Following the Morrison Government announcement of landmark reforms to automotive franchising last week, the Small and Family Business Minister Michaelia Cash has asked us to send the attached correspondence to all franchised new car Dealers in Australia.
This announcement was made on 12 March at a Dealership workshop and video of the Prime Minister and Minister Cash is available from the following link: https://youtu.be/jlPGgwJbGJc
The letter from Minister Cash provides additional detail and clarity about the incoming changes and also describes other measures that will benefit Dealers in the form of changes to the Unfair Contracts Laws, indemnification for suppliers under the ACL and imminent changes to the Collective Bargaining requirements.
The announcement of the changes to the Franchising Code of Conduct also comes with a commitment by Minister Cash to consider further Dealer protections by developing a mandatory binding arbitration scheme and investigation of the option to introduce a stand-alone automotive code.
The energy and vigour with which Minister Cash is approaching these reforms, combined with a commitment to engage in further consultations with the AADA and Dealers, is commendable and provides an unprecedented opportunity for Dealers to at least partially redress the power imbalance that exists between franchisee and franchisor.
On behalf of the AADA Board and the AMDC, we would encourage all Dealers to respond to Minister Cash’s letter and thank her for committing to these landmark reforms and inform her that we look forward to further consultations as we progress through these changes.
A copy of the transcript of the announcement can be downloaded here.
A copy the Government’s Media Release can be downloaded here.