This article will discuss the current impound vehicle laws in New South Wales, Australia. Vehicle impoundment is a legal process that involves the temporary seizure of a vehicle. It also results in the placement of the vehicle in an impound lot. Law enforcement agencies typically initiate this. Authorities take this action when a person commits a serious driving offence in a vehicle under their name.
The police and the court can impound vehicles under reasonable grounds. If people do not hand the vehicle over, further penalties may apply. In some cases, parties may sell the vehicle to recover its storage and collection costs. In other cases, they may give it to Transport for NSW for use in crash testing.
Let’s look at the current NSW laws on vehicle impounding.
Understanding the Road Transport Act 2013
The Road Transport Act 2013 in New South Wales contains provisions related to impound vehicle.
Section 241 to 243 of the Act outlines the powers and duties relating to the seizure of motor vehicles and the removal, impounding, and production of vehicles. It specifies the procedures and powers related to the impoundment of vehicles under certain circumstances
Section 241 and 242: Seizure of Motor Vehicles
According to this section, authorities may seize a motor vehicle under section 239 on:
- a road or public place or
- any other place, with the consent of the registered owner or occupier of the place or under the authority of a search warrant issued under section 255.
Moreover, it also states that a senior police officer may cause any locking device or other feature of the motor vehicle concerned that is impeding its seizure and movement. Also, if vehicle owners or any other person will not surrender the keys to the vehicle, the officer may start the vehicle by other means.
If a tow truck moves a motor vehicle, the person operating or driving the tow truck may take such action as is reasonable or necessary to facilitate the towing of the vehicle in a manner that does the least damage to the vehicle. In taking any such action, the person is not liable for any damage to the vehicle that the person causes.
Section 242 also requires that a certificate in writing be given by a police officer as to the fact and cost of any such movement is evidence of those matters.
Section 245: Forfeiture of Vehicles if Operator Is Guilty
S245 establishes that a motor vehicle used in connection with a sanctionable offence (a second or subsequent offence) by the offending operator within a 5-year period may be forefeited to the Crown by the finding of guilt by the court.
However, this rule does not apply if the vehicle was already forfeited under section 243 or the court otherwise directs under section 246.

What Is a Sanctionable Offence?
The following are sanctionable offences:
- a high range speed offence
- drink driving (s110[4] or [5]), but only if the person has received conviction of an alcohol-related major during the period of 5 years before they committed the new offence
- drug driving (s111A[1,2,3]), but only if the person has received conviction of an alcohol-related major offence during the period of 5 years before they committed the new offence
- racing and speed trials (s115),
- road and drag racing (s116)
- an offence against section 51B (Police pursuits) of the Crimes Act 1900
- any other offence prescribed by the statutory rules.
Any forfeiture under this section is in addition to any other penalty that may be imposed for the offence concerned. However, for the purposes of any rights of appeal against a penalty so imposed by the court finding the offence to be proven, the forfeiture is taken to be, or to be part of, that penalty.
Section 248: Retention of Impound Vehicle
This section states that the Commissioner of Police is to retain an impound vehicle under section 242:
- for a period of 3 months after it was impounded or
- for a period of 6 months after it was impounded if the offending operator is disqualified from holding or obtaining a driver licence and the sanction was imposed in respect of a sanctionable offence committed by the offending operator.
Exception: this rule does not apply if the forfeiture of the vehicle was due to the finding of guilty of the offending operator under section 245.
Section 249: Early Release of Impound Vehicle
Is an early release of an impound vehicle possible? Section 249 says yes, it’s possible. A person may apply to the Local Court for an order for the release into the person’s custody of a motor vehicle impounded before the end of the period of impounding imposed on the motor vehicle.
However, an order cannot provide for release on a day that is less than 5 working days after the vehicle was impounded. To determine whether the Local Court may make an early release order, it has to consider the following:
- the safety of the public and the public interest in preventing the use of a motor vehicle that the Court considers is reasonably likely in all the circumstances to be used for further sanctionable offences
- any alleged extreme hardship to a person other than the registered operator of the motor vehicle arising from the motor vehicle impoundment
Other requirements under this section when the Court issues an early release order:
- Payment of movement, towing and storage costs under section 250.
- Acknowledgment in writing receipt of the motor vehicle by the applicant.
Section 250: Impound Vehicle Release
Few things to remember about the release of impound vehicle under this section:
- The law may prescribe fees in respect of the movement, towage and storage of an impounded vehicle.
- The Commissioner of Police must cause any impounded motor vehicle to be available for collection by a person entitled to its possession as soon as the person is entitled to it.
- However, the Commissioner need not release any motor vehicle under this section or to release any vehicle in accordance with an order of the Local Court unless parties have paid fees in full. Although, the Commissioner may also waive the whole or any part of such fees.

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