Issues Paper NSW Fair Trading regulation of motor vehicles Motor ...

Issues Paper
NSW Fair Trading regulation of motor vehicles
Motor Dealers Act 1974
Motor Vehicle Repairs Act 1980

Published by:
NSW FAIR TRADING
PO Box 972
PARRAMATTA NSW 2124
Tel. 13 32 20
© State of New South Wales, through NSW Fair Trading
2011
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Disclaimer
Because this publication avoids the use of legal language,
information about the law may have been summarised or
expressed in general statements. This information should
not be relied upon as a substitute for professional legal
advice or reference to the actual legislation.Further copies
of this document can be downloaded from the NSW Fair
Trading website www.fairtrading.nsw.gov.au
April 2012

CONTENTS
INTRODUCTION....................................................................................................... 1
Background to this review ..................................................................................... 1
Purpose of this Issues Paper................................................................................. 1
Scope of the review............................................................................................... 2
How to have your say............................................................................................ 3
Next steps ............................................................................................................. 3
1. BACKGROUND................................................................................................... 4
1.1 History of regulation in the motor vehicle industry in NSW ......................... 4
1.2 Existing regulation and consumer protection.............................................. 5
1.3 Regulation in other jurisdictions ................................................................. 7
2. ISSUES TO BE CONSIDERED........................................................................... 8
2.1 A consolidated Act ..................................................................................... 8
2.2 The Australian Consumer Law................................................................. 11
2.3 Motor Dealers Act 1974 ........................................................................... 16
2.4 Motor Vehicle Repairs Act 1980............................................................... 21
2.5 Increasing Consumer Protection in the Motor Vehicle Industry ................ 28
APPENDIX.............................................................................................................. 32

Introduction
Background to this review
As part of a pre-election commitment to reducing red tape and regulatory burden on
small business, industry and the community, the New South Wales Government is
reviewing a number of Acts and Regulations. This process will consider whether
there is a continuing need for their provisions and/or whether there is a less costly
way of achieving their aims.
This review seeks the views of stakeholders on a proposal to combine the Motor
Dealers Act 1974 and the Motor Vehicle Repairs Act 1980 and create a consolidated
Act with clear upfront aims and objectives for the efficient regulation of industry and
effective consumer protection in the motor vehicle industry.
In 2010, the previous Government commenced a review of the Motor Vehicle Repairs
Act which examined a number of issues including repair classes, disciplinary and
enforcement provisions, transparency for consumers and traders and minor
administrative improvements. Significant stakeholder consultation took place to
ensure industry views were considered on these issues.
While this review provided useful information on the operation of the Act and
suggestions for improvement, one important aspect, the definition of ‘repair’ in the
Act, did not receive appropriate discussion and examination. As this definition
assists to establish the categories of repair for licensing and certification of the repair
industry, the review did not provide sufficient scope for determining opportunities to
simplify and improve the licensing or certification system.
This paper does not re-examine all matters raised in the 2010 review of the Motor
Vehicle Repairs Act. However, any comments made during the 2010 review will be
taken into account as part of this review process.
In relation to the Motor Dealers Act 1974, a comprehensive review of the operation of
the legislation has not been undertaken since 2001. This paper will outline the critical
issues for discussion and set out some of the common regulatory characteristics of
this Act and the Motor Vehicle Repairs Act. However, stakeholders are invited to
comment on any aspect of the legislation that they consider needs reform.
A meaningful review of consumer protection legislation in the motor vehicle industry
must also consider the wider legislative framework. The Australian Consumer Law
commenced on 1 January 2011, establishing a set of general consumer protections
across Australia. The Intergovernmental Agreement for the Australian Consumer Law
requires all jurisdictions to review industry specific consumer protection legislation to
ensure it is consistent with these standard consumer protections.
Purpose of this Issues Paper
There is an obvious and fundamental connection between the Motor Dealers Act
1974 and the Motor Vehicle Repairs Act 1980 and the industries they regulate. The
Acts regulate industries in which a number of participants work in both the repair and
service aspects as well as dealing in motor vehicles. While the key regulatory feature
in both Acts is a licensing system, there are also a number of consumer protection
measures, that are similar, or common to both Acts. It is considered that by
combining the two Acts it is possible to regulate the industries efficiently and maintain
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or improve consumer protection measures, while simplifying and consolidating
compliance and related administrative costs for both business and government.
As part of this process the Government has also asked NSW Fair Trading to examine
the legislation with a view to ensuring it has clear aims and objectives, and supports
and provides essential consumer protections and effective regulation. As neither Act
has been comprehensively reformed for a number of years, it is also necessary to
modernise and update the legislation to ensure it is relevant to current industry
practice. The legislation will also be examined in relation to the general set of
consumer guarantees established nationally by the commencement of the Australian
Consumer Law and how and to what extent they provide effective and
commensurate protection for consumers in the motor vehicle industry.
Scope of the review
The following matters are not within the scope of this review:
• Private sale of motor vehicles
• Retail shop trading hours for businesses
• Competition issues
• Vehicle leasing or rental arrangements
• Vehicle registration and services provided by Roads and Maritime Services
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How to have your say
You are invited to provide comments on any of the issues raised in this Issues Paper
and on any other relevant matter.
We would prefer to receive submissions by email to:
policy@services.nsw.gov.au
You can also send submissions by fax to 02 9338 8918, or by mail to:
Fair Trading Motor Vehicles Review
Fair Trading Policy
PO Box 972
PARRAMATTA NSW 2124
Please take careful note of the deadline for submissions:
Submissions close at 5pm on 13 July 2012.
Submissions will not be made public except as required by law. All submissions may
be made publicly available under the Government Information (Public Access) Act
2009 or for other purposes. If you do not want your personal or commercial details
released, please indicate this clearly in your submission.
Next steps
All submissions received will be acknowledged. Once the submission period has
closed, feedback will be analysed and all potential options assessed.
Preferred options for reform will be selected based on the following criteria:
• Cost benefits: will any change provide more benefits than the costs involved?
• Efficiency: will any change result in greater consistency, clarity and certainty
in the law leading to fewer disputes?
• Effectiveness: Will any change meet the Government’s policy objectives?
Options will be considered with reference to the NSW Government’s better regulation
principles, as set out in the Guide to Better Regulation (Better Regulation Office,
November 2009).
It is anticipated that NSW Fair Trading will make recommendations on the most
appropriate way forward to the NSW Government for consideration in 2012.
More information about the progress of the review will be made available from time to
time on Fair Trading’s website at www.fairtrading.nsw.gov.au
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Review of regulation and consumer protection in the motor vehicle industry
1. Background
1.1 History of regulation in the motor vehicle industry in NSW
Motor Dealers Act 1974
NSW introduced a Second Hand Motor Dealers Act in 1956. The Act provided for the
licensing of any person who dealt in used cars or accessories. Licensees had to be fit
and proper persons of good character and were required to keep records and
produce them on demand. The Act also required dealers to retain prescribed parts
and accessories for three days prior to disposing of them.
While licensing and record keeping for second hand motor dealers addressed key
issues, there continued to be significant consumer complaints relating to motor
vehicles, in particular, the lack of accurate information at the time of purchase about
the history, general condition and reliability of vehicles. There were also complaints
about vehicle defects, warranties, odometer tampering, misleading advertising and
unfair sales techniques. To address these concerns the Motor Dealers Act was
introduced in 1974. This Act increased consumer protection through better
disclosure, provisions preventing misleading or deceptive conduct and odometer
tampering and statutory warranties. The Act was further amended in 2001 to
introduce a cooling off period for consumers purchasing their vehicle from a dealer
with finance for the purchase arranged by the dealer.
The most recent changes to the Act were made in 2008, following a Small Business
Regulation Review Taskforce review of the motor industry that made a number of
recommendations to cut red tape for the sector. As a result, a number of prescribed
forms in the legislation were abolished or combined to reduce the compliance burden
on motor dealers.
Motor Vehicle Repairs Act 1980
The Motor Vehicle Repairs Act introduced the requirement that repair businesses be
licensed. The legislation addressed concerns related to the industry, including the
need for more repairers to be formally trained or qualified and dissatisfaction with
available dispute resolution mechanisms.
The Act provided a robust regulatory framework for the industry, including mandatory
licensing, minimum standards for repair work and repairer behaviour, and a specialist
tribunal to determine disputes between consumers and repairers outside the formal
legal process. A licensing and certification regime administered by the Motor Vehicle
Repair Industry Council, a statutory authority, was established.
A number of amendments were made to the Act by the Motor Trade Legislation
Amendment Act 2001, including measures to improve the effectiveness of the
licensing regime, the creation of a restructured Motor Vehicle Repair Industry
Authority to administer the legislation and increasing the maximum claim for
consumers on the motor vehicle repairs contingency fund to $30,000.
In 2006, the functions of the Authority were transferred to Fair Trading to generate
efficiencies in administering the legislation in terms of compliance and enforcement;
general information, education and advice to consumers; dispute resolution
procedures and consumer redress.
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Review of regulation and consumer protection in the motor vehicle industry
In 2009, the Better Regulation Office (BRO) released its report into government
licensing in selected occupations, including motor vehicle repairers. The BRO
recommended that the licensing regime of vehicle repairers be retained but licensing
of accessory fitting that does not affect the performance, safety or security of the
vehicle, be removed.
1.2 Existing regulation and consumer protection
While consumer protection in the motor vehicle industry is mainly regulated by the
Motor Dealers Act and the Motor Vehicle Repairs Act, the Fair Trading Act 1987 also
plays a role through the Australian Consumer Law (NSW) and by mandating the
Motor Vehicle Insurance and Repair Industry Code of Conduct as it applies to
insurers and motor vehicle repairers.
The Motor Dealers Act and Motor Vehicle Repairs Act regulate different areas of the
industry, however the fundamental principle common to both Acts, one that has
strengthened over time, is to provide consumer protection and redress without the
need for costly legal action should anything go wrong with a car a consumer buys or
has repaired.
Motor Dealers Act 1974
The Act aims to protect consumers by establishing a licensing regime for people who
trade in motor vehicles and ensuring that they meet certain probity standards and
behave honestly and fairly in their dealings with consumers. The Act was established
to prevent dishonest and unscrupulous people working in the industry and provide
essential protections for consumers when buying a vehicle.
The licensing regime requires that the owner of a motor dealer business holds a
dealer licence in order to advertise for, or carry on the business of trading motor
vehicles. Dealers are required to keep records of cars and traceable parts sold or
disposed of to assist Police with investigations into stolen vehicles and parts. In order
to maintain the licence, the licensee must submit an annual statement together with a
fee.
The Act provides important protections for consumers including a cooling off period,
disclosure of certain facts through information notices which must be attached to the
vehicle, a personal property securities vehicle certificate, and provisions which
prevent a dealer making false or misleading claims about the vehicle. The Act also
provides for statutory warranties for new and used cars and requires the dealer to fix
the vehicle within these warranty periods.
The Act allows for disciplinary action to be taken by NSW Fair Trading in response to
improper conduct or failure to comply with the provisions of the Act. Consumers can
initiate dispute resolution through Fair Trading and if unsuccessful, seek resolution of
the dispute through the Consumer, Trader and Tenancy Tribunal.
The Act also allows consumers to obtain compensation through the Motor Dealers
Compensation Fund, for losses in certain situations such as where a dealer fails to
return a deposit. Contributions to the Fund come from the licence fees and claims
can only be made if a consumer is able to demonstrate that all reasonable steps
have been taken to recover the loss through normal legal channels. The maximum
claim that can be made is $30,000.
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Review of regulation and consumer protection in the motor vehicle industry
Motor Vehicle Repairs Act 1980
The Act aims to protect consumers by mandating certain minimum standards of
repair and establishing a licensing regime for the repair of motor vehicles in NSW.
The Act was established to address the information asymmetry that exists between
consumers and repairers and provide protection for consumers against substandard
repair work. Most consumers possess little knowledge or information about motor
vehicle repairs or the required skills of repairers.
The Act requires certain probity standards to be met before a licence is issued and
that licence holders maintain records of traceable parts to assist Police with
investigations into stolen parts. It also sets standards for tradespeople in the industry
to be certified in relation to their technical skills.
The licensing regime centres on two key requirements:
• Business licensing: This requires the owner of a motor vehicle repair business
to hold a repairer’s licence in order to advertise for, or carry out, repair work.
A repairer’s licence does not require the licence holder to have qualifications
relating to vehicle repair work – it simply authorises the holder to advertise
and contract for the repair work. In order to maintain the licence, the licensee
must submit an annual statement together with a fee.
• Occupational licensing: This requires those who carry out repair work to hold
the appropriate tradesperson’s certificate for the prescribed category of
repairs. For example a person repairing the structural components, frames or
panels must hold a panelbeater certificate. A tradesperson certificate is
granted where the applicant holds an approved qualification and meets
certain probity checks. Currently, there is no requirement for the certificate to
be renewed.
The Act allows for disciplinary action to be taken by NSW Fair Trading in response to
improper conduct or work performed below trade standards. Consumers can initiate
dispute resolution through Fair Trading and if this proves unsuccessful, seek
resolution of a dispute through the Consumer, Trader and Tenancy Tribunal for
substandard work by repairers.
The Act also allows consumers to obtain compensation for losses resulting from
substandard repair work through the Motor Vehicle Repair Industry Contingency
Fund. Typically, claims are made when a repairer has ceased to trade. Claims on the
Fund can only be made if a consumer is able to demonstrate that all reasonable
steps have been taken to recover the loss through normal legal channels. The Fund
is administered by Fair Trading and the maximum claim that can be made is $30,000.
Australian Consumer Law
The Australian Consumer Law (the ACL), provides consumers in all States and
Territories with consumer guarantees for goods and services sold in Australia. It also
sets rules regarding express warranties and warranties against defects. This general
consumer protection sets a minimum standard for all goods and services provided to
consumers in Australia.
As part of the implementation of the ACL, an Intergovernmental Agreement, signed
by all jurisdictions, established mechanisms to administer and enforce the law
consistently throughout Australia. In order to make an amendment to the national
law, a proposal must be submitted to the Commonwealth and all other states and
territories, and be subject to a three month consultation period. To be adopted, an
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Review of regulation and consumer protection in the motor vehicle industry
amendment must receive the support of the Commonwealth and four other
jurisdictions,of which three must be States.
The Intergovernmental Agreement requires all jurisdictions to review industry specific
consumer protection legislation to ensure it is consistent with these standard
consumer protections and provides for the establishment of Memoranda of
Understanding to support and ensure consistent enforcement and administration of
the ACL by jurisidictions across Australia.
Motor Vehicle Insurance and Repair Industry Code of Conduct
The Motor Vehicle Insurance and Repair Industry Code of Conduct is a voluntary
national code between motor vehicle repairers and insurers which regulates the way
they do business together. In NSW, the Code has been mandated by the Fair
Trading Act 1987, which requires all insurers and repairers to comply with the Code.
The Code requires that repairs are carried out with the objective of restoring the
safety, structural integrity, presentation and utility of the motor vehicle. The Code also
requires repairers to carry out repairs in accordance with:
• the documented manufacturers technical specifications, including those
supplied by other industry recognised agencies or authorities;
• any lawful mandatory specifications and/or standards;
• methods that are consistent with vehicle warranty conditions; or
• in the absence of the above, accepted industry standards and practice, while
having regard to the age and condition of the motor vehicle.
The Code provides for dispute resolution between insurers and repairers and
requires insurers to have an internal dispute resolution mechanism that allows for
prompt, transparent and fair resolution of disputes. If internal dispute resolution fails
to resolve the dispute, the repairer can then take the dispute to external dispute
resolution. The external dispute resolution process involves the parties agreeing to
an independent mediator or having one appointed by the committee administering
the Code. Those participating in the process must have the authority to enter into an
agreement to settle the dispute.
Fair Trading is able to take action if there is a dispute between an insurer and
repairer regarding an alleged contravention of the Code, provided the dispute
resolution mechanisms of the Code have been followed, a party refuses to take part
in the process, and it is considered by the Minister or the Director-General to be in
the public interest.
1.3 Regulation in other jurisdictions
Motor dealers are licensed and regulated in all jurisdictions in Australia, however
South Australia only regulates second hand motor dealers.
Motor vehicle repairers are licensed in Western Australia and the Australian Capital
Territory. In other jurisdictions there is some self regulation, such as the voluntary
Motor Vehicle Insurance and Repair Industry Code of Conduct and in Victoria
members of the automotive repairer and body repairer divisions of the Victorian
Automotive Chamber of Commerce must abide by a Code of Practice. Jurisdictions
would also rely on general consumer protection laws to assist consumers.
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Review of regulation and consumer protection in the motor vehicle industry
2. Issues to be considered
2.1 A consolidated Act
Why consolidate the Acts?
The Motor Dealers Act 1974 and Motor Vehicle Repairs Act 1980 were established in
different circumstances however, there is a fundamental connection and similarity
between the Acts. Both Acts regulate the activities of participants in the motor vehicle
industry and share common aims and objectives including: licensing, dispute
resolution, consumer redress, contingency/compensation funds, disciplinary and
enforcement matters and record keeping requirements.
By combining the Motor Vehicle Repairs Act and the Motor Dealers Act into a single
consolidated Act there are opportunities to cut compliance costs, red tape and
regulation. A consolidated Act could include a single licensing system, a single
consumer dispute resolution system, a single system of disciplinary and enforcement
actions and procedures, and a single set of records which traders would need to
keep.
A consolidated Act could also include a single set of clear, upfront aims and
objectives written into the legislation which would clarify to consumers and industry
the purpose of the legislation.
Streamlined regulation would be particularly beneficial to those dealers trading
across both sides of the industry and may promote skills development and flexibility
for industry participants. A consolidated Act would also create efficiencies by creating
greater consistency, clarity and certainty in regulating the motor vehicle industry and
reducing regulatory burden. Efficiency gains for Government may also be realised
through administering a single Act. Government policy objectives of providing
appropriate consumer protection, and supporting an efficient, effective and
appropriately skilled industry could be met through this one piece of legislation.
Similar Provisions
Licensing
The requirements to obtain a licence under both the Motor Dealers Act and the Motor
Vehicle Repairs Act are essentially the same. Both require the applicant to:
• be over 18 years of age;
• be a fit and proper person;
• have sufficient financial resources;
• be likely to carry on the business honestly and fairly; and
• not have been convicted of breaching certain laws, including fraud or have
committed any offences under Fair Trading administered laws.
Dispute Resolution and Investigations
In both Acts the Commissioner for Fair Trading is able to deal with disputes between
the consumer and dealer or repairer, investigate the issue and use his or her best
endeavours to settle the dispute. The Acts also provide Fair Trading inspectors with
similar provisions relating to search warrants and investigations.
Contingency Fund and Compensation Fund
The Motor Dealer and Motor Vehicle Repairs Acts both provide for compensation to
be claimed by a consumer in the event of loss. The consumer loss for repair work
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Review of regulation and consumer protection in the motor vehicle industry
must be for work not competently performed. The consumer loss in relation to
dealers is where a licensed dealer fails to comply with the requirements of the Act or
Regulations; a licensee fails to pass on an unencumbered title to the vehicle; and/or
a licensee fails to repay money or return a deposit or part payment.
The maximum claim that can be made from either Fund is $30,000 and can only be
made if Fair Trading is satisfied that loss occurred and that all reasonable steps were
taken by the consumer to enforce other available legal remedies.
A difference between the two Acts is that the Motor Dealers Regulation identifies an
amount of the licence fees that is contributed to the Motor Dealers Compensation
Fund. While licence fees pay for the administration of the motor vehicle repairs
legislation, including the contingency fund, the Motor Vehicle Repairs Regulation
does not currently specify a particular amount of the licence fees that contribute to
the Contingency Fund.
Disciplinary Action
Both Acts allow the Commissioner for Fair Trading to issue a show cause notice to
licensees (including a certificate holder under the Motor Vehicle Repairs Act) and
initiate disciplinary action on such grounds as where:
• the licensee has been convicted of an offence under this Act or an Act
administered by the Minister;
• the licensee has been convicted of or is probably receiving or dealing in
stolen goods;
• business is being carried on in a dishonest or unfair manner; or
• the licensee is not a fit and proper person to continue to hold a licence.
The two Acts also share the same options in terms of what disciplinary action can be
taken against a licensee. These range from reprimand to suspension, disqualification
or cancellation of a licence, or requiring the licensee to make a contribution to the
compensation or contingency fund or indemnify the fund for a particular event or
contingency.
There are minor differences in the way the provisions are worded. A more significant
difference is that under the Motor Vehicle Repairs Act, the Commissioner has the
ability to take disciplinary action against a tradesperson in regard to work being
below trade standards.
Records requirements and Police involvement
Both Acts require dealers and repairers to keep records of traceable parts and report
any suspicious goods in relation to stolen vehicles, parts or any other thing in the
custody of the licensee in the course of their business. However, only dealers and
not repairers are required to keep records in specific prescribed forms.
While both Acts acknowledge and support Police being able to enforce and utilise the
legislation, the Motor Dealers Act allows a Police Officer to be an authorised officer
under the Act. This means they are able to undertake any activity as an authorised
Fair Trading inspector. The Motor Vehicle Repairs Act does not currently enable
Police Officers to be the equivalent of authorised officers. However, this issue was
raised in the 2010 review and stakeholders expressed support for making such an
amendment.
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Review of regulation and consumer protection in the motor vehicle industry
Aims and objectives
Neither the Motor Dealers Act nor the Motor Vehicle Repairs Act contains a provision
which specifically lists the aims or objectives of the Act. However, a provision in an
Act which has a clear statement indicating its purpose, aims and objectives helps to
ensure that industry, government and the community have a common understanding
of the purpose of the legislation.
The aims and objectives could be based on the provisions common to both Acts,
including: licensing, dispute resolution, compensation funds, disciplinary action,
enforcement action, record keeping and police involvement.
An example of the objectives could be to:
1. provide for consumer protection, redress and vehicle safety for consumers
who purchase motor vehicles or have their vehicle repaired by a licensed
motor trader; and
2. ensure an appropriate standard of conduct and transparency for those
working in the industry; and
3. support efficient and effective enforcement to prevent misleading or dishonest
conduct and the illegal trade in rebirthing, stolen vehicles, or parts.
• Are there other benefits that may exist if the Acts were consolidated?
• Are there provisions or requirements in either Act which are unique to one
part of the industry that could not or should not apply to the other?
• Are these draft aims and objectives sufficient to encompass the provisions
and purpose of the combined Act?
• Are there any additional measures or themes in the Act that should be
included in the objectives?
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Review of regulation and consumer protection in the motor vehicle industry
2.2 The Australian Consumer Law
The ACL is a uniform national consumer protection law which commenced on 1
January 2011. The Fair Trading Act 1987 applies the ACL in NSW and provides for
its enforcement in NSW.
The ACL applies a modern system of consumer guarantees which replace what were
previously referred to as statutory implied conditions and warranties in consumer
transactions. Consumer guarantees automatically apply to:
• any type of goods and services costing up to $40,000;
• goods or services costing more than $40,000, which are normally used for
personal, domestic or household purposes; and
• a vehicle or trailer acquired for use in the transportation of goods on public
roads, regardless of cost.
Consumer Guarantees
Goods and services sold or provided by motor dealers and motor vehicle repairers
are subject to consumer guarantees, regardless of the provisions of the Motor
Dealers Act or Motor Vehicle Repairs Act.
A list of the consumer guarantees is available in the appendix of this paper (page
32).
The consumer guarantees that apply to services require a supplier to supply services
with due care and skill, be fit for any specified purpose and within a reasonable
period of time (when no time is specifically set). This means that they must use an
acceptable level of skill or technical knowledge and take all necessary care to avoid
loss or damage when providing the service.
The ACL also sets requirements for how to resolve the situation when goods or
services fail to meet the consumer guarantees. In circumstances where a good or
service fails to meet a consumer guarantee, the supplier will have to provide a
remedy to the consumer.
When the problem is minor, the supplier can choose between providing a repair or
offering the consumer a replacement or a refund. If the supplier refuses or takes too
long, the consumer can get someone else to fix the problem and ask the supplier to
pay reasonable costs or cancel the service and receive a refund.
However, if the problem is a major failure the consumer can either:
• reject the goods and receive a refund; or
• reject the goods and receive an identical replacement, or one of similar value
if reasonably available; or
• keep the goods and receive compensation for the decrease in value caused
by the problem.
In the event of a major failure for a good it is the consumer who may choose the
remedy, not the supplier. In relation to a major failure for a service the consumer can
cancel the service and receive a refund or keep the contract and receive
compensation for the difference in value.
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Review of regulation and consumer protection in the motor vehicle industry
A major failure for a good or service is considered to have occurred when one of the
following happen:
GOODS SERVICES
The goods would not have been acquired
by a reasonable consumer fully
acquainted with the nature and extent of
the failure.
The goods depart in one or more
significant respects:
• if they were supplied by description –
from that description;
• if they were supplied by reference to
a sample or demonstration model –
from that sample or demonstration
model.
The goods are substantially unfit for a
purpose for which goods of the same
kind are commonly supplied and they
cannot, easily and within a reasonable
time, be remedied to make them fit for
such a purpose.
The goods are unfit for a disclosed
purpose that was made known to:
• the supplier of the goods; or
• a person with whom any prior
negotiations or arrangements in
relation to the acquisition of the goods
were conducted or made, and they
cannot, easily and within a
reasonable time, be remedied to
make them fit for such a purpose.
The goods are not of acceptable quality
because they are unsafe.
The service would not have been
acquired by a reasonable consumer fully
acquainted with the nature and extent of
the failure.
The services are substantially unfit for
the purpose for which services of the
same kind are commonly supplied and
they cannot, easily and within a
reasonable time, be remedied to make
them fit for the purpose.
If both of the following apply:
• The services and any product
resulting from the service are unfit for
a particular purpose for which the
services were acquired by the
consumer that was made known to
the supplier of the service;
• The services and any of those
products, cannot, easily and within
reasonable time, be remedied to
make them fit for such a purpose
If both of the following apply:
• the services and any product
resulting from the services are not of
such a nature or quality state or
condition, that they might reasonably
be expected to achieve a result
desired by the consumer that was
made known to the supplier;
• the services and any of those
products cannot easily and within a
reasonable time be remedied to
achieve such a result.
The supply of the services creates an
unsafe situation.
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Review of regulation and consumer protection in the motor vehicle industry
Consequential Loss
The ACL also allows for consumers to claim compensation for consequential loss
from a supplier who has failed to meet one or more of the consumer guarantees in
relation to consumer goods or services. Consequential loss is the cost to a consumer
of a problem with the goods or service and is usually financial and can include time
or productivity loss. The consumer can make the claim directly to a supplier and if an
agreement cannot be negotiated take the matter to the Consumer, Trader and
Tenancy Tribunal or Court.
A supplier will have to pay for a loss that could have been expected to result from a
failure to meet a consumer guarantee. However, this does not mean they need to
pay for problems unrelated to their conduct; or the goods they supplied; or the losses
caused by something completely independent of the supplier after the goods have
left their control.
While consumers can ask a supplier to deal with a problem with goods or services
under the consumer guarantees, they may be able to seek reimbursement from a
manufacturer, including any compensation for consequential loss. This would only be
in situations where the goods are not of acceptable quality because of a
manufacturing defect, or do not match a description given by the manufacturer or are
unfit for the purpose specified to or by the manufacturer. A supplier has three years
to ask the manufacturer for a reimbursement resulting from the costs of fixing the
problems with the good or if the consumer took legal action against the supplier.
Australian Consumer Law – other provisions affecting dealers and repairers
Other parts of the ACL which may apply to motor dealers and vehicle repairers:
1. The requirement that suppliers and manufacturers cannot engage in conduct
that is misleading or deceptive or likely to mislead or deceive.
2. The requirement that a person cannot in trade or commerce engage in
unconscionable conduct including business-to-business transactions.
3. The prohibition on unfair contract terms in standard form consumer contracts
– a term is unfair if it would cause a significant imbalance in the parties’ rights
and obligations under the contract; and it is not reasonably necessary to
protect the legitimate interests of the party advantaged by the term; and it
would cause detriment, financial or otherwise if it were applied or relied on.
4. The requirement that a supplier provide a proof of transaction.
5. The requirement that a supplier must give an itemised bill for a supplied
service, if requested within 30 days.
6. A requirement for the supplier when repairing consumer goods to give a
consumer a notice advising that refurbished parts may be used in the repair.
7. A requirement for the supplier to provide a consumer with a notice about
warranties against defects (manufacturer’s warranties) clearly setting out
what the supplier must do and what the consumer must do to claim the
warranty – this requirement commenced on 1 January 2012.
• Is there a need for greater industry education of any provisions of the ACL?
• Could the consumer guarantees for services be used to assess appropriate
disciplinary action instead of ‘usual trade standards’ in the Motor Vehicle
Repairs Act?
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Review of regulation and consumer protection in the motor vehicle industry
Statutory Warranties and Motor Dealers
Under the Motor Dealers Act there are specific statutory warranties that provide that
dealers must fix the vehicle at no cost to the consumer, if a defect appears or occurs
within the warranty period. This remedy is one of the significant benefits for
consumers when purchasing vehicles from dealers as they know they have a
guaranteed remedy should something go wrong. The statutory warranty for new
vehicles is 20,000km or 12 months and for used vehicles it is 5,000kms or 3 months
(provided the vehicle is not more than 10 years old and under 160,000kms).
The consumer guarantees in the ACL do not set a time period or distance travelled
on the odometer and would sufficiently cater for a situation where a consumer suffers
detriment after buying a motor vehicle from a dealer. In not specifying timeframes or
the number of kilometres travelled, the ACL provides consumers with additional
protection in that their legitimate claims are not cut off by a specified time frame or
distance travelled. As such, there may be an argument for removing the motor dealer
statutory warranty provisions, given the ACL clearly establishes consumer
guarantees for consumer goods which include motor vehicles.
If consumers buy a new car they will also be covered by the manufacturers warranty
for significantly longer than the current statutory warranty. A common manufacturers
warranty is for 3 years or 60,000kms, although some manufacturers offer more than
this. Manufacturer’s warranties are also typically contingent on regular servicing and
maintenance in accordance with manufacturers specifications, which if not followed
may result in the warranty or part of the warranty being voided.
An argument to keep the statutory warranty provisions in the Motor Dealers Act
rather than rely solely on consumer guarantees is that the statutory warranty
provisions are supported by unjust conduct sanctions. This means NSW Fair Trading
can require a dealer to give undertakings to discontinue the unjust conduct, or with
respect to future conduct or action required to rectify the unjust conduct. Fair Trading
can also apply to the Tribunal for an order to restrain unjust conduct. This provides
an incentive for the dealer to fulfil the obligation to fix the vehicle in the statutory
warranty period.
In comparison, while Fair Trading can take action against a dealer who misleads
consumers about the existence or nature of consumer guarantees, failure to meet a
consumer guarantee is not an offence under the ACL. This means consumers have
to enforce their rights in relation to the consumer guarantees through the courts or
Tribunal.
The remedies for a major failure of a consumer guarantee under the ACL have
created a potential inconsistency. Currently a consumer who purchases a defective
vehicle has the option of claiming the Motor Dealers Act statutory warranty remedy or
pursuing a remedy under the ACL. In the case of a ‘major failure’, as defined in the
ACL, a consumer is entitled to reject the vehicle and seek a refund or an identical
replacement, or one of similar value; or keep the vehicle and seek compensation for
the drop in value caused by the problem. Under the Motor Dealers Act the dealer’s
obligation is to repair and make good the defect so as to place the vehicle in a
reasonable condition having regard to its age.
Some elements of the definition of ‘major failure’ are consistent with the Motor
Dealers Act, in the sense that if the vehicle is substantially unfit for its normal
purpose or a specific disclosed purpose, they allow for the dealer to try and remedy
the problem if it can be done easily and within a reasonable time. However, there are
two elements of ‘major failure’ that do not allow a dealer to attempt to remedy the
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Review of regulation and consumer protection in the motor vehicle industry
problem, namely, if a reasonable consumer fully acquainted with the nature and
extent of the failure would not have purchased the vehicle, or if the vehicle is not of
acceptable quality because it is unsafe.
Some stakeholders, including the Motor Vehicle Industry Advisory Council, have
raised concerns regarding the different remedies in the Motor Dealers Act and the
ACL and the warranty against defects notice requirements, which commenced on 1
January 2012. One option to resolve these concerns could be increased guidance
from the regulator (NSW Fair Trading) or additional education for the industry.
• Is it necessary to continue to have specific statutory warranty requirements
in the Motor Dealers Act? Should they only apply to used cars?
• Does the ACL adequately cover all types of vehicles and all conditions
imposed by the current statutory warranty provisions of the Motor Dealers
Act?
• Are there conditions consumers are unaware of or factors not specifically
included in a manufacturers warranty for a new car that could leave
consumers exposed to detriment or without adequate cover?
• Do consumer guarantees and the issue of minor or major defects provide
consumers with appropriate avenues for remedies?
• Would removing the statutory warranty provisions of the Motor Dealers Act
reduce any consumer protection objective under a consolidated Act?
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Review of regulation and consumer protection in the motor vehicle industry
2.3 Motor Dealers Act 1974
The provisions of the Motor Dealers Act have not undergone a comprehensive
review since 2001. This paper seeks the views of stakeholders on what provisions of
the Act need to be updated and included in a combined Act.
Consignment sales
Consignment sales of motor vehicles allow private sellers to sell their vehicles using
a licensed motor dealer to facilitate the transaction. Typically, the owner leaves the
vehicle with the dealer who then markets it to consumers. When a prospective buyer
is found, the dealer undertakes the sales transaction on behalf of the owner and pays
any money earned from the sale to the original owner, less the dealer’s costs and
commission.
Under the Act, vehicles may only be sold on consignment by a licensed dealer.
Consignment sales are subject to additional requirements, including timeframes
regarding accounting to the consignor for the proceeds of a sale, operating a trust
account and specific trust fund auditing and record keeping. Motor dealers found in
breach of these requirements may have their licence suspended or cancelled.
Obtaining vehicles for sale by consignment involves minimal upfront costs for the
dealer, making it a more accessible start up option for dealers who lack the financial
resources to purchase their own stock. However, these dealers also often represent
a higher risk of financial default, as evidenced by the fact that consignment sales
represent the largest category of claims paid out by the Motor Dealers Compensation
Fund. If a dealer selling vehicles on consignment goes into administration or
liquidation, consignors usually face major obstacles in getting their money or vehicles
back, due to seizure by an administrator or liquidator.
While the Act requires a dealer selling on consignment to undertake additional record
keeping and trust account requirements, these are only notified to Fair Trading
annually on renewal.
The regulation of dealers selling vehicles on consignment would need to change to
support the draft objectives provided in section 2.1, of appropriate consumer redress,
increasing the standard of conduct and transparency and to provide efficient and
effective enforcement and prevent dishonest conduct.
There are four suggested options to address the issues relating to consignments
sales:
1. Notification: require notification by a licence applicant upfront if they will sell
vehicle by consignment;
2. Licensing: a separate licence type required in order to sell vehicles on
consignment providing Fair Trading with greater visibility on critical issues;
3. Ban: a ban on dealers selling vehicles on consignment similar to section 36 of
the Victorian Motor Car Traders Act 1986 – however, a ban would restrict
legitimate dealers from using this option and could result in more private sales
of vehicles without the consumer protections of buying through a dealer; and
4. Compensation Fund: requiring any dealer who sells vehicles on consignment
to contribute more money to the compensation fund or an additional bond
held with Fair Trading in the event of the dealer going into administration.
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Review of regulation and consumer protection in the motor vehicle industry
• Would an upfront requirement to notify of an intention to sell on
consignment at the time of application support more proactive monitoring
of this section of the industry?
• Do you support an additional licence type for motor dealers who sell on
consignment? If so please provide any costs or benefits of regulating this
type of licence?
• Do you support a prohibition on dealers selling vehicles on consignment?
• Would requiring dealers who sell on consignment to pay more to the
compensation fund provide additional protection for consumers?
• Are there additional options to ensure Fair Trading can effectively regulate
dealers selling on consignment and lower the consumer detriment of this
type of dealing?
Dealer and Manufacturer business relationship
The Motor Vehicle Industry Advisory Council has raised concerns about what they
see as an unfair relationship between motor dealers and motor vehicle
manufacturers in their franchising agreements. This is based on concerns that the
relationship between dealers and manufacturers is characterised by a power
imbalance to the detriment of small business and ‘mum and dad’ run motor
dealerships.
The Council has submitted a proposal to the Minister for Fair Trading to amend the
Motor Dealers Act 1974 to enable unfair contract term disputes between motor
dealers and manufacturers (under a franchising arrangement) to be heard in the
Consumer, Trader and Tenancy Tribunal. The Council has suggested that the
Tribunal could adjudicate on the fairness or otherwise of franchise contracts and use
its best endeavours to bring the parties to a settlement that is acceptable. The
Council suggests that very few cases would proceed to the Tribunal each year. The
Tribunal already has jurisdiction to deal with disputes relating to unfair contract terms
in standard form consumer contracts under the ACL.
The Council argues that court action is expensive and prohibitive to small business
dealers and mediation through the Commonwealth’s Franchising Code of Conduct
does not typically resolve disputes. The Council claims that low cost action taken
through the Tribunal is the most appropriate place to resolve the disputes between
dealers and manufacturers.
While inserting unfair contract terms type provisions into a consolidated Act is one
option to address these concerns, franchise contracts are already regulated by the
Franchising Code of Conduct, mandated in the Competition and Consumer Act 2010
(Cwth).
The Code regulates the conduct of parties to franchise arrangements and seeks to
ensure that they are sufficiently informed about a franchise before entering into a
contract. The Code also provides a cost-effective dispute resolution scheme for the
parties.
Following a review of the Code, the Federal Government made a number of
amendments to improve its effectiveness, specifically in regard to concerns raised by
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Review of regulation and consumer protection in the motor vehicle industry
various motor dealer stakeholders. The reforms bolster disclosure requirements
including any requirements for significant capital expenditure, payments to third
parties and arrangements that apply at the end of the agreements. The reforms also
provide that nothing in the Code limits any common law obligations of good faith that
applies to the parties to a franchise agreement. These amendments apply to
agreements entered into on or after 1 July 2010.
The recently established Office of the NSW Small Business Commissioner also
potentially has a role to play in this space. The Commissioner’s mandate includes:
• providing a first-stop-shop for small business complaints about unfair market
practices;
• assisting small businesses in their commercial dealings with other
businesses;
• helping small business resolve disputes with other businesses;
• examining complaints by small businesses regarding unfair market practices
and arranging mediation;
• making representations to third parties on behalf of small businesses that
have made a complaint; and
• monitoring and reporting to the Minister for Small Business on any emerging
trends in market practices that have an impact on small businesses.
The Commissioner currently provides low cost dispute resolution services for retail
matters, business to business disputes and business to government disputes. The
Commissioner is intending shortly to seek comment on how dispute resolution
assistance for the small business sector can be enhanced. Submissions made as
part of this consolation, where appropriate and agreed to by contributors, will be
shared with the Small Business Commissioner to inform proposals to enhance the
Commissioner’s dispute resolution services.
• What evidence exists to support introducing unfair contract terms in the
Act?
• What would be the costs and benefits of introducing unfair contract terms
provisions between dealers and manufacturers in a new consolidated Act?
• Where is the most appropriate place for disputes about unfair business to
business market practice between motor dealers and manufacturers to be
resolved?
• Have the amendments to the Franchising Code assisted resolution of
disputes in the motor trade?
• Would there be a significant impact on the Tribunal in dealing with these
cases?
• What competition issues need to be examined?
Odometer tampering
Currently, there are significant penalties that can be imposed on a dealer who
tampers with an odometer. However, the legislation allows legitimate odometer
replacement or alteration, provided there is good reason and only with approval of
the Commissioner for Fair Trading. The maximum penalty for interference with an
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Review of regulation and consumer protection in the motor vehicle industry
odometer is $11,000 and there is a further offence for fitting a device capable of
rendering the odometer inoperative or inaccurate that also attracts an $11,000
penalty. The severity of the penalties applying to odometer tampering recognises the
importance that consumers place on the odometer reading when determining
whether to purchase a vehicle. The odometer reading and age of a vehicle are major
determinants in how consumers and dealers determine price and valuations of
vehicles. A misleading or inaccurate odometer could result in a consumer paying
significantly more for a vehicle than they would otherwise have paid and the vehicle
is worth.
In order to support the aims and objectives of this legislation, including effective
enforcement, consumer protection and conduct and standards of the industry, it is
crucial to ensure that odometer readings can be relied upon and any dealers who
tamper with them are appropriately dealt with.
• Are existing penalties under the Motor Dealers Act for odometer tampering
sufficient?
• Are there other ways of preventing consumer detriment in relation to
odometer offences?
• Should there be an obligation on all dealers to immediately report any
suspicious odometer readings to Fair Trading?
• Does the current approval process to replace or alter odometers work?
Other issues or suggestions for amendment to the Motor Dealers legislation
As part of this review to create a consolidated Act, all aspects of the Motor Dealers
Act are open to stakeholders to comment on. Some additional issues are listed below
to promote further discussion.
Luxury and Commercial Vehicles
Currently not all consumer protections apply to certain types of vehicles such as
luxury and commercial vehicles. Does the legislation need to apply to a greater range
of vehicles? Should consumer protections apply regardless?
Compensation fund
Currently the maximum amount that can be paid out for a claim is $30,000. However,
many vehicles are worth significantly more than that. Any increase must be carefully
measured against the potential number of consumers assisted and the future viability
of the Fund. Is the compensation fund still an effective method of consumer
protection and redress? Are any changes needed to the fund?
Cooling off period
Currently there is a prescribed but waivable one day cooling off period for vehicles
purchased with linked finance. How well does this cooling off period work? How often
is it waived? Are there any changes needed to it?
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Review of regulation and consumer protection in the motor vehicle industry
Online sales
Online sales of vehicles by private sellers and dealers represent an increasing
percentage of the market. Are there any inconsistencies between the legislation,
modern sales methods and consumer preferences?
Car market operators and motor vehicle consultants
A person who provides a site for a market for the sale by other persons of secondhand
motor vehicles, is required to be licensed under the Act as a car market
operator. Among other requirements, car market operators are required to hold a
register of vehicles offered for sale and ensure the vehicle for sale has a current
roadworthy certificate. Do stakeholders have views on the current provisions for car
market operators, including whether they are relevant and necessary? Are there any
other matters particular to car market operators that should be considered?
Under the Act, a person who advises someone who wishes to purchase a vehicle is
required to be licensed as a motor vehicle consultant. Should a person who only
provides advice to someone on the purchase of a vehicle, and is not a party to any
relevant transaction, be required to hold a license? Should they be subject to the
same requirements under the Act that apply to other motor dealers?
Car brokers
A person involved in broking a motor vehicle transaction may not be classified as a
dealer under the Act. In a number of different markets, consumers are increasingly
willing to engage someone to source a particular good or service, including a new or
used motor vehicle. In circumstances where there is a referral fee or other benefit to
a broker, should disclosure to consumers be required? This may enhance consumers
understanding of the true nature and cost of the transaction. Is there a need for
brokers to be regulated under the Act?
Penalties and Offences
The Act has not been reviewed for some time and neither have the various penalty
offence levels – is there scope to introduce penalty infringement notices for certain
additional offences? Are the maximum penalties in the legislation still appropriate for
the offence committed?
Stakeholders should feel free to provide comment on any aspect of the legislation
they think needs amendment or clarification.
• Are there any provisions of the Motor Dealers Act which do not need to be
included in a combined Act?
• What provisions of the Motor Dealers Act need to be included in the new
Act?
• Would the suggested objectives of a new Act require other provisions to be
amended?
• Is there anything else in the legislation that needs further examination as
part of the review?
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Review of regulation and consumer protection in the motor vehicle industry
2.4 Motor Vehicle Repairs Act 1980
While a major aim of this review is to examine ways of combining the Acts to create a
new consolidated Act which would regulate the repair and dealer industries, it is also
examining the provisions of each Act with the aim of modernising and ensuring the
legislation is appropriate and relevant to the industry.
The submissions made to the 2010 review of the Motor Vehicle Repairs Act will
inform this review. However, Fair Trading is also seeking views as to whether any
additional reforms may be required.
Definition of Repair
As part of the 2010 review of the Motor Vehicle Repairs Act, one major aspect, the
definition of ‘repair’, did not receive appropriate consideration or consultation. This
definition effectively establishes the type of work which needs to be licensed or for
which a tradesperson is required to be certified to work under the Act. Currently there
are 16 classes of licence under the Act and 13 classes of work for which a certificate
is needed to work. The Act currently defines:
Repair: “includes examine, detect faults in, adjust, carry out maintenance on,
overhaul, replace, alter and paint.”
Repairer: “means a person who carries on the business of repairing motor vehicles,
but does not include:
(a) a person who does repair work only on motor vehicles owned or used by the
person, or
(b) a person who does repair work on motor vehicles only in the course of his or her
employment with another person”
Repair work: “means work of a class or classes prescribed by the regulations for the
purposes of this definition”.
There are 16 classes of work defined in the Motor Vehicle Repairs Regulation. A list
of these classes and the definition of each is available in the appendix of this paper
(page 33).
The definition is clearly very wide and captures all types of work that could be done
on a vehicle. While the definition is clarified by the 16 classes of repair established
and defined in the Regulation, almost all work a repairer could do would also fit within
these categories. In effect, the definition requires all repair work on a motor vehicle to
be undertaken by the holder of a certificate, regardless of the complexity of the work.
This requirement means that the licensing authority has to deal with participants in
the workforce who do not have the required qualifications for a tradesperson
certificate under any of the 16 classes of repair, but perform only minor low risk work
like changing batteries or even fitting car radios or other accessories.
The Motor Vehicle Repairs Act provides for licences and certificates to be issued with
conditions and restrictions, which allows an individual who does not fully meet
qualification requirements to undertake a limited range of repair work. However, the
reality is that it would not be possible to comprehensively classify every type of motor
vehicle customer service work and nor is there an Australian qualification for every
category of repair work.
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Review of regulation and consumer protection in the motor vehicle industry
Issuing restricted certificates directly affects the effectiveness and transparency of
the licensing system. It makes it very unclear for a tradesperson and a business
licence holder to know what qualifications are needed to be able to work in the
industry. It is also more difficult for the regulator to verify that licensing requirements
are being followed during inspections, as it is not easy to quickly determine that those
tradespersons with a restricted certificate are working within its parameters. From a
consumer point of view, the complexity of a restricted licensing system means that
they cannot clearly determine that the person repairing their car possesses the
qualifications to do the job.
NSW Fair Trading is not suggesting that unqualified people are repairing vehicles.
However, a more transparent system will assist those working in the industry, assist
consumers needing repairs and assist the regulators enforcement of the law.
• How could the definition of repair be amended to clarify what type of work
does not require a tradesperson certificate to do work?
• What are the alternatives to requiring a restricted tradesperson certificate
for minor, low consumer detriment risk work in the repairs industry?
Review of the qualifications for tradesperson certificates
In 2010, Fair Trading commenced a review of the qualifications required for each of
the 16 classes of repair to align them to the national training package for motor
vehicle repairs trades. Fair Trading sought comments from the industry and training
organisations to ensure any proposed qualifications were appropriate for the industry
and covered the appropriate competency requirements. A set of proposed new
qualifications for each of the classes of repair was developed in consultation with
industry and is attached as part of the appendix (page 34).
As consultation on the qualifications progressed it became apparent that
stakeholders were unaware that the potential result of updating the qualifications to
reflect the current training system outcomes would mean that anyone applying for a
tradesperson certificate without an approved qualification would not be able to be
issued with a certificate. This would effectively result in an end to Fair Trading issuing
restricted licences and the inability for anyone to work in the industry unless they
have the appropriate qualification or, at the very least, had commenced a course and
were able to be issued with a provisional certificate.
As such, the proposed new qualification requirements were not implemented until
further consultation could be done on updating the licensing system to ensure
transparency and also ensure those doing low risk work, which requires minimal
qualification or skill, could continue to work in the industry without the full qualification
under a specific class of repair.
New South Wales shares borders with Queensland and Victoria, which do not
regulate motor vehicle repairs. If the NSW requirements to allow people to work in
the industry are too onerous, then NSW businesses on those borders may find it
difficult to obtain staff with a particular qualification and a tradesperson certificate.
This is because repair businesses in neighbouring jurisdictions do not have the same
regulatory requirements and NSW residents who do not hold a tradesperson
certificate are able to work in those adjoining jurisdictions.
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Review of regulation and consumer protection in the motor vehicle industry
Modern Licensing System
The new National Occupational Licensing System (NOLS), being developed as part
of the Council of Australian Governments (COAG) agreement for a seamless national
economy, is establishing a framework for occupational licensing. While this
framework is not finalised, NOLS is expected to commence in 2013. Given that the
Motor Vehicle Repairs Act provides for an occupational licensing system, an
examination of this modern, consistent licensing framework may assist in developing
and implementing a more transparent and simpler licensing system for the motor
vehicle repairs industry.
In 2008, as part of a COAG agreement, the Better Regulation Office (BRO)
commenced a review of the need to continue licensing trades that are licensed solely
in their jurisdiction or only one other jurisdiction. This review included the licensing of
motor vehicle repairers, as only NSW and WA licensed the trade.
In 2009, BRO released its report recommending that the licensing regime of vehicle
repairers be retained. However, it also recommended that the licensing of accessory
fitting, that does not affect the performance, safety or security of the vehicle, be
removed.
This paper provides a further opportunity to review the classes of repair and ensure
they are based on risk and that low risk work, which requires minimal qualification or
skill, would not require a certificate but could be done under supervision by a fully
qualified certified tradesperson.
• Should repair licensing be examined in relation to the occupational
licensing framework currently being developed as part of NOLS?
• Should repair work be permitted if carried out under supervision of a
qualified person?
Australian Consumer Law and consumer guarantees for services
Section 2.2 discussed the ACL and the national system of consumer guarantees for
goods and services which replaced statutory implied conditions and warranties in
consumer transactions. These guarantees apply to all services in New South Wales
(and Australia) and require the supplier to provide the service with due care and skill,
fit for the specified purpose and within a reasonable timeframe. This means the
supplier must use an acceptable level of skill or technical knowledge and take all
necessary care to avoid loss or damage. These consumer guarantees apply
regardless of any other legislation and could replace the need for specific regulation
or a requirement for a person with a trade certificate to do low risk, routine motor
repair work. This issue needs to be examined in the larger discussion about what
classes of repair are needed in the industry in relation to the risk of repair work
resulting in consumer detriment or the serious risk of an unsafe vehicle being
returned to the road.
By way of an example, if an NRMA inspector replaces a battery in a car, there is no
need for them to have a motor mechanic certificate, restricted to replacing batteries,
as the consumer would be protected already by the general protections of the service
guarantees in the ACL. However, more complex vehicle mechanics or auto electrics
would still require the person working on the vehicle to have a certificate.
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Review of regulation and consumer protection in the motor vehicle industry
As discussed above, an alternative would be to allow people to work in the industry
without a certificate on low risk work, provided they were supervised by a person with
qualifications such as a Certificate III in the appropriate class. Work under direct
supervision of a licensee is permitted for all other NSW occupational licensing
schemes including electrical wiring work.
The NSW government is committed to cutting red tape for small business and
carefully examining the licensing and certification system. The intention is to reduce
regulatory burdens where possible and appropriate and not increase licensing,
certification requirements or classes unless the benefits clearly outweigh the costs.
• Do the provisions of the ACL sufficiently cover this type of work?
Certificates and renewal
There are currently more than 121,000 tradesperson certificates registered by Fair
Trading. However, this does not equate with the number of people actually working in
the industry. This is because some tradespeople have multiple certificates in different
classes and also because many would no longer be working in the industry or have
retired but not surrendered their certificate or notified Fair Trading they no longer
require it.
Section 27 of the Act provides for setting the duration for a certificate. However, the
Act sets this duration as perpetual. Without a certificate term, the number of
certificates rises exponentially as does the electronic storage costs for certificates.
This cost is significant especially when considering the records must be kept
indefinitely.
In 2009, as part of the Better Regulation Office review into motor vehicle repair
licensing, the BRO concluded that it was not necessary to introduce a renewal
process for certificates. This review found that any benefits of such a system would
not outweigh the additional burdens on tradespeople, repair business and
Government. However, unfunded activities, such as keeping records indefinitely
without any ability to determine if they are necessary or accurate, are not sustainable
for the NSW Government.
• Should a tradespersons certificate be subject to a renewal process or are
there alternative mechanisms for determining whether people are still
working in the industry?
Licensing and certification classes
In the 2010 review, many stakeholders suggested additional classes of repair that
should be subject to the licensing and certification system. The reasons given for
additional licensing and certification were mostly based on a lack of quality repair
being a serious safety risk. However, stakeholders did not provide sufficient evidence
of this risk or evidence of a widespread problem. Further, the case for changing the
licensing system or adding additional licence or tradesperson certificate classes was
not demonstrated.
Suggested additional classes of repair included: motor vehicle assessors, auto
glazers, vehicle trimmers and separate heavy vehicle classes.
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Review of regulation and consumer protection in the motor vehicle industry
As stated above, the NSW government is committed to cutting red tape for small
business. In determining if any additional classes of repair work should be licensed
under a new Act, a comprehensive cost and benefits test based on evidence of
significant consumer detriment and safety risks is required to show that any benefits
of licensing significantly outweigh the cost imposed on the industry and the
community.
Loss Assessors
In relation to the additional class of repair for loss assessors, this class of repair was
previously licensed. It was deregulated in 1996 as a result of a major Government
red tape reduction review, which saw the then Government deregulate a significant
number of licence types across many industries, including motor vehicle assessors.
Since this time, there have been calls to re-regulate assessors through the Motor
Vehicle Repairs Act. However, two forms of regulations have since been introduced
which now ensure assessors are appropriately qualified before they can work in
NSW:
1. The Motor Vehicle Insurance and Repair Industry Code of Conduct. Under
the Code, insurers are required to ensure that assessors are:
• appropriately trained and have appropriate technical experience; and
• have successfully completed an approved assessors course, or have not
less than five years experience as an insurance (motor) assessor.
2. The Road Transport (Vehicle Registration) Act 1997 and Regulation,
administered by the Minister for Roads, which requires that vehicle assessors
involved in assessing vehicles as a total loss, following any insurance claim,
are appropriately qualified. This means completing an approved course in
vehicle repair assessment provided by an accredited training provider or a
course which covers identified instructions on how to assess vehicles.
The issue of whether assessors need to be re-regulated under the Motor Vehicle
Repairs Act 1980 was also considered recently by the Motor Vehicle Industry
Advisory Council, which recommended that assessors be licensed. One of the
significant concerns with licensing assessors under the Motor Vehicle Repairs Act is
that it would impose a third layer of regulation on assessors currently working in the
industry.
• Are there additional types of repair work that should be licensed under the
Act?
Note: if stakeholders recommend any additional classes of repair, please
provide evidence of the need for licensing and the cost to the community in
terms of safety and consumer detriment
• Are there any classes of repair for which a requirement for licensing is no
longer necessary?
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Review of regulation and consumer protection in the motor vehicle industry
2010 Review of the Act
In 2010, the previous Government commenced a review of the Motor Vehicle Repairs
Act which examined repair classes, red tape reduction, disciplinary and enforcement
provisions, transparency for consumers and traders and minor administrative
improvements. Significant stakeholder consultation took place to ensure industry
views were heard regarding these issues and these submissions will continue to be
taken into account during this review to ensure the new Act is relevant to the
industry.
However, there were several issues raised in the 2010 review on which Fair Trading
is seeking additional submissions in developing a new consolidated Act. These
include:
Mobile licensing
Is it necessary to have a separate licence category for mobile vehicle painters,
mobile motor mechanics and mobile auto electricians? If so why, and what are the
costs and benefits of this approach?
Register of employees
Requiring the licensee of the repair shop to maintain a register of employees and the
tradesperson certificate each employee holds. What are the costs or benefits of this
proposal? Are there other lists of employees the licensee is required to hold? Would
a suitable alternative to having a register be a requirement that Fair Trading
inspectors have the right to compel the licensee to tell them the name and certificate
details of each person working in the shop?
Usual trade standards
Currently the legislation requires all vehicle repair work to meet “usual trade
standards”, with repair work falling below this standard leading to possible
disciplinary action by NSW Fair Trading. Concerns were raised that the term is
vague, leading to subjective interpretations and may contribute to confusion and
uncertainty for both consumers and repairers over exactly what constitutes a
satisfactory standard of repair work. Three options are raised as possible
replacements for the term. Would any of these options assist to avoid the confusion
in the industry about “usual trade standards” and what is acceptable repair work?
1. Basing acceptable work on the requirements of the Motor Vehicle Insurance and
Repair Industry Code of Conduct. That is, restoring the safety, structural
integrity, presentation and utility of the motor vehicle ensuring the age and
condition of the vehicle is taken into account; or
2. Basing acceptable work on the consumer guarantee for service in the Australian
Consumer Law. That is, the service will be provided with due care and skill, fit for
the specified purpose and within a reasonable time (when no time is set). This
means that a supplier must use an acceptable level of skill or technical
knowledge when providing the service and take all necessary care to avoid loss
or damage when providing the service; or
3. A statutory warranty for repairs similar to the motor dealers statutory warranties
provisions for the sale of vehicles. This would require vehicle repairers to
guarantee their repair work for a specific time period and to undertake any
further work or provide a refund if repairs fail. Such a proposal would also be
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Review of regulation and consumer protection in the motor vehicle industry
consistent with the ACL consumer guarantees for services but would indicate a
specific time period unlike the ACL.
Penalties and Offences:
The 2010 review sought stakeholder comment on various disciplinary and
enforcement provisions in the Act and there was general support for tougher
penalties and offence provisions – are there specific offences stakeholders believe
require tougher penalties? Is there scope to introduce penalty infringement notices
for any additional offences? Are the maximum penalties in the legislation still
appropriate for the offence committed?
Other issues or suggestions for amendment to the Motor Vehicle Repairs
legislation
As part of this review, all aspects of the Motor Vehicle Repairs Act 1980 are open to
stakeholders to comment on.
• Is there anything else in the legislation that you feel needs further
examination as part of the review?
• Are there any provisions of the Motor Vehicle Repairs Act which do not
need to be included in the combined Act?
• What provisions of the Motor Vehicle Repairs Act need to be included in the
combined Act?
• Would the suggested objectives of the new Act require other provisions to
be amended?
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Review of regulation and consumer protection in the motor vehicle industry
2.5 Increasing Consumer Protection in the Motor Vehicle Industry
One of the principal objectives of both the Motor Dealers Act and Motor Vehicle
Repairs Act is to provide appropriate and effective protection for consumers buying
or repairing a vehicle. This consumer protection objective would also be central to a
combined Act. Vehicles are a significant consumer purchase and if something goes
wrong the consumer detriment can be significant. Part of this review involves looking
at possible additional consumer protections that could be provided in a new
combined Act that would benefit consumers and outweigh the regulatory costs to
businesses and the community.
A discussion of several potential reforms to make consumer protection more effective
follows.
Rectification Orders and mediation before a Tribunal application
Currently a Fair Trading motor vehicle inspector investigating a consumer complaint
regarding a badly repaired vehicle can negotiate an outcome with the consumer and
trader. Motor vehicle inspectors can make recommendations about the quality of
repair which assist them in negotiating an appropriate outcome for both parties, be it
recommending the trader fix the repair job, or that the customer be more realistic in
their expectations, given the circumstances. However, if a repairer refuses to
negotiate or fix a vehicle which was found to be repaired below trade standard, Fair
Trading can take disciplinary action against the repairer but cannot order redress for
the consumer, who then has the option of making an application to the Consumer,
Trader and Tenancy Tribunal.
A similar dispute resolution procedure is available under the Home Building Act 1989,
administered by Fair Trading. However, building inspectors are also able to issue
rectification orders to fix incomplete or defective work. If either party is dissatisfied
with the outcome, they can take the dispute to the Tribunal for resolution. In addition,
failure to comply with a rectification order may lead to disciplinary action.
The introduction of rectification orders as an option for inspectors to use for motor
vehicle disputes may result in fewer cases in the Tribunal, make consumer protection
and redress more effective and work towards enhanced vehicle safety.
Such a proposal could also be supported by a requirement that the Tribunal should
have the discretion to refer applications to Fair Trading for mediation before hearing
a dispute. This issue was raised in the 2010 review of the Motor Vehicle Repairs Act
and was generally supported by stakeholders.
Fair Trading employs inspectors in this area who are trade qualified and can examine
repair work with the consumer and repairer and attempt to settle the dispute. An
amendment that obliges the parties to engage in mediation facilitated by Fair Trading
could resolve many of the disputes before the need for a Tribunal order. If a
resolution cannot be reached at this stage, the parties would still have the option of
applying to the Tribunal.
Allowing the Tribunal Registrar to reject any application for the determination of a
motor vehicle claim, unless it has first been mediated by Fair Trading, would provide
cost and time benefits for consumers and repairers. It would also reduce the
Tribunal’s case load, reducing delays for other parties.
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Review of regulation and consumer protection in the motor vehicle industry
This proposal would not reduce consumer or small business rights, as if an
agreement could not be reached at mediation, parties would remain free to lodge a
claim with the Tribunal. The Tribunal would also have the discretion to hear a dispute
without the need for Fair Trading mediation, given the individual circumstances.
• Would rectification orders provide a useful additional consumer protection
measure in a consolidated Act?
• Should rectification orders apply to dealers and repairers equally?
• Should the Tribunal only hear disputes after they have been mediated by
Fair Trading?
Suspension of Licence for failure to abide by a Tribunal Order
Currently when a dealer or vehicle repairer fails to comply with a Tribunal order, Fair
Trading is able to take disciplinary action under the legislation which could result in
the Commissioner reprimanding the licensee, requiring the licensee to comply with a
specified requirement, suspending the licence, or in extreme circumstances,
cancelling the licence. However, this process takes time and it does not assist the
consumer in enforcing the decision of the Tribunal. In order to enforce a Tribunal
order, the consumer must use the Local or District Court or the Sheriff’s Office or
return to the Tribunal to vary the order, depending on what the order was for.
An alternative process which could ensure traders quickly comply with Tribunal
orders, is to allow Fair Trading to automatically suspend the licence of the repairer or
dealer if the Tribunal order is not complied with. This additional enforcement option is
used by Fair Trading successfully in administering the Home Building Act and has
been useful in ensuring consumer detriment is kept to a minimum if the Tribunal finds
against the builder.
Introducing the ability to suspend a licence for failing to abide by a Tribunal order
could assist consumer redress, and efficient and effective enforcement and support a
high standard of conduct by the industry.
However, the provision to automatically suspend a licence under the Home Building
Act was introduced after a significant number of builders failed to abide by Tribunal
orders. While there are instances of motor dealer and repair businesses failing to
abide by Tribunal orders, there is no evidence that this is an increasing problem in
the industry, and Fair Trading is able to take disciplinary action which could result in
a licence suspension in the event a business breaches fair trading law.
• Should Fair Trading be able to suspend a licence if a Tribunal order has not
been complied with by the licensee?
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Review of regulation and consumer protection in the motor vehicle industry
Disclosure of material facts
At times, vehicles are sold to unsuspecting consumers with odometers that have
been tampered with, previous hail or flood damage, or that have been written off as
too damaged to repair as part of an insurance claim. The ACL prohibits misleading or
deceptive conduct, however, this may not be adequate in ensuring all motor dealers
actively disclose complete information that is known to them about the vehicle.
Dealers must not mislead consumers about vehicles. The prescribed disclosure form,
placed on a vehicle for sale, must provide certain information such as if the vehicle is
registered on the Personal Property Securities Register (PPSR), stolen and to some
extent registered as a written off vehicle. However, there are no specific
requirements in legislation which make it clear what information a motor dealer
should disclose that may be relevant to a consumer interested in buying the vehicle.
A specific requirement placed in a combined Act that would require a dealer to
disclose to a consumer all material facts known at the time of sale, which may impact
on the consumer’s decision to purchase the vehicle, may assist in preventing
consumers from buying previously damaged cars unwittingly. This could include a
requirement to check the NSW Roads and Maritime Written-off Vehicle Register or
any other register or information set up in the future.
Under the Property, Stock and Business Agents Act 2002 it is an offence for a
property agent to conceal a material fact that is known to them. A provision in a
consolidated Act requiring a dealer to clearly disclose important material facts such
as hail or flood damage, odometer tampering or the fact the vehicle has been
previously written off would provide consumers with important information when
deciding to purchase the vehicle. It would promote a higher standard of conduct for
the industry, enhance transparency for consumers and potentially lead to fewer
complaints being made about the industry.
To clarify what would be considered a material fact and what a dealer would need to
disclose, a short list of the most significant material facts could form part of the
accompanying regulation or could become guidelines issued to all motor dealers to
give them assistance under these disclosure obligations.
• Are current disclosure requirements on prescribed motor vehicle forms
sufficient for consumers to make an informed decision to purchase a
vehicle?
• Would a requirement to disclose material facts to consumers assist in
increasing consumer protection for the most serious defects a vehicle is
likely to have?
Statutory ban on written off vehicles
In 2010, the Road Transport (Vehicle Registration) Act 1997 was amended to prohibit
the re-registration of all written-off vehicles except for certain exempt vehicles that
are able to be repaired to vehicle safety standards. Written-off vehicles can still be
sold but only for parts or scrap. While a major aim of this legislation was to prevent
vehicle rebirthing by rebuilding a repairable write-off vehicle with parts from stolen
vehicles, it was also to provide additional consumer protection by ensuring only
structurally safe vehicles could be registered as roadworthy. The new laws have the
additional consumer protection mechanism of requiring all written-off vehicles to be
listed on a register which is searchable by the public for a fee.
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Review of regulation and consumer protection in the motor vehicle industry
While the legislation does allow certain written-off vehicles to be re-registered, this is
limited to exempted vehicles. Exemptions apply to hail damaged vehicles, inherited
vehicles and vehicles that were registered in the operator’s name for more than 28
days before the incident that caused the damage. These vehicles remain on the
register but are effectively listed as former written-off vehicles. In order to have an
eligible written-off vehicle registered it must be repaired to a high standard, records of
the repair and checks must be maintained and have a certificate of compliance
issued by a licensed repairer under the Motor Vehicle Repairs Act. The vehicle must
also meet NSW Roads and Maritime Service inspection requirements.
Any consumer, repairer or dealer can perform a Roads and Maritime Services
Vehicle History Check on a car they are thinking of buying or selling for a fee of $18.
This will tell them if the vehicle has been written-off in NSW.
• Are there any provisions needed in a consolidated Act to support the
statutory written off vehicles legislation?
• Should dealers be required to provide a vehicle history check, which would
assist with any obligation to disclose material facts, in order to sell a car?
Public register to allow licence checks
Currently there is no public register for a consumer to check if a vehicle repairer or a
motor dealer is licensed. For other legislation administered by Fair Trading a public
register has been established to allow consumers to check to see if a property agent,
or electrician or builder has a current licence. This service assists consumers by
giving them confidence the person they are dealing with is appropriately licensed to
do the work they have asked them to do and would increase transparency and
consumer protection in the industry.
As part of the 2010 review of the Motor Vehicle Repairs Act, this proposal was raised
and received significant support from stakeholders. If the Acts are combined to form
a consolidated Act, this proposal could be implemented for both industries.
• Do you support the creation of a public register which allows consumers to
check that they are dealing with an appropriately licensed motor trader?
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Review of regulation and consumer protection in the motor vehicle industry
Appendix
Consumer guarantees for goods
1. Suppliers and manufacturers guarantee goods are of acceptable quality when
sold to a consumer;
2. A supplier guarantees that goods will be reasonably fit for any purpose the
consumer or supplier specified;
3. Suppliers and manufacturers guarantee that their description of good is accurate;
4. A supplier guarantees that good will match any sample or demonstration model
and any description provided;
5. Suppliers and manufacturers guarantee that the good will satisfy any extra
promises made about them;
6. A supplier guarantees they have the right to sell the goods unless they alerted the
consumer before the sale that they had limited title;
7. A supplier guarantees that no one will try to repossess or take back goods or
prevent the consumer using the goods, except in certain circumstances;
8. A supplier guarantees that goods are free of any hidden securities or charges and
will remain so and;
9. Manufacturers or importers guarantee they will take reasonable steps to provide
spare parts and repair facilities for a reasonable time after purchase.
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Review of regulation and consumer protection in the motor vehicle industry
Classes of repair in the Motor Vehicle Repairs Act 1980
1. Automotive electricians fixed workshops – the work carried out by persons who
repair electrical equipment, systems or circuits in motor vehicles and who work
from fixed workshops.
2. Automotive electricians mobile workshops - the work carried out by persons who
repair electrical equipment, systems or circuits in motor vehicles and who work
from mobile workshops.
3. Body makers - The work carried out by persons who make motor vehicle bodies
otherwise than in the course of manufacturing new motor vehicles or who repair
motor vehicle bodies.
4. Brake mechanics - the work carried out by persons who repair brake equipment
or systems in motor vehicles.
5. Exhaust repairers - the work carried out by persons who repair exhaust systems
on motor vehicles, but does not include persons who repair any mechanical or
electrical system or circuit or any electronic device associated with, or any
component of the engine of, a motor vehicle.
6. Front end specialists - the work carried out by persons who repair the steering or
suspension systems of motor vehicles.
7. Liquefied petroleum gas mechanics - the work carried out by persons who install
or repair pipes, fittings, apparatus or appliances used for, or designed for use in,
the conveyance or consumption of liquefied petroleum gas, in motor vehicles.
8. Motor cycle mechanics - the work carried out by persons who repair the engines
or transmissions or the fuel, induction, exhaust, electrical, steering, suspension,
cooling or braking systems, of motor cycles only.
9. Motor mechanics fixed workshops - the work carried out by persons who repair
the engines or transmissions or the fuel, induction, exhaust, electrical, steering,
suspension, cooling or braking systems, of motor vehicles and who work from
fixed workshops.
10. Motor mechanics mobile workshops - the work carried out by persons who repair
the engines or transmissions or the fuel, induction, exhaust, electrical, steering,
suspension, cooling or braking systems, of motor vehicles and who work from
mobile workshops.
11. Natural gas mechanics - the work carried out by persons who install or repair
pipes, fittings, apparatus or appliances used for, or designed for use in, the
conveyance or consumption of natural gas, in motor vehicles.
12. Panelbeaters - the work carried out by persons who repair the structural
components, frames or panel work of motor vehicles.
13. Radiator repairers - the work carried out by persons who repair the radiators,
heating equipment, thermostats or fuel tanks of motor vehicles.
14. Transmission specialists - the work carried out by persons who repair the gears,
clutches, drive shafts and differentials of motor vehicles and the controlling
systems for those parts in motor vehicles.
15. Vehicle painters fixed workshops - the work carried out by persons who paint
motor vehicles and who work from fixed workshops.
16. Vehicle painters mobile workshops – the work carried out by persons who paint
motor vehicles and who work from mobile workshops.
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Review of regulation and consumer protection in the motor vehicle industry
Repair Classes and Proposed Qualification Requirements
Repair Class Current Qualification Proposed Qualification
AUTOMOTIVE ELECTRICIAN
(a) an automotive electrician who works
from a fixed workshop
(b) an automotive electrician who works
from a mobile workshop
automotive electrician means a person
who repairs electrical equipment, systems
or circuits in motor vehicles.
BODY MAKER
(c) a body maker
body maker means a person who makes
motor vehicle bodies (otherwise than in the
course of manufacturing new motor
vehicles) or who repairs motor vehicle
bodies.
BRAKE MECHANIC
(d) a brake mechanic
brake mechanic means a person who
repairs brake equipment or systems in
motor vehicles.
EXHAUST REPAIRER
(e) an exhaust repairer
exhaust repairer means a person who
Craft Certificate - Certificate issued in terms of the
Industrial & Commercial Training Act, 1989, Part 5
Sec 81, 82, 83
OR
Australian Recognised Trade Certificate
OR
I.A.M.E. membership (Institute of Automotive
Mechanical Engineers), minimum of Associate
grade, together with six (6) years’ experience in
the subject trade
Craft Certificate - Certificate issued in terms of the
Industrial & Commercial Training Act, 1989, Part 5
Sec 81, 82, 83
OR
Australian Recognised Trade Certificate
I.A.M.E. membership (Institute of Automotive
Mechanical Engineers), minimum of Associate
grade, together with six (6) years’ experience in
the subject trade
Successful completion of a formal traineeship
OR
Completion of three years’ experience in the
subject trade. References from employers
AUR30308 – Certificate III in Automotive
Electrical Technology
OR
Craft Certificate issued by the Vocational
Training Tribunal
AUR30805 – Certificate III in Automotive
Vehicle Body (Body Building)
OR
AUM35108 – Certificate III in Automotive
Manufacturing (Bus/Truck/Trailer)
OR
Craft Certificate issued by the Vocational
Training Tribunal
AUR30611 – Certificate III in Automotive
Specialist (Brake)
AUR20705 – Certificate II in Automotive
Mechanical (Exhaust fitting)
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Review of regulation and consumer protection in the motor vehicle industry
repairs exhaust systems on motor vehicles,
but does not include a person who repairs
any mechanical or electrical system or
circuit or any electronic device associated
with, or any component of the engine of, a
motor vehicle.
FRONT END SPECIALIST
(f) a front end specialist
Front end specialist means a person who
repairs the steering or suspension systems
of motor vehicles
LIQUEFIED PETROLEUM GAS
MECHANIC
(g) a liquefied petroleum gas mechanic
Liquefied petroleum gas mechanic
means a person who installs liquefied
petroleum gas equipment in motor vehicles
or who repairs liquefied petroleum gas
equipment in motor vehicles.
MOTOR CYCLE MECHANIC
(h) a motor cycle mechanic
motor cycle mechanic means a person who
performs the work of a motor mechanic
only on motor cycles
MOTOR MECHANIC
(i) a motor mechanic who works from a
fixed workshop
attesting to the applicants skill and knowledge are
required
I.A.M.E. membership (Institute of Automotive
Mechanical Engineers), minimum of Associate
grade, together with five (5) years’ experience in
the subject trade
AUR30605 – Certificate III in Automotive
Specialist (Gas Vehicle)
INCLUDING
AURT304231A Install LPG fuel systems
AURT304266A Repair LPG fuel systems
AURT304270A Service LPG fuel systems
Craft Certificate - Certificate issued in terms of the
Industrial & Commercial Training Act, 1989, Part 5
Sec 81, 82, 83
OR
Australian Recognised Trade Certificate
OR
I.A.M.E. membership (Institute of Automotive
Mechanical Engineers), minimum of Associate
grade, together with six (6) years’ experience in
the subject trade
Craft Certificate - Certificate issued in terms of the
Industrial & Commercial Training Act, 1989, Part 5
Sec 81, 82, 83
AUR30611 – Certificate III in Automotive
Specialist (Steering and Suspension)
AUR30611 – Certificate III in Automotive
Specialist (Gas Vehicle)
INCLUDING
AURT304231A Install LPG fuel systems
AURT304266A Repair LPG fuel systems
AURT304270A Service LPG fuel systems
AURT404284A Diagnose LPG fuel system
faults
AUR30405 – Certificate III in Automotive
Mechanical Technology (Motorcycle)
OR
Craft Certificate issued by the Vocational
Training Tribunal
AUR30405 – Certificate III in Automotive
Mechanical Technology (Light Vehicle)
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Review of regulation and consumer protection in the motor vehicle industry
(j) a motor mechanic who works from a
mobile workshop
motor mechanic means a person who
repairs the engines or transmissions or the
fuel, induction, exhaust, electrical, steering,
suspension, cooling or braking systems of
motor vehicles.
NATURAL GAS MECHANIC
(k) a natural gas mechanic
natural gas mechanic means a person
who installs natural gas equipment in motor
vehicles or who repairs natural gas
equipment in motor vehicles
PANELBEATER
(l) a panel beater
panelbeater means a person who repairs
the structural components, frames or panel
work of motor vehicles
RADIATOR REPAIRER
(m) a radiator repairer
radiator repairer means a person who
OR
Australian Recognised Trade Certificate
OR
I.A.M.E. membership (Institute of Automotive
Mechanical Engineers), minimum of Associate
Member grade, together with six (6) years’
experience in the subject trade
AUR30605 – Certificate III in Automotive
Specialist (Gas Vehicle)
INCLUDING
AURT304331A Install CNG fuel systems
AURT304366A Repair CNG fuel systems
AURT304370A Service CNG fuel systems
Craft Certificate - Certificate issued in terms of the
Industrial & Commercial Training Act, 1989, Part 5
Sec 81, 82, 83
OR
I.A.M.E. membership (Institute of Automotive
Mechanical Engineers), minimum of Associate
grade together with six (6) years’ experience in the
subject trade
OR
Australian Recognised Trade Certificate (Panel
Beater only)
Successful completion of a formal traineeship
OR
Completion of three years’ experience in the
OR
AUR30405 – Certificate III in Automotive
Mechanical Technology (Heavy Vehicle Road
Transport)
OR
Craft Certificate issued by the Vocational
Training Tribunal
AUR30611 – Certificate III in Automotive
Specialist (Gas Vehicle)
INCLUDING
AURT304331A Install CNG fuel systems
AURT304366A Repair CNG fuel systems
AURT304370A Service CNG fuel systems
AURT404384A Diagnose CNG fuel system
faults
AUR30805 – Certificate III in Automotive
Vehicle Body (Panel Beating)
OR
Craft Certificate issued by the Vocational
Training Tribunal
AUR20705 – Certificate II in Automotive
Mechanical (Cooling Systems)
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Review of regulation and consumer protection in the motor vehicle industry
repairs the radiators, heating equipment,
thermostats or fuel tanks of motor vehicles.
TRANSMISSION SPECIALIST
(n) a transmission specialist
transmission specialist means a person
who repairs the gears, clutches, driveshafts
and differentials of motor vehicles and the
controlling systems for those parts in motor
vehicles.
VEHICLE PAINTER
(o) a vehicle painter who works from a fixed
workshop
(p) a vehicle painter who works from a
mobile workshop
vehicle painter means a person who
paints motor vehicles.
subject trade. References from employers
attesting to the applicants skill and knowledge are
required
I.A.M.E. membership (Institute of Automotive
Mechanical Engineers), minimum of Associate
grade, together with five (5) years’ experience in
the subject trade
Craft Certificate - Certificate issued in terms of the
Industrial & Commercial Training Act, 1989, Part 5
Sec 81, 82, 83
OR
I.A.M.E. membership (Institute of Automotive
Mechanical Engineers), minimum of Associate
grade together with six (6) years’ experience in the
subject trade
AUR30611 – Certificate III in Automotive
Specialist (Driveline)
OR
AUR30611 – Certificate III in Automotive
Specialist (Transmission)
AUR30805 – Certificate III in Automotive
Vehicle Body (Vehicle Painting)
OR
Craft Certificate issued by the Vocational
Training Tribunal
37