AADA MEMBERS
The AADA, has received policy plans from both major parties in response to our Driving Our Future Election Campaign questionnaire.
The AADA asked both parties to address the four policy priorities:
We received a response from the Labor Party and the Coalition and we have developed a scorecard to illustrate each party’s commitments. The parties obtained similar ratings with strong policies which supported our priorities for an Automotive Code and the ruling out of used car imports. They both scored poorly for their reluctance to remove legacy automotive taxes, the luxury car tax and the import tariff. On the question of vehicle emissions they received a neutral rating largely because of the scant detail in each of their policy responses.
We are delighted that both sides of politics have provided an election commitment to introducing a code of conduct for the retail automotive industry. This is the number one priority for the AADA and will result in a fairer automotive industry. We look forward to working with the future Government and Opposition to make this commitment a reality.
Members are encouraged to read the respective responses from the parties and to share these with employees, as well as sharing the AADA social posts about the scoresheet.
After the Election, the AADA will develop close relationships with whoever wins Government to advance the interests of franchised new car Dealers.
To: ALL AADA MEMBERS
The Australian Competition and Consumer Commission (ACCC) has received an application for authorisation from A.P. Eagers Limited (AP Eagers) for its proposed acquisition of the ordinary shares in Automotive Holdings Group Limited (AHG) that are not already owned by it (the proposed acquisition).
The AADA does not involve itself in competitive issues between its members and will not be offering an opinion or providing a submission on the proposed acquisition.
Members wishing to participate in this consultation process can access the ACCC Market Inquiries Letter which provides details on the merger authorisation process and provides interested parties with guidance for preparing a submission.
Due to the statutory timeframe, the ACCC has requested that submissions are lodged by no later than Friday, 17 May 2019.
On 1 April, the Australian Labor Party released its climate policy for the transport sector. The AADA was concerned that part of policy mentioned that a CO2 standard for new vehicles would be applied to “car retailers”.
The AADA sought urgent clarification from the ALP and issued a media release which made the point that Manufacturers should be responsible for adhering to standards as Dealers have limited influence over the product mix and the decision as to what cars are imported into Australia.
The AADA can report to members that after discussions with the ALP, they have amended their policy statement and have assured us that Dealers will not be the entity that is regulated. Adherence to any future emissions standard will operate on the same basis as the systems in the US and the EU and will target Manufacturers not Dealers.
The ALP revised extract is detailed below and the full policy can be accessed here.
Introduction of vehicle emission standards:
Labor will introduce vehicle emissions standards to reduce pollution and make the cost of driving a car cheaper for consumers. Labor will aim to deliver standards in line with 105g CO2/km for light vehicles, consistent with the US standards and Climate Change Authority advice but will consult on the phase-in timeline and coverage to maximise savings for motorists. Standards will be applied on an average emission basis and be subject to real world testing, rather than imposing blanket mandatory standards on manufacturers or specific car models. Labor will consult with industry, including retailers, on implementation details, industry will be able to meet the standards by offsetting high emissions car sales with low or zero emissions car sales.
To: ALL DEALER PRINCIPALS
Organising a meeting with Members or Senators is a great way to promote the importance of our industry and raise awareness for an issue that matters to you. The AADA has developed a toolkit to help you connect with your local Member and/or Senator on the Point of Sale exemption abolition which has been recommended by the Banking Royal Commission.
Contact your local Member or Senator’s electorate office via email, mail or phone to request a meeting. You’ll likely speak to the diary manager or another staff member who will arrange an appointment. When requesting a meeting include information about who you are and the issue you wish to cover. Also make sure you receive a confirmation email for the meeting and follow up if required.
Useful Links:
You can find a contact list for Senators and Members on the Parliament of Australia Page.
Or follow the link below to download the list from the Parliament of Australia website:
When writing to a Senator or Member, please follow the Guidelines for Contacting Senators and Members published on the Parliament of Australia Page.
It is important to do your research prior to talking to your local Senator or Member and have an understanding of what the point of sales exemption means for new car Dealers and your Dealership. Below is a list of broad talking points on the issue that you can use.
Point of sale exemption – Talk Points
It is a good idea to take data or supportive materials to a meeting with a politician to demonstrate the importance of the industry and our issues in a printed format. This also gives the Senator or Member something to review after the meeting and reminds them of the issues you discussed. DealerNomics is powerful tool that gives you the opportunity to download a PDF factsheet with the economic contribution made by car Dealers for your local electorate, state/territory or at a national level. We highly recommend downloading a factsheet for your electorate and taking a printed version to the meeting as a leave behind for the Senator or Member.
To download a fact sheet simply go to https://dealernomics.aada.asn.au, select your state/territory and or electorate and click on “Download PDF”.
If you require further assistance or additional material, please get in contact with one a AADA team member.
To: ALL DEALER PRINCIPALS
Recently, the Government announced that it will be abolishing the point of sale exemption which allows Dealers to facilitate finance without an Australian Credit License. The majority of Dealers do not have credit licenses and this decision will add to the cost and complexity of doing business for new car Dealers.
Your voice is poweful and it is important that our message it is heard by decision makers in Canberra. Therefore we have prepared a letter form that makes it easy to tell your local MP about your concerncs over the Point of Sale Exemption ban.
We urge all Dealer Prinicipals to follow the link below and enter some details to send a letter to you local MP.
https://www.aada.asn.au/driving-our-future/
All you have to do is to enter your name, dealership name and postcode/suburb and select a candidate from the drop-down menu. Electorate details are auto-filled based on your location.
Thank you for your support.
To: ALL AADA MEMBERS
CC: AADA SECRETARIAT
Today, we are announcing the following changes to the organisation of the AADA Secretariat, effective immediately:
All other Secretariat positions and reporting relationships remain unaltered.
David Blackhall’s CEO services contract ends June 30th, 2019 and he has indicated a desire to step down from his CEO role at that time and generally reduce his full time commitments. At the Board’s request, David has agreed to continue in a consulting and advisory capacity to the Board through the end of 2019. He will be concentrating on the delivery of the Automotive Code.
The Secretariat changes announced today are in line with a leadership transition plan developed and approved by the AADA Board last year. These arrangements are aimed at allowing James and Brian to progressively assume their wider duties during the next four months under David’s guidance and mentor ship. The AADA Board will make an announcement on the full time replacement for David Blackhall as CEO as soon as possible.
We expect to make further announcements about our Secretariat organisation in early July, 2019.