Motor industry breaches and penalties
On this page you'll find information about the penalties for motor industry-related offences.
These fines are for individuals—corporations could face up to 5 times the maximum penalty.
Use the motor dealers self-assessment checklist to make sure you're meeting your legal obligations.
These offences relate to your auditor's actions and reports.
| Offence | Maximum penalty |
|---|---|
Failing to appoint an auditor | $34,540 or 1 year imprisonment |
Failing to lodge an audit report within the time limit | $34,540 or 2 years imprisonment |
Failing to lodge a final audit on ceasing to be licensee or within 2 months of carrying on business | $34,540 or 2 years imprisonment |
Auditor does not immediately file advice of irregularities to the Chief Executive, Office of Fair Trading (OFT) | $34,540 or 1 year imprisonment |
Auditor fails to notify the Chief Executive, OFT, when denied access to other records | $34,540 or 1 year imprisonment |
Auditor fails to supply a report to the licensee | $34,540 or 1 year imprisonment |
These offences relate to the mandatory cooling-off period.
| Offence | Maximum penalty |
|---|---|
Failing to identify a consignment sale as not being subject to a cooling-off period | $17,270 |
Failing to keep a copy of a cooling-off period statement | $17,270 |
Failing to give a prospective buyer a statement about the cooling-off period and statutory warranty in the approved form | $34,540 |
Failing to give the original statement to the buyer before signing a contract | $34,540 |
Harassing or coercing a buyer during the cooling-off period | $34,540 or 2 years imprisonment |
Failing to return a trade-in or deposit when the buyer cancels the contract within the cooling-off period | $34,540 or 1 year imprisonment |
Inspectors have the legal authority to make sure you don’t break the law. You must follow their lawful directions or risk a fine.
These offences relate to non-compliance with inspectors.
| Offence | Maximum penalty |
|---|---|
Obstructing an inspector or failing to produce documents or provide information to an inspector | $34,540 or 1 year imprisonment |
Failure to give your name and address to an inspector | $8,635 |
These offences relate to your licence or registration.
Change of licence or registration details
| Offence | Maximum penalty |
|---|---|
Failing to advise Office of Fair Trading (OFT) in writing within 14 days about changes to any aspect of your licence or registration, including your personal details | $17,270 |
Producing a licence or registration on request
| Offence | Maximum penalty |
|---|---|
Failing to show an inspector your licence or registration—or a copy of any staff member's licence or registration—on their request | $34,540 |
Failing to show a client or other party (except an inspector) your licence or registration—or a copy of any staff member's licence or registration—on their request | $17,270 |
Substitute licensees
Read about the rules you must follow when appointing a substitute licensee to avoid being fined.
| Offence | Maximum penalty |
|---|---|
Not having the consent and evidence of appointment at the office | $17,270 |
Not lodging an extension of appointment for more than 30 days | $34,540 |
Acting as licensee while a substitute is appointed | $34,540 |
You must not tamper with a vehicle's odometer—including winding it back—with the intention to misrepresent the distance it has travelled as being more or less than the vehicle has actually travelled.
People can be charged with this offence even if they're not motor dealers.
| Offence | Maximum penalty |
|---|---|
Tampering with an odometer | $34,540 or 2 years imprisonment |
These offences relate to your place of business.
| Offence | Maximum penalty |
|---|---|
Not having a licensee in charge of your place of business | $34,540 (individual) $172,700 (corporation) |
Being a person in charge at more than 1 place of business | $34,540 |
| Failing to advise OFT in writing within 14 days if you've changed your principal place of business or opened or closed a place of business | $34,540 |
These offences relate to the records you must keep.
Transaction register
| Offence | Maximum penalty |
|---|---|
Failing to keep a transaction register | $34,540 or 1 year imprisonment |
Failing to enter transactions in the register within 24 hours | $34,540 or 1 year imprisonment |
Receipts
| Offence | Maximum penalty |
|---|---|
Not promptly issuing a motor dealer receipt | $1,727 |
Not keeping a duplicate copy of a motor dealer receipt | $1,727 |
This penalty is for serious offences.
| Offence | Maximum penalty |
|---|---|
If you don't return your licence or registration to the Office of Fair Trading within 14 days after being convicted of a serious offence and having your licence or registration cancelled | $17,270 |
It is in an offence to steal or misuse trust monies. You risk a fine and imprisonment if you break the law.
These offences relate to dealing with trust accounts.
| Offence | Maximum penalty |
|---|---|
Wrongful conversion (or unauthorised use of money) and falsifying accounts | $172,700 or 5 years imprisonment |
Unauthorised use of a trust account | $34,540 or 2 years imprisonment |
Not banking trust monies immediately into a trust account | $34,540 or 2 years imprisonment |
Banking non-trust monies into a trust account | $34,540 or 1 year imprisonment |
Not providing a financial account to the client | $34,540 or 2 years imprisonment |
Unlicensed or unregistered work as a motor dealer is against the law. These penalties relate to unlicensed or unregistered work.
| Offence | Maximum penalty |
|---|---|
Working unlicensed or unregistered | $69,080 or 2 years imprisonment |
| Employing an unlicensed or unregistered person | $34,540 or 2 years imprisonment |
Selling, hiring out or lending a licence or registration | $34,540 or 2 years imprisonment |
Buying, borrowing or hiring a licence or registration | $34,540 or 2 years imprisonment |
These offences relate to breaching your legal responsibilities to provide warnings and disclosures.
Beneficial interest disclosures
| Offence | Maximum penalty |
|---|---|
Obtaining from the owner an option to buy a used vehicle in which the dealer has a beneficial interest | $34,540 or 3 years imprisonment |
Having a beneficial interest in a sale—other than an option to buy—and not obtaining the client's written agreement in the approved form | $34,540 or 3 years imprisonment |
Having a beneficial interest in a sale—other than an option to buy—and charging a commission on that sale | $34,540 or 3 years imprisonment |
Having a beneficial interest in a sale—other than an option to buy—and not acting fairly and honestly when completing the sale | $34,540 or 3 years imprisonment |
Private sales disclosures
| Offence | Maximum penalty |
|---|---|
Not disclosing to a potential buyer or seller that you're a licensed motor dealer or registered salesperson—even if buying or selling privately | $69,080 |
Written-off vehicle disclosures
| Offence | Maximum penalty |
|---|---|
Not telling the buyer that a vehicle is a written-off vehicle | $34,540 |
Not asking the buyer to sign an acknowledgement that identifies the used vehicle as a written-off vehicle or statutory write-off | $34,540 |
Not giving the buyer written acknowledgement of a sale of a repairable/statutory write-off vehicle, and making a copy available to an inspector | $34,540 |
Dealer and seller statements
| Offence | Maximum penalty |
|---|---|
Not giving a statement of particulars to the buyer of vehicle | $34,540 |
Not keeping a copy of seller's statement of particulars | $34,540 |
Not making a copy of the seller's statement of particulars available to an inspector on request | $34,540 |
These offences relate to warranties and guarantees.
| Offence | Maximum penalty |
|---|---|
Not identifying a particular vehicle as being offered for sale without a statutory warranty | $17,270 |
Not recording the particulars of a warranty period extension | $17,270 |
Failing to repair defects within 14 days | $34,540 |
Not guaranteeing clear title (no encumbrances) for a motor vehicle | $34,540 |
| Failing to give a prospective buyer a statement about the statutory warranty and cooling-off period in the approved form | $34,540 |
Enforceable undertakings
An enforceable undertaking is an alternative to court action. It is a legally binding agreement between a business and the Office of Fair Trading that the business won't keep breaking the law.