What you need to know to run a motor vehicle repair business in NSW. Includes information on conduct, licensing, and the forms you need to use.
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Key information
- In NSW, people working in the motor vehicle industry have certain responsibilities and requirements they must meet.
- You must hold a current motor vehicle repairer licence and have qualified tradespeople to do the class of work required.
- You must keep prescribed records of motor vehicles and used parts that are repaired, bought, or sold.
- It is against the law to tamper with vehicle odometers.
Licensing
You need a motor vehicle repairer licence if you own or operate a motor vehicle repair business.
Most vehicle repair work (to cars, trucks, motorbikes, transport service vehicles, and underbody work to trailers and towable recreation vehicles) can only be carried out at licensed premises. This means two licences are needed:
- one for the qualified motor vehicle tradesperson doing the class of work
- the other for the repairer business where the work is carried out.
If you advertise or run a repair business without a licence you could be fined $5,500 or face prosecution with a maximum penalty of $110,000. Any further unlicensed conduct could result in a penalty of up to $110,000, imprisonment for 12 months, or both.
Licences needed by employees
Your workers must be licensed for the work they are doing.
As an employer, it is your responsibility to make sure every worker:
- holds a tradesperson certificate for the repair work they are doing, or
- if they are an apprentice or trainee, is being supervised by a person with a tradesperson certificate in the relevant class.
You can be penalised if you let an employee do any work that they are not certified for. This can result in a penalty notice of $330 or prosecution with a maximum penalty of $2,200.
Laws to follow
There are federal and state laws that you must follow as a repair business owner.
This page explains the rules you need to follow in simple language. You should refer to the legislation for specific legal requirements.
Australian Consumer Law
Under Australian Consumer Law, most products and services bought in Australia come with automatic consumer guarantees that the product or service purchased will work and do what is expected.
Motor vehicle repair is one of these services.
Work should be done with due care and skill, fit for purpose, and completed in a reasonable timeframe.
If your business fails to meet any of these guarantees, your customers have the right to:
- repair, replacement or refund
- cancel a service
- reimbursement for damages and loss.
Learn more about consumer guarantees under Australian Consumer Law.
Motor Dealers and Repairers Act
The Motor Dealers and Repairers Act sets out the rules that must be followed by all motor vehicle repairers in NSW.
The Act provides protection for consumers, outlines appropriate standards of conduct, and prevents misleading or dishonest dealings.
Motor Dealers and Repairers Regulation
The Motor Dealers and Repairers Regulation explains the rules for motor vehicle repairers in NSW.
It includes detailed information on licensing, record keeping and reporting requirements, fees, and business conduct.
Motor Vehicle Insurance and Repair Industry Code of Conduct
The code of conduct aims to promote transparent, informed and cooperative relationships between smash repairers and insurance companies.
It sets standards for:
- honesty, fairness, and dispute resolution
- quality, safety, and warranties
- payment terms.
All motor vehicle repairers and insurers in NSW must comply with the code.
Signage
You must display a sign showing your business licence details at your registered place of business.
The sign must be visible to everyone approaching the business or be fixed to your vehicle if you operate a mobile business.
Your business signage must display:
- your name as it appears on the licence
- the words ‘licence number’ (or an abbreviation) followed by the licence number itself.
If your business name appears on the licence, it can also be included on the sign - but not in place of the licensee name.
If you don’t display signs correctly you can be fined $330 or prosecuted up to $2,200.
Record keeping
Depending on the type of business you do, you will need to keep a register for used parts.
Entries in a register must be made within one business day of any transaction.
Registers must be kept for six years after the last entry was made.
Motor vehicle repairer register
You need to keep a register of certain used parts that you receive and/or dispose of.
You can keep a physical register or a digital one. Our sample motor vehicle repairer register (Form 2) can be used as a guide.
Your register must include details of each part, and each part must have its own entry number.
Register entries must include the:
- date you received the part
- name and address of the person who supplied or received it
- invoice or receipt details if purchased
- details of the vehicle and identifiers (for example, registration, VIN and engine numbers) that the part was removed from or fitted to.
All parts must be clearly marked with the corresponding register entry number. This can be done using indelible ink or a durable label.
You can be fined $550 or prosecuted up to $2,200 for failing to keep appropriate records.
Which second-hand parts do I need to register?
You need to note these parts in the motor vehicle repairer register:
- chassis
- major body section
- bonnet
- right side door (front)
- left side door (front)
- right side door (back)
- left side door (back)
- hatchback door
- boot lid
- right front guard
- left front guard
- front bumper bar
- rear bumper bar
- engine/engine block
- gearbox/transmission/transaxle (front wheel drive vehicles)
- instrument cluster/odometer/hour gauge
- car radio/tape/compact disc (CD equipment)
- electronic navigation equipment
- multimedia equipment
- airbags and air curtains (side impact airbags)
- alloy wheels
- seats
- final drive (differential for rear-wheel-drive vehicles)
- headlights
- LPG (Autogas) equipment.
Trailers and towable recreation vehicle register
People who repair trailers and towable recreational vehicles (such as caravans) need to keep a separate register of these used parts:
- axles
- external windows
- doors
- water heater
- air conditioners
- fridges
- brake assembly
- awnings.
You can keep a physical register or a digital one. Our sample register for trailers and towable recreation vehicles (Form 4) can be used as a guide.
You can be fined $550 or prosecuted up to $2,200 for failing to keep appropriate records.
See below for more information on keeping registers for each.
How to keep a register
Keeping a physical register
A physical register needs to:
- be written in a book or series of books (with bound pages)
- only be used for one kind of register and for no other purpose
- if you are using multiple books, each one must have a corresponding series number on its front (such as book 1, book 2 and so on).
Keeping a digital register
A digital register must be created on software that:
- can be displayed and printed at each place of business on request
- clearly shows all entry details have been made and completed
- includes the date each record was made.
A digital register must also keep a record of any changes. For example, if an entry is updated, the reason and date of the change/deletion must be noted in the register.
Suspicious goods
If you suspect goods have been stolen or illegally obtained, you must inform the Secretary for Fair Trading. Failure to do so is an offence with penalties of up to $2,200.
Use our online contact form to inform the Secretary of suspected stolen or illegally obtained goods.
If an authorised officer (such as a NSW Police officer, Transport NSW officer or a Fair Trading Investigator) believes a repairer is in possession of a motor vehicle, part, or accessory that has been stolen or illegally obtained, the officer can issue a non-disposal notice.
A non-disposal notice stops you from altering, selling, or disposing of the suspicious goods for a period of 14 days and can be further extended by application to the Local Court.
Failing to comply with a non-disposal notice can result in a penalty of up to $55,000.
Odometer tampering
Do not tamper with a vehicle odometer.
It’s against the law to interfere with an odometer reading by:
- altering the reading
- removing or replacing the odometer, or
- stopping it from working in any way.
You can only repair or replace an odometer if the Secretary is notified using the approved form, and the odometer reading is restored to reflect the accurate reading of the motor vehicle.
You can be issued with a penalty notice of $1,100 or face prosecution with a maximum penalty of $22,000.
If convicted by a court, you may also be liable to pay compensation to customers for any losses incurred between the sale price and fair price of the vehicle at the time of sale.