17 June 2021

Car service and repair to become cheaper under Morrison Government reforms

The cost of servicing and repairing a car is set to become cheaper after the Morrison Government passed legislation in the Parliament today.

The reforms will establish a mandatory scheme for car manufacturers to share motor vehicle service and repair information with independent repairers at a fair market price.

Assistant Treasurer Michael Sukkar said this will allow independent repairers access to service and repair data for their customers, making the market more competitive and providing more options for car owners to choose their repairer.

“This is a huge win for car owners. The average household spends more than $1,500 a year on servicing and repairing their car. By levelling the playing field for independent repairers and creating a more competitive market, these reforms will bring down the cost of owning a car,” Minister Sukkar said.

“Currently, independent repairers can lose work when they are not able to access the information they need to repair or service a car, despite being trained to do the job. Under these reforms, consumers will be able to go to a repairer of their choice, without having to worry about whether they have the information to do the job.

“The Morrison Government is backing a stronger Australian automotive service and repair industry to keep 35,000 businesses busy, 106,000 workers in jobs and 19.8 million vehicles on the road.”

The Government is working closely with industry to ensure they are prepared for the commencement of the scheme and will provide a $250,000 grant to a joint industry-led organisation which will provide technical advice and run an online portal to help facilitate the sharing of scheme information between car manufacturers and repairers.

The Government thanks all industry stakeholders, including the Motor Trades Association of Australia, the Australian Automotive Aftermarket Association, the Australian Automobile Association, the Automotive Dealer Association and the Federal Chamber of Automotive Industries for their constructive engagement in developing this scheme. In particular, the MTAA and CEO Richard Dudley have been a driving force behind this reform.

The majority of passenger vehicles on Australian roads will be captured by the scheme when it comes into effect on 1 July 2022.