The automotive sector, including dealers and repairers, welcomes the Albanese Government's expansion of its crackdown on unfair trading practices. This is a positive step forward, providing additional protections for small businesses that often face power imbalances when dealing with larger corporations, particularly in the highly competitive and rapidly evolving automotive industry.
The government's commitment to levelling the playing field offers additional safeguards for small businesses that frequently struggle against unilateral changes to supply terms, restrictive contracts, and unfair market pressures. These new protections will help to create a fairer, more equitable business environment for all stakeholders in the industry.
This is a positive step, particularly for franchise automotive businesses, including dealers and repairers, who face unique challenges within the franchising system, however there is further work ahead. MTAA remains committed to working closely with the government to ensure these businesses receive the necessary protections as the industry adapts to significant changes in technology, supply chains, and market dynamics.
MTAA CEO Matt Hobbs stated: "We support any efforts to create a fairer playing field for small businesses in their interactions with large corporates. We remain committed to working closely with the government to develop solutions that protect automotive dealers, ensuring they are treated fairly when dealing with multinational car companies that make key decisions offshore, especially as the global auto industry undergoes its most significant transformation in over a century."
Businesses in the automotive industry frequently face similar challenges to consumers when dealing with unfair trading practices, such as imbalances in supply chain relationships and sudden, unilateral changes to contract terms. Many of these fall outside the scope of the recent Unfair Contract Terms regime, highlighting the need for stronger and broader protections.
A key example of this imbalance is the relationship between insurers and collision repair businesses, where insurers often exert unfair pressure on repairers regarding pricing, turnaround times, repair methods, and part selection. To address this, the Motor Vehicle Insurance and Repair Industry Code of Conduct is currently being updated to rebalance these relationships. The MTAA is also calling for the Code to be made mandatory.
Complementary reforms to unfair trading practices alongside changes to the Code will further strengthen protections and help create a more sustainable and competitive automotive sector.
Media contact
Matt Hobbs
CEO, MTAA
m: 0419 608 845
e: matt.hobbs@mtaa.com.au
The Motor Trades Association of Australia (MTAA) is the peak body representing the interests of the automotive retail sector across the nation. Through proactive engagement, MTAA helps shape sound public policy on issues that affect the retail motor trades, small businesses and consumers.
MTAA's member associations include the Motor Traders' Association of New South Wales, the Victorian and Tasmanian Automobile Chamber of Commerce, the Motor Trade Association of South Australia and Northern Territory, the Motor Trade Association of Western Australia, and the Motor Trades Association of Queensland.
At the national level, MTAA acts as a unified voice, representing the interests of the automotive sector to the federal government and influencing key policy decisions. Its work includes identifying and addressing issues impacting the sector and advocating for the needs of automotive businesses through ongoing discussions with government.
