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29 August 2024

Finally – a Better Deal for Towies

A fee increase for tow truck operators acting as the police contact for recovery, towage and storage of vehicles is long overdue but welcome, the Motor Trade Association (MTA) says.

MTA Sector Manager Larry Fallowfield says MTA has long advocated for an increase.

“As the Government acknowledges, it’s the first since 2004, so we thank the Government for taking this step. Tow truck operators have unfairly carried the can and cost for providing an essential service for far too long.

“MTA has advocated for this for 20 years, but despite numerous reviews, successive governments have chosen not to adjust the fees. We stepped up our calls at the start of last year to argue for an increase that reflected inflation.

“Today’s announcement shows this Government has listened, although there is still work to be done.”

Towage fees will increase by 68%, and mileage and storage by 98% from 1 October, under today’s announcement.

However, the Government hasn’t addressed all the issues, Mr Fallowfield says.

“For starters, there needs to be an annual review and if applicable, a price increase to reflect inflation,” he says.

“And there’s no opportunity to charge an administrative fee to cover additional expenses that are required to check for money owing, or to confirm the registered owner via a third-party portal.”

Consideration for extra costs incurred in difficult recoveries also needs to be on the table.

“Some impound recoveries can take up to two hours because there’s no key, no wheels, or the vehicle is in a hard to access area.

“And in many accidents the vehicle has ended up off the road in a paddock or ditch, or down a bank.”

MTA will seek feedback from tow truck members and work with Government on implementing the new fees. Around half of the country’s 200 tow truck operators are MTA members.

 To speak with Larry, please contact Simon Bradwell.