The Australian government has firmly applied the brakes on changes aimed at modernising the motor vehicle industry in Australia and introducing safer cars.
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In November last year, Deputy Prime Minister Michael McCormack had publicly trumpeted the new legislation as "the most important set of changes to the Australian government's regulation of road vehicles in almost three decades".
Mr McCormack described the laws as a commonsense change and "yet another step to help get Australians home sooner and safer, no matter where they live".
However, the federal department which sets the rules for vehicle imports and standards has now advised all key stakeholders "more time is needed to fully understand the end-to-end processes under the new regulatory structure".
The legislation previously had a start date of December 10. No revised timing has been offered.
However, the department has advised that "the government will seek to set a new commencement date in consultation with all affected industry sectors".
Industry insiders say neither the government nor the motor industry was ready for the change, which as part of the new framework would have set up an online, publicly accessible database to speed vehicle compliance.
Millions of dollars in preparation and five years of intense lobbying by the motor industry and private import groups to shape the new framework have come to a grinding halt, and it is the smaller car importers looking to introduce new generation hybrid and electric vehicles not sold by the established brands who will be most affected.
Car importers regarded the legislation as double-edged.
While the changes would save millions of dollars each year on the approval processes to certify and import cars they sold here, they also held fears about losing their ability to block the import of new and used specialist and performance cars from overseas.
Since the loss of volume vehicle manufacturing in Australia, the car import industry has all but lost its ability to lobby the government on policy change.
That power has now shifted across to the Queensland-based national franchised dealer group, which represents a sector employing around 60,000 people and with businesses turning over a combined $60 billion a year.
Easing the restrictions placed on hybrid cars with petrol-electric engine and tiny Japanese-sourced commuter "kei" cars would have delivered thousands of affordable, highly efficient and low-mileage second-hand cars into the Australian market and in doing so, undermined established new car franchises because while it may be badged as a Toyota or a Mazda, it didn't need to be sold through the franchised network.
It also puts a major halt on the import of affordable, second-hand electric vehicles.
The take-up of electric vehicles in Australia is at a slow crawl due to their high cost. The cheapest electric car sold in Australia is the Korean-built Hyundai Ioniq Electric, which costs $44,490.
Of the 1.18 million vehicles sold in Australia last year, just 1352 were electric vehicles, which is one of the lowest take-up rates in the western world.
In April this year, the Australian Automobile Association came out strongly in support of "any vehicle technology that delivers ultra-low fuel consumption (below 2L/100km) and stimulates "market demand by reducing regulatory barriers that inhibit the uptake of such vehicles".