NSW Minister for Better Regulation and Fair Trading, the Hon Anoulack Chanthivong MP, has written to the Australian Automotive Dealer Association advising that these proposed reforms will not be introduced in this regulation “until further consultation has been undertaken on the appropriate transitional arrangements for the automotive industry.”

The move, part of the Motor Dealers and repairers Regulation 2025, has been welcomed by the AADA and the AAAA.

The AADA said it extensively engaged with the NSW government and regulators to emphasise the comprehensive training undertaken by franchised new car dealers and to highlight the significant impact this proposed policy in its current form would have on the industry.

“While the AADA supports ongoing improvements in training in the automotive service and repair industry, any new regulations must be carefully considered and implemented with appropriate arrangements to ensure a smooth transition,” it said.

“The Regulation will still introduce a number of changes put forward in the ‘regulatory impact statement’ that is intended to start on September 1, 2025.”The proposed EV licence class formed part of the draft regulation 2025. While other reforms in the regulation will proceed, the EV licensing changes will now be subject to a separate consultation process led by NSW Fair Trading.

The AAAA said that the delay “means that from September 1, 2025, workshops will continue to safely service and repair EVs and consumers will retain the freedom to choose who services and repairs their EVs.”

The association said that it was “an important win for both industry and motorists, ensuring safety and choice are maintained while the policy is properly reviewed.”AAAA CEO Stuart Charity said the minister’s decision “demonstrates a genuine commitment to evidence-based policy, a willingness to engage, and a practical understanding of how the automotive industry operates.”

“We want to thank Minister Chanthivong for his leadership and his openness to hearing from the people who do this work every day. When governments consult with industry, they get better outcomes, and this decision shows the Minister is prepared to take the time to get this right.

“Workshops put together teams of skilled people, each contributing according to their training and responsibilities. The original proposal from NSW Fair Trading reflected a fundamental misunderstanding of modern workshop operations, wrongly assuming that one technician services an entire vehicle.”

AAAA CEO Stuart Charity

“The proposal would have required every team member to complete extensive EV certification, even if the work is unrelated to the high-voltage system. That’s not safety, that’s bureaucracy for its own sake.”

Key changes that will be introduced in the regulation from September 1 include:

• An online selling framework to permit and regulate online sales of motor vehicles by motor dealers.
• Changes to the motor dealers and repairers compensation fund and introduction of higher claim limits.
• Simplifying record keeping requirements to reduce administrative burdens on licensees.
• Expanding dealer guarantees for trailers and caravans based on the age of vehicles, with a 12- month commencement date.
• Increased penalty infringement notice amounts, and new penalty notice offences to ensure better deterrence and compliance.

By Neil Dowling