The Australian Automotive Dealer Association (AADA) acknowledges today’s announcement by the Albanese Government regarding the extension of unfair trading practice protections to small businesses.
“Extending these protections to small businesses is in line with numerous submissions put forward by the AADA over recent years, and we welcome the continued engagement with the Federal Government,” said AADA CEO James Voortman.
“While we support the intent behind these reforms, it is essential that the threshold for small business covers all franchisees, including franchised new car and truck dealers. Dealers continue to be subjected to unfair practices at the hands of large multinational vehicle manufacturers,” he said.
“Recent Federal Court appeals have demonstrated how multinational manufacturers leverage existing power imbalances to their advantage, often at the expense of Australian businesses. These practices undermine fair competition and place undue strain on locally operated dealerships, which play a crucial role in the Australian automotive industry and broader economy,” Mr Voortman said.
“AADA looks forward to engaging with the Government to determine the thresholds for small business qualification and to ensure that all businesses facing unfair practices, including new car dealers, are afforded appropriate protections,” he said.
AADA calls on both sides of Parliament to immediately address this power imbalance in response to what is the most significant transition the automotive industry has seen for some time. It is imperative that fair and equitable protections are implemented to support Australian businesses navigating these changes.
