Thank you to your CEO James Voortman for the invitation to join you for breakfast this morning.
And thank you to all of you for the contribution you make to our nation.
This room represents:
Over 3,800 dealerships.
64,000 jobs - including 7,500 apprenticeships.
Tens of billions of dollars of economic activity.
And behind all of it, people with the aspiration to build a business.
The courage to invest in themselves.
And the countless hours of hard work required to make that investment pay.
Of course, your contribution goes beyond that.
So often, it's the local car dealership sponsoring the footy or netball club, or donating a prize for a charity fundraiser, supporting the local festival.
And just as what you do strengthens both the national economy and your local communities, your Association's work delivers well beyond your membership.
The changes we are working with you to deliver to Australian consumer and competition law not only benefit the thousands of dealerships you represent.
They will mean a better deal for hundreds of thousands of Australian small businesses and franchise holders, in all manner of industries.
And a better deal for consumers, across our country.
This morning is an opportunity to mark the progress we are making with those reforms.
Before I do, I want to address the global context and what it means for the Australian economy.
The war in the Middle East is disrupting supply chains, pushing up fuel prices and adding to pressure on inflation, here and right around the world.
Australians understand this. People are not just reading about this conflict in the news, they are seeing the economic consequences in their daily lives.
Not the least of which is, of course, the interest rate increase decision by the Reserve Bank just yesterday.
And it is obvious, but important to say that the longer this war goes on, the more significant those effects will be.
This is the third major shock to hit the global economy, in this decade, already.
And there will be aftershocks.
Even if this is a relatively short conflict, it will have a long economic tail.
Just as the impact of COVID, followed by the Russian invasion of Ukraine have both had an impact on your industry and on the lives of everyone right around the world.
And of course, here in Australia, we're not immune, in spite of our distance, of these shocks.
That is the scale of the challenge the world is bracing for - and that is the scenario we are preparing for.
This is why we have been working to build our fuel security over the last four years.
And why we are taking new action now:
Empowering the ACCC to protect motorists from unfair price rises.
Boosting fuel supply by releasing 20 per cent of the baseline Minimum Stockholding Obligation for petrol and diesel.
Getting more fuels made in Australia, into the Australian market, by temporarily amending the fuel standards.
And working closely with industry and states and territories to ensure fuel gets where it is needed most, particularly regional communities.
And after this, this morning I'm flying to Tasmania. Tomorrow, from Tasmania, I'll convene the National Cabinet of all the Premiers and Chief Ministers to ensure that the coordination that's occurring right across our country maximises the benefit for business, for farmers, for our communities, in our cities, and in particularly, in our regions.
We want to make sure that we do everything we can to shield the Australian economy, households and businesses from the worst of global uncertainty.
That will be a focus of the Budget - but we won't be waiting until the Budget.
We will have more to say about the actions we are taking in the days ahead.
This new global challenge demonstrates that we must keep building Australia's self-reliance and our economic resilience.
Following on from the COVID pandemic, we spoke about the need for national economic resilience, that we could be impacted by a shock somewhere else in the world.
And we spoke about it being potentially a conflict, as well as health pandemic that had an impact.
And that is something that we've responded to in advance - our fuel reserves aren't in Texas, they're here in Australia.
They're the largest they've been in 15 years, as a result of us making that conscious decision to build them up.
But we've been out doing other things as well:
Boosting skills with Free TAFE.
750,000 young Australians mainly, but others retraining for a future career, with Free TAFE making an enormous difference.
Rebuilding the National Energy Grid.
Producing more clean fuels, here.
Deepening and diversifying our trade ties in our region and in markets where our economic links have been too light for too long - from India and the United Arab Emirates to the European Union.
And investing in a new generation of manufacturing, through our Future Made in Australia agenda.
Because if we are always the last link in the global supply chain, we will always be vulnerable.
And we need to address that, up front.
In the more predictable and more stable world of previous decades, this was less of an issue.
And many of the major economic reforms of the 1980s and 90s were designed to capitalise on that different world.
Opening up our economy through the great reforms championed by Bob Hawke and Paul Keating.
It's a different world now.
We need to acknowledge that, and we need to respond to that.
And my Government is doing that.
At a time of rapid globalisation: trade barriers coming down, new markets opening and exponential growth in the economies of our region in particular.
We cannot wait around hoping for those days to return.
For Australia to compete, succeed and prosper in this decade - we have to upgrade to a new economic model.
We have to build an economy that is more resilient, more self-reliant and geared to our national strengths.
This is about making more things here.
Making the most of our traditional resources, critical minerals, clean energy - and our services, our skills and research, our digital and tech sector.
Areas where we can and often do, lead the world.
That's the way forward for Australia, our own way.
Not trying to compete by copying from other countries.
Backing our people and ourselves to succeed on our terms.
And in many ways, that is the success story the businesses in this room represent.
You service a local community but you are dealing with global supply chains.
And your businesses are on the frontline of economic change:
You have adapted to new safety requirements - and new efficiency standards.
A growing field of new manufacturers.
And continuous change in consumer preferences.
Yet at a time where so many businesses are looking to automate or outsource in the name of efficiency, your greatest strength, your value-add is the direct, personal expertise you offer.
There are plenty of items we buy online, on impulse.
Scrolling Instagram, ad pops up, click through, a few days later the delivery arrives and you wonder what on earth you were thinking.
I cannot imagine doing that with a new car.
Buying a new car remains one of the biggest financial decisions Australians make.
A significant moment in its own right, something you never forget.
And more often than not, it's tied to a significant event in your life.
A couple with a baby on the way, who want a new car to put the child seat in.
Someone finishing their apprenticeship and upgrading to their own ute.
An Australian starting a small business, or expanding their fleet.
Backing themselves, creating jobs and seeing their car as a statement about their service and standards.
When those are the stakes, no-one wants to just tick a box.
We want to kick the tyres.
See the choice on offer.
Go for a test drive.
And talk things through, face to face.
And that is why you are so important.
Yours is a relationship of trust, which is why for many of you, whether you be in local communities in our cities or in our regions, that's a relationship that you have with your local communities.
That is a bit like the relationship that people used to have with their news agent or the post office.
Many of those things have changed over a period of time.
Your relationship with your customers and your communities has not.
And I'd argue that it's been strengthened, because that is something people are looking for.
People are really looking for that people-to-people relationship that can't be replaced by something online.
That needs to be melded with trust and through word of mouth through your communities.
The truth is that none of your businesses would survive if word of mouth undermined your businesses.
If people said, 'well, I got this car and I could have done better', or 'people didn't give us the vehicle and the model that I really needed, and I didn't get the right advice', your businesses wouldn't survive.
Instead, you're here in this room because the opposite happened.
Because word of mouth has said, 'I went to City Ford and the people who served us looked after me. They looked after me and I got the right vehicle for the right price, and the follow up in terms of service was very good. So, why don't you go there?'
That's how your businesses have been built.
That's why you are here in this room.
That's why you continue to employ Australians and to succeed.
And I thank you for it, because your industry is such a fantastic model of successful business and what you represent.
And I can't think of any industry where that is as much the case as it is for yours.
And that's why when James gave us the invite to come and speak with you, I immediately said yes on the spot.
And I'm here because I do want to spread those values that you have to other industries as well.
Because in 2026 with our globalised world, with the uncertainty that is out there that we're all dealing with, what we need is some things to hang on to, some certainties in life.
And supporting small businesses who are connected with their community, who are benefitting our national economy at a time of rapid change as well, and dealing with it, not sitting back just saying, 'oh, this is all to hard. There's all these new entrants coming in,' but 'how do we deal with it? how do we shape change?'
Because if you don't shape change, change shapes you.
Because change does happen.
And there'll be some politicians, some of which have risen up recently in polling, who are essentially appealing to 'vote for us and the world will stop'.
Or worse still, we'll go back to the Australia of the 1950s or '60s, with the same population that looked like that.
That's not going to happen.
That's not going to happen, and it's a fool's errand.
What we need to do is to make sure that we acknowledge that this is a rapid period of change.
We need to make sure that governments work with industry and civil society to shape that change in Australia's national interest.
If we do that, we, the greatest country on Earth, can be even more successful into the future.
I'm certainly of that view.
And that is why we're working so closely with your Association.
The truth is that you know more than any politician, from any shape or form about your industry than we do.
So we need to listen to you and engage with you to make sure that Australian laws deliver a fair value for consumers and a level playing field for dealers.
Because we know that in order to protect consumers from unfair practices, we have to protect dealers as well.
This starts with Unfair Trading Practices.
At the last election we made a commitment to expand unfair trading practice protections to small businesses and traders covered by the Franchising Code of Conduct.
This is about addressing a power imbalance.
Correcting a double standard that the AADA has campaigned strongly against.
And making sure that multinational manufacturers cannot engage in conduct towards dealers that would be illegal if it was directed at consumers.
We gave that commitment - and work is underway to deliver it.
As I'm sure many of you have discovered, Assistant Minister Andrew Leigh is an absolute terrier when it comes to consumer laws and competition policy.
His department in Treasury have commenced the first round of targeted consultation - and will release the public discussion paper in April.
After that, we want to take the next steps in weeks, not months.
And we want any legislation or changes that are required to be done this year.
This will be a win for your advocacy - and a win for your members.
Every bit as importantly it will be a win for small businesses, franchise holders and their customers, across the economy.
When we came to Government in 2022, we outlawed Unfair Contract Terms for small businesses and consumers.
And - for the first time - gave the ACCC and ASIC the power to seek penalties against companies that breached these laws.
Now, we are building on that.
Expanding these small business protections to include all franchise holders registered under the Franchising Code.
The Government has heard directly from many of you about how difficult it can be for a local dealer to negotiate with a global manufacturer.
As a result, too many dealer agreements include:
- unilateral variation clauses,
- excessive audit powers,
- termination rights that sit solely with Original Equipment Manufacturers.
Formal consultation on these reforms is complete.
As we move ahead, we will continue to engage with the AADA and directly with business owners, to get these changes right.
We will take this same co-operative approach, with Supplier Indemnification and Consumer Guarantees.
A dealer should not suffer a financial loss for doing the right thing by their customer.
Yet those are the stories you have shared with us.
Manufacturers delaying approval, denying reimbursements, or trying to claw-back authorised payments.
We want Australians to be able to choose from the broadest possible range of vehicles and manufacturers at the best possible price.
And we want to make it clear to companies new to the Australian market that they also have meet standards around service, not rely on volume alone.
Because if any manufacturers' default position is to reject a franchise holder seeking reimbursement, then that creates a structural issue for the viability of a small business.
Addressing this imbalance is vital to strengthening Consumer Guarantees.
And we will introduce this legislation to Parliament, this year.
Australian consumers want a system that requires dealers to meet their obligations.
We know that depends on manufacturers meeting their obligations to you.
Working together, we will get this balance right.
Just as we will work through your proposal for the New Vehicle Efficiency Standard to calculate the point of compliance at the point of sale.
I understand that you want this to be resolved as soon as possible.
And the review that our Minister for Transport, Catherine King, is leading is about making sure the Australian market remains a level playing field for dealers and consumers.
The reforms you have campaigned for and the commitments we are delivering - are clear, practical and commonsense.
So much so that they seem obvious.
But these issues made it onto the national radar because of your advocacy.
And these solutions are being developed because of your insights and experience.
I lead a government that listens.
That is why my colleagues and I are always looking to engage constructively with business and industry, as well as civil society.
I don't treat this process as set-and-forget, or a box to tick every three years.
I think this is the third contact I've had with your Association in a very short period of time in the last year.
The past four years prove that when we work together, we get results - for your members, for business, for consumers, for the economy.
I look forward to us working together, in the years ahead.
I look forward to coming back here, instead of saying we're introducing legislation this year, coming back here and speaking about the legislation that is carried and the impact that it's having on your businesses.
But importantly as well, this is in the national interest for dealers as well as for consumers.
Thanks very much for having me.
