The Act primarily affects natural persons who wish to act as auctioneers (s 6(1)). Only a natural person can hold a licence, but that licence may be used for the benefit of a firm or corporation (s 8). In practice, auction businesses are often conducted by firms (unincorporated bodies registered under the Business Names Registration Act 2011 (Cth)) or corporations. The Act imposes obligations on both the individual licensee and the firm or corporation for whose benefit the licence is used. For example, s 8(8) provides that where a licensee is an employee of the firm, the firm is primarily responsible for complying with the Act, but both may be charged.

The Act affects vendors who sell property by auction: they must receive a written account of sale within 42 days of completion (s 27(1)). It also affects bidders. Bidding on behalf of the seller or auctioneer is only allowed if the right to bid is notified in the conditions of sale (s 29). Any person who engages in a mock auction is liable to a fine of $50,000 or 12 months imprisonment (s 25(1)).

Persons who purchase livestock or farm produce are affected by the provisions on splitting lots (s 31). A successful bidder who supplies wrong information as to the name of the purchaser commits an offence (s 31(6)). The Act also imposes obligations on drovers and carriers of livestock: they must provide the original waybill to the auctioneer under regulations made under the Biosecurity and Agriculture Management Act 2007 (s 32(1)).

The Commissioner of Police and persons authorised by the Minister are affected in their enforcement roles. Police may enter premises without warrant if they reasonably believe a sale by auction or mock auction is being conducted (s 36). The Minister may appoint an auditor at the expense of the licensee to audit accounts (s 28(6)).

The Magistrates Court is central: magistrates hear and determine licence applications, objections, and disciplinary proceedings (ss 11, 16, 22). The court may impose conditions, limitations or restrictions on any licence (s 16(7)).

Holders of licences under the Liquor Control Act 1988 are affected by s 33, which allows a licensed auctioneer who also holds a liquor licence to sell liquor by auction on other premises, and to sell private stock for home consumption with a magistrate’s written licence.

The central duty is the prohibition on acting as an auctioneer without a licence (s 6(4)). A natural person must hold a licence; a firm or corporation must have at least one member, officer or employee who holds a licence granted for its benefit. Violation carries a fine of $50,000 (s 6(6)).

Licensees have the duty to carry on business in the name and place specified in the licence, only for the authorised class or classes of business, and subject to any conditions (s 6(3)). They must not wilfully and falsely represent that they have property for sale by auction (s 6(5)).

Advertising restrictions apply: only a licence holder or firm/corporation for whose benefit a licence is held may display signs or publish advertisements indicating they are authorised to conduct auctions (s 23). An occasional licensee is not regarded as a licensee for advertising purposes except for matters relating to that licence (s 23(2)).

Misrepresentation in the course of auctioneering is an offence: making or publishing any false or misleading representation about a lot, as to value, composition, structure, description, character, quality, date, manufacture, origin or otherwise (s 24(1)). There is a defence if the accused proves they believed on reasonable grounds the representation was not false or misleading (s 24(2)).

Record-keeping: every licensee (or the firm/corporation) must record amounts received for or on behalf of any person in a record of accounts, kept separately from the licensee’s own money (s 26(1)). The records must show full and accurate particulars of each transaction and withdrawals, be balanced monthly, and retained for three years (s 26(2)). Penalty: $25,000 per offence.

Account to vendor: within 42 days of completion of sale, or 14 days of a written demand (whichever is earlier), a correct account in writing of the sale and all moneys received and applied must be rendered to the person on whose behalf the lot was sold (s 27(1)). A demand cannot be made for transactions more than six months old, nor particularised for sales more than three years old, nor demanded from both the licensee and the firm if one has already complied (s 27(2)).

Inspection: all records must be open to inspection by a person authorised in writing by the Minister (s 28(1)). The authorised person may demand production of records, furnish bank authorities, and answer questions; refusal or obstruction is an offence (s 28(5)). The Minister may appoint an auditor at the licensee’s expense (s 28(6)). Inspectors have a right to take notes and copies (s 28(4)). A person is not required to answer incriminating questions (s 28(7)).

Bidding by seller or auctioneer: the right to bid must be notified in the conditions of sale; otherwise the seller or auctioneer (or their agent) who makes a bid commits an offence, as does the auctioneer who knowingly takes such a bid (s 29). This preserves the traditional auction practice of reserve bidding if disclosed.

Special duties apply to livestock sales. A register in prescribed form must be kept with particulars of all stock sold, verified by the licensee, on the same day as sale, and retained for three years; invoices and account sales for 12 months (s 30(2)). Firearms and stock inspections are permitted (s 30(3)). A licensee, employee or clerk must not purchase stock placed for sale unless the vendor has consented in writing (s 30(5)); penalty $50,000 or 12 months imprisonment, and the court may order profits to be paid to the vendor (s 30(6)).

Splitting lots of livestock or farm produce is prohibited: inducing another to abstain from bidding by promising a right to take over at the auction price or agreeing to decide ownership by toss or lot is an offence (s 31(1)). Similarly, abstaining as a result of such a promise is an offence (s 31(2)). Auctioneers must notify bidders of these provisions by reading aloud or exhibiting notices (s 31(7)).

The Act creates a range of criminal offences with fines expressed in penalty units or specific amounts. As amended by the Consumer Protection Legislation Amendment Act 2019 (No. 25 of 2019), fines are now stated as specific dollar amounts rather than penalty units. Offences and penalties are as follows:

• Acting as auctioneer without a licence (s 6(6) - fine $50,000.
• Failure to deliver up licence after suspension or cancellation order (s 22(3) - fine $25,000.
• Improper advertising (s 23(1) - fine $25,000.
• Misrepresentation (s 24(1) - fine $25,000.
• Promoting or conducting a mock auction (s 25(1) - fine $50,000 or imprisonment for 12 months.
• Failure to keep proper records (s 26(1) and (2) - each fine $25,000.
• Failure to render account (s 27(1) - fine $25,000.
• Obstruction of inspection (s 28(5) - fine $25,000.
• Unlawful bidding by seller/auctioneer (s 29(2) - fine $25,000.
• Failure to keep livestock register (s 30(2) - fine $10,000.
• Purchasing livestock without vendor consent (s 30(5) - fine $50,000 or imprisonment for 12 months, or both.
• Inducing abstention from bidding on livestock/farm produce (s 31(1) and (2) - fine $25,000 each.
• Entering false name in auction records for livestock/farm produce (s 31(3) - fine $25,000.
• Auctioneer’s liability for false entry unless ignorance proved (s 31(4) - fine $25,000.
• Successful bidder supplying wrong information (s 31(6) - fine $25,000.
• Failure to read aloud or exhibit notice of splitting provisions (s 31(7) - fine $25,000.

Enforcement powers: any police officer may without warrant enter and remain on premises where they reasonably believe a sale by auction or mock auction is being conducted (s 36). The Minister may authorise persons to inspect records (s 28(1)). The Commissioner of Police may apply to the Magistrates Court for a summons requiring a licensee to show cause why their licence should not be suspended or cancelled, or why they should not be disqualified (s 22(1)). The court may order suspension or cancellation and disqualification for a specified period or permanently (s 22(2)(a)-(c)). Failure to deliver up a licence after such an order is an offence (s 22(3)).

Prosecutions must be commenced within two years after the date of the alleged offence (s 35(3)). The Act preserves all other civil or criminal remedies (s 34). Where a firm or corporation is charged due to the act of a licensee, it is a defence to show the act was without its knowledge and could not reasonably be expected, or that it was not in a position to influence the conduct, or that it used due diligence (s 35(5)).

The Act explicitly interacts with several other pieces of legislation. Section 5(1)(a) exempts sales authorised by the Minister for Lands under the Land Administration Act 1997. Section 5(1)(c) and (d) exempt court-ordered sales and execution sales. Section 5(1)(e) exempts sales by the Public Trustee. Section 5(1)(f) exempts impounded animal sales. Section 5(1)(g) exempts charitable, educational or church bazaars or gift sales. Section 5(1)(h) exempts persons authorised under another Act to sell by auction without an auctioneer’s licence (e.g. bailiffs under the Civil Judgments Enforcement Act 2004).

The definition of “corporation” in s 4 incorporates the Corporations Act 2001 (Cth) concepts of company, foreign company, and registrable Australian body. The definition of “firm” refers to entities registered under the Business Names Registration Act 2011 (Cth) (s 4 as amended by No. 6 of 2012).

Section 30(3) deems any member of the police force or inspector appointed under the Biosecurity and Agriculture Management Act 2007 to be an authorised person for inspecting livestock sale records under s 28(1). Section 32 requires auctioneers to obtain the original waybill issued under regulations made under the Biosecurity and Agriculture Management Act 2007 when receiving livestock for sale. The waybill provision protects auctioneers who act in good faith and under reasonable belief as to ownership (s 32(2)).

Section 33 deals with liquor: it preserves rights of liquor licensees under the Liquor Control Act 1988 and allows a licensed auctioneer who also holds a liquor licence to sell liquor by auction on premises other than those licensed under that Act, and to sell private stock for home consumption with a magistrate’s written licence (s 33(3)(b)). The Act does not derogate from the Liquor Control Act 1988.

The Act provides for the Magistrates Court to deal with applications and disciplinary matters. Sections 11, 16, 17, 18, and 22 all specify magistrates as the decision-makers. Section 14(1) refers to the court in which the licence was granted, which would be the nearest Magistrates Court (s 11(1)). The court’s powers under the Act are additional to its general jurisdiction.

Section 34 saves any other right of action or remedy, whether civil or criminal, in proceedings instituted otherwise than under this Act. This means a vendor could sue an auctioneer for breach of contract or negligence in addition to any criminal prosecution under the Act.

The Act’s definitions of livestock and farm produce may intersect with stock brands legislation, but no specific reference is made. Similarly, the record-keeping requirements may interact with taxation laws (e.g. GST, income tax) but the Act does not address that.

The Act was originally enacted as No. 73 of 1973, receiving assent on 6 December 1973. Most provisions commenced on 14 December 1973, with sections 3, 6-23, 26-28, 30, 31 and 33 commencing on 13 September 1974 (see s 2 and Gazette). The original section 3 (which contained the repeal of earlier Acts) has been omitted under the Reprints Act 1984 s 7(4)(f).

Significant amendments include:

• Auction Sales Act Amendment Act 1975 (No. 60) - amended fee provisions.
• Auction Sales Act Amendment Act 1978 (No. 46) - amended licensing procedures.
• Companies (Consequential Amendments) Act 1982 (No. 10) - updated corporation references.
• Acts Amendment (Financial Administration and Audit) Act 1985 (No. 98) - amended inspection powers.
• R & I Bank Act 1990 (No. 73) - deleted a reference to the Rural and Industries Bank.
• Stock (Brands and Movement) Amendment Act 1994 (No. 46) - amended livestock provisions.
• Acts Amendment (Land Administration) Act 1997 (No. 31) - updated land sale references.
• Statutes (Repeals and Minor Amendments) Act 1997 (No. 57) - made minor amendments.
• Corporations (Consequential Amendments) Act 2001 (No. 10) - updated corporate definitions.
• Courts Legislation Amendment and Repeal Act 2004 (No. 59) - substituted references from Licensing Court to Magistrates Court, and deleted s 20 (former fee provision).
• Criminal Procedure and Appeals (Consequential and Other Provisions) Act 2004 (No. 84) - amended s 24.
• Liquor and Gaming Legislation Amendment Act 2006 (No. 73) and Financial Legislation Amendment and Repeal Act 2006 (No. 77) - amended s 33 and s 28 respectively.
• Biosecurity and Agriculture Management (Repeal and Consequential Provisions) Act 2007 (No. 24) - amended ss 30 and 32 to refer to the new biosecurity regime, effective 1 May 2013.
• Business Names (Commonwealth Powers) Act 2012 (No. 6) - amended the definition of “firm”.
• Licensing Provisions Amendment Act 2016 (No. 44) - deleted ss 9 and 12, amended ss 11, 16, 19 and 37, effective 1 July 2017. This removed the old system of licensing by the former Licensing Court and simplified procedures.
• Consumer Protection Legislation Amendment Act 2019 (No. 25) - significantly increased penalties by replacing penalty unit amounts with specific dollar fines; amended ss 22, 23, 24, 25, 26, 27, 28, 30, 31 and 35. It also removed former subsections (1) and (2) of s 35. Effective 1 January 2020.
• COVID-19 Response and Economic Recovery Omnibus Act 2020 (No. 34) - amended s 37 (regulation-making power).
• Directors’ Liability Reform Act 2023 (No. 9) - amended s 35, effective 5 April 2023.

The compilation table shows a long history of amendments, reflecting the Act’s adaptation to modern commercial practices and increased penalty levels.

The Act does not cite any case law, and as an analyst I must not invent cases. However, the Act provides the framework for judicial proceedings in the Magistrates Court. Section 16(2) states that hearings of applications for grant or renewal (where objection has been given) are judicial proceedings open to the public. The court has the power to grant or refuse applications, impose conditions, and order costs (s 16(8)). Section 22 provides a mechanism for suspension or cancellation of licences on application by the Commissioner of Police, following a summons to show cause. The court may make orders for disqualification, either temporary or permanent.

Prosecutions for offences under the Act are criminal proceedings in the Magistrates Court, subject to the two-year limitation period (s 35(3)). The penalties have been increased to specific dollar amounts as noted above.

Section 34 preserves any other right of action or remedy. This means that civil proceedings (e.g. for breach of trust, conversion, or breach of contract) may arise independently of the Act. For example, a vendor might sue an auctioneer for failing to account for sale proceeds or for selling without authority. The Act’s record-keeping and inspection provisions supply evidentiary tools for such claims.

Because the Act is primarily a regulatory licensing statute, reported litigation is likely to be in the context of licence applications (where the magistrate considers fitness and propriety) and appeals from magistrates’ decisions to the Supreme Court (under the Magistrates Court Act 2004 or general law). No specific case citations are provided in the source text.

Several less-obvious provisions can trap practitioners:

1. The definition of “auctioneer” includes a person selling their own property (s 4). Therefore, a person who conducts a private sale of their own goods by way of auction (e.g. a deceased estate executed by a family member) may need a licence unless an exemption applies. The exemption for bazaars (s 5(1)(g)) is narrow, requiring that the whole of the proceeds be devoted to charitable, educational or church purposes.

2. The mock auction definition in s 25 is very broad. Even a “sale purporting to be by way of auction” can be a mock auction if any of the four triggers in s 25(2) exist. The term “purporting” is defined in s 25(6) to include any mode where persons are invited to buy by way of a bid stated, or competition by increasing or decreasing bids. Thus, an auction that offers a free gift (s 25(2)(c)) is automatically a mock auction, even if the auction is otherwise legitimate, unless the gift falls within the exemption for food, drink, transport, catalogues, or transport of lots (s 25(4)). Promotions like “buy a lot and get a free umbrella” could be an offence.

3. Section 26(1) requires that money received for or on behalf of any person be recorded “separately from any record of money received or held on his or the firm’s or corporation’s own account”. This effectively mandates trust accounting. The term “money received for or on behalf of any person” includes money held for that person even if originally received for someone else (s 4). This means an auctioneer who receives a deposit on behalf of a vendor must hold it in a separate trust account, even if the auctioneer initially received the money from a different source.

4. Section 29: the right for the seller to bid must be “notified in the conditions of sale” - not just announced at the auction. If the conditions are not in writing or do not state the right, any bid by the seller or their agent is unlawful. Similarly, if the conditions specify a number of bids, the seller cannot exceed that number.

5. Section 30(5) prohibits any employee or clerk of the auctioneer from purchasing stock placed for sale unless the vendor has given prior written consent. This applies even if the employee is not acting as auctioneer at that sale. The penalty is a fine of $50,000 or imprisonment for 12 months, and the court may order profits disgorged to the vendor.

6. Section 31 splitting provisions: it is an offence to induce another to abstain from bidding by promising a right to take over at auction price or to decide ownership by lot. This applies even if no actual splitting occurs - the mere promise or inducement is sufficient. The auctioneer must read aloud a statement of these provisions before bidding commences (s 31(7)(a)), or exhibit them in larger print in conditions of sale (s 31(7)(b)). Failure to do so is an offence.

7. Section 32(1) requires the auctioneer to obtain the original waybill when receiving livestock for sale. The original, not a copy, must be obtained. If the waybill is missing or forged, the auctioneer must still exercise good faith and reasonable belief as to ownership to avoid liability (s 32(2)).

8. The application process for a licence requires three character testimonials for a new licence (s 11(2)). These must be lodged with the application. The registrar must forward a copy of the application and testimonials to the senior police officer of the district (s 11(3)(c)). The hearing date must be at least 35 days after lodgement (s 11(3)(a)). Objectors must give notice at least 7 days before hearing (s 11(6)). These timeframes are strict; non-compliance may delay or defeat the application.

9. An interim licence automatically expires if the underlying licence is surrendered, cancelled or suspended (s 14(5)). The original licensee remains personally liable for the interim licensee’s acts (s 14(6)). Similarly, a provisional licence expires when the supervising licensee’s licence ends (s 15(6)).

10. Section 21: surrendering a licence does not count as cancellation, but the licence ceases on the date the registrar receives it. There is no refund of licence fee. Surrender does not affect pre-existing liabilities.

To comply with the Auction Sales Act 1973, a person or entity intending to conduct auctions in Western Australia should follow these steps:

1. Obtain the appropriate licence. Only a natural person can hold a licence (s 6(1)). If the auction business is to be conducted for the benefit of a firm or corporation, the application must be made under s 8, stating the firm or corporation’s name and principal place of business, and accompanied by its written consent (s 11(4)). The applicant must provide three character testimonials for a new licence (s 11(2)). The application is made to the registrar of the Magistrates Court nearest the place where business will be carried on (s 11(1)). A hearing will be scheduled at least 35 days after lodgement (s 11(3)(a)). The applicant must satisfy the magistrate that they are a fit and proper person (s 16(6)).

2. Once licensed, carry on business only in the name, place, class of business, and subject to conditions stated on the licence (s 6(3)). Do not advertise unless the licence is in force (s 23). For an occasional licence, remember it is non-transferable and cannot exceed seven days in aggregate within a police district (s 13). Only five occasional licences per 12 months per police district are allowed (s 13(2)).

3. Maintain proper trust accounts. All money received for or on behalf of another person must be recorded separately from the auctioneer’s own money (s 26(1)). The records must show full and accurate particulars of each transaction, including withdrawals, and be balanced monthly (s 26(2)). Retain records for three years (s 26(2)(c)). Render a written account to each vendor within 42 days of completion of sale, or 14 days of demand (whichever is earlier) (s 27(1)). Do not delay beyond 14 days if demand is made.

4. Avoid misrepresentations. Do not make false or misleading statements about any lot’s value, composition, description, etc. (s 24). If a statement is made in good faith on reasonable grounds, a defence exists, but it is better to verify all representations.

5. If the auction is for livestock or farm produce, comply with the special rules. Keep a register of all stock sold with verified particulars on the day of sale; retain the register for three years and invoices for 12 months (s 30(2)). Ensure livestock waybills are obtained from the drover or carrier (s 32(1)). Do not purchase stock placed for sale unless the vendor has given prior written consent (s 30(5)). Before bidding begins, read aloud a statement of the splitting provisions (s 31(7)(a)) or display them in larger print within the conditions of sale (s 31(7)(b)). Do not induce anyone to abstain from bidding by promising a right to share or split the lot.

6. If the seller wishes to bid, ensure that the right to do so is notified in the conditions of sale, and specify the number of bids if limited (s 29). Do not take a secret seller’s bid.

7. Cooperate with inspections. Keep all records open to inspection by persons authorised by the Minister (s 28(1)). If an auditor is appointed at the Minister’s direction, provide access and bear the cost (s 28(6)).

8. In disciplinary matters, if the Commissioner of Police applies to show cause why the licence should not be suspended or cancelled, appear at the Magistrates Court (s 22). If an order is made, deliver up the licence promptly (s 22(3)).

9. Ensure that any employees or officers of the firm or corporation who act as auctioneers hold the requisite licence. The firm or corporation is primarily responsible for compliance but both may be prosecuted (s 8(8)). Utilise the defence in s 35(5) if a breach occurs without knowledge or due diligence was used.

10. For interim or provisional licences, ensure the original licensee remains liable and that the provisional trainee is supervised directly (ss 14(6), 15(4)). Do not exceed the time limits.