The Australian Automotive Dealer Association (AADA) has used its 2026–27 Pre-Budget Submission to call for a series of targeted, low-cost reforms to improve efficiency and fairness, and support the transition to electric vehicles across Australia’s automotive retail sector in challenging economic times.
With more than 3,900 new car dealerships nationwide, the AADA says the upcoming Federal Budget presents a key opportunity to address regulatory bottlenecks and ensure policy settings reflect the realities of the retail automotive industry.
The AADA is calling on the Albanese Government to expedite commitments to reform franchising protections for Australia’s new car dealers. Australia’s franchising framework, with longstanding power imbalances between dealers and multinational manufacturers, is currently not appropriate to respond to the current pace of the transition to electric vehicles. With the introduction of many new brands in the Australian market, this poses many risks to businesses, consumers and the transition to low emission vehicles without proper protections in an open market such as Australia.
“Franchised dealers operate in a system where the balance of power is heavily weighted towards global manufacturers,” an AADA spokesperson said.
“Strengthening protections against unfair trading practices and extending unfair contract terms laws to all franchisees are critical steps to ensuring a fair and sustainable operating environment.”
The submission is also calling for an expansion of the Government’s Dealership and Repairer Initiative for Vehicle Electrification Nationally (DRIVEN) program to better support dealers on the frontline of Australia’s EV transition.
“Expanding this program presents an opportunity to better meet the demands of the surge in low emission vehicle purchases in recent months,” the spokesperson said.
“Dealers are the primary point of contact for consumers, and targeted investment in infrastructure, training and education at the dealership level will be critical to sustaining momentum in EV uptake.”
Another key priority is improving the operation of the Personal Property Securities Register (PPSR), where delays in removing finance encumbrances are creating unnecessary costs and holding up vehicle sales.
“Delays in clearing PPSR registrations are a daily frustration for dealers and consumers alike.”
“Our data shows 71 per cent of dealers using the system experience delays beyond the mandated five-day timeframe, which creates avoidable inefficiencies and slows down transactions.”
“This is a simple fix – ensuring timely removal of registrations and reviewing repeat search fees would deliver immediate productivity gains across the industry.”
“This is about getting the policy settings right and removing friction where it exists. The AADA believes the budget should be backing the businesses that are delivering for Australian consumers every day.”