Archives: Dealer Bulletins

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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As dealers begin their annual ‘End of Financial Year’ (EOFY) sales advertising campaigns, the AADA takes this opportunity to remind all dealers of their obligations to ensure they are adhering to the Australian Consumer Law (ACL) when advertising a price or vehicle capability. Recent activity by the Australian Competition and Consumer Commission (ACCC) indicates that the regulator is focussing attention on our industry and the spotlight is expected to be on dealer and OEM advertising over this period.

 

New and used vehicles. How can they be price advertised?

Vehicle advertising at a dealership can be done by dealers, OEM’s or both as part of a cooperative program, but in all cases all advertising must comply with the ACL.

To ensure that your dealership(s) comply with the ACL you should refer to the ACCC publication Pricing manual for the motor vehicle industry. Dealers should ensure that any external advertising or marketing agency you are working with are also provided with a copy of the ACCC pricing manual.

 

Recent ACCC proceedings against vehicle manufacturers and distributors.

The importance of complying with the ACL guidelines when advertising the sale of a vehicle (new, used or demonstrator) with regards to a vehicles price and capabilities has magnified when we consider the following two recently instituted proceedings taken by the ACCC.

1. The ACCC has instituted proceedings in the Federal Court against Jayco Corporation Pty Ltd (Jayco), Australia’s largest caravan and recreational vehicle manufacturer, for making allegedly misleading representations when advertising certain models of its RVs in ‘off road’ conditions.
2. The ACCC has instituted proceedings in the Federal Court against Ateco Australia Pty Ltd trading as LDV Automotive Australia, (LDV) for allegedly making misleading representations to consumers about the durability and suitability of particular models of LDV branded vehicles in breach of the ACL. The ACCC alleges that those vehicles had a propensity to rust or corrode within five years of being manufactured.

 

What does this mean for dealers?

In both of the most recent instances, the parties listed as respondents in the ACCC instituted proceedings are a manufacturer and a distributor. This does not preclude dealers from future actions by the ACCC or other state-based regulators alleging false or misleading practices, including price advertising. Dealers should ensure that all of their advertising campaigns meet the ACL guidelines.

A false representation is one that is incorrect or contrary to fact. As with the prohibition on misleading conduct, your intention to deceive or otherwise is irrelevant. You may breach these provisions regardless of whether your actions were deliberate or whether you did not know the representation was false at the time of making.

 

What has been the ACCC’s specific position regarding false and misleading representations when advertising certain models of vehicles?

The ACCC is on the record as stating that if a vehicle is depicted in advertisements in a particular setting, or claims are made about it, that consumers have a right to expect such images and words reflect the intended use of the product.

The ACCC also state that a new car is a significant financial purchase, and consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include.

It is unfortunate that the ACCC and the state-based offices of fair trading continue to ignore the private-to-private market advertising of vehicles on different online classifieds provider platforms. AADA continues to remind those agencies of the consumer harm those platforms are enabling.

The May 2025 edition of the Automotive Insights Report (AIR), produced by the AADA in collaboration with AutoGrab, shows a rebound in used car sales, increasing by 5.4 per cent to 192,692 units, while used car listings also increased by a similar margin, indicating a stable balance between supply and demand.

The observed increase in listings may be partly attributed to end-of-year discounts being offered in the new car market, prompting more people to upgrade their vehicles and boosting the supply of used cars.

Across the vehicle segments, SUV remains the most popular vehicle of choice, experiencing the highest jump in sales, up 7.9 per cent to 83,442 units compared to April 2025.

Average days to sell dropped to 47.6 days, the lowest this year, suggesting improved stock turnover.

Used car sales rose across all states but the Northern Territory, which experienced a notable drop in sales, down 12.4 per cent to 648 units.

Used EVs, in particular, experienced significant growth, increasing by 37.5 per cent in May 2025 compared to 8.4 per cent in April this year, suggesting a strong shift in consumer preferences toward cleaner vehicles.

Small vehicles in the passenger segment continue to lead in value retention, with the Audi RS3 replacing the Ford Mustang, at 105.8 per cent in the 2-4 year old age category. Japanese car maker Toyota maintains top position in the 5-7 year age bracket, with the Toyota Vitz at 100.3 per cent. The Suzuki Jimny continues to remain unbeatable in the 2-4 year old SUV category at 111.8 per cent.

Highlights from the AIR for May 2025:

• 192,692 used cars sold nationally – a 5.4 per cent increase from April.
• Total listings were up 5.2 per cent, with the Northern Territory being the only outlier.
• EV sales experienced significant growth, rising by 37.5 per cent to 3,552 units.
• Average days to sell dropped to the lowest point this year – 47.6 days.
• The Suzuki Jimny maintains top retained value position in the 2-4 year old SUV category at 111.8 per cent.
• Ford Ranger and Toyota Hilux continue to top the dealer sales list.
• In EVs, Tesla Model 3 and Tesla Model Y were the top picks once again.

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.

AADA is pleased to be offering members another timely and practical webinar, this time tackling a significant legal development that will impact all dealerships. With privacy and data protection now squarely in the spotlight, this session will equip dealers with the knowledge they need to stay compliant and safeguard their businesses.

Title: The New Statutory Privacy Tort – What It Means for Dealers

Date: Thursday 26 June 2025

Time: 1:00pm-2:00pm AEST

Presented by: Sotheary Bryant and Bill Fragos from Moray & Agnew

The new statutory tort for serious invasions of privacy, will be effective from 10 June 2025.

Under this new law, a customer may sue a dealership and seek damages or an injunction if there has been a misuse of their information or an intrusion on their privacy.

All dealerships collect, hold, disclose and use personal information about customers. Many dealers use data driven solutions to develop insights about customers, to market to them and to engage with them. Dealers also share customer information with their OEMs and give access to their databases to third party service providers.

The volume of customer data in dealerships means dealers must have strong privacy and data protection governance to limit risks of unintended disclosure. We will share some practical and simple things dealers can do to protect their dealerships.

Webinars are open to all dealers and their staff, so secure your spot today!

REGISTER HERE

In order to assist dealers navigate competition law, state legislation, and retail practices across their used car operations and service, parts, and pre-delivery departments, AADA is establishing two new reference groups: the AADA Used Car Reference Group and the AADA National Service, Parts and Pre-Delivery Forum.

These groups reflect AADA’s continued focus on listening to members and responding directly to the challenges dealers face on the ground. Dealer input has always played a critical role in shaping policy positions, and engaging with government and industry bodies.

1. AADA Used Car Reference Group

The used car department is a vital profit centre for Australian franchise dealerships, but it is also fraught with complexity. This group will address:

• Australian Consumer Law and used vehicles
• State motor vehicle registration agencies processes for attention
• On-line classifieds provider issues
• The used EV market
• Odometer tampering, auction house practices, fleet buybacks, and private-to-private sales
• OEM service programs and approach to dealer warranty issues. (for example, manufacturers indemnification)
• Engagement with ACCC, various Offices of Fair Trading, and Registration Authorities

Participation will strictly be limited to Australian franchise dealer network used car departments. Used car specific subsidiaries of franchise dealer set ups (for e.g., CARCO – Autoleague, Blinkr-Servco) are encouraged to participate.

Meeting Details:

Initially monthly via TEAMS, then as required (max. 1.5 hours per session). An interim chair will be appointed.

2. AADA National Service, Parts and Pre-Delivery Forum

From navigating warranty and OEM demands to servicing EVs and managing pre-delivery, dealer service departments face increasing pressure. This new forum will focus on addressing:

• The ACL and manufacturers indemnity
• Service and repair of EV, PHEV, and hybrid vehicles
• Issues around part supply to the smash repair and aftermarket mechanical sector
• Engagement with AASRA, insurers, regulators, and industry bodies
• Repair liens, uncollected goods, environmental compliance, and more

Participation will be limited to Australian franchise dealer service, parts and pre-delivery departments. The best outcomes will be achieved if your franchise dealership group service and parts manager were to participate. Of course, Dealer Principals are also welcome to participate.

Meeting Details:

Initially monthly via TEAMS, then as required (max. 1.5 hours per session). Interim co-chairs will be Richard Rayner (Brighton Auto Group) and Stewart Jenkins (Hopper Motor Group).

Register Your Interest

If your dealership would like to participate in either group, please submit your interest via the registration form below by 24 June 2025.

REGISTER HERE