Ace Business Desk – In short: The federal government will expand its “right to repair” reforms to cover agricultural machinery. Farmers say the shift will give them cheaper, faster and more flexible repair options ABC Rural RoundUp Local News report
What’s next?
Consultation will begin early next year on how agricultural machinery can be included in the right to repair legislative framework.
Farmers would finally be able to have their expensive machinery repaired outside of dealership networks without repercussions under new consumer laws.
The federal government said it would expand its right-to-repair reforms to cover agricultural machinery, bringing them in line with passenger vehicles, after more than a decade of campaigning by farmers.
Treasurer Jim Chalmers confirmed the changes after meeting state and territory counterparts on Friday.
Under current Australian consumer law, most agricultural machinery is excluded from consumer guarantee protections, including the right to third-party repair, because the law only applies to goods under $100,000 in value.
Mr Chalmers said the existing laws deprived the agriculture sector and rural communities.
“These are simple changes, but they’re good for our economy and good for our farmers,”
Mr Chalmers said.
“Waiting days, weeks or months to have machinery repaired by an authorised dealer when it could be done locally makes no sense.”
Consultation will begin early next year on how agricultural machinery can be included in the right-to-repair legislative framework.
Productivity Commission modelling shows the changes could lift farmers’ output, translating to a $97 million increase to gross domestic product (GDP), while greater competition in the repair sector will lead to a $311 million increase to GDP.
The commission’s 2021 inquiry into right to repair found “significant and unnecessary barriers to repair for some products” and recommended amending consumer law so customers could choose their own repairer at competitive prices.
National Farmers Federation president Hamish McIntyre said the announcement was a breakthrough for farmers.
Hamish McIntyre says the government announcement is a major win for farmers. (ABC News: Lydia Burton)normal
“When a machine breaks down in the middle of harvest, waiting on an authorised dealer isn’t just inconvenient, it can cost tens of thousands of dollars,” Mr McIntyre said.
“Farmers will finally have more freedom to choose who services and repairs their machinery.
“That means less downtime, lower costs, and more control over their own businesses.”
GrainGrowers advocacy and rural affairs manager Sean Cole said the commitment was “a landmark win for the industry” after years of being “left out of the tent”.
He said he had heard of new equipment being “laid to waste for a couple of weeks” during peak periods, forcing farmers to resurrect decades-old machinery to beat incoming rain.
“Grain harvesters or tractors are computers on wheels,” he said.
“They’re not much more complicated than light vehicles, we’d argue, but they have digital locks and things that can lock people out.”
Change comes as no surprise
Manufacturers and dealers said they were ready for the shift.
“We’ve been expecting it for some time … it’s been no surprise to us,” Tractor and Machinery Association of Australia (TMA) executive director Gary Northover said.
Gary Northover says the association supports the right to repair, but not “modification”. (Supplied: TMA)normal
He said TMA members supported a farmer’s right to repair and to use third-party technicians, with many already expanding access to diagnostic tools and manuals.
However, Mr Northover said the industry distinguished repair from modification.
“What we don’t support is … the unfettered right to modify machines,” he said.
“This just doesn’t mean that there’s a free for all.”
While some dealers may worry about losing service revenue, Mr Northover said many already relied on third-party repairers as major customers and acknowledged there were not enough technicians to meet demand.
He said manufacturers and dealers were “broadly aligned” with farmers and keen to help craft a “fair and equitable outcome” when consultations begin next year.
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