An overview of the changes to motor dealer, repairer and recycler laws commencing on 1 December 2023.
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Key information
Changes have been made to the Motor Dealers and Repairers Act 2013 (the Act) which relate to the selling, repairing and recycling of motor vehicles.
The first stage of the changes commence on 1 December 2023. Further changes will take place in 2024.
The stage one changes include:
- Expanded odometer tampering offences including increased penalties
- Additional disciplinary actions available to NSW Fair Trading, including allowing the Secretary of the Department to issue a monetary penalty as a disciplinary action
- Preventing phoenixing by individuals responsible for corporation misconduct
- Addressing misconduct by the individual across multiple licences
- Preventing certain persons from working in licensed motor businesses
A copy of the Bill is available on the NSW Parliament website
Why are the laws changing?
The changes have been made following the completion of a Statutory Review of the Act, which recommended changes to improve the way the motor industry operates and to ensure that penalties remain a deterrent for poor conduct.
These reforms aim to:
- Allow for the online end-to-end sale of motor vehicles in NSW.
- Introduce specific consumer protection requirements for online motor dealers, including capping deposits from potential buyers and requiring dealers to display their licence number on all advertising material to enable buyers to research the vehicle.
- Provide new protections for consumers when purchasing vehicles at auction by providing access to a vehicle’s inspection report before a purchase.
- Enhance powers to crack down on odometer tampering by banning possession of odometer tampering devices to minimise fraud in the sale of second-hand vehicles.
- Aim to reduce the potential for sale of stolen parts by supporting the introduction of cashless transactions for motor vehicle recyclers by banning licensed recyclers from accepting cash or in-kind payment.
- Increase other penalties to ensure they continue to deter poor conduct.
What does this mean for the industry?
Banning the possession of odometer tampering devices and increased penalties
It is now an offence to be caught in possession of an odometer tampering device, unless you are the holder of a motor repairer’s license. Penalties for this offence and for odometer tampering have increase from a maximum of $22,000 to a maximum of $55,000.
Allowing the Secretary to impose conditions as part of an odometer adjustment approval
NSW Fair Trading can now issue the approval of applications for the repairing or resetting an odometer PDF, 130.74 KB with conditions in cases where, the odometer cannot be repaired or replaced with an accurate reading, for example, where an odometer has reached its operation limit.
For example, where a new odometer is fitted with ‘zero’ kilometres and unable to be reset, NSW Fair Trading will now be able to approve the replacement on the condition that any variance to the displayed reading from the actual distance travelled is recorded on the Personal Property Securities Register.
Allowing the Secretary of the Department to issue a monetary penalty as a disciplinary action
The Secretary may now issue monetary penalties for breaches of the following disciplinary grounds.
The monetary penalties will be set at maximum of $11,000 (for an individual) and $50,000 (for a body corporate).
Monetary penalties will ensure NSW Fair Trading has access to all disciplinary options and that any disciplinary action appropriately reflects the severity of the conduct in line with NSW Fair Trading’s existing guidelines to determine a disciplinary action outcome.
A person subject to a monetary penalty will have the right to an administrative review by the Civil and Administrative Tribunal (NCAT).
Preventing phoenixing by individuals responsible for corporation misconduct
Disciplinary action can now be taken against an individual responsible for the misconduct of a licensed body corporate.
Currently, in situations where a licence is held by a body corporate, disciplinary action can only be taken against the licensed body corporate. This means that the individual responsible for the misconduct of the body corporate can simply re-establish a new body corporate with a new licence and continue operating.
This change will ensure that the person responsible will be held accountable and may stop them from obtaining a future license to conduct their business under a different name.
Addressing misconduct by the individual across multiple licences
NSW Fair Trading is now able to proactively cancel a licence held by a corporation on the grounds that a licence would not be issued to the director or person if they applied as an individual.
This will address situations where a sole director of a motor dealer business has had their licence cancelled, but can continue to operate under the corporate licence.
Preventing certain persons from working in licensed motor businesses
NSW Fair Trading now has the power to prohibit persons from working in a licensed motor business if they are found guilty or convicted of, or charged with, offences under the Act, offences involving fraud or dishonesty, or other prescribed offences.
In situations where a person is found not guilty, this prohibition would be lifted.
The list of prohibited persons will also be expanded to include:
- a person who has been refused a licence or who is a director or officer of a body corporate that has been refused a licence,
- a person whose licence has been suspended, cancelled or revoked,
- a person who is disqualified from holding a licence or being involved in the direction, management or conduct of a business for which a licence is required.
This change is intended to better align the Secretary’s powers in accordance with the current drafting of the Regulation. The powers will also be expanded to capture the instances of when a person is charged or found guilty of an offence. This will ensure that NSW Fair Trading can continue to take quick and effective action to stop unfit persons from operating motor businesses and potentially causing further harm to consumers.
Decisions about disciplinary action are made in accordance with the NSW Fair Trading’s guidelines to determine a disciplinary action outcome.
Previous amendments
Motor Dealers and Repairers Amendment (Miscellaneous) Regulation 2021
The Motor Dealers and Repairers Amendment (Miscellaneous) Regulation 2021, provides that from 1 November 2021, there will be two new specialised classes of repair work:
- specialised glazing class of repair work for installing, repairing, or removing windscreens or other glass in or from the bodies of motor vehicles
- electrical accessory fitting class, recognising the specialised skills required to undertake this class of repair.
This is part of the NSW Government’s Better Business Reforms, aimed to create opportunities for small businesses by reducing costs and complexity without reducing consumer protections.
Motor Dealers and Repairers Amendment (Tradesperson’s Certificates) Regulation 2021
The Motor Dealers and Repairers Amendment (Tradesperson’s Certificates) Regulation 2021 prescribes additional qualifications for three classes of repair.
The changes starting on 1 November 2021, adds:
- an historic qualification for Glazing work as an accepted qualification.
- newer references to the qualifications for Radiator Repair work and Exhaust Repair work. This updates the accepted qualifications to include newer versions of the courses after the previously prescribed courses were changed in 2020.
For more information on accepted qualifications for the classes of repair, visit the Motor Vehicle Tradespeople page.
Better Regulation Legislation Amendment Act 2020
The Better Regulation and Legislation Amendment Act 2020 (the amending Act) commenced from 28 September 2020.
The amending Act makes some minor improvements and procedural changes to the Motor Dealers and Repairers Act 2013.
They include:
- allowing the Secretary to cancel a motor dealer licence, motor vehicle repairer licence, motor vehicle recycler licence or tradesperson certificate if issued in error or due to misrepresentation.
- ensuring that repair work on transport service vehicles (used to transport either goods or passengers in connection with a business) is done by a licensed motor vehicle repairer and certified motor vehicle tradesperson.
- cutting red tape by ensuring that a person is not required to hold a motor dealer’s licence if they sell a trailer used to transport a second-hand boat sold by the person. (This means the person will still require a second-hand dealers licence. They can surrender their motor dealers licence or let it expire.)
- allowing the Motor Dealers and Repairers Regulation 2014 to specify the maximum payment from the Motor Dealers and Repairers Compensation Fund.
Motor Dealers and Repairers Amendment (Tradesperson’s Certificates) Amendment Regulation 2020
The Motor Dealers and Repairers Amendment (Tradesperson’s Certificates) Amendment Regulation 2020 makes the following amendments:
- Delays commencement of the glazing and electrical accessory fitting repair classes until 1 November 2021. This means tradespersons who don't hold a relevant tradesperson’s certificate for this work, but wish to undertake work in these new classes, will need to complete the prescribed qualification and obtain a tradesperson’s certificate by 1 November 2021.
- Removes wheel balancing from the scope of work of the steering, suspension and wheel alignment repair class.
- Removes the exclusion to work on hybrid or electrically powered motor vehicles from the exhaust and glazing repair classes.
- Prescribes an additional qualification for the glazing repair class – Certificate III in Automotive Glazing Technology.
Motor Dealers and Repairers Amendment (Tradesperson’s Certificates) Regulation 2020
The Motor Dealers and Repairers Amendment (Tradesperson’s Certificates) Regulation 2020 commenced on 1 September 2020.
The Regulation introduces the following specialised classes of repair work which require a Certificate II qualification:
- exhaust repair
- radiator repair
- steering, suspension and wheel alignment.
This means tradespersons who don't hold a relevant tradesperson’s certificate for this work, but wish to undertake work in these new classes, will need to complete the prescribed Certificate II qualification and obtain a tradesperson’s certificate.
These specialised repair classes are in addition to the current repair classes.
You don't need to apply for one of these specialised repair classes if you already hold a tradesperson’s certificate in a relevant repair class that authorises you to do the work.
The Regulation was developed as part of the Better Business Reforms package, passed by the NSW Parliament in late 2018.
It is intended to make it easier and cheaper to get qualified for this specialised repair work and increase the ability of businesses to get the workers they need.
Motor Dealers and Repairers Amendment (Miscellaneous) Regulation 2020
The Motor Dealers and Repairers Amendment (Miscellaneous) Regulation 2020 (the amending Regulation) began on 12 June 2020.
The amending Regulation contains changes designed to improve the information available to consumers and improve consumer safety. The amendments include:
- clarifying that dealers, repairers and recyclers regulated by the Motor Dealers and Repairers Act 2013 are required to hold a licence if their business involves written-off light vehicles, whether on the NSW register or interstate vehicles.
- Introducing additional signage requirements for interstate dealers exhibiting at trade shows.
- changing the term for an ‘approved’ trade show to a ‘declared’ trade show to make it clearer that the exemption is for interstate dealers to exhibit at trade shows and not that the trade show itself is approved.
Motor Dealers and Repairers Amendment (Miscellaneous) Regulation 2017
The Motor Dealers and Repairers Amendment (Miscellaneous) Regulation 2020 (the amending Regulation) began on 12 June 2020.
The amending Regulation contains changes designed to improve the information available to consumers and improve consumer safety.
The amendments include:
- clarifying that dealers, repairers and recyclers regulated by the Motor Dealers and Repairers Act 2013 must hold a licence if their business involves written-off light vehicles, whether on the NSW register or interstate vehicles.
- additional signage requirements for interstate dealers exhibiting at trade shows.
- changing the term for an ‘approved’ trade show to a ‘declared’ trade show to make it clearer that the exemption is for interstate dealers to exhibit at trade shows and not that the trade show itself is approved.
Motor Dealers and Repairers Act 2013
The Motor Dealers and Repairers Act 2013 was developed following a full-scale review of the motor industry legislation and extensive consultation with industry and other stakeholders.
The Act replaces the Motor Dealers Act 1974 and the Motor Vehicle Repairs Act 1980.
The Motor Dealers and Repairers Act 2013 was approved by Parliament in November 2013 and commenced on 1 December 2014.
The laws support consumer protection, reduce red tape, and simplify and modernise regulation of the motor vehicle industry in NSW.
A brief and simple summary of the important provisions in the legislation is provided below.
More information
If you have questions about these changes and how they may impact you, please contact Fair Trading on 13 32 20.
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