Tow Truck Industry Regulation 2020

Official purpose‑statements and how they operate mechanically

• The instrument provides a fee framework for towing, salvage and storage of vehicles involved in accidents or recovered after theft (Part 5, clause 43). Mechanically, that purpose is implemented by: fixed base amounts (expressed as fee units) for particular services (clauses 45–66 and Schedule 2); kilometre and time surcharges; exclusions on separate charges (clauses 69–71); and documentary requirements for invoices and photos (clauses 72–83).

Who pays, who decides, and what behaviour changes

• Who pays: vehicle owners or their insurers typically pay the fees capped under Part 5. Fees can include towing, salvage, storage and related services as permitted by Divisions 2–6 of Part 5 (clauses 45–67, 82–83).
• Who decides: the Secretary of the Department administers licensing, exemptions, issuance of authorised forms/books/signs, approvals for stand‑by trucks and exercises discretions to refuse or grant licences or exemptions (clauses 5, 6, 23, 24, 26, 27, 36, 86, 94). Authorised officers and police have enforcement and authorisation roles at accident scenes (clauses 30, 32, 35(3), 36(4)).
• Behavioural effects the regulation imposes on industry participants:
  • Operators must obtain and display particular signage and registration details on tow trucks (clauses 11, 21(2)(c), 77).
  • Drivers and licensees must follow a protective clothing policy and ensure tow truck suitability before towing (clauses 9(a), 16(a)–(b)).
  • Detailed record keeping: towing authorisations, holding yard registers, non‑accident tow records and itemised charge records must be kept for specified periods and produced on request (clauses 33, 36–37, 41, 81–83). Non‑compliance attracts specified penalties (Schedule 3).
  • Limits on charging: the regulation caps prices for identified services, prohibits certain separate charges (e.g. fuel, moving between holding yards) and requires photographic and invoice evidence for particular services (clauses 45–71, 72–73, 82–83).

Costs, incentives, trade‑offs and implementation considerations (section references included)

• Direct cost limits and price predictability: fee caps (Part 5 and Schedule 2) reduce the maximum revenue an operator can charge per tow or per hour (clauses 45–66; Schedule 2 Part 2). That changes operators' pricing incentives and can influence choices about staffing, equipment and whether to offer certain services.

• Administrative and compliance costs for operators: the regulation requires extensive record keeping (towing authorisation books, holding yard registers, itemised charge records) and retention (typically 5 years) and production on request (clauses 33, 36–37, 41, 81–83). Operators must also maintain equipment and security in holding yards and keep signage and vehicle markings (clauses 38, 76, 77, 21(2)(c)). These are recurring time and capital costs.

• Entry and operational constraints: technical definitions and truck class requirements (clause 44 definitions; clause 50) limit which tow trucks may lawfully charge for heavy‑vehicle towing. Clause 85 prescribes one‑tonne tow trucks as prohibited unless specifically approved. Those rules affect capital investment decisions about fleet composition.

• Discretion and administrative bottlenecks: the Secretary has broad powers to request further information and to grant or refuse licences and exemptions based on fitness and proposed activities (clauses 5, 7, 23–24). That concentrates decision‑making with the regulator and makes industry access to licences/exemptions dependent on meeting administrative and subjective fitness tests.

• Enforcement and evidentiary requirements: invoices, photos and the obligation to attach towing notices and keep originals are intended to support enforcement and justify fees (clauses 33, 35, 72–73, 83). These create evidentiary costs for operators but also provide documentation for disputes or inspections.

• Targeted regulatory relief: the regulation creates narrow exemptions (for example, operators towing exclusively to registered scrap metal businesses) with many conditions (clauses 21–22). These exemptions remove licensing/certificate requirements but impose alternative compliance obligations (signage, lists of drivers, records), transferring regulatory burden rather than eliminating it.

• Implementation risks and opportunity costs: effective enforcement requires authorised officers to inspect records, towing books and vehicles and to act on inspection notices; operators bear costs of inspections and remedial actions (clause 78). Where the Secretary can waive fees for hardship or disaster (clause 94), administrative discretion is used to mitigate particular burdens but requires processes to assess claims.

Concentrated benefits, substitution effects and allocation of risk

• Concentrated benefits: narrowly framed exemptions (for scrap‑metal tow operators, cl.21–28) concentrate a compliance‑cost reduction on operators meeting the exemption conditions while keeping other regulatory checks.

• Substitution effects: restrictions on who may charge for heavy vehicle towing (clause 50) direct recovery demand toward operators with specific truck classes, shifting economic activity among operators based on fleet capability.

• Allocation of practical risk: record‑keeping, signage and holding‑yard security place operational risk and evidentiary responsibility on licensees and drivers; inspection costs and required repairs are expressly payable by the operator (clause 78(8); clauses 36–37, 41, 76).

Key implementation and compliance touchpoints to watch (with clauses)

• Licensing and application fees and processing: Secretary may withhold determination until fees and information are provided (clauses 5–6, 13, 17, Schedule 2 Part 1).
• Towing authorisation paperwork and required quotations (clauses 33–35; clause 36 for towing‑authorisation books).
• Caps and permitted components of charges, plus forbidden separate fees (Part 5 Divisions 2–7: clauses 45–71 and 69–71).
• Documentary evidence for invoices and photos for salvage/towing (clauses 72–83).
• Holding yard security and register, and record retention rules (clauses 38, 41, 59–63, 84).
• Secretary's discretionary powers and exemptions (clauses 23–27, 38(2), 86, 94).

Bottom line (mechanical effect): The Regulation operationalises the statutory regime by specifying who must be licensed or certified (and who may be exempt), prescribing the forms and records to be used at accident scenes and in holding yards, capping and detailing permitted fees for towing, salvage and storage, and allocating administrative responsibilities and penalties for enforcement. The Secretary is the central decision‑maker for licensing, exemptions and enforcement processes (see clauses 5, 23–24, 78, 94).

Towing authorisation (Part 3). At accident scenes, a towing authorisation system controls which licensed tow truck may attend. This prevents unlicensed operators and "chasing" behaviour at accident scenes. Part 3 prescribes the process for obtaining and complying with towing authorisations.

Holding yard (Part 4). A licensed operator must have a holding yard where towed vehicles are stored. Part 4 prescribes holding yard standards, access obligations (vehicle owners must be able to retrieve their property), and related requirements.

Maximum fees (Part 5). Part 5 sets the maximum fees a licensee or certified driver may charge for towing, salvage, and storage of motor vehicles involved in accidents or stolen. It does not apply to breakdown towing. The fee structure distinguishes between light motor vehicles (GVM not exceeding 4.5 tonnes) and heavy motor vehicles (GVM over 4.5 tonnes, with further sub-classifications by tow truck class). Fee amounts are expressed in fee units, with Part 3 of Schedule 2 prescribing the value of a fee unit.

Exemption for scrap metal towing (Part 2 Division 4). An exemption certificate may be issued by the Secretary under section 33A(3) of the Act for persons who tow scrap metal, reflecting the different commercial context of that activity.