Reducing Motor Vehicle Red Tape

Media Release

JB003/2014

16 January 2014

Today I approved the Terms of Reference for a comprehensive review of the Motor Vehicle Standards Act 1989 with a view to reducing regulatory costs to business and improving road safety.

The Act delivers national vehicle standards for new motor vehicles and regulates the first supply of used imported vehicles to the Australian market.

Having modern and effective streamlined processes is vital for motor vehicle manufacturers and importers whilst ensuring the quality and safety of vehicles for car owners and all road users.

The Act was last reviewed 14 years ago and it's time we looked at modernising its provisions, definitions and linkages with other legislation to improve efficiency and remove unnecessary red tape.

Since the last review there have been significant changes in vehicle technology and the motor vehicle manufacturing industry. We are working to deliver a regulatory system that is in touch with industry best practice, encourages innovation and improves productivity.

The review will identify options to reduce the regulatory burden on business and improve the safety, environmental and anti-theft provisions of the legislation. These options will be assessed in a Regulation Impact Statement and public consultations are expected to commence mid-year.

This is another example of the Australian Government's commitment to remove the burden of excessive red and green tape currently stifling the productive capacity of our economy, and is in addition to the 8,000 unnecessary rules and regulations the Prime Minister has already committed to removing.

Overall, our reform agenda to repeal unnecessary red and green tape is expected to slash the regulatory burden on industry by approximately $1 billion a year.

The full Terms of Reference of the 2014 Review of The Motor Vehicle Standards Act follow.

2014 Review of the Motor Vehicle Standards Act 1989

Terms of Reference

The review is to make recommendations on the most important changes needed for the Motor Vehicle Standards Act 1989 (the Act) and its regulations based on consideration of:

  • Whether the objects of the Act are being achieved, whether they continue to be appropriate and whether the current legislative framework is effective to achieve the objects of the Act.
  • Whether there are opportunities to reduce the regulatory burden on business, and enhance productivity without compromising achievement of the Act's objectives with respect to safety, environmental and security outcomes.
  • Whether the regulatory powers and reporting responsibilities in the Act facilitate effective and proportionate compliance by industry and consumers bringing new and used road vehicles to the Australian market for the first time.

In considering the above questions, the review shall have regard to the stakeholder views expressed in the Public Consultation Report Motor Vehicle Standards Act 1989 (August 2013), identified administrative issues, best practice regulatory principles and outcomes from the Productivity Commission's inquiry into support for the Australian Automotive Manufacturing Industry.

Specific matters to be taken into consideration include, but are not limited to:

  1. the current and future likely structure and operations of the motor vehicle industry;
  2. the needs and requirements of consumers and road users;
  3. the interaction with the state and territory regulatory requirements in relation to vehicles;
  4. the impacts of the aftermarket on the integrity of the Australian Design Rules (ADRs);
  5. Australia's international obligations in implementing standards relating to vehicle safety, emissions and other standards
  6. appropriate risk management arrangements in relation to the development and enforcement of the ADRs;
  7. the trends relating to the current concessional schemes and emerging pressures; and
  8. efficiency of administration of the legislation.