MTA NSW and Industry Partners Win Landmark Reforms to Protect Australian Automotive Businesses
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The Motor Traders’ Association of New South Wales (MTA NSW), in collaboration with the Motor Trades Association of Australia (MTAA), the other state MTAs, and the Victorian Automobile Chamber of Commerce (VACC), celebrates a major victory with the Federal Government’s announcement of critical reforms to the Franchising Code of Conduct.
The new legislation extends Unfair Contract Terms and Unfair Trading Practices protections to all businesses regulated under the Code, directly benefiting automotive dealerships and repairers across Australia. These changes will prevent large multinational corporations from imposing one-sided agreements and enable local businesses to negotiate fair terms that support their long-term sustainability.
This landmark decision is a direct result of years of advocacy by MTA NSW and industry partners, who have tirelessly campaigned for greater protections for dealers and repairers against unfair business practices. These reforms will provide much-needed certainty, ensuring a more balanced and equitable playing field for Australian automotive businesses when negotiating with large multinational corporations.
MTA NSW CEO Stavros Yallouridis hailed the announcement as a pivotal step forward for the automotive sector, reinforcing the importance of fair business practices and industry sustainability.
“This is a major win for Australian automotive dealers and repairers, who have long faced unfair power imbalances in their dealings with multinational corporations. MTA NSW, alongside our state MTA counterparts and the VACC, have been at the forefront of this advocacy for years, and we are pleased to see our efforts result in meaningful reform.,” said Mr Yallouridis.
Critical to the implementation of these reforms is the Government's $7.1 million investment over two years for the Australian Competition and Consumer Commission (ACCC). This funding ensures proper enforcement of the new protections, providing businesses with confidence that the reforms will deliver real change.
"The government's commitment to enforcing these changes with significant funding for the ACCC is crucial to ensuring real accountability and fairness in our industry," said Mr. Yallouridis.
The reforms also include critical updates to the New Vehicle Efficiency Standard (NVES), with the compliance point shifting from import to point of sale. This change prevents multinational manufacturers from unfairly dumping excess high-emissions vehicles onto local dealers simply to meet compliance targets, ensuring a more sustainable and fair approach to emissions accountability.
“The decision to count emissions at the point of sale rather than importation is another significant win for dealers,” Mr Yallouridis explained. “This ensures they are not left burdened with excess inventory and financing costs due to regulatory loopholes being exploited by manufacturers. These reforms, alongside the strengthened Franchising Code, are a crucial step toward safeguarding the future of Australian automotive businesses.”
MTA NSW, the MTAA, state MTAs, and the VACC have been relentless in their pursuit of fairer conditions for automotive businesses across Australia. Today’s announcement is a testament to the strength of collective industry advocacy and a significant move toward a fairer and more sustainable future for the automotive sector.
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