Motor Vehicle Dealers Act 1973

The Act defines a limited and technical vocabulary. The primary regulated entity is a dealer, defined broadly to include persons carrying on prescribed classes or descriptions of business of buying or selling vehicles (s 5(1)). Regulations may prescribe different classes of business and categories of dealer’s licence, including auctions and wreckers (s 5A). Two de facto rules expand scope: a person who advertises or represents that they carry on buying or selling is taken to be a dealer, and a person who sells or exchanges four or more vehicles in any 12‑month period to non‑dealers is taken to be a dealer unless they prove otherwise (s 5B). Financiers and car hire operators are specifically defined and may be treated as dealers for some purposes (s 5(1)).

Authorisation is the collective term for licences and registration: dealer’s licence, yard manager’s licence, salesperson’s licence and registration as a car market operator (s 5(1)). Authorised premises are premises specified in a dealer’s licence or temporary permit (s 5(1) and ss 20E, 20H), or premises included in a car market operator’s registration (s 5(1) and s 21A). The Act treats certain functions and positions separately: yard managers and salespersons must hold licences (ss 16, 17, 31A, 31B) and dealers may be firms or bodies corporate, with special approval pathways and notification duties for changes in management (ss 15, 23). Registration as a car market operator (s 17B) is distinct from a dealer’s licence and the Act prohibits simultaneous holding of both (s 17D).

Second‑hand vehicle is defined for Part III purposes to mean a vehicle that has at any time been licensed or registered before being offered or exposed for sale (s 5(1a)). The Act further distinguishes vehicle for different parts of the Act: ss 25-29 and related provisions use a broader definition (s 5(2)), while elsewhere (s 5(3)) the Act limits “vehicle” to passenger cars, derivatives, motor cycles, campervans and other prescribed types.

Consignment agreements and trust accounts form a discrete set of rules in Division 2 of Part III (ss 32A-32P). A consignment agreement is an agreement by a dealer to sell a vehicle for a consignor and to pay proceeds after agreed deductions (s 32A). Dealers selling under consignment must hold a prescribed trust account (s 32C), deposit proceeds by the next business day (s 32D), limit withdrawals without Commissioner approval (s 32E), keep detailed records and submit to audits (ss 32H-32I), and are subject to SAT powers to restrain banks from dealing with accounts where deficiencies are shown (s 32K).

Defect and unroadworthiness concepts drive repair obligations and inspection powers. An inspecting officer may attach an order specifying defects and require remedial action or surrender of number plates (s 28). Dealers must not sell a vehicle in respect of which an order remains in force, unless it is being broken up (s 29). Dealers’ post‑sale repair obligations apply to vehicles meeting price, age and distance thresholds (ss 34A-34F) but exclude certain defects disclosed in prescribed notices (s 35).

Administrative enforcement concepts: the Commissioner may allege non‑compliance to SAT (s 20) and SAT can make disqualification, penalty, condition and other orders (s 20A). SAT has powers to suspend authorisations for non‑compliance (s 20C). The Act creates a register of authorisations (s 24) and provides for review rights to SAT against specified Commissioner decisions (s 22). Investigation powers and confidentiality are provided via the Fair Trading Act, which applies to this Act (s 6, s 50).

The statute’s principal regulated parties and those who bear the compliance costs are dealers (natural persons, firms or bodies corporate), yard managers, salespersons and car market operators. Dealers must obtain and maintain a licence under s 15 and must list the authorised premises in the licence application (s 20E). Yard managers and salespersons must hold licences under ss 16 and 17 (and ss 31A-31B make unauthorised acting an offence). Car market operators must register under s 17B and authorise premises under s 21A; registration and licensing are mutually exclusive (s 17D).

Financiers and car hire operators are defined separately (s 5) and may be granted exemptions (s 31) where, for example, buying and selling is not a significant part of their business. However, the Act also deems a dealer to have sold a vehicle to a third‑party buyer if the dealer sold it to a financier expecting resale (s 5(6)), which allocates consequential obligations back to the original dealer in some cases.

Buyers and consignors are affected through disclosure and remedial rights. Purchasers of second‑hand vehicles have access to statutory implied conditions and rights (s 46), the right to have disputes determined by the Commissioner or Magistrates Court (ss 36-38), and may recover sums if they paid for defective repairs (s 37(2a)). Consignors are protected by trust account rules requiring dealers to hold proceeds in trust and to make timely payments (ss 32C-32G), and may benefit from SAT or Treasurer schemes when trust accounts are restrained (ss 32K-32N).

Other affected parties include financial institutions that hold dealer trust accounts. Financial institutions have constrained rights to set off against trust account balances (s 32F(2)) and are insulated from liability for a dealer’s non‑compliance with trust account rules (s 32F(1)). Personal representatives of deceased dealers and the Treasurer also appear as possible parties in SAT orders concerning trust accounts (ss 32L, 32N). Directors and officers of corporate dealers carry liability if the corporation is convicted and they authorised or permitted the offence (s 55).

Who decides: the Commissioner (as defined by the Fair Trading Act, s 5(1)) exercises licensing, registration, condition‑attachment and investigation powers (ss 15-19, 20, 18A). The State Administrative Tribunal hears allegations made by the Commissioner and can make a range of orders including disqualification and monetary penalties (ss 20, 20A). Criminal and civil enforcement proceeds through Magistrates Court and courts of competent jurisdiction for offences and rescission orders (ss 38, 41A). Police and authorised officers have inspection powers (s 27) and can issue infringement notices through designated officials under s 55A.

Thresholds and segmentation matter. Repair obligations apply only to second‑hand vehicles sold to non‑trade owners if the cash price and age/km thresholds in s 34A are met. The Act also sets thresholds for the magnitude of SAT monetary orders (s 20A(4)) and the maximum modified penalty under the infringement regime (s 55A(5)). These thresholds determine which participants face more stringent obligations and what processes or remedies become available.

Licensing and registration duties: persons carrying on prescribed classes of buying/selling business must hold a dealer’s licence (s 15). Yard managers and salespersons must hold the relevant licences before acting (ss 16-17, 31A-31B) and dealers must not employ persons if that employment would result in breaches of those sections (s 31C). Car market operators must be registered and premises authorised (ss 17B, 21A, 31D).

Authorised premises and display obligations: a dealer’s licence must specify authorised premises and the Commissioner will authorise carrying on business at premises included in an application (s 20E). The Commissioner issues certificates for authorised premises and the licence holder must display them conspicuously (s 20G; s 21C for car market operators). Dealers and car market operators must display their business name and licence/registration number on premises and in advertisements (ss 21, 21D). The Act explicitly states that such authorisation does not affect planning laws (ss 20FA, 21BA).

Record‑keeping and notification duties: every dealer (other than financiers/car hire operators in limited cases) must keep a prescribed register at authorised premises recording prescribed particulars of transactions (s 25(1)). Car market operators must similarly keep a register for each authorised premises (s 25(2a)). Dealers must notify vehicle licensing authorities about acquisitions or sales of second‑hand vehicles and return plates where required (s 26). Registers must be produced on demand to authorised officers and police (s 25(2), (2b)).

Consignment and trust‑account duties: dealers accepting vehicles under consignments must use written consignment agreements with prescribed particulars and immediately supply a copy to the consignor (s 32B). Dealers selling under consignment must have a trust account at a prescribed financial institution (s 32C) into which sale proceeds (and the cash equivalent of trade‑ins) are paid not later than the next business day (s 32D). Withdrawals are limited to specified authorised payments (s 32E). Dealers must keep full accounts and records capable of audit and usually must have trust accounts audited by a registered company auditor (ss 32H-32I). The Commissioner may order special audits (s 32J) and may seek SAT restraining orders to prevent banks dealing with accounts (s 32K).

Duty to repair certain defects and disclosure: dealers selling qualifying second‑hand vehicles must repair defects for which they are responsible to make the vehicle roadworthy and in reasonable condition (ss 34, 34B). Repair windows differ by vehicle type, age and kilometres (ss 34A-34D). Dealers must display prescribed particulars on any second‑hand vehicle offered or exposed for sale, including odometer reading, cash price and registration/manufacture years (s 33). Where a dealer discloses a defect in a prescribed notice and the purchaser signs the notice before sale, that defect is excluded from the dealer repair obligation (s 35).

Inspection, defect orders and sale prohibition: authorised officers and police may inspect second‑hand vehicles at authorised premises and, if defects are found, can issue written orders requiring repair or surrender of number plates (s 28). A notice of the order must be attached to the vehicle and while the order is in force sale is prohibited (s 28(3), s 29(1)). A person must not wilfully remove or damage such a notice (s 28(11)).

Enforcement, review and dispute resolution: the Commissioner may intervene in disputes between purchasers and dealers and determine them or appoint a person to do so (ss 36-37). The Commissioner may make allegations to SAT alleging contraventions or unfitness and SAT may impose disqualification, conditions, reprimands and, within limits, penalties (ss 20, 20A). SAT may also order freezing of accounts and restrain banks (ss 32K-32N). A dealer, and other aggrieved persons, have internal review rights to SAT against reviewable decisions of the Commissioner (s 22). Determinations under s 37 are final and conclusive save for limited review by SAT where the amount exceeds prescribed monetary thresholds (s 37B).

Protections and procedural provisions: rights conferred by the Act cannot be waived without prior Commissioner consent (s 48). The Fair Trading Act’s investigation (s 6) and confidentiality (s 50) provisions apply. Corporate and officer liability are explicit: a corporation’s directors or officers who authorise or permit offences are themselves guilty (s 55). The Act permits infringement notices for prescribed offences, with a modified penalty capped at 20% of the maximum court fine for that offence (s 55A(5)).

The Act specifies a mix of criminal penalties, daily penalties, administrative orders and civil enforcement mechanisms. Key monetary penalties under the Act include large maximum fines for unlicensed dealing and car market operation without registration: unlicensed dealing may attract a maximum penalty of $50,000 and a daily penalty of $1,000 (s 30(1)); operating as an unregistered car market operator carries the same maximum (s 31D(1)). Other offences carry fixed maxima: for example, failing to keep a required register or producing it on demand is penalised at $5,000 (s 25), failing to display prescribed particulars on a vehicle is $2,000 (s 33(1)), and presenting false or misleading statements on those notices is $5,000 (s 33(4)). Odometer alteration attracts a maximum $50,000 penalty for paragraph (a) in s 45(1); other dishonest representation offences under s 45(1) are penalised up to $5,000. Failing to return or display issued certificates (s 22A) or to display certificates for premises (ss 20G, 21C) attract smaller penalties ($1,500).

Administrative enforcement: SAT’s orders under s 20A can disqualify persons from holding authorisations (s 20A(2)), attach conditions (s 20A(5)), reprimand or caution (s 20A(6)) and impose monetary penalties not exceeding $1,500 for yard managers/salespersons and $5,000 for dealers/car market operators (s 20A(4)). Section 20B limits concurrent exercise of SAT’s monetary powers and a court’s criminal penalty powers for the substantially same conduct. SAT can suspend authorisations for non‑compliance (s 20C) and may, on application, restrain financial institutions from dealing with trust accounts where the Commissioner shows reasonable grounds of deficiency or wrongful withholding (s 32K). SAT may further direct funds to the Treasurer for distribution under a scheme where appropriate (s 32N).

Criminal and civil enforcement routes exist in parallel. Police and authorised officers may exercise inspection powers (s 27) and issue infringement notices under the infringement regime implemented by s 55A. Infringement notices may specify a modified penalty, up to 20% of the maximum court fine for the prescribed offence (s 55A(5)). Payment of a modified penalty prevents prosecution to the same extent as a conviction (s 55A(10)). Courts retain the power to impose criminal fines and to order recoupments: for example, where a dealer is convicted and a court is satisfied another person was defrauded or suffered pecuniary loss, the court may order payment to compensate that person (s 52(3)). Orders made by the Commissioner under s 37 may be enforced by filing them in the Magistrates Court, where they are deemed to be judgments and enforceable as such (s 37A(3)).

Liability may extend beyond the individual who commits the offence. Yard managers and dealers may be convicted for offences committed by others at authorised premises unless they prove lack of knowledge and that due diligence could not have prevented the offence (ss 53-54). Corporate liability extends to officers who authorised or permitted the offence (s 55). In matters involving trust accounts, SAT can involve the Treasurer and direct distribution schemes for compensating victims (ss 32N-32O).

Procedural protections: where the Commissioner contemplates an adverse licensing decision he must give the applicant an opportunity to provide additional information (s 18(1A)). When the Commissioner attaches or varies conditions on licences, the decision cannot take effect before notice and an opportunity to make submissions (s 18A(3)-(4)), except where the Commissioner determines otherwise for the removal of a condition (s 18A(5)).

The Act is designed to operate in a statutory ecosystem and repeatedly cross‑references other written laws. Investigation powers and confidentiality are not stand‑alone; the Act incorporates provisions of the Fair Trading Act 2010. Section 6 makes the Fair Trading Act s 61 and Part 6 applicable to this Act, and s 50 brings in the Fair Trading Act s 112 confidentiality protection for information obtained under the Act. The Commissioner referenced throughout is the Commissioner defined in the Fair Trading Act (s 5(1)).

Vehicle definitions and dealings interact with road traffic legislation. Section 5(2) adopts the definition of motor vehicle from the Road Traffic (Administration) Act 2008 s 4 for specified parts of the Act, and s 28A explicitly links surrender of number plates to surrendering licences granted under the Road Traffic (Vehicles) Act 2012. Dealers have notification obligations to the authority that licensed or registered the vehicle (s 26), and s 28A records that surrendering plates under s 28(2)(b)(ii) surrenders the vehicle licence.

Commercial security and insolvency regimes are invoked. The Act defines security interest with reference to the Personal Property Securities Act 2009 (s 32A). The trust account rules limit a financial institution’s recourse against trust balances (s 32F(2)) and give the Treasurer power to receive and distribute funds where SAT directs moneys be paid to the Treasurer (s 32N). The Act also preserves interplay with the Hire‑Purchase Act 1959 when defining financiers and hire‑purchase agreements (s 5).

Administrative law interplay is explicit: many decisions of the Commissioner are reviewable by SAT (s 22). SAT’s powers are exercised within the State Administrative Tribunal Act 2004 framework, and the Act includes specific procedural limits and deference (for example s 20C cross‑references SAT Act powers). Determinations by the Commissioner under s 37 are final and conclusive except where SAT review is available for amounts above the prescribed threshold (s 37B), and enforcement of orders uses the Magistrates Court system with Limitation Act 2005 applied to s 37 orders (s 37A(6)).

Planning and local law interaction is preserved: the Commissioner’s authorisation of premises does not affect any planning written law requirements that apply to the premises (ss 20FA, 21BA). Regulations under this Act are broad (s 56) and may prescribe advertising particulars, forms and fees, and may make offences eligible for infringement notices (s 56(2)(b), (ga)).

Finally, the Act’s compilation table and Part V record a long amendment history and transitional provisions that show how amendments have been integrated over time, including the 2002 overhaul that inserted many of the consignment and trust account provisions (see notes at end and insertion notes such as “Section 32A inserted: No. 4 of 2002 s. 57”), and later amendments that folded in Fair Trading Act provisions (No. 58 of 2010).

The provided compilation table records the Act’s legislative evolution from its original enactment in 1973 through multiple amendment Acts. Key mechanical amendments visible in the text and marginal notes include:

• The Motor Vehicle Dealers Act 1973 (original), with staggered commencements in 1974 (compilation table).
• Substantial structural reform in 2002 by the Motor Vehicle Dealers Amendment Act 2002 (No. 4 of 2002). The insertion notes show numerous provisions and whole divisions were added in 2002: Division 2 (licensing) headings and many Part III provisions (consignment rules, trust account regime, display obligations and the repair obligation) carry “inserted: No. 4 of 2002 s. …” annotations (for example, ss 32A-32P, 33, 34-35). The consignment and trust account Division and the car market operator registration regime were formalised then (see s 32A inserted and s 17B renumbered/inserted).
• The State Administrative Tribunal reforms, including conferral of jurisdiction and SAT processes, were implemented through Acts in 2004-2005, reflected by insertion and renumbering of powers to allege to SAT (s 20, inserted No. 4 of 2002 but subsequently amended and linked to SAT via No. 55 of 2004).
• The Acts Amendment (Fair Trading) Act 2010 (No. 58 of 2010), whose Part 4 amendments are shown in the text, brought the Act closer into the Fair Trading Act administrative apparatus. Section 6 was inserted to make Fair Trading Act investigation powers applicable to this Act (s 6 inserted: No. 58 of 2010 s. 37). Transitional Part V (ss 57-65) was also inserted in 2010 to address abolition of the former Board and related matters (ss 57-65 inserted: No. 58 of 2010 s. 49).
• Further targeted amendments and modernisations arrived in subsequent years: the Consumer Protection Legislation Amendment Act 2014 (No. 23 of 2014) added provisions on authorisation of premises and conditions (ss 20FA, 21BA and related changes, see insertion notes No. 23 of 2014 s. 28-33); Licensing Provisions Amendment Act 2016 (No. 44 of 2016) and other Acts updated audit and trust rules (s 32I and related notes indicate amendment: No. 44 of 2016 s. 28); COVID‑19 Response Act 2020 (No. 34 of 2020) amended regulations powers (s 56 amended No. 34 of 2020 s. 100(2)); Mutual Recognition (WA) Amendment Act 2022 (No. 7 of 2022) made later updates (see compilation).
• The text includes many marginal amendment annotations identifying the inserting or amending Act and section (for example, “Section 32A inserted: No. 4 of 2002 s. 57; amended: No. 42 of 2011 s. 57; No. 44 of 2016 s. 27”).

Transitional provisions are recorded in Part V (ss 57-65) including abolition of the former Motor Vehicle Industry Board and the transfer of unfinished investigations, proceedings and immunities to the Commissioner (ss 58-62). The compilation table and “Other notes” at the end of the document provide dates of assent and commencement, and list amendment Acts and the parts that inserted or amended specific provisions. Where the text includes bracketed marginal notes such as “(Section 32A inserted: No. 4 of 2002 s. 57)”, those indicate the statutory source of each insertion or change.

The Act’s current architecture therefore reflects iterative layering: an original 1973 licensing framework, a substantial 2002 update introducing consignment, trust, car market and remedial dispute regimes, administrative law integration through SAT and the Fair Trading Act in the mid‑2000s and 2010s, and continuing targeted regulatory amendments into the 2010s and early 2020s. For precise commencement dates and the exact wording history of an individual section the compilation table at the end of the statute is the primary source and should be consulted for compliance or litigation work.

The statute text provided does not include reported judicial decisions or citations to cases. The Act creates specific administrative and judicial pathways which tend to shape the litigation record:

• Administrative proceedings and disciplinary matters are channelled to the State Administrative Tribunal where the Commissioner may allege contraventions and SAT may make orders including disqualification, conditions and monetary penalties (ss 20, 20A). SAT’s decisions are subject to statutory limits on the availability of prerogative writs and matters of procedural fairness are expressly brought within s 37B(3).
• Determinations the Commissioner makes under s 37 are final and conclusive except where review to SAT is allowed for orders exceeding the prescribed monetary threshold (s 37B(2)). Section 37A provides a mechanism for enforcement of s 37 orders through the Magistrates Court by filing a certified copy and affidavit, making these determinations effectively judgment‑enforceable in certain circumstances.
• Criminal enforcement (prosecutions for offences under the Act) proceeds through the ordinary court system; courts may order recoupment in addition to penalties where fraud or loss is proved against a dealer (s 52(3)). The Act preserves Magistrates Court jurisdiction for certain disputes and rescission applications (ss 38, 41A).

Because the text contains no reported decision references you must search external case law databases for judicial and SAT decisions interpreting key provisions , for example the scope of the repair obligation (Part III Div 4), the application of consignment trust account rules and SAT powers under ss 32K-32N, and the extent of liability for directors and officers under s 55. The statute’s internal rules about finality and review (s 37B) affect remedies and appellate strategies; practitioners should note that many determinations are final unless they exceed monetary thresholds or involve jurisdictional or natural justice questions.

In short, the Act creates a mixed enforcement environment where SAT, Magistrates Court and ordinary criminal courts each have roles, determinations under s 37 are generally final and that finality is tempered by limited statutory review rights. A litigation‑focused research step is required for any contentious matter because the source text contains no litigation history, precedents or judicial interpretation to rely on.

The Act contains numerous technical traps for practitioners and businesses. Below are concrete items to watch, each tied to the statutory provision that gives rise to the risk.

• Deemed dealer by activity: selling or exchanging four or more vehicles in any 12‑month period to non‑dealers will take a person to be a dealer unless they can prove otherwise (s 5B). Counting and categorisation of exempt sales can be prescribed (s 5B(4)); failure to monitor turnover can flip a private seller into a regulated dealer unexpectedly.

• Deemed onward sale via financiers: where a dealer sells a vehicle to a financier expecting the financier will sell to a third party, the dealer is deemed to have sold to that third party (s 5(6)). That deeming can import sale‑related obligations and liabilities even when a financier appears as intermediary.

• Licence and registration exclusivity: a person cannot at once be registered as a car market operator and be the holder of a dealer’s licence; registration automatically cancels a licence and vice versa (s 17D). Transitional business models that combine providing market premises with trading on site must choose a single regime and account for the automatic cessation mechanics.

• Premises authorisation does not override planning law: Commissioner authorisation of premises is not a planning approval and does not affect planning requirements (ss 20FA, 21BA). Businesses cannot assume that authorisation under this Act clears local planning obligations.

• Strict trust account timing and withdrawal limits: proceeds of consignment sales must be deposited into a trust account not later than the next business day (s 32D(1)), and withdrawals generally require Commissioner approval for certain purposes (s 32E(1)). The cash‑flow impact for dealers using trade‑ins or for those operating on thin margins can be material.

• Audit and special audit exposure: trust accounts must be audited by a registered company auditor annually (s 32I). The Commissioner can order a special audit at the dealer’s expense (s 32J) and SAT may restrain financial institutions from dealing with accounts ex parte on application (s 32K(3)-(4)). The ex parte, show‑cause nature of s 32K orders poses immediate liquidity risk.

• Register and display obligations: failing to attach prescribed notices inside vehicles, to obtain purchaser signatures and to retain one copy for two years (s 33(6)-(7)) creates exposure both to criminal penalties and to loss of the exclusion for disclosed defects under s 35. Practically, small record‑keeping lapses can convert an otherwise defensible defect into a dealer repair obligation.

• Narrow repair windows with exclusions: repair obligations are strict but limited to vehicles meeting price, age and distance thresholds (s 34A) and to defects that render the vehicle unroadworthy or unserviceable (s 34B). However, the duty can attach to defects appearing after sale and there are limited exclusions for disclosed defects and certain components (s 35, s 34B(1)). Mis‑classifying a vehicle’s age (see s 34F on how to reckon age) can change obligations.

• Odometer and representational offences carry multiplicative civil exposure: odometer alteration or false representation of odometer/years/model designation is a criminal offence (s 45(1)) and triggers a purchaser’s civil right to recover three times the prescribed amount where the dealer or management person has been convicted (s 45(3)). Timeliness and completeness of odometer records required by s 33 are therefore material.

• Employee/officer liability risks: dealers and yard managers can be guilty of offences committed by employees unless they prove lack of knowledge and due diligence (ss 53-54). Corporations and their officers can be convicted where they authorised or permitted offences (s 55). Governance lapses or inadequate supervision policies are exposure points.

• Limits on waiver and indemnities: rights under the Act cannot be waived without prior Commissioner or authorised officer consent (s 48), and purported indemnities from antecedent non‑trade owners are void (s 49, s 49A). Drafting agreements that attempt to sidestep the statutory duty will be ineffective.

• Interaction with other statutes and agencies: obligations to notify vehicle licensing authorities and to surrender number plates under defect orders (s 26, s 28A) require coordination with road traffic authorities; failing to do so can trigger separate regulatory consequences.

• SAT monetary/penalty overlaps limited: SAT can impose administrative penalties under s 20A, but s 20B prevents double‑dipping where courts also impose fines for substantially the same conduct. Practitioners should beware of overlapping processes and timing to avoid inconsistent outcomes.

• Time limits on prosecutions and remedies: the Act specifies a two‑year limitation period for offences (s 52(4)) with statutory exceptions such as the threefold recovery trigger in s 45(3). Monitoring limitation windows is necessary for both defence and claim strategies.

Each of these statutory mechanics produces concrete operational or legal choices. A compliance plan must map product and transaction types against the Act’s thresholds, document retention obligations, consignment procedures and trust account rules, and establish governance and training to mitigate employee and officer exposure.

This practical checklist maps statutory duties to discrete compliance actions. Citations are given so each task can be validated against the Act.

1. Establish correct authorisations before trading:

   • Determine whether your activity is a “dealer” activity under s 5(1) and whether any regulation‑prescribed classes apply (s 5A). Watch the s 5B deeming rule (four or more vehicles in 12 months).
   • Apply for the correct licence category in the approved form and pay fees (s 15 for dealer’s licences; s 16 for yard manager; s 17 for salesperson; s 17B for car market operator).
   • If you intend to provide premises for a car market, register under s 17B and list premises pursuant to s 21A.

2. Specify and authorise premises; display certificates and signage:

   • Include each premises where business is to be carried on in the licence application (s 20E(1)).
   • Display the Commissioner’s issued certificate for each authorised premises in a conspicuous position (s 20G(1)-(3); s 21C for car markets).
   • Affix the business name and licence/registration number on premises and in advertisements (ss 21, 21D).

3. Implement written contracts and disclosures:

   • Use written consignment agreements with the prescribed particulars and provide a copy immediately to consignors (s 32B).
   • For retail vehicle sales to non‑dealers, ensure contracts comply with s 42A: in writing, signed by dealer/agent and purchaser, containing prescribed particulars.
   • Prepare and affix prescribed vehicle notices (s 33): inside the vehicle where readable through the windscreen or attached clearly for motorcycles. Keep at least two signed copies and retain one copy for two years (s 33(7)).

4. Trust accounts, deposits and withdrawals:

   • Open designated trust account(s) at a prescribed financial institution before accepting consignment vehicles (s 32C).
   • Deposit proceeds and the cash equivalent of trade‑ins into the trust account by the next business day (s 32D(1)-(2)).
   • Restrict withdrawals to authorised purposes unless prior written Commissioner approval is obtained (s 32E(1)).
   • Implement controls to prevent commingling of trust funds with dealer operating funds. Note s 32F provides protections but also constrains bank recourse.

5. Accounting, records and audits:

   • Maintain the prescribed register at authorised premises and ensure it records the prescribed particulars of every transaction (s 25(1)).
   • Produce registers on demand to authorised officers, police or traffic inspectors (s 25(2), (2b)).
   • Ensure trust accounts are audited yearly by a registered company auditor (s 32I) and prepare for special audits where ordered (s 32J). Keep audit working papers and management responses.

6. Defect management and repairs:

   • Implement a post‑sale defects process: when a purchaser complains, assess whether the vehicle meets the thresholds in s 34A and whether the defect falls within dealer responsibility (ss 34-34B).
   • Where repairs are required, comply within the statutory time or distance windows (ss 34C-34D) and avoid liens that conflict with s 37(4).
   • Keep careful records of any defect notices attached under s 35 and ensure copies are signed and retained when a defect is disclosed and accepted as an exclusion.

7. Compliance with inspection and defect orders:

   • Permit authorised officers, police or inspectors reasonable access to authorised premises and vehicles (s 27(1)). Train staff to cooperate and to provide name/contact details of consignors where relevant (s 28(5)).
   • If a defect order is attached to a vehicle (s 28), do not sell the vehicle while the order remains in force (s 29(1)).

8. Employment and management controls:

   • Verify licensors for yard managers and salespersons before hiring and maintain records of licences and any changes in employment (ss 16, 17, 23). Notify the Commissioner of changes in firm membership or persons concerned with management within 14 days (s 23(1)-(2)).
   • Institute supervision and due‑diligence procedures to mitigate vicarious liability exposures under ss 53-54.

9. Odometer and representation accuracy:

   • Ensure odometer readings are recorded at acquisition and displayed in the on‑vehicle notice (s 33(3)(b)). Avoid any alterations or misrepresentations about odometer, manufacture year, first registration year or model designation (s 45).
   • Implement equipment, audit trails and staff training to prevent odometer tampering. Keep maintenance and conversion documents to prove accuracy.

10. Interaction with other authorities and laws:

    • Coordinate with the vehicle licensing authority to send required particulars following acquisitions/sales and return plates where required (s 26). If number plates are surrendered under a defect order, follow s 28A procedure and recognise that surrender suspends the vehicle licence under the Road Traffic (Vehicles) Act (s 28A(2)).
    • Ensure premises authorisation from the Commissioner is supplemented by appropriate planning approvals (ss 20FA, 21BA).

11. Addressing Commissioner and SAT processes:

    • If the Commissioner proposes adverse action, provide additional information as permitted under s 18(1A). For licence condition attachments or variations under s 18A ensure the Commissioner’s notice periods and submission opportunities are tracked.
    • Understand review rights: reviewable decisions can be appealed to SAT (s 22). For disputes under Part III, engage early with the Commissioner’s dispute determination process (ss 36-37) or, where appropriate, the Magistrates Court (s 38).

12. Policies and training:

    • Adopt written policies covering consignment flows, trust account controls, record retention (retain on‑vehicle notices for two years s 33(7)), odometer records, consumer complaint handling and escalation to legal counsel before receipt of SAT or police notices.
    • Provide frontline staff training on mandated signage, disclosure, and how to handle inspecting officers and authorised officers exercising powers under s 27 and s 28.

13. Insurance and liquidity planning:

    • Because s 32K permits SAT to restrain financial institutions ex parte and because special audits can be ordered (ss 32K-32J), ensure operating cash reserves and contingency plans to continue paying staff and operating costs if trust account access is restricted.

14. Regulatory watch:

    • Review regulations made under s 56 regularly: they prescribe particulars, forms, fees, audit requirements, and which offences are infringement‑notice eligible (s 56(2)(ga)). These regulations carry specifics that materially affect compliance procedures.

Concluding practical note: map each statutory duty to an owner inside the business (e.g., licensing and registration owner; financial controls owner; complaints and repair owner; HR owner for licences and employment changes). Keep a compliance binder with copies of licences, premises certificates, signed on‑vehicle notices, trust account statements and audit reports, and a calendar for licence renewals and required notifications (s 19, s 23). Where in doubt about marginal thresholds (e.g., whether a vehicle falls within the repair thresholds s 34A-34F), obtain legal advice and consider pre‑sale disclosures to avoid inadvertent statutory obligations.