Cap on vehicle dealer commissions

12 days left to have your say
Consultation Type
Exposure Draft

Key Documents

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry found that the levels of commissions paid to motor vehicle dealers in connection with the sale of add-on insurance products has contributed to mis-selling of these products. Often, the value of the commissions paid in relation to add-on insurance products sold through vehicle dealers has significantly exceeded the amounts paid out to consumers through claims. High levels of commissions have contributed to poor consumer outcomes. The Royal Commission recommended ASIC be given the power to impose a cap on the amount of commissions that may be paid to vehicle dealers in relation to the sale of add-on products (recommendation 4.4).

Consistent with the Government’s response to this Royal Commission recommendation, the Government has released for public consultation exposure draft legislation to provide ASIC with the power to impose a cap commissions for add-on insurance products and insurance-like products such as warranties sold by car dealers. Providing ASIC with the ability to cap commissions will ensure an appropriate cap is set and varied if required in response to any future concerns.


You can submit responses to this consultation up until 28 February 2020. Interested parties are invited to comment on this consultation. You may make one submission across open consultations. In doing so, please make clear which measures your submission relates to. 

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. All submissions (whether or not made public) will also be provided to ASIC and/or APRA unless you otherwise indicate. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

View our submission guidelines for further information.

How To Respond



Address written submissions to:

Financial System Division
Langton Cres
Parkes ACT 2600


Phone: Tim Wong +61 2 6263 2111