Where a customer abandons a vehicle or other type of good on your property, the Unclaimed Goods Act 1987 (SA) provides a process for disposing of the vehicle/good.
The process below applies from 1 August 2026 and replaces the previous process for dealing with unclaimed goods. This process can be used where a customer has outstanding repair costs or other amounts owing in relation to a vehicle that is uncollected.
As the new process is significantly simpler, we recommend following the process under the new Act (rather than having a separate repairer’s lien process to deal with outstanding fees owed). If you currently have any abandoned vehicles or other unclaimed goods at your premises, we recommend waiting until 1 August 2026, when the new Unclaimed Goods Act 1987 (SA) provisions commence, before taking steps to dispose of them.
Template notices for use throughout the process are available to download from this webpage. Make sure you use the correct template for the relevant stage of the process and retain copies of all notices sent, together with evidence of when and how they were served.
Step 1 – Determine whether the vehicle is unclaimed
A vehicle may be considered unclaimed where, for example:
- the customer and owner (if different to the customer) has failed to collect the vehicle as agreed;
- you have asked the customer/owner to collect the vehicle and they have failed to do so; or
- you have taken reasonable steps to contact the customer/owner but have been unable to arrange collection.
This process can apply whether the vehicle was left with you for repairs, servicing or other work, or whether it was otherwise left at your premises and subsequently abandoned or left uncollected.
If you have an existing agreement or arrangement with the customer regarding what happens to the vehicle if it is not collected, the terms of that agreement may need to be considered separately. If this is the case, please contact the Workplace Relations team directly below.
If you have not already asked (in writing) for the customer or owner to collect the vehicle, we recommend contacting them in writing and requesting that they collect it. The Template Notice – Request to Collect Vehicle is available to download from this webpage and can be used for this purpose.
Keep evidence of all requests and attempts to contact the customer or owner.
Step 2 – Search the PPSR
Before taking steps to dispose of an abandoned vehicle, you must conduct a search of the Personal Properties Securities Register (PPSR) for information relating to the vehicle. A PPSR search can be undertaken here at a small fee of $2 by following this hyperlink here: PPSR Vehicle Search.
We recommend keeping a copy of the PPSR search and evidence of all notices sent to registered interest holders.
If the PPSR search identifies one or more registered interest holders, you must provide the below notice to each registered interest holder.
Please contact the Workplace Relations team before proceeding if you are unsure how to deal with the interest.
Step 3 – Determine the value of the vehicle
Once you have determined the relevant parties who will need to be notified about the abandoned vehicle, you will then need to determine the value of the vehicle and provide the required notice that the disposal process will proceed (as the disposal process depends upon the value of the vehicle).
The new Act has three value scales for motor vehicles:
- Scale 1: $1,000 or less
- Customer, owner (if different to customer) and any registered interest holders must be provided 14 days written notice.
- Scale 2: $1,000 – $20,000
- Customer, owner (if different to customer) and any registered interest holders must be provided 28 days written notice.
- Scale 3: $20,000 or more
- Customer, owner (if different to customer) and any registered interest holders must be provided 60 days written notice.
- The value thresholds above apply to the combined value of all unclaimed goods where more than one item has been abandoned. For example, if a customer has abandoned multiple vehicle parts, the total value of all the parts collectively will determine which value scale applies and, consequently, the applicable notice and holding period.If you are uncertain about the value of the vehicle, we recommend obtaining an independent valuation or other reliable evidence of its market value.Step 4 – Notice of Intended DisposalYou must provide notice to the customer, owner (if different to the customer) and any registered interest holder that, should they not arrange collection and payment of any outstanding debt, the vehicle will be disposed of.The Template 2 – Notice of Intended Disposal is available to download from this webpage and can be used for this purpose. Please note: this is a single template that applies across all three value scales. Please complete the template with the relevant information relating to the vehicle in questionThe requirements will depend on the value of the vehicle.
- Vehicles worth $1,000 or less – Scale 1
- You must give the required notices to the relevant person(s) and any registered interest holders listed on the PPSR, then wait at least 14 days after each notice is given. Once these requirements are met, the vehicle, you become the legal owner of the vehicle, allowing you to retain, sell or otherwise dispose of it in accordance with the Act.
- Vehicles worth more than $1,000 but less than $20,000 – Scale 2
- You must give the required notices to the relevant person(s) and any registered interest holders listed on the PPSR, then wait at least 28 days after each notice is given. Once these requirements are met, you can sell the vehicle by private sale or public auction.
- Vehicles worth $20,000 or more – Scale 3
- You must give the required notices to the relevant person(s) and any registered interest holders listed on the PPSR, then wait at least 60 days after each notice is given. A vehicle in this value range cannot be sold or otherwise disposed of without a court order.
- If you have a vehicle valued at $20,000 or more, please contact the Workplace Relations team for assistance before taking any steps to dispose of the vehicle.
What happens if the customer contacts you during the process?
If the customer, owner or registered interest holder contacts you during the unclaimed goods process and indicates that they wish to recover or collect the vehicle or goods, you must provide them with a written statement of account setting out the relevant amounts owing.
This may include outstanding repair costs and other authorised costs or amounts properly owing in relation to the vehicle or goods. The Template 3 – Written Statement of Account is available to download from this webpage and can be used for this purpose.
The customer, owner or registered interest holder will then have 21 days to make payment.
If the amount owing is not paid within 21 days, the disposal process does not restart. Instead, you may proceed to the next step in the process, which may include:
- Scale 1 (vehicle valued at $1,000 or less): taking possession of the vehicle;
- Scale 2 (vehicle valued at more than $1,000 but less than $20,000): selling the vehicle by public sale or private sale for fair market value; or
- Scale 3 (vehicle valued at $20,000 or more): applying to the Court for an order authorising the disposal of the vehicle.
Importantly, the process does not restart if the customer or relevant party contacts you during the process. Any notices already given and any time periods that have already elapsed continue to count towards the relevant process.
You should keep a record of when the statement of account was provided and the date the 21-day payment period expires. the statement of account was provided and the date the 21-day payment period expires.
What happens to outstanding repair costs?
The new Unclaimed Goods Act process can be used where a customer has outstanding repair costs or other amounts owing in relation to an uncollected vehicle.
For example, where:
- you have completed authorised repairs or other work on a vehicle;
- the customer has failed to pay the resulting invoice; and
- the customer has subsequently abandoned or failed to collect the vehicle,
you may be able to use the Unclaimed Goods Act process to deal with the vehicle.
You should ensure that you have appropriate records of the work performed, the amount owing and any repair authority or other agreement relating to the work.
The amount owed to the business may be recovered from the proceeds of sale, subject to the requirements of the Act.
If the amount owed to your business is more than the amount the vehicle or goods can be sold for, the business cannot recover the shortfall through the unclaimed goods process. You may need to consider other options to recover the remaining debt, such as engaging a debt collection agency or commencing civil proceedings to recover the outstanding amount.
The unclaimed goods process and the recovery of any outstanding debt are separate matters. Completing the unclaimed goods process does not necessarily prevent the business from pursuing the customer for any remaining amount owing.
What happens to the proceeds of sale?
If the vehicle or goods are sold as part of the unclaimed goods process, the proceeds of the sale must first be applied towards authorised costs and amounts properly owing in relation to the vehicle or goods, including unpaid repair costs where applicable.
If the sale proceeds are more than the authorised costs and amounts owing to the business, any remaining balance must be dealt with in accordance with the requirements of the Unclaimed Goods Act 1987 (SA) and paid to the Treasurer where required.
A person who is lawfully entitled to the surplus proceeds, such as the customer or vehicle owner, may subsequently apply to the Treasurer to recover the remaining funds.
If the amount owed to the business is more than the amount the vehicle can be sold for, the business cannot recover the shortfall by retaining or applying any additional proceeds from the sale. Instead, the business may need to consider other options to recover the remaining debt, such as engaging a debt collection agency or commencing civil proceedings to recover the outstanding amount.
The unclaimed goods process and the recovery of any outstanding debt are separate matters. Completing the unclaimed goods process does not necessarily prevent the business from pursuing the customer for any remaining amount owing.
Keep records
We recommend keeping a complete record of the process, including:
- the date the vehicle was left at your premises;
- any repair authority or other agreement relating to the vehicle;
- copies of invoices and records of any unpaid amounts;
- all attempts to contact the customer or vehicle owner;
- any request for the vehicle to be collected;
- the date the vehicle became unclaimed;
- the PPSR search result;
- copies of all notices provided to registered interest holders, the owner or any other relevant person;
- evidence of when and how each notice was given;
- any valuation or other evidence establishing the vehicle’s value;
- details of any sale or disposal of the vehicle; and
- records of any costs incurred in connection with the vehicle and its disposal.
Important
Do not dispose of or sell an abandoned vehicle until you have confirmed that you have followed the correct process for the vehicle’s value and complied with the applicable PPSR requirements.
The new laws commence on 1 August 2026. The transitional provisions should also be considered where a vehicle was already in your possession before the new laws commenced.
If you have any questions regarding this process, please contact the Workplace Relations team on (08) 8291 2000 or via the form below.
- Vehicles worth $1,000 or less – Scale 1
