MTAA Makes Submission to the 2023 Franchising Code Review

The Motor Trades Association of Australia (MTAA), on behalf of the State MTAs and Chambers, has made its submission to the Federal Government’s 2023 Franchising Code Review.

Minister for Small Business, The Hon. Julie Collins MP announced a comprehensive review of the Competition and Consumer (Industry Codes – Franchising) Regulation 2014 (Cth) (the Code) on 15 August 2023 and appointed Dr Michael Schaper to lead the review.

The MTAA has collaborated with the State Associations and their Franchise Dealers, including automotive, motorcycle, farm and industrial machinery dealers, as well as the Australian Automotive Dealers Association, Australian Small Business and Family Enterprise Ombudsman and the Australian Chamber of Commerce and Industry to reach best case outcomes for retail automotive franchising.

“The Code Review will evaluate previous franchising reforms and bring several reviews under one umbrella, including statutory reviews of the Franchise Disclosure Register and specific new car dealership protections contained within Part 5 of the Code,” said MTAA CEO Geoff Gwilym.

“The entire Australian franchising system is now under review. As a result, franchisees across the nation are nervous. They require layers of protection. This is especially important for the farm and industrial machinery, motorcycle, truck and mechanical repair franchise sector,” said Gwilym.


The MTAA's key responses to the Franchising Code Review include: 

• Extend the Franchising Code to cover motorcycle, farm machinery, industrial machinery and truck dealers
• Extend the protections offered to dealers under the Franchising Code to franchise automotive aftermarket repairers
• Mandate a service and parts agreement that relates to the motor vehicle dealer agreement that falls within the protective umbrella of the Franchising Code
• Amend the Franchising Code to recognise the right of dealers to compensation for established goodwill
• Dealers should receive a minimum five-year term for their dealer agreements to provide more certainty regarding a return on their investment

The submission is available for download here.