Michael Sukkar MP

GOVERNMENT TO EXAMINE MOTOR VEHICLE INSURANCE AND SMASH REPAIR SECTOR

THE HON MICHAEL SUKKAR MP
Assistant Treasurer
Minister for Housing
Minister for Homelessness, Social and Community Housing

MEDIA RELEASE

10 April 2022

GOVERNMENT TO EXAMINE MOTOR VEHICLE INSURANCE AND SMASH REPAIR SECTOR

The Morrison Government will task Treasury to examine whether existing regulatory settings effectively address concerns about commercial conduct in the motor vehicle insurance and smash repair industry.

Currently, commercial conduct in the industry is self-regulated by the voluntary Motor Vehicle Insurance and Repair Industry Code of Conduct. The voluntary code applies to all smash repairers and insurance companies that become signatories and is currently only mandated in New South Wales.

The Motor Trades Association of Australia (MTAA), its State and Territory member associations and the Australian Motor Body Repairers Association have raised concerns about market power imbalances it believes is causing detriment to smash repair businesses and consumers.

The examination will build on several of the Government’s recent investigations into automotive industry markets and resulting regulatory reforms that benefit the automotive sector.

These include the Motor Vehicle Service and Repair Information Sharing Scheme, significant updates to automotive dealership aspects of the Franchising Code of Conduct to strengthen protections for automotive dealers, as well as the recent introduction of legislation to enhance protections against unfair contract terms.

Treasury will provide a report to the Government in the second half of 2022.

Ends

Media contact: Keiran Byrne 0466 922 604