Archives: Dealer Bulletins

TO: ALL AADA MEMBERS

• Today the Royal Commissioner handed down the final report into Misconduct in the Banking, Superannuation and Financial Services Industry.
• Simultaneously, the Government handed down its response.
• There are a number of recommendations which have been accepted and that will affect the businesses of franchised new car Dealers.
• The government has decided to support the Royal Commission’s recommendation to remove the point-of-sale exemption for retail dealers providing finance, including new car Dealers. The AADA will work to ascertain the impact this will have on the wider membership and will be reaching out to members in the coming days to gauge the number of members which currently operate with Australian Credit Licences.
• The Government will also task Treasury with developing a deferred sales model for the sale of add-on insurance products. This will build on work already underway by ASIC and may present AADA with an opportunity to positively influence the nature of a deferred sales model, including the provision of an informed consumer waiver.
• The Government has agreed to empower ASIC to cap commissions that may be paid to vehicle Dealers in relation to the sale of add on insurance products. The capping of commissions has been in place informally for some time due to the practice by insurers. AADA will work with ASIC to achieve the best possible outcome in this regard.
• Furthermore, there will be a review on commissions for general insurance and consumer credit insurance to test whether the exemption to the ban on conflicted remuneration remains justified. AADA will participate in this review.
• The AADA is concerned with the lack of consultation on the response to these recommendations and will express this view to the Government.
• We will work with Government and the regulators to ensure that their response to the recommendations are implemented responsibly, and in a manner that limits the damage to our industry and our customers.
• Download the Bulletin to see the full text of the recommendations affecting our industry, as well as the Government’s response:

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TO: ALL AADA MEMBERS

As highlighted in our Media Release of Monday 17 December 2018, the Mid-Year Economic and Fiscal Outlook (MYEFO) 2018-19 included a government commitment to develop an Automotive Industry Code of Conduct.

Today, Ministers The Hon Karen Andrews MP and Senator the Hon Michaelia Cash released a Regulatory Impact Statement on the franchise relationships between distributors and new car dealers. A public consultation process will now follow, with submissions due by 13 February 2019.

The process will include a roundtable in Canberra with industry representatives and feedback submission.

View Regulatory Impact Statement

View Media Release

 

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TO: ALL AADA MEMBERS

The Government handed down the 2018-19 Mid-Year Economic and Fiscal Outlook (MYEFO) today. The major development from this update is a new policy commitment from the Government to develop an Automotive Industry Code of Conduct to support appropriate commercial dealing and competition in the new car retail supply chain. The AADA has welcomed the commitment and has pledged to work with the Government in implementing the new Code.

Highlights from the 2018-19 MYEFO:

• The Government will provide $1.4 million over two years from 2018-19 to provide targeted opportunities to help small business grow. This includes developing an Automotive Industry Code of Conduct to support appropriate commercial dealing and competition in the new car retail supply chain for the benefit of both small businesses and consumers.
• The deficit for the current FY 18-19 is revised down from $14.5 billion to $5.2 billion.
• The surplus for FY 19-20 is forecast to be $4.1 billion, revised up from the previously estimated $2.2 billion – the first surplus since 2007.
• The cumulative surpluses over the next four years is forecast to total $30.4 billion.
• Revenue from the Luxury Car Tax for the FY 18-19 has been revised down from $740 million to $700 million, reflecting softening demand in the new car market
• Revenue from the Passenger Vehicle Tariff for the FY 18-19 has been revised down from $530 million to $450 million, reflecting softening demand in the new car market.
• Confirmation of the previously announced $9.7 million over four years from 2018-19 to establish the Office of Future Transport Technologies in the Department of Infrastructure, Regional Development and Cities.
• There are approximately $9.2 billion allocated to “decisions taken but not yet announced”. This could be considered unusual given that the 2019-20 Budget is due to be handed down on 2 April. However, it does give the Government the flexibility to call an election before the next Budget is brought down.

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View MYEFO 2018-19

TO: ALL AADA MEMBERS

On Monday 12 November, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Kate Carnell, announced a review of payment times, to measure the effects of late or extended payment practices on the cash flow of small businesses and family enterprises in Australia.

The AADA has received a request from ASBFEO to make members aware of the small and family business survey.

We encourage members to complete the survey on payment times and practices, available on the ASBFEO website at: https://www.asbfeo.gov.au/payment-times

 

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Download ASBFEO Media Statement

To: All AADA MEMBERS

The AADA has received the below communication from the Australian Competition and Consumer Commission.

The Australian Competition and Consumer Commission (ACCC) has been working closely with the Australian Financial Security Authority as part of the Australian Government response to the Takata airbag recall. The Personal Property Securities Register (PPSR) has been updated to provide consumers and industry with information about whether a car is affected by the compulsory Takata Airbag Recall. If the car is affected, the certificate will clearly state:

This vehicle is affected by the compulsory Takata airbag recall.

Please check the vehicle’s recall status on the manufacturer’s website or by contacting them directly or by entering your registration details at www.ismyairbagsafe.com.au.   

Faulty airbags can kill or seriously injure you and your passengers.

For more information about the compulsory Takata recall see www.productsafety.gov.au/recalls.

 

The cost of a PPSR search is $2.00 GST inclusive. Please visit https://www.ppsr.gov.aufor further information.

We welcome this development and believe that this initiative will help improve the effectiveness of the Takata compulsory recall as it is another mechanism for businesses and consumers to identify whether a vehicle is affected by the recall. This will assist the industry in complying with their obligations under the compulsory recall.

If you have any questions, please do not hesitate to contact the Takata Task Force via email at takatarecall@accc.gov.au.

 

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Further Extension of Voluntary Disclosure Period to 31 December 2018

 

To: VICTORIAN AADA MEMBERS

 

 

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To: ALL AADA MEMBERS

On 4 September 2018, AADA members were advised of the New Car Fact Sheet developed by the Australian Competition and Consumer Commission (ACCC).

The purpose of the fact sheet is to assist new car buyers to understand their consumer guarantee rights under the Australian Consumer Law.

It is the expectation of the ACCC that as a matter of industry best practice, a copy of the fact sheet should be provided by suppliers of new cars to every consumer at the point of sale as part of the “deal jacket” or other written materials provided to consumers at the time of purchase.

The ACCC have now provided clarification regarding the types of purchaser the new car fact sheet should be supplied with, irrespective of vehicle type.

The definition of ‘consumer’ (under section 3 of the Australian Consumer Law) is a person who buys any of the following:

• Any type of products or services costing up to $40,000
• A vehicle or trailer used mainly to transport goods on public roads (the cost of the vehicle or trailer is irrelevant)
• Products or services costing more than $40,000, which are of a kind ordinarily acquired for personal, domestic or household purposes (such as the family car).

As certain purchasers of commercial and heavy vehicles will, depending on their use of the vehicle, be consumers for the purposes of the ACL, the ACCC advises that the fact sheet should be included for these purchasers.

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To: ALL AADA MEMBERS

AADA CEO David Blackhall summarises the 2018 National Dealer Convention and highlights the key events, including Shadow Assistant Treasurer Dr Andrew Leigh’s announcement of the Opposition’s support for an Automotive Industry Code and the Deputy Prime Minister Michael McCormack’s attendance as the most senior political speaker ever at the convention.

The AADA would like to thank all delegates for attending and the exhibitors for supporting another successful event.

All convention presentations will be available on the convention website soon.

 

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To: ALL AADA MEMBERS

The Australian Competition and Consumer Commission (ACCC) has written to the AADA and a number of our members requesting assistance in distributing a new car fact sheet for consumers.

The new car fact sheet has been developed to assist buyers of new cars to understand their ‘consumer guarantee’ rights under the Australian Consumer Law.

The ACCC expects that as a matter of industry best practice, a copy of the new car fact sheet should be provided by suppliers of new cars to every consumer at the point of sale as part of the ‘deal jacket’ or other written materials provided to consumers at the time of purchase.

The AADA has been consulted on the fact sheet, which explains the consumers’ existing rights under the ACL. We have made a commitment to the ACCC that we would assist in communicating the ACCC’s expectations to our members and providing our members with a link to the guide via our communication channels.

David Salisbury, General Manager Consumer and Small Business Strategies, at the ACCC will address the AADA convention today to ask for the assistance of new car Dealers in providing the guide to consumers.

The fact sheet comes after the ACCC conducted an 18-month market study into the new car retailing industry. One of the outcomes of the report was a commitment by the ACCC to work with Manufacturers and Dealers to develop a concise and simple explanation of consumer guarantees and their interaction with warranties, which should, as industry best practice, be provided to consumers at the point of sale of a new car.

The ACCC and other consumer law regulators have also released an updated version of the Motor vehicle sales and repairs guide. This updated guide has been designed for use by Dealers and other businesses within the industry.

 

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