Best practice principles released for new car dealership agreements

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11 December 2020

Small business Machinery of Government (MoG) changes 2021
This content is under review. The small business function transferred to Treasury as a result of the Administrative Arrangements Order made on 15 April 2021 with effect from 15 April 2021.
 

The Australian Government recognises the importance of a strong and competitive automotive sector, particularly in the supply, sale and servicing of vehicles.

The government is putting in place a suite of changes to the frameworks governing the automotive retailing component of the sector.

To complement its reforms, the government has also released the best practice principles for new car dealership agreements for the automotive retailing industry.

The principles aim to improve transparency and fairness in the development of future automotive dealer agreements to make the system fairer and more transparent for consumers, dealers and manufacturers. 

The principles, developed in consultation with the industry, are in line with existing obligations, rather than creating new obligations.

The government believes that the voluntary guide represents a sensible and balanced approach. The principles should be considered best practice when developing new dealership agreements.

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