LEGISLATION that mandates independent repairer access to vehicle service and repair information from OEMs is being introduced into parliament and is expected to come into effect from July 1, 2022.

The move, dubbed “groundbreaking” by the Motor Trades Association of Australia (MTAA) and the Australian Automotive Aftermarket Association (AAAA), is the result of a protracted series of investigations and hearings that included input from the Australian Competition and Consumer Commission’s (ACCC’s) market study into new-car retailing that exposed consumer choice and competition was lagging.

It also fulfils a federal government election commitment to act on the ACCC’s call for a mandatory scheme that would demand OEMs share technical service and repair information with all Australian repairers.

But in response to the clearance for the legislation to go through parliament, the Federal Chamber of Automotive Industries (FCAI) said it supported the intent but questioned the administrative burden of the legislation.

FCAI chief executive Tony Weber said that the new regulations will require car repairers to demonstrate that they are eligible to access the information to each car company individually.

“Instead of supporting the service and repair industry to provide outstanding service to their customers, the legislation creates onerous administrative compliance checks at an annual estimated compliance cost of around $30 million,” he said.

“This is a red-tape nightmare for everyone concerned. Repairers will have to make up to 60 separate annual applications to the car companies and other data providers.

“A simple change to the legislation could have made the process one application to prove eligibility to access information for all Australian car brands.

“Overnight, every car company in Australia will become a separate de facto ‘regulator’.”

The Victorian Automotive Chamber of Commerce (VACC) this week acknowledged the work done by all parties in bringing the legislation towards enactment.

VACC CEO Geoff Gwilym said his organisation thanks its national body, the MTAA, for its strong representation over a long period, along with the AAAA, FCAI, AADA and Australian Automobile Association “which have all worked collaboratively for the good of motorists and the broader industry.”

Federal assistant treasurer Michael Sukkar said: “We need a strong service and repair industry to keep Australia’s 19.8 million vehicles on the road.

“Currently, around one in 10 vehicles taken to repair workshops in Australia are affected by a lack of access to service and repair information.

“In Europe and the US, similar schemes are delivering lower repair and maintenance costs for consumers.”

AAAA CEO Stuart Charity said the ACCC market study “confirmed a market failure requiring government intervention to ensure consumer choice and competition.”

“The AAAA and MTAA advocated solutions to address a clear power imbalance that prevented fair and equitable competition because car manufacturers withheld critical motor vehicle service and repair information,” he said.

“Withholding information created barriers to consumers exercising their right to choose a repairer, and for professional qualified mechanics and repairers, the ability to complete a repair.”

MTAA CEO Richard Dudley said the MTAA and AAAA worked with the government, the treasury department, other portfolios, and other automotive sector organisations “in a decade-long journey of inquiries and a failed industry-led voluntary solution.”

“’MTAA investigated the European Union legislation, analysed the US solution, and with AAAA used our reach into these and other jurisdictions and kindred organisations to help identify potential solutions to a complex issue,” Mr Dudley said.

“However, the introduction of the legislation would not have been possible without the government’s commitment to act on the ACCC’s recommendation and the drive of assistant treasurer Michael Sukkar and his department to make it happen.”

Mr Charity and Mr Dudley said they encouraged all parliamentarians to provide bipartisan support for the passage of the legislation through parliament and its timely enactment.

Mr Gwilym said the move was a big step forward for Australia’s nearly 35,000 automotive service and repair businesses, as well as their over 106,000 employees, and is the result of tireless lobbying and research by peak industry bodies.

“VACC looks forward to the legislation passing through Parliament and the scheme coming into effect from July 1, 2022,” said Mr Gwilym.

Mr Weber said he could not see why car repairers would see it as a good use of their time and resources to prove to each car company separately that they are eligible to receive information.

“A much better cost-effective solution is to establish a single step to assess eligibility,” he said.

The FCAI said that the legislation as drafted places the responsibility on each car company to check a range of information including proof that the repairer is seeking to carry on a service and repair business. In some cases, this process might include police checks.

“If these checks are not performed to a standard that is not fully defined yet, the car companies can face significant fines under the Competition and Consumer Act,” Mr Weber said.

“The legislation in its current form is inefficient, cumbersome, expensive and onerous for all parties.

“Instead of focussing on the customer, this legislation will tie up the car companies and repairers in expensive and time-consuming compliance checks.”

By Neil Dowling