Welcome to the eleventh issue of Crash Towing Industry News. Our regular newsletters provide important updates about the crash towing industry reforms including legislative changes that may affect how you operate. New requirements for storage yards are now in effect. As of 10 January 2025, towing service providers who tow a crashed vehicle to a storage yard must comply with the new requirements. Release of stored vehicles Towing service providers must release a vehicle from storage as soon as practicable, but in any event no later than 4 business hours* after the relevant towing and storage charges have been paid. The vehicle must be moved by the storage yard operator to an accessible position near an entrance to the storage yard to be considered released. This is intended to ensure that consumers always have the option to choose who tows their vehicle to a further location. Penalty: $9,000 for an individual, and $45,000 for a body corporate. * Only hours falling between 9am and 5pm on a business day are to be counted in the 4-hour period. For example, if a request for release of a stored vehicle is made at 4pm on a Friday, towing service providers must provide access or release the vehicle as soon as practicable. If it is not practicable to release the vehicle before the end of the business day, the towing service provider must release the vehicle, by noon on the following Monday morning. The 4-hour period is intended to provide towing service providers a reasonable timeframe to comply with vehicle access and release requirements, considering standard business hours and potential weekend or public holiday closures. It prevents situations where unreasonable deadlines might be imposed outside of normal business operating hours. Secondary tows The crash towing reforms do not regulate the prices of secondary tows. The main goal is to protect vulnerable consumers immediately after a crash. However, by requiring the release of vehicles upon payment, vehicle owners or their insurance companies can choose their preferred provider for any secondary tow. Access to stored vehicles Upon request by a vehicle owner/driver or their agent (such as an insurance company), a towing service provider must, as soon as practicable, but in any event no later than 4 business hours* after the request is made, ensure that the vehicle owner/driver or their agent is given access to their vehicle and enabled to retrieve personal property from the vehicle. It is an offence to impose a charge or refuse to allow access to a stored vehicle. Penalty: $5,000 for an individual, and $25,000 for a body corporate * Only hours falling between 8am and 5pm on a business day are to be counted in the 4-hour access period. For example, if a request for access to a stored vehicle is made at 1pm on a Tuesday, towing service providers must provide access to the vehicle as soon as practicable. If it is not practicable to provide access to the vehicle immediately, the towing service provider must provide access to the vehicle before 5pm on that day. Moving a stored vehicle A towing service provider must not move a crashed vehicle from a storage yard to another location, except for the purpose of:
If the vehicle has been moved to prevent possible damage by fire or natural disaster, the towing service provider must, within 24 hours of the vehicle being moved, advise the vehicle owner/driver in writing, detailing:
If the authority to tow the crashed vehicle was given by a police officer or Main Roads officer, notification of the vehicle movement must be given to the Commissioner of Police or Commissioner of Main Roads. Penalty: $5,000 for an individual, and $25,000 for a body corporate. Storage charges A towing service provider must only charge $25 (light vehicle) or $12.50 (motorcycle) per day for storing a vehicle where the vehicle was towed from a crash scene:
Storage charges can be imposed for each 24-hour period (day), or part thereof, during which the vehicle is stored. For example, if a vehicle arrives at a storage yard at 11am on a Monday and is released at 1pm the following day, the maximum total storage charges that could be imposed would be $50 and an $88 administration charge. Penalty: $12,000 for an individual, and $60,000 for a body corporate. Liability for towing charges and storage charges If an authority to tow a crashed vehicle is given by the owner or driver of a vehicle, that person is liable to pay the towing charges, and any storage charges, payable in accordance with the Towing Services Act 2024. These provisions do not apply if a police officer or Main Roads officer gives the authority to tow a crashed vehicle. In these circumstances, the owner of the vehicle is liable to pay the towing charges and any storage charges payable. Invoice on request Towing service providers must provide an invoice to the vehicle owner/driver, or their agent, as soon as practicable, but in any event within 4 business hours* after a request is made. The invoice must:
Penalty: $5,000 for an individual, and $25,000 for a body corporate. * Only hours falling between 8am and 5pm on a business day are to be counted in the 4-hour invoice period. For example, if a request for an invoice is made at 3pm on a Wednesday, towing service providers must provide an invoice as soon as practicable. If it is not practicable to provide an invoice before the close of business hours, the towing service provider must provide an invoice by 11am on the next day (Thursday). Payment methods Towing service providers must take all reasonable steps to enable towing and storage charges to be paid, and must allow these charges to be paid using at least 2 different payment methods from the list below:
Penalty: $5,000 for an individual, and $25,000 for a body corporate. *If a towing service provider accepts direct transfer payments, they must release a vehicle upon presentation of a payment record showing that the direct transfer has been made to the nominated account, without requiring the funds to have cleared. Storage yard record keeping Regulations require a towing service provider to keep records that detail:
Penalty: $5,000 for an individual, and $25,000 for a body corporate. Join us at an industry information session DoT has conducted several information sessions to support the commencement of the Towing Services Act 2024, its supporting regulations, and associated activities. Future information sessions will be based on industry demand. To express your interest in attending a future session in Perth, Peel, regional areas or an online session please register your interest by completing the form below Contact usIf you are unable to locate the information you require on our website, please submit your enquiry below or contact us on (08) 9320 4111 between 8 am to 4.30 pm weekdays. |