We reviewed accident towing, storage and salvage fees in Melbourne.
Accident towing and storage fees review 2018
- Consultation paper5 April 2018
- Submissions close3 May 2018
- Draft report29 August 2018
- Submissions close26 September 2018
- Final report10 December 2018
Overview
We have completed our 2018 review of accident towing, storage and salvage fees in Melbourne. On 10 December 2018, we provided the Minister for Roads with our final recommendations, which are outlined in our final report. We will complete our next fee review in 2022.
Our role in this industry is to provide advice to the Minister for Roads on the accident towing, storage and salvage fees in Melbourne. The minister has previously determined regulated accident towing and storage fees in Melbourne and may determine new fees in response to our final recommendations. The minister also has the power to determine a regulated fee for basic salvage services. Read more about how we review accident towing and storage charges.
Our final recommendations
We recommend increasing vehicle storage fees to $25 per day
We recommend that regulated 'under cover' vehicle storage fees be increased from $17.00 per day to $25.00 per day. This recommendation is based on our benchmarking analysis that suggested that fees are too low.
We also recommend that all other regulated storage fees ('under cover' and 'locked yard' storage for vehicles and motorcycles) should be increased by the same percentage amount.
This would result in an increase of around $2.00 per day on average for motorcycle storage and $7.00 per day on average for vehicle storage.
We have not recommended any other changes
We have not recommended any other changes to accident towing, storage or salvage because:
- our benchmarking analysis of accident towing fees indicated that the current fees are appropriate
- we found no basis to change the productivity adjustment factor from 0.5 per cent
- we found no significant evidence to justify the introduction of any new regulated fees (such as a basic salvage fee).
Regulated fees may change in 2018-19
The current 2018-19 regulated fees will continue to apply until the minister makes a new fee determination, which may occur in response to our final recommendations. In summary, our final recommendations, if implemented, would result in:
- no changes to regulated accident towing fees
- increases in each of the regulated daily storage fees
- no change to how fees are annually adjusted
- no additions to the services that are regulated.
| Fee description | 2018-19 actual
($ incl. GST) |
2018-19 recommended
($ incl. GST) |
|---|---|---|
| Accident towing fees | ||
| Base fee (incl. first 8km) | 221.40 | 221.40 |
| Distance fee (after 8 km) | 3.50 | 3.50 |
| After hours surcharge | 75.60 | 75.60 |
| Storage fees (per day) | ||
| Car- under cover | 17.00 | 25.00 |
| Car - in locked yard | 11.50 | 16.90 |
| Motorcycle - under cover | 5.60 | 8.25 |
| Motorcycle - in locked yard | 3.60 | 5.30 |
Got questions?
Contact us and we can help answer your questions about this project.