Reforms to Car Import Laws Announced by Federal Government

Wednesday 27 April 2016 @ 3.12 p.m. | Trade & Commerce

According to an ACCC Media Release of 21 April 2016, "freeing up laws around importing new cars will provide consumers with greater choice and create new business opportunities in a changing industry." Australian Competition and Consumer Commission (ACCC) Commissioner Roger Featherston addressed the Australian Auto Aftermarket Conference in Melbourne, referring to the proposed Government reforms to the Motor Vehicle Standards Act 1989 (Cth).

Background to the Review

The Motor Vehicle Standards Act 1989 (the Act) controls the safety, environmental and anti-theft performance of all vehicles entering the Australian market for the first time—both new and used.

In 2014, the Australian Government announced a comprehensive review of the Act, which has involved substantial public consultation. Submissions received by the Department of Infrastructure and Regional Development during the review process indicated that there was an opportunity to significantly improve the Act and its administration.

In addition to continuing the harmonisation of Australia’s vehicle standards with international best-practice, the Australian Government is proposing to introduce a number of changes to the Act and associated administrative processes. These include:

  • allowing individuals to import new vehicles from selected right hand drive countries with comparable vehicle standards to Australia;
  • improving consumer access to imported specialist and enthusiast vehicles;
  • simplifying the process for importing vehicles through the Registered Automotive Workshop Scheme while improving the quality of those vehicles;
  • simplifying the pathways for importing vehicles granted concessions against the Act;
  • streamlining the supply of mainstream (full volume) new vehicles; and
  • clarifying suppliers’ recall responsibilities for all vehicles.

The Australian Government will also amend the Customs Tariff Act 1995 (Cth) to remove the $12,000 special duty on imported used vehicles, from 2018. 

Reforms Proposed for 2018

According to a Media Release from the Minister for Projects, Territories and Local Government, planned changes to the Motor Vehicle Standards Act 1989, "will give more choice for car buyers and save industry over $70 million a year in lower regulatory compliance costs."

Legislation will be introduced to Parliament as soon as possible and the reforms will commence 12 months after the passage of legislation, with a transition period to enable businesses to adapt to new arrangements.

In particular, there will be three main ways in which the laws will change:

  • Personal import of new motor vehicles - The law will be changed so that, from 2018, a consumer will be able to personally import a new car or motor cycle from another country with comparable standards to Australia's, up to once every two years, if specified conditions are met;
  • Improvements to existing schemes for specialist and non-standard vehicles - The changes will improve the existing arrangements for importing exotic, rare, classic, collectible and special purpose vehicles; and
  • Removal of $12,000 special duty on imported used vehicles - The Government will amend the Customs Tariff Act 1995 to remove the $12,000 special duty on imported used vehicles from 2018.

Reaction from ACCC

Mr Featherston, from the ACCC, says:

“Consumers will only be able to import cars from the UK and Japan. These are markets that sell right hand drive cars and have similar safety standards to Australia. Also, the climatic conditions in Europe and Japan can be as extreme, if not more extreme, than conditions in Australia.

New Zealand’s economy has benefitted from allowing the personal importation of vehicles: consumers have access to cheaper cars, new businesses have emerged to assist consumers with the importation process, and existing businesses have grown. We would expect to see similar benefits here in Australia.”

Mr Featherstone also directly addressed the issue of availability of access to data and information for the repair of vehicles and vowed to monitor access to repair information should it become a barrier to competition in the market in the future.

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