David Blackhall

AUSTRALIA’S peak body representing new-car dealers has this week welcomed the passage of a new-vehicle standards bill through parliament, but cautioned that there was still work to be done to stop grey imports and stem any potential for an influx of cars with Takata airbags.

The Road Vehicle Standards Bill, which is expected to be in place late next year and replaces the Motor Vehicle Standards Act 1989, will allow government to:

• Determine national road vehicle standards for road vehicles and road vehicle components
• Prohibit the importation of road vehicles that do not comply with national road vehicle standards, except in limited circumstances
• Establish a Register of Approved Vehicles, on which road vehicles must be entered before they are introduced to the Australian market
• Establish a framework for the recall of road vehicles and approved road vehicle components
• Provide for criminal offences, civil penalties, injunctions, enforceable undertakings and infringement notices
• Provide for administrative matters, including using computer programs, review of decisions and information sharing and delegations.

The Bill this week passed Parliament after a near five-year review process. The Australian Automotive Dealers Association (AADA) said work can now start on the underlying regulations that will define Australia’s vehicle standards and import regime.

“I congratulate the government and the opposition for the bipartisan approach they have taken in relation to this legislation,” said AADA CEO David Blackhall.

“Following the passage of the Bill, the AADA will now focus on supporting the development of the underlying regulations to make sure that greater numbers of grey imports do not come into Australia.”

Mr Blackhall said that expanding the number of used cars coming into Australia “is not in the public interest and we will be seeking assurances that the Specialist and Enthusiast Vehicle scheme (SEVs) does not allow used-car imports to come in via a backdoor channel”.

“The SEVs offers imported vehicles concessions against national vehicle standards and should be used for vehicles which are truly specialist and enthusiast in nature rather than used mainstream cars,” he said.

“There are real concerns around provenance and safety of imported used vehicles, which have been sharply highlighted recently by the Takata airbag recall.

“The government has already rejected the potential for used-car imports through its responses to the Competition Policy Review and the inquiry into the Future of Australia’s Automotive Industry.”

Mr Blackhall said: “We need to make sure that the way a variant is defined in these regulations does not create an unintended pathway for a volume used-car imports.

“The performance and environmental criteria under the SEVs need to be structured so that truly specialised and enthusiast vehicles enter via this scheme.”

The Australian Imported Motor Vehicle Industry Association (AIMVIA), which has lobbied for grey imports, said the the new legislation “is not the association’s ideal outcome” but believed there were some reasons to celebrate.

In a statement, it said the changes will allow a wider range of specialist and enthusiast vehicles to be independently imported.

“The government has taken steps to ensure that vehicle manufacturers can no longer ‘game the system’ by blocking independent importers but also not genuinely supplying a model to the Australian market,” said the AIMVIA.

“Manufacturers now have three months (down from 18 months) from the time a new model is released overseas to supply it to the Australian market. Failure to do so means that enthusiasts can then apply for the model to become eligible for independent importation.

“The Specialist and Enthusiast Vehicle Scheme, in its current form, will be phased out over the next two years, with a heavily revised SEVs taking its place.

“Crucially, the new scheme allows model variants to be independently imported if they haven’t been sold in Australia by the manufacturer, granting access to a plethora of new vehicles that have never been seen on Australian roads.

“Likewise, eligibility for import means that new models only need to meet one-out-of-six new SEVs criteria rather than the previous two-out-of-four arrangement.”

It said that the result of the changes within the bill “means there are a number of exciting new opportunities for car enthusiasts and the small businesses that supply these vehicles to the Australian market”.

The Federal Chamber of Automotive Industries (FCAI) said the bill was the culmination of many years of work.

FCAI chief executive Tony Weber said the new act “will ensure that Australians have access to new vehicles with state-of-the-art safety technology in a similar timeframe to the rest of the world”.

“We will work with the government in the development of enabling rules to ensure that the Specialist and Enthusiast Vehicle Scheme (SEVs) meets its intent of providing unique vehicles without creating a ‘de-facto’ broad used import vehicle scheme.”

By Neil Dowling

Ford F-250