IPART puts NSW tow truck sector under the microscope

A review into the NSW tow truck industry will examine the appropriateness of existing fees and charges.


Potential changes to regulations governing the tow truck sector in New South Wales will be examined as part of a review now underway.

The Independent Pricing and Regulatory Tribunal (IPART) is looking into how existing regulatory structure and charging arrangements can be improved.

The NSW tow truck industry is currently regulated with minimum requirements that tow truck operators and drivers must meet, while there are maximum fees and charging arrangements in place for certain types of towing.

IPART says maximum fees for towing services are regulated but the market sets fees for towing purposes other than accidents.

"This review will consider what is needed to maintain and improve the quality, reliability and safety standards of the tow truck industry, alongside what measures need to be put in place to ensure the viability and sustainability of tow truck operators, particularly in remote areas of NSW," IPART Chairman Dr Peter Boxall says.

Existing tow truck fees are outlined in an issues paper, Review of Maximum Towing Fees (Light and Heavy Vehicles), IPART has released for feedback from tow truck operators and drivers, motorists and heavy vehicle operators.

The paper asks stakeholders for their views on whether the current system on fees and charges is appropriate.

Views are also being sought about the current regulatory framework and what changes, if any, could be made to provide savings to business and the community by reducing red tape.

"We are also seeking stakeholder views about different charging schedules and arrangements for light and heavy vehicles and the towing services provided by the industry including accident towing, subsequent towing and storage fees," Boxall says.

He says IPART also intends to consult directly with the tow truck industry and community representatives during the review.

Boxall says the objective of the review is to recommend ways to ensure the industry is operating as efficiently as possible to reduce costs, while ensuring consumers are provided with adequate protection.

Stakeholders have until June 27 to respond to the paper. IPART says responses will be considered in the preparation of a draft report to be released in October.

A final report will be handed to the NSW Government in December.

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