Welcome to the 24th issue of Crash Towing Industry News.
Our regular newsletters provide important information about the crash towing industry reforms including legislative changes that may affect how you operate.
The Department of Transport and Major Infrastructure (DTMI) has received some enquiries as to the scope of the administration charge; this newsletter clarifies what is covered by the administration charge.
Section 69 of the Towing Services Act 2025 (the Act) allows for the imposition of towing and storage charges.
Administration Charge is a component of the Storage Charge
Section 4 of the Act provides that a storage charge means any charge made in relation to any of the following -
(a) the storage, release or viewing of the vehicle after it has been towed;
(b) access to the vehicle after it has been towed;
(c) access to personal property that is or was in the vehicle after it has been towed;
Regulation 54 provides that the storage charge for a light vehicle or motorcycle must not exceed the maximum amount.
Regulation 54(3) provides the maximum amount that may be charged for the storage of a light vehicle or a motorcycle, which includes an administration charge.
54(3)(a) sets a maximum amount for the storage of light vehicles in the Perth and Peel regions at $25 per day and for motorcycles at $12.50.
Regulation 54(3)(b) sets a maximum amount of $88.00 for an administration charge.
What is the Administration Charge?
The maximum amount that may be charged for storage includes the daily storage charge plus an administration charge. An administration charge has been provided as it is recognised that there are administration costs incurred as part of the storage of the vehicle.
The optional, one-off administration charge of a maximum of $88 covers all administrative expenses incurred while the vehicle was in storage. This could include, but not be limited to:
• issuing of invoice for applicable charges;
• processing payment of an invoice;
• moving the crashed vehicle into and out of position;
• preparing the vehicle for release or moving it to a position where it can be released;
• general yard handling.
The administration charge may be charged at the discretion of the towing service provider.
The storage charge (which includes the administration charge) and towing charges make up the ‘applicable charges’ defined in section 15 of the Act. It is important to note that payment of applicable charges is a trigger for the release of the vehicle under section 15 of the Act.
No other charges can be made.
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