THE HON KRISTY MCBAIN MP

MEMBER FOR EDEN-MONARO

The Albanese Government continues to stand up for local businesses in Eden-Monaro, with the enforcement of the Franchising Code of Conduct to be strengthened, and protections from Unfair Contract Terms and Unfair Trading Practices to be extended to all businesses regulated under the Code.

This includes to automotive dealerships in Eden-Monaro, who have asked for more support and protections when dealing with large multinational car manufacturers.

The Government is committed to a fair playing field in the franchising sector, which employs around 520,000 people nationally, and contributes more than $135 billion to the economy each year.

That is why we will provide $7.1 million over 2 years from 2025-26 to strengthen the Australian Competition and Consumer Commission’s (ACCC) enforcement of the new Franchising Code of Conduct, which comes into effect on 1 April 2025. 

This funding will increase its enforcement actions against those who do not act responsibly, and enhance the ACCC’s engagement and education activities.

The Government will also extend protections from Unfair Contract Terms and Unfair Trading Practices to businesses regulated by the Franchising Code, following consultation.

Franchisees may be vulnerable to Unfair Trading Practices given a franchisor controls key aspects of a franchisee’s business, such as branding, marketing, supply chains and operational processes.

Unfair Contract Terms and Unfair Trading Practice reforms will help address the power imbalance that franchisees may face and improve the fairness of relationships between franchisees and franchisors. 

The extension of these protections will progress alongside other work focused on addressing business power imbalances, including the statutory review of the 2022 amendments to the Unfair Contract Terms regime, due to commence later in 2025, and consultation on extending Unfair Trading Practices protections to small businesses.

These actions build on recent reforms to the franchising sector, as part of the Government’s response to the Independent Review of the Franchising Code of Conduct by Dr Michael Schaper. 

In addition, the Government will prioritise work to count emissions under the New Vehicle Efficiency Standard at the point of sale, rather than when a vehicle is imported to Australia.

Bringing this work forward now, ahead of a fulsome review in 2026, signals the Government’s determination to ensure Australian automotive businesses are not adversely impacted by the business practices of international car companies.

Quotes attributable to Member for Eden-Monaro, Kristy McBain MP:

“Local businesses, particularly small businesses are the backbone of communities in Eden-Monaro, and they shouldn’t have to go up against big businesses with unfair trading practices.

“Our local businesses work hard, they employ and upskill our local people, and they’re critical to our local economy, which is why we’re committed to levelling the playing field.

“Strengthening enforcement of the Franchising Code of Conduct and extending greater protections to all businesses regulated by the Code will not only promote healthy competition, but it will ensure there’s consequences for bad behaviour. 

“This will benefit automotive businesses in Eden-Monaro in particular, who have told me that breaking down power imbalances between franchisors and franchisees – many of which are small businesses, is incredibly important.”