The Australian Government has announced it will allow car rental companies to apply to be listed on the same regulatory market as traditional car companies, but the Federal Government has so far resisted, saying that is a matter for the market.
The move will allow for the resale of cars, and allow the rental companies, who already operate as brokers, to operate as the main source of car supply.
The move comes as an industry source said the Federal Opposition was “trying to be all things to all people”.
“This is not about being the government’s friend,” the source said.
“It’s about helping people get on with their lives.”
This could potentially make the market more open for other types of business.
“If you have a business that’s in this space and you’re not a car rental company, you could start to look at that.”
The Federal Government will allow the car rental market to become a part of the national regulatory system, and will require car rental providers to register on the National Automotive Standards Authority (NASA).
“The industry is well positioned to provide a competitive market for both consumers and car owners,” Transport Minister Jacinta Allan said in a statement.
“It is the best way for Australians to enjoy a wide range of car options.”
Car rentals, which are currently unregulated, are considered a niche industry with a low risk of being regulated.
Car rental services like Uber, Go Car and Grab have gained prominence in the US and Australia in recent years, but many car rental services are illegal in some states, and many have been shut down by authorities.
According to the Australian Taxation Office, taxi companies, hotels, motels, caravan parks and motels are also listed as vehicles.
But the Government says the market is “well positioned” to provide “good value” for car owners.
It will also introduce a “slightly lower” levy on car rentals, with a tax rate of up to 15 per cent on each rental transaction.
While car rental drivers are required to pay tax, the government says car owners will also be required to carry insurance and be liable for the costs of repairs.
Under the new rules, car rental operators will be able to operate in the same market as a conventional car company.
As well as being able to sell vehicles, the new system will allow operators to make deposits to fund capital investment and lease vehicles to clients.
A car rental operator will be allowed to charge its clients a fee for the rental service.
Turo car rentals will be banned from renting cars in Sydney, Melbourne and Brisbane, with the exception of the CBD.
With the new regulations, Turo car companies are expected to close by the end of this year.