Do You Need a Motor Vehicle Repair Licence in Victoria?

Thinking about opening a motor vehicle repair workshop in Victoria? The demand for reliable mechanics and specialty auto services is strong, but getting set up the right way is just as important as having the skills and tools.

One of the first questions we hear is whether you need a motor vehicle repair licence in Victoria. The short answer: there isn’t a single, catch‑all “motor vehicle repair licence” for all repairers in Victoria, but there are specific approvals, permits and legal obligations that most workshops must meet before trading.

In this guide, we’ll walk you through what permissions may apply, the key laws you need to follow, and the contracts and policies that help protect your business from day one.

What Counts As A Motor Vehicle Repair Business?

When we talk about a motor vehicle repair business, we’re referring to any enterprise that services, diagnoses, repairs or upgrades cars and light commercial vehicles. This includes general mechanics, specialty shops (e.g. brakes, transmissions, tyres, auto electrical), mobile mechanics and performance or accessory fitters.

Your exact mix of services will shape the approvals and paperwork you need. For example, a business offering roadworthy inspections is different from a workshop doing only logbook servicing. Keep your service list clear in your business plan so you can match it to the right legal steps.

Do I Need A Motor Vehicle Repair Licence In Victoria?

There is no single, general “motor vehicle repairer licence” in Victoria. However, depending on what you offer, one or more specialist approvals may apply:

• Roadworthy inspections: You must be approved by VicRoads as a Licensed Vehicle Tester (LVT) to issue Certificates of Roadworthiness. Approval applies to both the tester and the premises/equipment.
• Air conditioning services: If your team handles refrigerant (e.g. regassing), you generally need the appropriate ARCtick authorisations and individual refrigerant handling licences under national regulations.
• Vehicle modifications and engineering: Certain modifications may require sign‑off by approved engineers and compliance with relevant vehicle standards.
• Trade waste and environmental handling: Workshops typically need to comply with EPA Victoria requirements for storage and disposal of oils, solvents, batteries and other hazardous waste (and in some cases, local permits).
• Operating permissions: Most premises need council planning approval for use as an automotive workshop, including parking, noise and hours of operation conditions.

If you also sell vehicles, that is a separate activity that can require a Motor Car Traders Licence in Victoria. It’s common for a business to do repairs only at first, then later add sales once they understand the licensing and compliance for trading vehicles.

The bottom line: check what you actually plan to do and map that to the approvals you need. If you’re unsure, we can help you assess your services against the relevant rules so you don’t over‑ or under‑license.

Step‑By‑Step: Setting Up Your Repair Workshop Legally

1) Choose Your Business Structure

Start by deciding whether you’ll operate as a sole trader, partnership or company. Many workshop owners choose a company for limited liability and credibility with suppliers, though it’s not mandatory.

If you’re leaning towards a company for asset protection and growth, consider getting support with your Company Set Up so your registrations and documents are done correctly.

2) Register Your Name And ABN

Secure your ABN and register the name you plan to trade under (if it’s different from your personal or company name). Understanding the difference between a business name and a company name helps you avoid confusion with customers and suppliers.

If you need help with the process, Sprintlaw can assist with your Business Name registration as part of your setup tasks.

3) Secure Your Premises And Council Approvals

Before signing a lease, confirm zoning and any planning permit conditions with your local council. Workshops often have constraints around noise, operating hours, parking and waste management.

Get your fit‑out plans checked for compliance (e.g. hoist placement, bunding for oil storage, wash bays and trade waste capture). Sorting permits up front avoids costly retrofits later.

4) Line Up Industry‑Specific Approvals

• Licensed Vehicle Tester (if you’ll issue roadworthies): Premises, equipment and nominated testers must meet VicRoads criteria.
• ARCtick (if handling refrigerant): Ensure both business and technicians hold the right authorisations.
• Vehicle standards/modifications: Confirm what approvals or engineering certifications you’ll need for the modifications you plan to offer.

Document these approvals and renewal dates in your compliance calendar.

5) Put Safety, HR And Insurance In Place

Automotive workshops carry safety risks, so invest early in safe systems of work, training and supervision. If you’ll employ staff, have a compliant Employment Contract for each role and clear workplace policies.

Insurance (public liability, property, tools, business interruption, workers’ comp) should be tailored to your risk profile. A broker can help you get the right mix.

6) Set Up Your Customer, Supplier And Credit Processes

Have customer‑friendly documents and processes ready before you open: quotes, job cards, repair authorisations, and terms for deposits, storage fees and abandoned vehicles. If you offer trade accounts, use Credit Terms and consider registering security interests on the PPSR to protect against non‑payment.

If you’ll be supplying parts on credit or want to secure title until paid, it’s worth reading how the PPSR works for businesses in practice: PPSR In Australia.

What Laws Apply To Motor Vehicle Repairers In Victoria?

Australian Consumer Law (ACL)

The Australian Consumer Law sets standards for fair trading, advertising and customer guarantees. Key points for workshops include not engaging in misleading conduct under section 18 (e.g. advertising “genuine parts” if you’re using aftermarket) and meeting consumer guarantees for services (due care and skill, within a reasonable time).

For a practical refresher on your obligations, see our guide to Section 18 Of The ACL. You’ll also want your paperwork to reflect your guarantees, refund pathways and any “warranties against defects.”

Quotes, Authorisations And Variations

In the repair industry, clarity on scope and price prevents disputes. Make sure your quotes, job authorisations and variation approvals are documented before you order parts or proceed with extra work. It’s helpful to understand when a quote can bind your business, so consider how you present pricing and inclusions in light of Is A Quotation Legally Binding?

Environmental And Waste Obligations

Workshops must store, handle and dispose of waste oils, coolants, solvents, tyres and batteries safely. EPA Victoria expects adequate bunding, spill response equipment, and lawful disposal to licensed facilities. Wash bays typically need appropriate treatment or trade waste approvals.

Build environmental controls into your fit‑out and staff training, and keep records of waste contractor pickups in case of audit.

Workplace Safety And Employment

WorkSafe Victoria requires you to identify hazards (hoists, rotating machinery, chemicals), implement controls, and provide training and PPE. If you have employees, ensure compliant hours, breaks, pay and entitlements, plus written agreements and policies that reflect your operations.

Your employment paperwork should be current and role‑specific. Use a tailored Employment Contract for each employee, and set clear expectations in your staff policies (safety, leave, phone use, misconduct and performance).

Privacy And Customer Data

Collecting personal information (bookings, contact details, dashcam footage, CCTV) triggers privacy obligations. If your business turns over more than $3m, or you handle health information (e.g. for fleet driver rehabilitation), the Privacy Act may apply. Even if not strictly required, customers expect transparency about how you use their data.

Publish a clear, accessible Privacy Policy on your website and ensure your consent processes and data security match what the policy says.

What Contracts And Policies Should Your Workshop Have?

Strong, plain‑English documents keep jobs moving and reduce disputes. At a minimum, consider the following:

• Terms Of Trade: Set out your service scope, pricing, deposits, variations, storage/abandonment fees, parts consent, liability, and payment terms.
• Customer Service Agreement/Job Authorisation: A signed authority to proceed, referencing your Terms Of Trade, with space for registration/VIN, fault description, diagnostics approvals and any caps on spend.
• Warranties Against Defects Policy: If you offer a workshop warranty, the ACL requires specific wording and disclosures. Your policy should neatly explain coverage, timeframes and how to claim.
• Privacy Policy: Explains what data you collect, why, and how you store, share or delete it.
• Employment Contract: Covers duties, hours, pay, IP/confidentiality, safety obligations, tools and property, and termination processes.
• Workplace Policies: Safety, drug and alcohol, incident reporting, mobile phone use, customer vehicle control, test‑drive rules and after‑hours access.
• Supplier/Parts Agreements: Confirm pricing, delivery, return policies and defective parts handling. If you offer credit to trade customers, include Credit Terms with security provisions and consider PPSR registrations.
• Complaints & Refunds Procedure: Internal process for handling customer concerns quickly and in line with the ACL.

Not every workshop needs the exact same set. The right mix depends on what you do, where you operate and how you get paid. If you’d like help tailoring the essentials to your business model, we can put together a practical suite that fits.

Common Scenarios And FAQs For Victorian Workshops

Can I Issue Roadworthy Certificates From Day One?

Only if you and your premises have been approved as a Licensed Vehicle Tester by VicRoads. The approval process takes time and has equipment and competency requirements, so plan for this well ahead of your intended launch date.

Do Mobile Mechanics Need Different Permissions?

Mobile mechanics face the same ACL, safety and environmental rules, plus practical constraints like where you can lawfully perform work (e.g. not spilling fluids on the roadway). Your council may have local laws about mobile trading or on‑street operations. Ensure your customer paperwork still captures consent, pricing and site safety obligations.

What If I Use Sub‑Contractors?

Sub‑contractors can help you scale during peak periods or for specialty jobs. Protect your business with clear sub‑contractor agreements: scope, pricing, deadlines, safety obligations, confidentiality and IP, and how defects are handled. Your customer remains your customer, so your Terms Of Trade should allow you to engage subbies while remaining responsible for the result.

What If I Also Want To Sell Cars?

If you plan to buy and sell vehicles as part of your business (not just repair), you may need a Motor Car Traders Licence in Victoria and must meet strict rules for selling used cars (display requirements, statutory warranties, trust accounting in some cases). Keep the repair and trading sides of your business clearly separated in your processes and paperwork so customers understand which services they are buying from you at any given time.

How Should I Handle Deposits And Storage Fees?

Be transparent. Your Terms Of Trade should spell out when deposits are required, when vehicles may incur storage fees, and what happens if a vehicle is left uncollected. For high‑value parts orders, written approval and a deposit before ordering can reduce your risk. Consider security interests (via PPSR) or retaining title clauses for parts until paid, as explained in our overview of the PPSR In Australia.

Key Takeaways

• There’s no single “motor vehicle repair licence” in Victoria, but specific approvals may apply to your services (e.g. Licensed Vehicle Tester for roadworthies, ARCtick for air‑con work), plus council permissions.
• Choose a structure that suits your risk and growth plans and complete core registrations early; a well‑planned Company Set Up can streamline banking, hiring and supplier relationships.
• Comply with the Australian Consumer Law on advertising, quotes, authorisations and guarantees; align your customer paperwork with your obligations under section 18 and related ACL provisions.
• Protect your workshop with clear documents: Terms Of Trade, job authorisations, a compliant warranty policy, a public Privacy Policy, and robust Employment Contracts.
• Don’t overlook environmental, safety and waste requirements; build them into your fit‑out, training and daily processes from day one.
• Document deposits, storage fees and title to parts in writing, and consider PPSR registrations when extending credit or holding customer vehicles for significant work.

If you’d like a consultation on setting up a motor vehicle repair business in Victoria, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.