18th December, 2020 ยท bulletin

Draft Legislation – Service and
Repair Information Scheme

2 minutes to read

The Treasury has released draft legislation to establish a service and repair information sharing scheme.

The AADA has participated in discussions on the development of this legislation, along with other industry associations representing a broad range of interests. It has always been a concern of ours that safety, security and emissions information is provided conditionally and only to those who hold the necessary training and equipment levels, along with the appropriate security credentials.

The draft legislation does allow for certain types of information to be restricted, based on the credentials of the applicant. The AADA will be carefully reviewing these clauses to make sure they provide adequate safeguards.

The AADA has also sought to ensure that the legislation is based on the principles of competitive neutrality, as was recommended by the ACCC in its 2017 Market Study, which was highly influential in shaping the draft legislation. It is essential that the costs associated with running a Dealer workshop are comparable with those of independent repairers, if those repairers are endeavouring to offer services to consumers to an equivalent standard of franchised Dealers. The draft legislation calls for information to be provided at a cost no greater than that of “fair market value”. However, this will be difficult to assess until the scheme is implemented and we have some idea of the associated costs, which we will also be carefully monitoring.

The AADA will be reviewing the draft legislation taking input from the service managers member reference group and will also be meeting with Treasury officials in January to discuss issues raised by the draft.

Submissions to the draft are due on 31 January 2021. Members wishing to provide input into the AADA submission should contact the secretariat with any thoughts and suggestions. Further information including the exposure draft and explanatory memorandum are available here.

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