On 11 January 2024, The Department of the Treasury fulfilled its post-implementation review (PIR) requirements with regard to Strengthening regulatory protection for franchise automotive dealerships.
The PIR requirements were triggered when the Prime Minister granted an exemption from the Impact Analysis (IA) (formerly Regulation Impact Analysis) requirements due to urgent and unforeseen events requiring a decision before an adequate regulatory impact assessment could be undertaken. The measures exempted were:
- Increasing the penalties available under the Franchising Code.
- Transforming the existing voluntary principles into mandatory obligations under the Franchising Code.
- Clarifying the Franchising Code by explicitly recognising that dealers operating as a manufacturer’s agent in relation to new vehicle sales are still protected by the Franchising Code.
These changes follow a package of reforms to the automotive franchising sector enacted by the Australian Government in 2020, which were subject to a Regulation Impact Statement and extensive consultation.