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.
|
These offences relate to your auditor's actions and reports.
Offence
Maximum penalty
Failing to appoint an auditor
$33,380 or 1 year imprisonment
Failing to lodge an audit report within the time limit
$33,380 or 2 years imprisonment
Failing to lodge a final audit on ceasing to be licensee or within 2 months of carrying on business
$33,380 or 2 years imprisonment
Auditor does not immediately file advice of irregularities to the Chief Executive, Office of Fair Trading (OFT)
$33,380 or 1 year imprisonment
Auditor fails to notify the Chief Executive, OFT, when denied access to other records
$33,380 or 1 year imprisonment
Auditor fails to supply a report to the licensee
$33,380 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
$16,690
Failing to keep a copy of a cooling-off period statement
$16,690
Failing to give a prospective buyer a statement about the cooling-off period and statutory warranty in the approved form
$33,380
Failing to give the original statement to the buyer before signing a contract
$33,380
Harassing or coercing a buyer during the cooling-off period
$33,380 or 2 years imprisonment
Failing to return a trade-in or deposit when the buyer cancels the contract within the cooling-off period
$33,380 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
$33,380 or 1 year imprisonment
Failure to give your name and address to an inspector
$8,345
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
$16,690
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
$33,380
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
$16,690
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
$16,690
Not lodging an extension of appointment for more than 30 days
$33,380
Acting as licensee while a substitute is appointed
$33,380
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
$33,380 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
$33,380 (individual)
$166,900 (corporation)
Being a person in charge at more than 1 place of business
$33,380
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
$33,380
These offences relate to the records you must keep.
Transaction register
Offence
Maximum penalty
Failing to keep a transaction register
$33,380 or 1 year imprisonment
Failing to enter transactions in the register within 24 hours
$33,380 or 1 year imprisonment
Receipts
Offence
Maximum penalty
Not promptly issuing a motor dealer receipt
$1,669
Not keeping a duplicate copy of a motor dealer receipt
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
$16,690
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
$166,900 or 5 years imprisonment
Unauthorised use of a trust account
$33,380 or 2 years imprisonment
Not banking trust monies immediately into a trust account
$33,380 or 2 years imprisonment
Banking non-trust monies into a trust account
$33,380 or 1 year imprisonment
Not providing a financial account to the client
$33,380 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
$66,760 or 2 years imprisonment
Employing an unlicensed or unregistered person
$33,380 or 2 years imprisonment
Selling, hiring out or lending a licence or registration
$33,380 or 2 years imprisonment
Buying, borrowing or hiring a licence or registration
$33,380 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
$33,380 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
$33,380 or 3 years imprisonment
Having a beneficial interest in a sale—other than an option to buy—and charging a commission on that sale
$33,380 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
$33,380 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
$66,760
Written-off vehicle disclosures
Offence
Maximum penalty
Not telling the buyer that a vehicle is a written-off vehicle
$33,380
Not asking the buyer to sign an acknowledgement that identifies the used vehicle as a written-off vehicle or statutory write-off
$33,380
Not giving the buyer written acknowledgement of a sale of a repairable/statutory write-off vehicle, and making a copy available to an inspector
$33,380
Dealer and seller statements
Offence
Maximum penalty
Not giving a statement of particulars to the buyer of vehicle
$33,380
Not keeping a copy of seller's statement of particulars
$33,380
Not making a copy of the seller's statement of particulars available to an inspector on request
$33,380
These offences relate to warranties and guarantees.
Offence
Maximum penalty
Not identifying a particular vehicle as being offered for sale without a statutory warranty
$16,690
Not recording the particulars of a warranty period extension
$16,690
Failing to repair defects within 14 days
$33,380
Not guaranteeing clear title (no encumbrances) for a motor vehicle
$33,380
Failing to give a prospective buyer a statement about the statutory warranty and cooling-off period in the approved form
$33,380
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.
