If you’re running a tow truck business, you may be impacted by new industry regulations.
As part of the Towing Services Act 2024, a range of towing industry reforms are being rolled out in a staged approach. The first stage of changes, which relates to capped fees and maximum charges, took affect on 10 January 2025.
New requirements for tow truck businesses
The key requirements that will need to be met by business operators in the towing industry include:
- Holding a towing business authorisation in order to undertake crash towing.
- Capped fees and maximum charges for crash towing.
- Additional fees that were not disclosed upfront can no longer be charged.
- New safety standards for tow trucks and personnel (including the use of personal protective equipment) must be met.
Towing business authorisation
As part of ongoing reforms to the industry, all crash towing businesses will need to hold a towing business authorisation. To become authorised, you will need to meet the following requirements:
- ‘Fit and proper’ persons considerations
- Public interest considerations
- Storage yard standards
Applications for towing business authorisations will open from 1 July 2026.
Visit the Department of Transport website for more information on towing business authorisation requirements
New technical standards
From 7 November 2022, tow trucks will need to meet updated technical standards before a vehicle licence can be granted. These standards are focused on improving the safety and roadworthiness of vehicles.
Visit the Department of Transport website to find out more about the new technical standards.
Capped fees and maximum charges
The maximum charges of towing and storing crashed light vehicles in the Perth metropolitan area (including Peel) are now capped.
From 1 July 2026, these maximum charges will be increased in line with consumer price index (CPI) adjustments and will be set at:
- Light vehicle tow: $523
- Distance fee after 50km: $4.75 per km
- After hours surcharge: one off fee of $149
- Daily maximum storage maximum charge: $27 for light vehicles and $13.50 for motorcycles.
- Maximum administration charge: $95
Maximum towing charges for regional areas and heavy vehicles may be introduced at a later date.
Visit the Department of Transport website for more information on capped fees and maximum surcharges for crash towing.
Consumers’ rights around refusing a tow
Drivers at the scene of an accident have the right to choose who tows their car and where it is towed to.
Tow truck drivers are required to disclose the maximum cost and provide a signed and completed Authority to Tow statement to drivers.
Visit the Consumer Protection website for more information on consumer rights for vehicle towing.
Why are these changes taking place?
The Department of Energy, Mines, Industry Regulation and Safety conducted a review of the tow truck industry which looked at problems in the industry and the options for introducing regulations. The reformed introduced are in response to the findings of their consultation with stakeholders.
Stay up to date with the latest small business news
Looking for the latest information to help you run a business in Western Australia?
Sign up to our fortnightly e-news to get stories like this (and other important updates for small business owners) delivered straight to your inbox.
If you operate a business in the tow truck industry, you can also sign up for updates on the towing industry reforms from the Department of Transport.
