Motor Dealers and Repairers Amendment Bill 2023

11 October 2023

Ms CHARISHMA KALIYANDA (Liverpool) (16:27): I make a brief contribution in support of the Motor Dealers and Repairers Amendment Bill 2023. In doing so, I note that manufacturing, particularly automotive manufacturing, has been a large employer of many in the Liverpool area. I also note that the automotive business in New South Wales is the biggest of its kind in Australia, with a total value of more than $37 billion. It is a key employer and important for the wellbeing of the people of New South Wales, with most people generally buying and repairing a motor vehicle at some point in their life. The bill will continue to put New South Wales dealers in pole position to meet the growing demand for vehicles in the community. Changing consumer preferences for digital sales, the consistent emergence of new technologies and new manufacturers such as Tesla entering the market mean that we need to continue to adapt our laws to ensure they are fit for purpose.

The Motor Dealers and Repairers Amendment Bill 2023 implements the key reforms recommended in the statutory review of the Motor Dealers and Repairers Act 2013 that was completed in 2020. It is greatly disappointing, though, that industry and stakeholders have waited three years for legislative change to bring the automotive industry into the twenty-first century whilst enhancing consumer protections. The bill demonstrates the New South Wales Government's commitment to modernising New South Wales laws so they support a vibrant automotive industry as it continues to grow into the future. In contrast, the Minns Government has taken action on this within the first six months of its first term. New South Wales also leads the nation in new vehicle purchases, with 31 per cent of the one million purchases nationwide made by consumers in this State. That puts New South Wales ahead of Victoria and Queensland, which account for 26 per cent and 22 per cent respectively of new vehicle purchases. According to the Australian Automotive Dealer Association there are 971 franchised new car dealerships in New South Wales, employing 19,648 people, with a total economic contribution of $4.63 billion to the State. It is incumbent on us in this place to ensure that the most up-to-date legislative and regulatory framework for such a significant contributor to our State's economy is in place.

The bill will implement consumer safeguards for online sales to ensure that equivalent protections for consumers who buy motor vehicles from physical vehicle dealers are available to consumers who buy motor vehicles online. These safeguards include new section 66B, which will require online dealers to provide the same information on their website that is given to consumers when they visit a traditional physical dealership. This information includes the condition of the vehicle, such as the odometer reading and past damage to the vehicle. It also includes new section 66C, which gives consumers an opportunity to conduct a reasonable examination of the vehicle, and new section 66D, which sets out the requirements around maximum deposit for online vehicle sales to ensure that consumers only pay fair deposit amounts.

Furthermore, the New South Wales Government is committed to reducing the administrative burden on businesses so that they can focus on the important things, such as how to grow and employ more people. For example, the keeping of registers as required by section 100 of the Act only duplicates the existing records of businesses and creates unnecessary administration. The bill proposes registers no longer be kept. Instead, new section 100 will allow the secretary of the department to publish a notice on the NSW Fair Trading website to specify what records motor dealers, motor recyclers and motor vehicle repairers must keep. This will allow industry to take advantage of the digital innovations available and use the most efficient systems to maintain the records that they need. New section 100 will also allow the Government to better work with industry to ensure that records about the acquisition and disposal of certain parts currently contained in the regulation are updated when needed more quickly to reflect new technologies entering the marketplace, such as new electric vehicles.

However, any robust legislative framework must support compliance and enforcement to address misconduct in the industry, knowing well that the majority of people in the industry do the right thing. The bill proposes amendments that will support NSW Fair Trading to address and reduce misconduct in the industry more effectively. These amendments include increasing the maximum penalty for odometer tampering from 200 penalty units to 500 penalty units, which is an increase from a fine of $22,000 up to $55,000; making it an offence to have an odometer tampering device unless a person is a motor vehicle repairer who lawfully repairs or replaces the odometer of motor vehicles as part of their repairer business; expanding the list of prohibited persons; and expanding the disciplinary action available under the Act. Clause 99A of the bill will also make it an offence for motor vehicle recyclers to buy a motor vehicle or motor vehicle parts with cash, by cheque payable to cash, or in kind with goods or services. This will mitigate criminals being able to pass on stolen parts for cash payments and ensure that transaction records are kept.

Over the past few months people have contacted my office who have purchased vehicles online, but upon visiting Service NSW to transfer the registration have been unable to for an array of reasons not specified during the sale, such as previous unpaid debt. Given that used car sales amount to roughly 50 per cent of total car sales, with 42 per cent of used cars being sold through private arrangements, odometer tampering poses a huge risk of damage to members of our community. In an area like Liverpool, second‑hand vehicle sales, including those that come after modifications and repairs, are a notable feature of our local economy. For example, in 2021 private vehicle sales on Gumtree in the Liverpool area alone accounted for 3 per cent of all listings nationally. This is especially considerable given Sydney on its own accounts for 20 per cent of all used cars listed on Gumtree.

Western Sydney households are roughly 6 per cent more likely to own more than two motor vehicles, for a wide variety of reasons but especially because of the historically poor public transport infrastructure in our fast‑growing regions. In conclusion, the Minns Government is delivering much needed reforms in the bill to support the automotive industry in New South Wales. The bill is well balanced and will deliver positive benefits for motor dealers, repairers and recyclers, whilst ensuring that we protect consumers within our community in a range of different ways. I commend the bill to the House.