Motor Dealers and Chattel Auctioneers Act 2014

Used motor vehicle dealers: Any person or business that acquires used motor vehicles primarily for resale, sells used vehicles on consignment, or provides consultancy services about buying or selling used vehicles must hold a motor dealer licence.

Chattel auctioneers: Any person who sells goods by auction (including motor vehicles, livestock, and other chattels) must hold a chattel auctioneer licence.

Motor salespersons: Natural persons employed by motor dealers to carry out selling activities must be registered as motor salespersons under Part 5.

Consumers purchasing used motor vehicles from dealers: The Act provides consumer protections including disclosure obligations, cooling-off rights for certain transactions, and restrictions on fees and commissions. Consumers who deal with unlicensed dealers have additional remedies.

Trust account beneficiaries: Persons who pay deposits or other transaction monies to a principal licensee become beneficiaries of the trust account. The trust account regime protects their funds.

Financial institutions: Section 4 exempts financial institutions and trustee companies from certain provisions, reflecting that they deal in assets including motor vehicles in a different commercial context.

Licensing requirement (sections 76, 122): A person must not perform the activities of a motor dealer or chattel auctioneer without the appropriate licence. Acting without a licence is a criminal offence.

Registration requirement (Part 5): Motor salespersons must be registered. Unregistered persons may not carry out motor salesperson activities.

Suitability requirements (Part 2, Division 5): An applicant for a licence must be a suitable person. The suitability assessment considers criminal history, financial probity, qualifications, and character. The chief executive may refuse a licence to an unsuitable person.

Close personal supervision (section 8(2)): Persons who carry on business or are in charge of a licensee's business at a place under a motor dealer or chattel auctioneer licence must maintain close personal supervision of the way the business is carried on. This is a core obligation designed to prevent absentee licence arrangements.

Trust accounts (section 191): A principal licensee must keep a trust account under the Administration Act if transaction monies are likely to be received. This obligation applies to deposits and purchase monies but does not apply to amounts paid to the licensee in refund of authorised expenses for which a receipt is held. The exception for del credere agents selling livestock under a del credere agreement recognises the different commercial arrangements in the livestock auction industry.

Disclosure and fees: The Act regulates fees and commissions that may be charged by licensees for particular transactions, and imposes disclosure obligations in connection with vehicle sales.

Record keeping and reporting: Licensees must maintain records of transactions and provide information to the chief executive as required.

Chief executive: May grant, refuse, suspend, or revoke licences and registrations. May impose conditions on licences. May require further information from applicants. Has administrative enforcement powers including issuing compliance notices.

QCAT: Has disciplinary jurisdiction over licensees and registered persons. May cancel, suspend, or impose conditions on a licence. Reviews particular decisions of the chief executive. Is the primary forum for formal disciplinary proceedings.

Courts: May grant injunctions on application by the chief executive under Part 7 (Injunctions and undertakings) to restrain contraventions of the Act. May accept enforceable undertakings from a person who is contravening or likely to contravene the Act.

Minister: May approve educational qualifications required for limited motor dealer licences (section 15) and for motor salesperson registration.

Criminal offences: The Act contains numerous offence provisions with maximum penalties ranging from 100 to 400 penalty units and in some cases up to 3 years imprisonment. Key examples:

• Keeping a trust account in contravention of section 191: 200 penalty units or 2 years imprisonment
• Performing activities without a licence: up to 200 penalty units or 3 years imprisonment (general unlicensed dealing offences)
• Making a false statement: up to 200 penalty units or 3 years imprisonment
• Inducing a person to pay an amount in contravention of the Act: up to 400 penalty units or 2 years imprisonment

QCAT disciplinary action: Disciplinary outcomes may include cancellation, suspension, or imposition of conditions on a licence. These administrative consequences may be more commercially damaging than criminal penalties for most dealers.

Injunctions (Part 7): The chief executive may apply to the court for an injunction restraining a person from engaging in conduct that constitutes or would constitute a contravention. This allows rapid judicial intervention against serious contraventions.

Enforceable undertakings (Part 7): A person who is contravening or likely to contravene the Act may give a written undertaking to the chief executive. Breach of an enforceable undertaking allows the court to order compliance and may result in civil penalties.

Compensation claims: A person who has suffered loss because of a contravention of the Act may make a claim under the Administration Act against the trust account or the Queensland Real Estate Industry Guarantee Fund, depending on the circumstances.

Licence application (Part 2, Division 3): Applicant must be a suitable person. Must provide application showing eligibility, pay applicable fees, and meet criminal history disclosure requirements (including paying criminal history costs). The chief executive must decide the application.

Suitability assessment: Chief executive assesses applicant's criminal history, financial probity, qualifications, and character. May require further information.

Cooling-off rights: For qualifying transactions (as prescribed by regulation), consumers have a right to withdraw from a transaction within a prescribed period without penalty.

QCAT disciplinary proceedings: Initiated by the chief executive on appropriate grounds (such as contravention of the Act, failure to maintain trust accounts, or character grounds). QCAT follows its standard hearing procedures.

Review of decisions: Particular decisions of the chief executive (as listed in the Act) may be reviewed by QCAT. Standard QCAT administrative review procedures apply.

Property Occupations Act 2014 (Administration Act): The trust account obligations in section 191 are supplemented by the requirements of the Administration Act, which sets out the detailed rules for keeping and operating trust accounts in Queensland real estate and related industries.

Transport Operations (Road Use Management) Act 1995: The definition of "motor vehicle" in section 13 of this Act references the TORUM Act definition. This affects the scope of activities that require a motor dealer licence.

Australian Consumer Law (ACL): The Act's consumer protection provisions supplement the Commonwealth ACL. Dealers who engage in misleading or deceptive conduct in connection with vehicle sales may face liability under both this Act and the ACL.

Fair Trading Inspectors Act 2014: Section 5 of this Act addresses the relationship with the Fair Trading Inspectors Act. Inspectors appointed under that Act have powers relevant to the administration of this Act.

QCAT Act 2009: QCAT's jurisdiction under this Act is supplementary to the QCAT Act's general jurisdictional provisions.

Corporations Act 2001 (Cth): Corporate licensees and applicants are subject to the financial probity assessment, which may involve consideration of their corporate history and whether directors have been involved in insolvencies.

A motor dealer licence does not authorise selling by auction. Section 76(3) expressly states that a motor dealer licence does not authorise selling by auction. A dealer who sells vehicles by auction must either hold a chattel auctioneer licence or employ a chattel auctioneer to conduct the auction.

Close personal supervision is a mandatory obligation, not a voluntary standard. Section 8(2) makes the close personal supervision requirement a central object of the Act. Absentee licence arrangements where the licensed person is not actively supervising the business's operation may expose the licensee to disciplinary action.

Trust account obligations attach to transaction monies, not just purchase price. The obligation in section 191 is triggered when "an amount is likely to be received... for a transaction, or with written direction for its use". This is broader than merely holding the purchase price; it includes deposits and other amounts received in connection with transactions.

Del credere agents for livestock are exempt from section 191. The livestock auction industry has a specific exemption for del credere agents who have guaranteed payment to the seller. This reflects the different commercial structure of livestock auctions, where the auctioneer commonly acts as principal rather than agent.

The Act applies only to used motor vehicles for most motor dealer provisions. The Act's motor dealer licensing regime focuses on used vehicle dealing. Persons who deal exclusively in new vehicles may not require a motor dealer licence for those activities, although they may require a licence for ancillary activities or for any used vehicle activities they conduct.

Limited motor dealer licences restrict activities. Section 15 provides for regulations to prescribe limited licences that restrict what activities the licence holder may perform. A person who holds a limited licence and performs activities outside the authorised scope acts without a licence for those activities.

Motor dealer selling used vehicles without a licence: A person regularly acquires used cars at wholesale auctions and resells them to the public without holding a motor dealer licence. This is an offence under the Act carrying up to 200 penalty units or 3 years imprisonment. The chief executive may also seek an injunction under Part 7 to restrain the conduct.

Trust account obligation in practice: A motor dealer receives a $2,000 deposit from a buyer for a used vehicle. The dealer must hold that deposit in a trust account under the Administration Act until the sale is completed or the deposit is refunded. Commingling the deposit with the dealer's own funds is a serious contravention of the trust account provisions.

Chattel auctioneer selling online during auction period: A chattel auctioneer appointed to sell vehicles by auction at a dealer's premises is also permitted under section 122(2) to sell goods by any means during the auction period. This enables online bidding or online-only sales to be conducted by the auctioneer during the advertised auction period, without requiring a separate licence for the online sales.

QCAT disciplinary proceedings: The chief executive brings disciplinary proceedings against a motor dealer who repeatedly failed to account for deposit monies received from buyers, resulting in financial loss to consumers. QCAT may suspend or cancel the dealer's licence as a disciplinary outcome. Any consumers who suffered loss may make claims under the Administration Act.

Motor salesperson registration: An employee of a motor dealer carries out vehicle selling activities including taking deposits, negotiating prices, and completing sale contracts. The employee must be registered as a motor salesperson before performing these activities. If the employee is unregistered, both the employee and the motor dealer may face penalties.