Archives: Dealer Bulletins

AADA offers a timely reminder for all Australian franchise dealers of the importance of sales staff advising purchasers of new motor vehicles of their consumer rights under the auspices of the Australian Consumer Law (ACL). Consumer guarantees are automatic rights under the ACL and cannot be restricted or excluded by the manufacturer or the supplier (i.e. the dealer).

Many dealers rely on the statements made in the manufacturer’s handbook, or on terms articulated on the many differing versions of motor vehicle sale contracts to inform consumers of their rights. While in many cases this may be considered to be sufficient enough guidance for a consumer, the most complete and thorough procedure to follow to ensure a consumer is advised of their ACL rights is via the provision to the consumer of the Australian Competition and Consumer and Commission (ACCC) fact sheet; ‘Just bought a new car?’.

AADA recommends that the ‘Just bought a new car?’ factsheet be provided in hard copy to all purchasing consumers. You can download copies from the link below. It is good practice to also provide a link to the fact sheet on any online transaction you are completing with a purchaser.

Although the provision of the ACCC factsheet is not considered to be a prescribed document for inclusion in any deal pack, it will go a long way to assisting the consumer should a claim arise. Importantly, the practice will reinforce with the various state and federal government consumer agencies that dealers take the ACL and rectification of consumer facing issues seriously.

Consumer guarantee rights apply not only to new vehicles but also to demonstrator and used vehicles. Manufacturers and dealers must honour any consumer guarantee rights regardless of any express or implied commercial warranties they provide to consumers. This includes the sale of new, used and demonstrator motor vehicles. On this basis, it is also good practice to provide a copy of the ACCC factsheet to a purchaser of a demonstrator or used vehicle.

DOWNLOAD FACT SHEET

Commencing 1 July 2025, the Australian Taxation Office (ATO) have announced the Luxury Car Tax (LCT) thresholds for the financial year the car was imported, acquired or sold.

The motor 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 will not increase.

If you import or sell a car with a GST-inclusive value above these LCT thresholds, you must pay LCT except in certain circumstances. In general, the LCT value of a car includes the value of any parts, accessories or attachments you supplied, or imported, at the same time as the car.

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

 

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 also change, affecting vehicles with a fuel consumption rate between 3.5 and 7 litres per 100km, and
• indexation rates for fuel-efficient vehicles and other vehicles will be aligned.

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

AADA, in partnership with AutoGrab, have released the April 2025 Automotive Insights Report, highlighting a seasonal softening in the used car market driven by April’s run of public holidays – and a marked rise in dealer market share compared to the same time last year.

Key insights from April include:

• Used Vehicle Listings Decline: National listings dipped slightly to 310,054, down 0.6 per cent month-on-month.
• Sales Volume Drops: Total transactions fell to 182,827, an 8.8 per cent decline compared to March, with notable drops in the ACT (-18.3 per cent), NSW (-12.7 per cent) and VIC (-11.7 per cent).
• Dealer Share Surges Year-on-Year: Dealers accounted for 52.5 per cent of listings and 45.4 per cent of all used vehicle sales in April, a substantial increase of 12.9 and 10.5 per cent respectively compared to April 2024. The figures underscore dealers’ growing prominence in the online marketplace, driven by better digital tools, structured inventory management, and consumer trust in dealer-backed transactions.
• Days to Sell Improved Marginally: Vehicles took an average of 49.7 days to sell, a slight improvement from 51.3 days the previous month, indicating a modest uptick in turnover efficiency.

“Electric vehicles remained a standout segment, defying broader trends with a 7.1 per cent rise in listings and an 8.4 per cent increase in sales compared to March. The EV used vehicle market is showing encouraging signs which, as a result should support a stronger residual valuation price supporting dealerships confidence in retailing and lenders having a better sense of risk,” said Saxon Odgers, CCO, AutoGrab.

The April 2025 Automotive Insights Report offers an in-depth view of market trends, sales activity, and vehicle turnover across the country, providing essential intelligence for dealers, consumers, and policymakers.

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.

Western Australian (WA) dealers are advised on the 2 May 2025 the WA Government announced that applications for the WA Government’s Zero Emissions Vehicle (ZEV) Rebate Scheme will close at midnight, 10 May 2025.

About the ZLEV Rebate Scheme

The ZEV Rebate Scheme is a financial incentive to encourage the purchase of zero emission vehicles as part of the Government’s Clean Energy Car Fund. The ZEV scheme provided a $3,500 rebate for people who purchase and register an eligible vehicle and apply via the WA Department of Transport.

Data sourced from the WA government indicates that ZEV Rebate Scheme resulted in 11,868 ZEV rebate applications being successful, totalling $41,538,000.

When was notice first provided by the WA Government about the end date of the  ZEV Rebate Scheme ?

WA dealers and consumers were advised in the 2024-25 WA State Budget announcement that the ZEV Rebate Scheme would conclude on 10 May 2025.

You can read more about the WA Government announcement below.

WA GOVERNMENT WEBSITE

As part of the AADA’s ongoing advocacy efforts, we recently wrote to both major political parties ahead of the upcoming Federal Election, asking them to outline their positions on a range of policy areas of specific interest to franchised new car and truck dealers.

We received responses from both The Coalition and The Labor Party. Key takeaways from the correspondence include:

• While both parties acknowledged the need to address the power imbalance in franchising, Labor’s response was more specific in terms of actionable commitments.
• The two parties diverge significantly on key issues such as the New Vehicle Efficiency Standard (NVES), Fringe Benefits Tax (FBT) concessions for electric vehicles, and the Instant Asset Write-Off (IAWO). Notably, Labor has committed to retaining the NVES with a review scheduled for 2026, while the Coalition would remove fines associated with it.
• On FBT, Labor will maintain the current exemption for BEVs but maintain the exclusion of PHEVs, whereas the Coalition has subsequently confirmed since this letter through an updated statement that it will remove the current FBT exemption for electric vehicles.
• The Coalition offers a higher, permanent IAWO threshold of $30,000, compared to Labor’s $20,000 cap, which is subject to annual Budget approval.
• Neither party has made a meaningful commitment toward automotive tax reform, including the removal of remaining tariffs and the Luxury Car Tax (LCT).

To assist members in comparing the policy positions, we’ve summarised the parties’ positions in the table below.

 

VIEW FULL COALITION RESPONSE

VIEW FULL ALP RESPONSE

The March 2025 edition of the Automotive Insights Report (AIR), powered by data from AutoGrab, reveals a robust 14.8 per cent increase in used car sales, with 200,566 vehicles changing hands nationally. This comes even as total active listings declined by 4.7 per cent, reflecting tightening supply across most states.

This month’s results show the resilience of the used car market. Sales rose for the third consecutive month and there was a noticeable drop in listings this month, suggesting dealers and private sellers moved vehicles more quickly and efficiently.

March also marked a noticeable shift in buyer behaviour, with the average days to sell climbing to 51.3 days which is the highest figure since November 2023.

Most states recorded sales gains, with the ACT (24.6 per cent), NSW (19.3 per cent), and VIC (17.0 per cent) leading the charge.

As usual, utes and Japanese nameplates dominated. The Ford Ranger retained its place as Australia’s top-selling used car for the 19th month in a row, and Toyota held five of the top ten spots. The Suzuki Jimny continued its remarkable run in retained value, hitting an impressive 114 per cent.

Highlights from the AIR for March 2025:

• 200,566 used cars sold nationally – a 14.8 per cent increase from February.
• Total listings fell 4.7 per cent, with declines in six out of eight states and territories.
• EV sales rose 11.6 per cent, despite a 3.5 per cent drop in listings.
• Average days to sell increased to 51.3 days.
• The Suzuki Jimny led in retained value at 114 per cent.
• Ford Ranger and Toyota Hilux were again the top-selling models.

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.

In the lead up to Anzac Day next month, AADA has received correspondence from the Department of Veterans’ Affairs (DVA) in relation to the use of the word ‘Anzac’.

The correspondence requested that AADA make members aware of Protection of Word ‘Anzac’ Regulations 1921 (Cth) (the Regulations), which outline how, where and when the word ‘Anzac’ may be used. It is important to note that the use of the word ‘Anzac’ is not permitted in an official or corporate manner without permission from the Minister for Veterans’ Affairs. For example, this includes selling or producing goods, fundraising, exhibitions, games and sporting events.

Members are encouraged to familiarise themselves with the Regulations, associated guidelines, and the application form on the DVA website. There is no cost to apply for a permit.

VIEW DVA WEBSITE

AADA and MTAQ are delighted to host the Queensland Regional Dealer Roadshow – a key initiative under our recent partnership aimed at strengthening dealer representation at both the state and national levels. Read more about our collaboration here.

This roadshow is your opportunity to shape the policy agenda by highlighting the critical dealer-facing issues that matter most to Queensland’s regional dealerships.

Why attend?

The roadshow provides a unique platform for franchise dealers to engage directly with the industry bodies that advocate on their behalf both federally and in Queensland.

Who will be there?

The events will be facilitated by MTAQ CEO Rod Camm and AADA CEO James Voortman, who will provide key updates on pressing industry issues, including:

• State Motor Vehicle Duty and reforms sought for Queensland dealers
• Skills development and jobs programs
• Licensing of salespeople
• Queensland’s Industrial Relations landscape
• Dealer concerns under Australian Consumer Law
• New Vehicle Efficiency Standard, EV transition and what it means for regional Queensland
• Challenges with DMS and online classifieds providers
• Franchise Code update
• The 2025 Federal Election
• Re-invigoration of the AADA Queensland Committee.

Where and when

• Gold Coast – 7 April 2025, 8:15am to 10:30am at Mantra at Sharks & Events Centre
• Toowoomba – 7 April 2025, 1:45pm to 4pm at City Golf Club Toowoomba
• Sunshine Coast – 8 April 2025, 8:15am to 10:30am at Novotel Sunshine Coast Resort
• Brisbane – 8 April 2025, 1:45pm to 4pm at MTAQ House or Online
• Cairns – 9 April 2025, 8:15am to 10:30am at Pullman International
• Townsville – 9 April 2025, 4:30pm to 7pm at Grand Chancellor

Other locations

Other major Queensland regional centres such as Rockhampton, Gladstone, Mackay, Mt Isa and Kingaroy will have dates and venues announced at some stage in mid-May 2025.

Who should attend the AADA-MTAQ Regional Dealer Roadshow?

Ideally your dealership should be represented by the Dealer Principal/ General Manager, Service Manager, CFO or other senior dealership staff.

How to register?

Secure your spot by completing the registration form below.

REGISTER HERE

The 2025-26 Federal Budget is focused on ‘Turning a corner’ and ‘Building Australia’s future’.

There is a strong focus on delivering responsible cost of living relief, strengthening Medicare, and investing in education.

The global economy is facing considerable uncertainty and growth and is expected to remain subdued over the next three years. The recent escalation of trade tensions has magnified risks to the global outlook, as new trade barriers threaten to disrupt global trade, investment, economic activity and push up prices.

As such, economic growth is expected to remain subdued over the forecast period at 1.5 per cent for the current financial year, rising to 2.25 per cent in 2025-26 and then improving slightly over the forward estimates. The unemployment rate will remain low by historical standards and is forecast to reach a peak this year of 4.25 per cent.

Inflation has moderated substantially across both headline and underlying measures. Headline inflation is expected to be 2.5 per cent by the middle of this year, 0.5 percent lower than forecast at MYEFO.

This budget includes measures to extend protections from Unfair Trading Practices and Unfair Contract Terms to all automotive franchised new car and truck dealers, which were announced early last week. Also included is funding of $7.1 million over 2 years to strengthen the ACCC enforcement of the Franchising Code of Conduct.

While the funding commitment to extend these protections is very welcome, it is disappointing that a key business measure, the instant asset write-off, has been scrapped for the 2025-26 FY.

We have prepared the attached 2025-26 Budget Briefing paper for members which provides a summary and brief explanation of the measures that are relevant.

AADA is also hosting a member webinar this Friday, to break down what the extended protections could mean for dealers and will provide a federal budget briefing covering critical industry developments.

Name: Understanding the Latest Industry Reforms
Date: Friday 28 March 2025
Time: 12:30pm – 1:30pm AEDT
Location: Microsoft Teams
Register: https://bit.ly/4hA6wbK

Further details about the 2025-26 Federal Budget are also available on the Government’s Budget Website.

DOWNLOAD 2025-26 FEDERAL BUDGET BRIEFING

Following our recent member update on the Federal Government’s commitment to banning unfair trading practices and the use of unfair contract terms, we invite all members to join an exclusive AADA webinar to gain further insights.

Date: Friday 28 March 2025
Time: 12:30pm – 1:30pm AEDT
Location: Microsoft Teams
Register: https://bit.ly/4hA6wbK 

This session will feature the AADA team, who will break down the key details of the announcement, what it means for Dealers, and provide a federal budget briefing covering critical industry developments.

We will also discuss the Government’s commitment to shifting the NVES point of compliance to the point of sale and what this means moving forward. Members will have the opportunity to ask questions throughout the session.