Fees for traders increasing
Fees for motor vehicle traders are changing from August 1 and will result in companies having to fork out nearly twice as much as individual dealers to register their operation.
The current flat fee of $405.33 excluding GST to register as a trader is being replaced with a tiered charging structure, with different amounts for individual traders and companies, and for registrations and renewals.
A registration application for an individual will cost $432 from the start of August and a company will face an $863 charge. Meanwhile, the annual renewal fees have been set at $401 for individuals and $802 for companies.
The Motor Vehicle Disputes Tribunal levy is being updated at the same time and will increase from $112.89 currently to $210.
All the above costs are exclusive of GST. Once that is added and the new charges combined, individual applicants to become motor vehicle traders will face a total fee of $738.30. Meanwhile, the full cost for a company applying to be on the register will be $1,233.95.
The total annual renewal fee, once GST is included, will become $702.65 for individuals and $1,163.80 for companies.
The overhaul of the charges follows a public consultation by the Ministry of Business, Innovation and Employment (MBIE) and the Ministry of Justice (MoJ) this year on proposed adjustments to the fees for registered motor vehicle traders and the tribunal levy.
After considering feedback, the government agreed to amend the fees to ensure these services are funded sustainably.
Trading Standards, which runs the trader register, notes the fees and levy have not been adjusted since the Motor Vehicle Sales Act was introduced in 2003.
“It is important that fees and levies are regularly reviewed to check that they are covering costs and not resulting in over-recovery or under-recovery of costs,” it adds.
“Adjustments are now required because, over time, the costs of running the tribunal and motor vehicle traders regime have risen, and the levy and fee are not adequately covering the costs of these services.”
For more details about the changes, click here.
