Regulator seeks feedback on accident towing and storage fees

The Essential Services Commission has today released its draft report on accident towing fees, proposing no change to the current fee structures for towing and storing vehicles damaged in road accidents.  

The draft report finds regulated accident towing and storage fees for the Melbourne controlled area are appropriate and broadly in line with regulated fees in Sydney, Adelaide and Queensland, and should only be increased in line with the current indexation arrangements.

The current regulated base fee including the first 8 km of towing by a tow truck is $272.80, with additional fees and charges set out on the Transport Victoria website.

The draft report also finds the legislated productivity adjustment factor, which aims to provide incentives for tow truck operators to introduce efficiencies over time, should remained unchanged at half a per cent.

The productivity adjustment factor forms part of the relevant indexation arrangements, which are currently set at the rate of the ‘Melbourne Transport consumer price index’ minus the ‘productivity adjustment factor’.  

Every four years the Essential Services Commission conducts a review of accident towing and storage fees within metropolitan Melbourne to see whether they are appropriate. The commission then makes recommendations to the Minister for Roads about the regulated fees.

Accident towing and storage charges are the only regulated towing fees in Victoria. Unregulated trade towing and storage services include clearway, impound and breakdown towing jobs.

The commission invites any party with an interest in accident towing and storage fees to make a submission about the draft report on Engage Victoria before 5 March 2025.  

The commission will consider all submissions before presenting a final recommendation to the Minister for Roads in May 2025.