Motor industry breaches and penalties
Unlicensed work
Unlicensed motor dealing work is against the law.
| Offence | Maximum penalty |
|---|---|
Working unlicensed | $61,920 or 2 years imprisonment |
| Employing an unlicensed person | $30,960 or 2 years imprisonment |
Selling, hiring out or lending a licence | $30,960 or 2 years imprisonment |
Buying, borrowing or hiring a licence | $30,960 or 2 years imprisonment |
Dealing with licences
Serious offences
We will cancel your licence if you’re convicted of a serious offence. You will have 14 days to return your licence to us.
The maximum fine for failing to do so is $15,480.
Change of details
You must advise us in writing within 14 days about any changes to:
- personal details
- circumstances relating to your licence.
The maximum fine for failing to do so is $15,480.
You must also advise us within 14 days if you have:
- changed principal place of business
- opened or closed a place of business.
The maximum fine for failing to do so is $30,960.
Showing a licence on request
| Offence | Maximum penalty |
|---|---|
Not showing an inspector your licence, or a copy of any staff member’s licence, on their request | $30,960 |
Not showing a client or other party (except an inspector) your licence, or a copy of any other staff member's licence, on their request | $15,480 |
Substitute licensee
You must follow the rules when appointing a substitute licensee. If you do not, you risk being fined.
| Offence | Maximum penalty |
|---|---|
Not having the consent and evidence of appointment at the office | $15,480 |
Not lodging extension of appointment substitute licence for more than 30 days | $30,960 |
Acting as licensee while a substitute is appointed | $30,960 |
Person in charge
| Offence | Maximum penalty |
|---|---|
Not having a licensee in charge of place of business | $30,960 (individual) $154,800 (corporation) |
Being a person in charge at more than one place of business | $30,960 |
Transaction register
| Offence | Maximum penalty |
|---|---|
Failing to keep transaction register | $30,960 or 1 year imprisonment |
Failing to enter transactions in register within 24 hours | $30,960 or 1 year imprisonment |
Documentation
You must make sure that you:
- complete all of your documents correctly
- give copies to consumers when the law says you need to.
For example, you must:
- complete a “cooling off period and statutory warranty” form
- give a copy of the form to the client
If you do not, you risk a maximum fine of $30,960.
Cooling-off period and statutory warranty
| Offence | Maximum penalty |
|---|---|
Not identifying a consignment sale as not subject to a cooling-off period | $15,480 |
Failing to keep copy of statement | $15,480 |
Failing to give prospective buyer statement about cooling-off period and statutory warranty in approved form | $30,960 |
Failing to give original of statement to buyer before signing contract | $30,960 |
Harassing or coercing a buyer during cooling-off period | $30,960 or 2 years imprisonment |
Failing to return trade-in or deposit when buyer cancels contract in cooling-off period | $30,960 or 1 year imprisonment |
Not identifying particular vehicles as being offered for sale without statutory warranty | $15,480 |
Not recording particulars of extension of warranty period | $15,480 |
Failing to repair defects within 14 days | $30,960 |
Dealer and seller statements
| Offence | Maximum penalty |
|---|---|
Not giving statement to buyer of vehicle | $30,960 |
Not keeping a copy of seller statement | $30,960 |
Not making a copy of seller statement available to inspector on request | $30,960 |
Written-off vehicles
| Offence | Maximum penalty |
|---|---|
Not telling the buyer that a vehicle is a written-off vehicle | $30,960 |
Not asking the buyer to sign an acknowledgement, that identifies the used vehicle as a written-off vehicle or statutory write-off | $30,960 |
Not giving (after sale of a repairable/statutory write-off vehicle) written acknowledgement to the buyer (and making a copy available to an inspector) | $30,960 |
Clear title
| Offence | Maximum penalty |
|---|---|
Not guaranteeing clear title for a motor vehicle | $30,960 |
Receipt
| Offence | Maximum penalty |
|---|---|
Not promptly issuing a motor dealer receipt | $1,548 |
Not keeping duplicate copy of motor dealer receipt | $1,548 |
Disclosure
Beneficial interest
You must advise the seller of a vehicle if you have a beneficial interest in the sale.
| Offence | Maximum penalty |
|---|---|
Obtaining (from the owner of a used motor vehicle) an option to purchase the vehicle in which the dealer has a beneficial interest. | $30,960 or 3 years imprisonment |
Being beneficially interested in a sale, other than an option to purchase, and not obtaining the client's written agreement in the approved form | $30,960 or 3 years imprisonment |
Being beneficially interested in a sale, other than an option to purchase, and charging commission on that sale | $30,960 or 3 years imprisonment |
Being beneficially interested in a sale, other than an option to purchase, and not acting fairly and honestly when completing the sale | $30,960 or 3 years imprisonment |
Private sales
| Offence | Maximum penalty |
|---|---|
Not disclosing to a potential buyer or seller of a vehicle if you are a licensed motor dealer or registered salesperson (even if buying or selling privately) | $61,920 |
Odometer tampering
Odometer tampering is an offence. You must not wind back an odometer.
You must not tamper with an odometer with the intention to misrepresent the distance the vehicle has travelled. Misrepresentation includes a reading showing that the vehicle has travelled, either:
- less than a specified distance
- more than a specified distance.
The maximum fine for tampering with an odometer is $30,960 or 2 years imprisonment.
You can be charged with this offence even if you are not a motor dealer.
Trust account offences
It is in an offence to steal or misuse trust monies. You risk a fine and imprisonment if you break the law.
| Offence | Maximum penalty |
|---|---|
Wrongful conversion and false accounts | $154,800 or 5 years imprisonment |
Unauthorised use of trust account | $30,960 or 2 years imprisonment |
Trust monies are not banked immediately (to trust account) | $30,960 or 2 years imprisonment |
Non-trust monies are banked to a trust account | $30,960 or 1 year imprisonment |
Licensee does not account to client | $30,960 or 2 years imprisonment |
Audit reports
| Offence | Maximum penalty |
|---|---|
Licensee doesn’t appoint an auditor | $30,960 or 1 year imprisonment |
Licensee doesn’t lodge audit report within time limit | $30,960 or 2 years imprisonment |
Licensee doesn’t lodge final audit on ceasing to be licensee or within 2 months of carrying on business | $30,960 or 2 years imprisonment |
Auditors
| Offence | Maximum penalty |
|---|---|
Auditor does not file advice of irregularities to Chief Executive | $30,960 or 1 year imprisonment |
Auditor fails to notify Chief Executive when denied access to other records | $30,960 or 1 year imprisonment |
Auditor fails to supply report to licensee | $30,960 or 1 year imprisonment |
Inspector's powers
Inspectors have the legal authority to make sure that you don’t break the law. You must follow their lawful directions, or you risk a fine.
| Offence | Maximum penalty |
|---|---|
Obstructing an inspector or failing to produce documents or provide information to an inspector | $30,960 or 1 year imprisonment |
Failure to give name and address to an inspector | $7,740 |
Enforceable undertaking
An enforceable undertaking is:
- a written promise by a business not to keep breaking the law
- an alternative to court action.
Find out more about enforceable undertakings