Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Franchise relationships between car manufacturers and new car dealers

Aust Gov
7th February 2019

Consultation Regulation Impact Statement - Department of Industry, Innovation and Science

On 20 December 2018, the Department of Industry, Innovation and Science (the Department) released a Consultation Regulation Impact Statement (RIS) to explore policy responses to new car dealers’ concerns with their franchising relationships with car manufacturers.

The Consultation RIS is seeking comments on options to address issues raised by new car dealers relating to the imbalance of power in their commercial arrangements with manufacturers, such as end of term arrangements, requirements for capital expenditure, and dispute resolution. Options under consideration to address these concerns are: retaining the status quo, regulatory intervention through amendments to the Franchising Code or separate provisions within an Automotive Code of Conduct, or a voluntary industry code of conduct.

Details of the Consultation process can be found on the Department’s website. The consultation period closes on 13 February 2019.

The Consultation RIS was prepared and certified by the Department of Industry, Innovation and Science. The Office of Best Practice Regulation assessed the Consultation RIS as suitable for public consultation.

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