As 2021 comes to a close, VACC’s Industry Policy team would like to thank members who have engaged with us throughout the course of what has been an incredibly difficult year for business. As we move towards 2022 with some renewed hope, it feels timely to share some of the policy work being undertaken by the team on behalf of members.
In September, VACC provided written feedback to Treasury’s Automotive Franchising Discussion Paper. Our submission reiterated our long-held position that commercial vehicle, motorcycle, farm, and industrial machinery franchise dealers must be afforded the same legislative protections as new car dealers.
The evidence shows very little difference between the issues faced by new vehicle dealerships –culminated in the creation of the new car dealer specific Part 5 to the Franchise Code – and those issues faced by farm machinery, motorcycle and commercial vehicle dealerships.
The sophisticated business models, capital outlays, tooling requirements, and the fact all vehicle manufacturer operations are controlled by overseas parent companies, dictates that the separate, transparent, and automotive industry-specific schedule that became operational from 1 July 2021 must apply to all automotive franchise dealer sectors.
VACC also provided a detailed response to Treasury’s Exposure Draft Legislation and Explanatory Materials regarding Unfair Contract Terms (UCTs) in September. The Exposure Draft details amendments to the Australian Consumer Law (ACL) and the Australian Securities and Investments Commission Act 2001 (ASIC Act). The proposed law will see more UCTs in standard form contracts be open to scrutiny. The new legislation is also likely to deter the inclusion of UCTs in a broader range of contracts (i.e. all financial contracts such as mortgages and insurance). This will have a direct bearing on the 72,521 Australian automotive businesses, of which over 95 percent are small and family-owned. While VACC largely supports the UCT reforms and the draft legislation in principle, we have pressed for further clarity and improvements to how they apply specifically to automotive small businesses.
Regarding COVID-19, the VACC Industry Policy team has remained permanently engaged with both state and federal governments – persistently applying pressure to ensure our members could remain open to trade and access more equitable business support packages. VACC had a breakthrough with the announcement of the COVID-19 Hardship Fund, which saw a greater cohort of businesses able to access the support. We recognise this was still not a perfect outcome, given the onus to meet a very high threshold of reduced turnover. Our ongoing advocacy was to have this brought in line with New South Wales, where they applied a tiered approach to the distribution of the funding.
As we fast approach the next federal election, VACC’s Industry Policy team has been working collaboratively, bringing to life VACC’s federal policy manifesto. In line with previous year’s election policy documents, the paper will outline VACC’s key automotive industry policy priorities for the next Australian Government. REVolution: key policy priorities of the Australian automotive industry spotlights areas requiring urgent government attention in order to future proof and assist our industry. These include preparing for the transition to a Zero or Low Emission Vehicle (ZLEV) future, tax reform, COVID-19 business support, the environment, skills and training, diversity, workplace relations, occupational health and safety and red-tape reduction. We look forward to sharing this document with members as we continue to advocate on your behalf at the most senior levels of government.
In closing, I encourage all members to reach out to any member of the Industry Policy team with an issue you feel requires attention. Once again, I thank members for their ongoing contributions to VACC’s policy agenda and we look forward to reconnecting in person via member visits, briefings, and roadshows in 2022.
Words: VACC Lead, Strategy and Policy, Dr Imogen Reid. As featured in Australasian Automotive December 2021.