MTA NSW Welcomes Strengthening Protection of Unfair Contract Terms

The Motor Traders’ Association of NSW (MTA NSW), an Employers Association representing thousands of automotive businesses in NSW, welcomed an announcement by the Assistant Treasurer, the Hon Stuart Robert, and Small Business Minister, Senator Michaelia Cash, that the Government will further strengthen protection to all small businesses from Unfair Contract Terms (UCTs).

MTA NSW said the review supports most of the recommendations provided by our national body, the Motor Trades Association of Australia (MTAA), on behalf of thousands of automotive businesses including support for MTAA’s call to make UCTs illegal and attaching civil penalties to breaches.

“The Review has recognised MTAA representations on behalf of State and Territory Association members and constituents, that the current UCT regime does not provide strong deterrence and does not afford appropriate protections to many small businesses including some automotive businesses that are not currently covered by UCT provisions,” said MTA NSW CEO, Stavros Yallouridis.

MTA NSW applauds government’s commitment to redefining small business for the purposes of the protections as a business that employs fewer than 100 persons at the time the contract was entered into or had an annual turnover less than $10 million.

”MTA NSW supports the MTAA made strong representations that some automotive businesses such as new car dealers were being disadvantaged by not being able to access the protections afforded by the UCT regime. The proposed changes will go some way to addressing this concern”, he said.

MTA NSW also welcomes government’s commitment to:

  • · Broadening the coverage of small business contracts by removing the value threshold;
  • · Further clarifying the definition for a standard form contract;
  • · Extending the UCT protections to government contracts; and
  • · Considering exempting ‘minimum standards’ prescribed by state and territory laws.

The MTAA will make submissions and actively participate in planned consultation on the Regulatory Impact Statement particularly to ensure any enhanced protections for small business apply to insurance contracts.

/Public Release.