From my experience I understand it to be a Federal Law not governed by but imposed by the state where the offence took place. In 1988 I traded my VH SS with 98000ks on another car. Two weeks later I saw it advertised in a car yard showing 26000ks. I asked the Dealer what he was trying to pull but he said he was unaware and would report it. I said something like "yeah right that's bull****". Six weeks later I received a summons to appear as a witness for the Dealer. The wholesaler, who bought the car from the yard I traded it to, had been the one who tampered with it before onselling it to where I saw it advertised. I learnt from my day in court that there were many Perth wholesalers who were bringing cars over from Melbourne and Brisbane (because at that time cars were cheaper there than Perth and rego details were not available between the states) and winding back the odometers.
The Wholesaler who tampered with my car got a criminal record, a $12000 fine, had to pay compensation to the dealer of $6000 and was banned from holding a Dealers license for life. The charge he was convicted of was Fraud and he was told he could have got up to 10 years jail.
It was also stated during the preceedings that when an instrument cluster is changed the Ks of the old and the new cluster must be recorded and this info passed on to any subsequent owner.
That's my experience from Perth anyway.
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