The Federal Government has abandoned plans to introduce a parallel import scheme in Australia, overturning a decision to allow people to import cars from Japan and the UK.
Infrastructure minister Paul Fletcher says the government elected to overturn its decision as consumer and safety concerns were not offset by the "modest benefits of the personal import arrangement".
"After further detailed work on implementation arrangements, the Turnbull Government has decided not to proceed with one element of changes proposed earlier, which would have allowed personal importation of new motor vehicles from the United Kingdom and Japan," he says.
"That work has highlighted the cost and complexity of providing appropriate consumer awareness and protection arrangements, including investigation of each vehicle before it was imported to Australia, ensuring consumers were aware that the manufacturer's warranty may not apply in Australia, and establishing systems to deal with a manufacturer's safety recall.
"It would also have been necessary to ensure that subsequent purchasers of a vehicle, which had been personally imported into Australia as a new vehicle, were aware of this fact - and the consequences of this, such as the manufacturer's warranty not applying."
The move gels with an increased focus on consumer rights within the car industry, which has attracted close attention from the ACCC.
Enthusiasts looking to import a special car will be able to do so under a broadened special vehicle imports scheme allowing for vehicles that meet targets for rarity, performance, efficiency and other measures.
Left-hand drive vehicles not offered in Australia may be imported, though they must also be converted to right-hand drive for safety reasons.
The Federal Chamber of Automotive Industries welcomed the move, which chief executive Tony Weber describes as "a win for consumers".
“The industry has long held the view that personal imports are not in the interest of consumers, nor of the 236,000 people who are either directly or indirectly employed in the Australian motor industry,” he says.
“Australia already has one of the most competitive motor vehicle markets in the world, delivering world quality vehicles and outstanding value for the consumer.
“To allow personal imports would have exposed consumers to enormous risks, which the Government’s own analysis has clearly identified.”
4 Comments
ibast | 2017-08-16 10:00:37
Or, in other words, import motor industry representatives have managed to donate enough to the LNP to prevent private imports. And the government has found a convenient excuse to change it's mind.
Circling Buzzard | 2017-08-16 10:28:11
Not such a bad idea given the hurdles that would have been put in place. We pay higher prices for luxury cars SUVs sports cars etc, but we also get higher prices when we resell.. Despite the howls about how much more we pay for our imported units its very likely that in the final analysis when second hand values are factored in, the difference isn't worth the stress.
Sidney Mincing | 2017-08-16 11:15:09
BS
I hate Tony Weber | 2017-08-16 11:33:13
This is pure protectionism and nothing more. The only people to benefit from this u-turn by the Federal Government are the car dealers with their artificially high forecourt prices and inflated profit margins. Let this be very clear, there is no win for the consumers here. Being a consumer is about having a choice and we have been denied that choice by the overtly strict import restrictions that have been in place for many years. Using the poor excuse of safety issues for a car that is less than a year old and has less than a couple of 100km on the clock is nothing more than a smoke screen to protect the powerful motor industry lobby.The proposed amendments to car import laws would have only allowed one car import every 2 years, so would have had minimal impact on existing sales. Plus if my premium vehicle had a recall it would be cheaper to ship it back to the UK than pay the over inflated prices the premium car dealerships are asking in the first place. Or alternatively ship the cheaper parts from Europe and pay for the work myself. I won't be expecting any changes to the import laws anytime soon, there are just too many vested interests.