What happens when you don’t know any car impound rules in New South Wales and the police confiscates your car? You might feel a little lost and panicked at the idea that they’re taking possession of your car. That’s why you must remember these three rules on vehicle confiscation in NSW. Here, we will tackle the basic rules and information about vehicle impoundment in NSW, Australia.
Car impound is the legal process of putting a car into an impoundment lot or tow yard. This is a holding place for cars or company-registered vehicles until they are returned to the owner, crushed for their metal, stripped of parts at a wreckers, or auctioned off for the impounding agency.
True enough, the sound of a police siren is enough to make anyone’s heart skip a beat. But for some drivers in NSW, the sound of that siren can mean much worse: impoundment of their car. The police can impound your car if you commit a serious driving offence. This can include:
- Excessive speed (speeding)
- Drink driving and
- Street racing.
If authorities impound your car, it can be a real pain to get it back.
#1: Don’t Commit Serious Driving Offences
Driving is a privilege, not a right. When you abuse that privilege by committing a serious driving offence, you can expect serious consequences like car impoundment. When someone drives a vehicle in a way that causes or is likely to cause death or serious injury, that can be a serious driving offence.
Serious driving offences come with serious penalties like jail time, fines, and restrictions on vehicles. If the police charge you with a major traffic offence, you must seek legal advice and go to court.
Here are some examples of serious driving offences that can lead to vehicle confiscation:
- Negligent driving offences, like accidents that cause death or serious injury without speeding or being under the influence of alcohol or drug driving.
- Furious and reckless driving offences are knowingly or carelessly driving in a way that:
- puts other road users and community members in danger,
- creates a real risk of physical injury to other road users.
- Failing to stop and assist after an accident because in NSW there is a law that requires a driver or rider to stop or assist:
- When they see an accident causing physical injury, or
- When they are involved in an accident or impact causing physical injury.
- Predatory and menacing driving offences, like when drivers follow or threaten another driver to cause physical harm.
- Police pursuit offences involve driving erratically or at high speed and ignoring police requests to stop; you are pursuing police.
- Other serious driving offences causing death or grievous bodily harm. Charges include murder, manslaughter, grievous bodily harm, or injuries caused by furious driving under the Crimes Act 1900.
Serious Driving Offences Carry With It Several Vehicle Sanctions
The NSW Police can impose vehicle sanctions on the driver when you commit any of the above serious driving offences. These sanctions may be:
- Number plate confiscation
- Car impound
Sanctions on vehicles are usually 3 months. If you were not allowed to drive at the time, your car can be fined for up to 6 months. Even if someone else was driving your car, police can impound the car. This applies to business-registered vehicles.

#2: Know the Road Transport Act 2013 NSW
Section 239
If you’re a driver in NSW, you should at least be familiar with your state’s road rules, particularly the rules on car impound. In relation to this article’s topic, Section 239 of the Act provides that NSW police have the power and authority to impound a car in NSW. A police officer can:
- seize and take control of your car and move it to a place decided by the Commissioner of Police;
- remove and confiscate your vehicle’s number plates and attach a number-confiscation plate to your car.
As a consequence, you can’t drive that vehicle until you get your number plates back from the authorities. Driver beware; driving with fake plates or no plates attracts a $3,300 maximum penalty.
Section 250
Another relevant provision would be Section 250. This outlines the rules for the release of impounded vehicles and number plates. Take note of the following points:
- There may be fees for the movement, towage, and storage of an impounded vehicle or release of number plates. But the Commissioner of Police can waive those fees.
- The Commissioner must make every effort to ensure an impounded motor vehicle is available for collection by the person entitled to it as soon as that person is entitled to it.
- Unless all moving, towage, and storage fees for the impounded car are paid in full, the Commissioner is not required to release any motor vehicle under this section or release any vehicle in accordance with an order of the Local Court.
- Any person to whom a vehicle is released must sign in writing that they have received the vehicle from the Commissioner.
- Transport for NSW must make every effort to have number plates available for collection by the legally entitled person as soon as that person becomes entitled to them or to issue replacement number plates if they were damaged when removed.
#3: Show the Courts That You Have a Good Reason To Drive the Car
It’s not the end of the world if you get a vehicle sanction of car impound. You can still appeal to the court for your car or your number plates before the sanction period ends. What’s important here is that you must show the judge that you have a good reason to drive the car.
The court will consider if it is more likely than not:
- you or someone else will use the vehicle to commit a serious driving offence again; or
- someone (other than the registered owner) will suffer a great deal of hardship if the court doesn’t release the car.
You can appeal the sanction, but the court can’t release the car or number plate before 5 working days from the date of the sanction.

Get Legal Advice from JB Solicitors
Car impoundment can include other issues, especially when you received this sanction because of a serious driving offence. If you’re not sure what your first step should be, reach out to a lawyer from JB Solicitors. We will gladly help you with several things related to car impound, such as:
- Challenging the impoundment. If you think there was illegal impoundment, we can help you challenge the illegality. This may be by arguing the police or senior police officer didn’t have reasonable grounds to impound your car or that they didn’t follow the impoundment process.
- Early release of your car. In some cases, we can get your car released without you having to go to court. We can argue that you’re not a flight risk or you’ve already addressed the underlying issue that led to the impoundment.
- Going to court. If your case goes to court, we can represent you and work towards getting you a favourable result. We can argue you’re not guilty of the offence that led to the impoundment or that the court should reduce the penalty.
- Getting your car back. Once your case is done, we can help you get your car back. You may pay the impoundment fee or have your vehicle towed to a different location.
Contact us now if you had your car impounded.
Last updated: 17 January 2025