The government has indicated it is likely to support the personal import of new vehicles into Australia – but remains negative to opening up the market to used vehicles.
Assistant minister for infrastructure Jamie Briggs this morning announced the position, following a year of consultation on the Motor Vehicle Standards Act.
“As part of this process the personal importation of new cars has been a key consideration, particularly given the end of light vehicle manufacturing in Australia in 2017–18,” Briggs said in his statement.
“Cabinet has now agreed to consider possible options to reduce restrictions on the personal importation of new vehicles after further public consultation is undertaken,” he explained.
The Australian has indicated ‘new’ will mean vehicles less than a year old, and with up to 4000km on the clock.
The news for those looking to open up the used vehicle importation market was less positive.
“The Australian Government is not inclined to take the same approach with used vehicles.”
Specialist vehicle importation is likely to become more possible.
“We are, however, considering how we can continue to support specialist and enthusiast vehicles to be imported without impacting on road safety,” Briggs said.
“Any potential changes in this area will be focused on ensuring consumers have access to the lowest cost, safest and youngest car fleet possible.”
Red tape will continue to be reduced Briggs says.
“As part of the Review more broadly, the Australian Government will continue to cut unnecessary red tape by accelerating the harmonisation of our vehicle standards with international best practice to ensure we lower costs for business and make Australia more competitive.”
Consultation on plans for imports will be opened up until the end of May before a final decision is made. Details can be found here
Responses to the news have been mixed.
The Federal Chamber of Automotive Industries slammed the decision, calling the opening up of new private imports as ‘irresponsible’.
“Vehicles made for the Australian market are engineered for Australian conditions and safety specifications meant to cope with the Australian climate, roads and lifestyle,” FCAI chief executive Tony Weber says.
“It is very simplistic and misguided to say there is no reason to regulate if you’re now part of a global regime. Only 57 countries are part of the global regime,” he adds. “The cars may look the same on the outside, but there are differences when you lift the bonnet or look deeper into the interconnected systems.”
Weber also points out that motor vehicle brands selling in Australia have to manage a complex logistical process to get a consumer’s vehicle from the factory to their drive-way.
This includes managing the entire border control process, which includes everything from getting the car off the ship, through quarantine and to the consumer safely.
“How can a single consumer be expected to navigate this system confidently without the addition of significant bureaucratic red-tape—which the Government has said time and time again it is determined to reduce,” he notes.
The FCAI called on the government to re-consider the matter by investigating the implications the proposal has on Australian consumers, on border security and quarantine, on automotive dealers, on service and repair networks, on future intelligent transport and communications systems, and on the automotive brands that invest in the tools, training and technicians that are available in this county to service a motor vehicle.
The Australian Imported Motor Vehicle Industry Association said this afternoon in a statement it believes that the minister and the Australian government could go further to achieve the stated goals of increasing competition and improving the safety of the fleet.
While supportive of parallel imports, it backs making the channel available through ‘licensed’ dealers and importers in order to provide consumer protection.
It was disappointed that at this stage there was a ‘no’ to used imports.
“The creation and expansion of a used vehicle importation industry would create opportunity not only for consumers, but Australian entrepreneurs; mitigating the loss of employment and other damages caused by the withdrawal of the vehicle manufacturing companies.”
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