8th May, 2020 · bulletin

Announcements re COVID-Safe Plan and
Financial Services Royal Commission

2 minutes to read

Today, the Government announced a three-step plan to gradually remove baseline restrictions and make Australia COVID-safe. States and territories are able to move between the steps on the pathway at different times, in line with their current public health situation and local conditions.

Further details from the Government’s announcement:

  • Step 1 will focus on carefully reopening the economy, and giving Australians opportunities to return to work and social activities, including gatherings of up to 10 people, up to 5 visitors in the family home and some local and regional travel.
  • Step 2 builds on this with gatherings of up to 20, and more businesses reopening, including gyms, beauty services and entertainment venues like galleries and cinemas.
  • Step 3 will see a transition to COVID-safe ways of living and working, with gatherings of up to 100 people permitted. Arrangements under step 3 will be the ‘new normal’ while the virus remains a threat. International travel and mass gatherings over 100 people will remain restricted.

You can download a detailed plan of the steps here.

The Federal Government has also announced its decision to defer by up to six months the introduction of recommendations made by the Financial Services Royal Commission. The AADA welcomes this decision in light of the current economic conditions and very tight credit market resulting from the Hayne Report and exacerbated by the COVID-19 pandemic.

For franchised new car Dealers this also means the postponement of the changes to the Point-of-Sale exemption that they currently operate under. Originally this change was scheduled to be introduced by 30 June 2020 however this will now be pushed back to no later than December 2020. As before we will be urging the Government to also include a lengthy transition period for the amendments to occur, as any hastily introduced measures will only add to consumer uncertainty around the credit market and will not provide Dealers and financiers with sufficient time to introduce the changes.

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