Frequently asked questions
As you would appreciate the government’s decision to introduce a licensing system for motor vehicle repairers has caused some concern and confusion in the motor vehicle repair industry.
It has also resulted in motor vehicle repairers asking the Department a number of questions about the new system. We have provided this advice on the most common questions asked by repairers.
Why did the Government introduce licensing for motor repair businesses?
The motor repair industry through its representative organisations, the Motor Trade Association of Western Australia (MTA), the Institute of Automotive Mechanical Engineers (IAME) and the Society of Automotive Engineers lobbied the Government over many years for the introduction of licensing laws for motor vehicle repairers.
These organisations believed the licensing of repairers would improve standards and drastically reduce the level of unqualified backyard repairs. This was especially important with the introduction of technology that requires specific servicing standards and specialist equipment.
Successive Governments (both major political parties) and consumer organisations such as the RAC supported the proposal for a licensing system and took the view that a repairers’ licensing system would also improve the levels of consumer protection.
If I am a certified tradesperson why does my business have to be licensed?
Under the new laws, not all persons actually doing repairs in a workshop have to get a certificate. Those without a certificate have to be supervised by a certificate holder but if a problem occurs somebody has to be accountable for that problem. If a customer is unhappy with repairs they don’t see the individual mechanic or panel beater, they rightfully go to the business owner. Therefore the business owner must be accountable – the licence clearly makes the business owner accountable.
This is just another tax on business!
The licence fees are not a tax because they do not pay for anything other than the cost of the licensing system. Consumer Protection cannot recommend to Government fees greater than the total amount necessary to run the licensing subsystem and employ the licensing, compliance and dispute resolution staff who advise traders and consumers in relation to motor vehicle repairs.
Why does a bigger business pay more in fees than a smaller business?
Bigger businesses will use more of the Government’s resources than smaller businesses. More licence information to process, more compliance work and sometimes more disputes to resolve. The fees were recommended by an independent accounting firm after discussion with industry associations and a large number of repair businesses.
What do I get for my licence fee?
You will primarily get access to advice services from Consumer Protection about how to deal with potential customer disputes including advice about how to deal with particular matters.
The licensing system has created a compensation fund to assist customers where a repairer has died, disappeared or become insolvent and a research fund to assist in developing industry training.
The licensing system will promote higher standards of workmanship from industry. Consumer Protection will, over time, increase the certification standard so that some time in the future only trade qualified persons can supervise repair work.
You will also get protection from unlicensed repairers who unfairly compete for your customers. You will be able to report unlicensed activity to Consumer Protection. The penalties for unlicensed repair work will be a fine of up to $50,000.
Why can an unqualified person buy and fit parts to their own motor vehicle without a licence?
The new law only controls repair work where a customer pays a repairer for repair work. They do not prevent a business from repairing their own vehicles. There are very few laws which limit or prevent you from purchasing different products.
Why do I and my silent partner (Director of the company) have to supply a National Police Certificate, a Credit History Report and a Photographic identity when they have nothing to do with the day to day running of the business?
Under the new law the Commissioner is required to assess whether any person associated with running a repair business is both fit and proper and of good character. Even if an individual partner or director is not doing repairs, they can legally make decisions about the running of the business so the Commissioner has to check whether they are fit and proper.
The Commissioner is very unlikely to be interested in minor offences or offences committed many years ago. Even if there are concerns you will be given a chance to show that it is all in the past.
Do I need a motor vehicle repair business licence?
Generally, if you run your own motor vehicle repair business you will require a repair business licence, however there are some exemptions.
What type of motor vehicle repair business needs a licence?
Licensed repair businesses are required for most types (classes) of automotive repair work including general mechanical repair for heavy (trucks and buses) and light duty (cars), motor bikes and a range of ancillary repairers such as exhaust fitters, auto electricians and tyre fitters.
A business licence may be issued for more than one class of repair work.
How do I qualify to be granted a repair business licence?
There are several requirements you must meet to qualify for a repair business licence.
Do I have to renew my motor vehicle repair business licence?
Yes. A business licence is issued for three years. You must apply for a renewal of the business licence no later than 28 days before the day it expires.
What about conditions and restrictions?
The Commissioner can impose conditions and restrictions on your repair business licence at any time.