According to the manufacturer, incorrect software coding within the rear control unit may result in the seatbelt handover arm not retracting when the vehicle is moving.
If the fault occurs, the arm could impair the operation of the front seatbelts and if the arm breaks in a collision, sharp edges also pose a risk of injury.
The affected S-Class vehicles were sold from 1 November 2015 through 31 March 2016.
Owners of recalled models will be notified by Mercedes-Benz via mail and will be advised as to the next step in getting their S-Class repaired.
For more information, customers can contact (03) 9566 9266.