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.

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These offences relate to your auditor's actions and reports.

OffenceMaximum penalty

Failing to appoint an auditor

$32,260 or 1 year imprisonment

Failing to lodge an audit report within the time limit

$32,260 or 2 years imprisonment

Failing to lodge a final audit on ceasing to be licensee or within 2 months of carrying on business

$32,260 or 2 years imprisonment

Auditor does not immediately file advice of irregularities to the Chief Executive, Office of Fair Trading (OFT)

$32,260 or 1 year imprisonment

Auditor fails to notify the Chief Executive, OFT, when denied access to other records

$32,260 or 1 year imprisonment

Auditor fails to supply a report to the licensee

$32,260 or 1 year imprisonment

These offences relate to the mandatory cooling-off period.

OffenceMaximum penalty

Failing to identify a consignment sale as not being subject to a cooling-off period

$16,130

Failing to keep a copy of a cooling-off period statement

$16,130

Failing to give a prospective buyer a statement about the cooling-off period and statutory warranty in the approved form

$32,260

Failing to give the original statement to the buyer before signing a contract

$32,260

Harassing or coercing a buyer during the cooling-off period

$32,260 or 2 years imprisonment

Failing to return a trade-in or deposit when the buyer cancels the contract within the cooling-off period

$32,260 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.

OffenceMaximum penalty

Obstructing an inspector or failing to produce documents or provide information to an inspector

$32,260 or 1 year imprisonment

Failure to give your name and address to an inspector

$8,065

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

$16,130

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

$32,260

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

$16,130

Substitute licensees

Read about the rules you must follow when appointing a substitute licensee to avoid being fined.

OffenceMaximum penalty

Not having the consent and evidence of appointment at the office

$16,130

Not lodging an extension of appointment for more than 30 days

$32,260

Acting as licensee while a substitute is appointed

$32,260

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

$32,260 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

$32,260 (individual)

$161,300 (corporation)

Being a person in charge at more than 1 place of business

$32,260

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 $32,260

These offences relate to the records you must keep.

Transaction register

OffenceMaximum penalty

Failing to keep a transaction register

$32,260 or 1 year imprisonment

Failing to enter transactions in the register within 24 hours

$32,260 or 1 year imprisonment

Receipts

OffenceMaximum penalty

Not promptly issuing a motor dealer receipt

$1,613

Not keeping a duplicate copy of a motor dealer receipt

$1,613

This penalty is for serious offences.

OffenceMaximum 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

$16,130

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.

OffenceMaximum penalty

Wrongful conversion (or unauthorised use of money) and falsifying accounts

$161,300 or 5 years imprisonment

Unauthorised use of a trust account

$32,260 or 2 years imprisonment

Not banking trust monies immediately into a trust account

$32,260 or 2 years imprisonment

Banking non-trust monies into a trust account

$32,260 or 1 year imprisonment

Not providing a financial account to the client

$32,260 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

$64,520 or 2 years imprisonment

Employing an unlicensed or unregistered person

$32,260 or 2 years imprisonment

Selling, hiring out or lending a licence or registration

$32,260 or 2 years imprisonment

Buying, borrowing or hiring a licence or registration

$32,260 or 2 years imprisonment

These offences relate to breaching your legal responsibilities to provide warnings and disclosures.

Beneficial interest disclosures

OffenceMaximum penalty

Obtaining from the owner an option to buy a used vehicle in which the dealer has a beneficial interest

$32,260 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

$32,260 or 3 years imprisonment

Having a beneficial interest in a sale—other than an option to buy—and charging a commission on that sale

$32,260 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

$32,260 or 3 years imprisonment

Private sales disclosures

OffenceMaximum 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

$64,520

Written-off vehicle disclosures

OffenceMaximum penalty

Not telling the buyer that a vehicle is a written-off vehicle

$32,260

Not asking the buyer to sign an acknowledgement that identifies the used vehicle as a written-off vehicle or statutory write-off

$32,260

Not giving the buyer written acknowledgement of a sale of a repairable/statutory write-off vehicle, and making a copy available to an inspector

$32,260

Dealer and seller statements

OffenceMaximum penalty

Not giving a statement of particulars to the buyer of vehicle

$32,260

Not keeping a copy of seller's statement of particulars

$32,260

Not making a copy of the seller's statement of particulars available to an inspector on request

$32,260

These offences relate to warranties and guarantees.

OffenceMaximum penalty

Not identifying a particular vehicle as being offered for sale without a statutory warranty

$16,130

Not recording the particulars of a warranty period extension

$16,130

Failing to repair defects within 14 days

$32,260

Not guaranteeing clear title (no encumbrances) for a motor vehicle

$32,260

Failing to give a prospective buyer a statement about the statutory warranty and cooling-off period in the approved form $32,260

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.