Approval for private imports of new and near-new cars from Japan and UK from 2018

It’s official: Australians will be allowed to bypass car dealers and directly import new and near-new cars directly from Japan and the UK from 2018, following the end of local car manufacturing in 2017.

The surprise announcement will be made today by the federal minister for Major Projects, Territories and Local Government, Paul Fletcher, as forecast by motoring.com.au yesterday.

In a move aimed at reducing the price of new vehicles, current restrictions will be relaxed to allow individuals to personally import a new car once every two years, providing it is no more than 12 months old and has travelled less than 500km.

In a press release minister Fletcher said the government expected about 30,000 Australians to take advantage of the approval of parallel imports.

“It is true car dealers are not enthusiastic about this change, but we expect the quantity of imports to be modest,” he said.

“Most Australians will continue to purchase cars directly imported by manufacturers and sold through their existing dealership network.”

New imported cars will no longer be required to have a compliance plate, but must be registered on a searchable online database, which the government says will save the industry more than $70 million annually.

Initially at least, imports of new cars will only allowed from the UK and Japan, because they are right-hand drive nations deemed to have similar safety standards to Australia.

New rules will also apply to importing classic and collectible cars, which will be eligible for import to Australia if they are more than 25 years old or on a register of specialist and enthusiast vehicles. Such vehicles will no longer be subject to a $12,000 duty.

Australian Automotive Association chief executive Michael Bradley described the decision as “a big win for consumers” that would increase choice and competition in the Australian automotive market.

“It will also produce environmental and safety benefits because it will encourage faster renewal of Australia’s vehicle fleet,” he said.

“Australia’s private car fleet has an average age of 10 years, which is quite old by global standards and the fact that Australians often pay over the odds for new cars plays no small part in this.”

However, the new-vehicle industry is unlikely to drop its fight against parallel imports, which have been approved less than three months after the Turnbull government rejected the idea.

The parallel import proposal, in which individuals and businesses can import new cars without current Australian Design Rule and Motor Vehicles Standards Act (MVSA) regulatory controls was part of the Competition Policy (Harper) Review.

Under former prime minister Tony Abbott, the government appeared receptive to lifting restrictions on parallel importation, as recommended by the Productivity Commission and broadly supported by the ACCC. Then in late November 2015 it said it had decided against the recommendation.

The Productivity Commission and Harper Review also recommended relaxing restrictions on all used car imports, but the government has decided against that.

Industry groups say only buyers of luxury and sports cars will benefit from cheaper premium models – which are more expensive in Australia than many comparable countries, thanks largely to the 33 per cent luxury car tax for prices over $63,184 — at the expense of dealership jobs.

Official distributors say parallel imports open the floodgates for low-specification, non-ADR compliant vehicles with lower safety standards, leaving customers exposed to safety, warranty, servicing and repair issues.

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In a press release issued overnight, the Minister Fletcher stated: “The law will be changed so that, from 2018, a consumer will be able to personally import a new car or motorcycle from another country with comparable standards to Australia’s, up to once every two years, if specified conditions are met.

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“It states individuals will be limited to importing right-hand drive vehicles that have travelled 500km or less and are less than 12 months old at the time of application.”

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