Motor Vehicle Dealers and Repairers Act and Regulation Become Law in NSW

Tuesday 7 October 2014 @ 1.04 p.m. | Trade & Commerce

In a follow up to a previous TimeBase Article, the Motor Dealers and Repairers Act 2013 (No. 107 of 2013) (the Act), an Act which seeks to consolidate the Motor Dealers Act 1974 (the Dealers Act) and the Motor Vehicle Repairs Act 1980 (the Repairers Act) into a single piece of legislation, the purpose being to recognise the connections which exist between the two sectors of the industry, namely dealers and repairers, has had its final provisions proclaimed and its associated Regulation released.

Commencement of the Act

Apart from Part 6 and Clause 11 of Schedule 2, the Act commences on 1 December 2014, as a result of the commencement contained in Regulation 637 of 2014.

The Act will change laws with respect to the licensing and conduct of motor dealers, motor vehicle repairers, motor vehicle recyclers and motor vehicle repair tradespersons; and consolidate the Delaers Act and the Repairers Act into one piece of legislation.

The majority of these amendments will commence on 1 December 2014 including:

  • providing consumer protection and remedies for consumers who purchase motor vehicles from motor dealers or obtain motor vehicle repair services;
  • establishing appropriate standards of conduct and transparency for motor dealers, motor vehicle repairers and motor vehicle recyclers;
  • providing enforcement mechanisms to prevent misleading or dishonest conduct and illegal  dealings with motor vehicles and parts;
  • providing protection for motor dealers against unfair contract dealings by motor vehicle manufacturers; and
  • introducing a new business licensing system, consolidating 16 motor vehicle repair licences and six motor dealer licences into only three licence types.

The Regulation

Also commencing on 1 December 2014, the Motor Dealers and Repairers Regulation 2014 (No. 640 of 2014) (the Regulation)will provide for:

  • any necessary exemptions from the provisions of the Act;
  • record keeping requirements for licensed motor dealers and repairers, including  the content of prescribed forms, disclosure requirements for motor dealers and repairers, minimum qualification and experience requirements for licences issued under the Act, classes of repair work under the Act, fees and penalties under the Act, including penalty infringement notices, limits and procedures for consumer claims to the Motor Dealers and Repairers Compensation Fund; 
  • administrative arrangements and procedures for the operation of the Motor Dealers and Repairers Compensation Fund; and
  • other administrative matters required for the effective operation of the Act.

According to the Regulatory Impact Statement:

"The Regulation is necessary because the Motor Dealers and Repairers Act will introduce significant changes through a new legislative framework for the motor vehicle industry. Therefore, the current regulatory and administrative arrangements are no longer valid or effective."

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