The Disposal of Uncollected Goods Act is now law.
The Disposal of Uncollected Goods Act 1968 dictates the process for the disposal of unclaimed goods left in a business' possession. Many members have the experience of vehicles being abandoned in their workshops, taking up valuable space, and in many cases owing money. Then there is the problem of trying to legally dispose of the vehicle under an Act drafted in 1968.
After years of lobbying, in 2019 TACC worked with the government to draft a new Act that makes it far easier for members to communicate with customers and dispose of vehicles without risking action being taken against them.
Under the new Act, members will need to go through the following steps to dispose of an abandoned vehicle.
- Contact the customer to request they remove the vehicle and pay the account (if owing)
- Issue a Goods Disposal Notice via:
• Phone or text
• Delivery to the last known address
• In-person or
• Send a notice to an interested party
- After the required time, dispose of the vehicle:
• Conduct a Personal Property Securities Register (PPSR) check to see if a financier has an interest in the vehicle. If so, contact them.
• Dispose of the vehicle. The sale method will be determined by the value of the vehicle and include appropriation, destruction, public auction and/or private sale.
- Provide the purchaser with a receipt
- Apply the sale proceeds to the invoice and any selling costs
- If there is a sale surplus, members must:
• Return the surplus to the owner
• If the owner cannot be located, the funds will be treated as Unclaimed Money and need to be remitted to the Department of Treasury and Finance
- Keep a Disposal Record of the vehicle for six years.
There are penalties if members fail to dispose of a vehicle in accordance with the Act.
The Act only allows for the disposal of abandoned vehicles, members cannot use this process to resolve a dispute over an account.
More detailed information can be found in the Disposal of Uncollected Goods: A guide for business and consumers.
TACC welcomes the new Act, which will make the process of disposing of vehicles much easier and far quicker.
For more information, contact TACC.
P: 03 6278 1611