Motor Dealers and Repairers Regulation – Release of Draft Regulation and Regulatory Impact Statement

Acting Fair Trading Commissioner Robert Vellar today released the draft Regulation and Regulatory Impact Statement for the proposed Motor Dealers and Repairers Regulation 2014.

The completion of the Motor Dealers and Repairers Regulation will allow the Motor Dealers and Repairers Act 2013 to commence.

The proposed Regulation deals with a range of administrative matters required for the operation of the new Act.

Mr Vellar said matters dealt with in the Regulation include record keeping requirements for licensed motor dealers and motor vehicle repairers, the operation of the industry Compensation Fund, the form of motor dealers notices and prescribed minimum standards for motor vehicle repair tradespeople.

“I am very pleased at the progress made so far on important reforms to the operation of the motor vehicle industry in NSW,” he said.

“When the Regulation is finalised, it will be possible for the reforms in the Motor Dealers and Repairers Act to commence.”

The reform package measures include:

• Increasing the limit on consumer claims to the Compensation Fund and the NSW Civil and Administrative Tribunal (NCAT) to $40,000.

• New disclosure requirements that will require motor dealers to tell consumers all relevant information about a vehicle being offered for sale.

• Increased penalties for odometer tampering.

• Rectification orders that can be issued by Fair Trading inspectors to direct a licensed motor dealer or vehicle repairer to fix defective repair work on a vehicle.

• A modernised licensing regime. The current 22 licence types will be reduced to three – motor dealer, motor vehicle recycler and motor vehicle repairer – and licensees will have the option of a three year licence with reduced costs over the life of the licence.

• Tradesperson certificates will be renewable every three years and a prescribed minimum qualification standard set for tradespeople.

“To allow industry time to update business systems and processes to meet the new requirements, we propose the new legislation will come into effect on 1 December 2014,” Mr Vellar said.

“I encourage all interested parties to review the draft Regulation and provide comments to Fair Trading in writing by Friday 6 June 2014.”