New, Used Imports Key Issues in Oz Vehicle Law Review

Bypassing car dealers and allowing Australians to purchase vehicles online and have them delivered to their homes remains on the table as the Department of Infrastructure opens a review of the Motor Vehicle Standards Act.

An options paper released by the agency says the federal government would need to consider the proposal’s effect on safety, emissions and consumer protection.

It also proposes a relaxation of the Australian Design Rules once local production ends, because compliance with those rules costs importers an average A$229 ($215) a vehicle.

Assistant Minister for Infrastructure Jamie Briggs says the paper is just a first step in reviewing the Act.

“No decision has been taken by the Australian government to reduce these restrictions,” he says in a statement. “Any potential changes to the Act will be comprehensively examined in close consultation with stakeholders, and I strongly encourage interested parties to put forward their views.”

The consultation period ends Oct. 13.

“Given the significant changes in the sector since the Act was last reviewed 14 years ago, the review will seek to ensure we strike the balance between appropriate safety standards, in line with international best practice, and consumer access to vehicles at the lowest possible cost, particularly given the end of vehicle manufacturing in Australia,” Briggs says.

The paper also examines personal importation of new vehicles and other opportunities to lower the average age of Australia’s car fleet while making the market more competitive.

Other topics include repealing the legislation altogether, possibly leaving consumers vulnerable to vehicles that do not meet standards; introducing legislation that tightens vehicle regulations; and having the government create its own regulatory body separate from the Federal Chamber of Automotive Industries.

The paper asks if consumer protection for personally imported new vehicles should be left to consumer laws. It assesses the impact of increased secondhand imports and personally imported new cars on the insurance industry and how the government might conduct safety recalls of vehicles not imported by automakers.

The review will involve a submission process along with public consultations on future options for the Act, and public workshops will be held in major cities.

The Federal Chamber of Automotive Industries reacts cautiously to the review, with CEO Tony Weber saying the industry group is thoroughly reviewing the discussion paper so it can “adequately advise the government of any implications the options proposed may have on Australian consumers.

“We again welcome comments by the government that they have no intention of allowing Australia to become the dumping ground for other countries’ old secondhand vehicles, and we are pleased that the government has articulated that any potential changes to the Act will be comprehensively examined in close consultation with stakeholders,” Weber says in a statement.