The first reform in nearly four decades to the laws around how people must deal with unclaimed items in their possession is expected to pass State Parliament this week.
The proposed changes aim to simplify the process of disposing of or selling unclaimed goods, while cutting unnecessary red tape in appropriate circumstances for those persons and businesses who have been required to follow a lengthy, convoluted and costly process.
Scenarios of when the unclaimed goods framework might become relevant include:
- following the sale of an item that is never collected
- after goods are left with a business to service, such as a car at a mechanic
- where goods are left behind by a former housemate or employee
- when a person agrees to look after goods for another, or when items have been otherwise abandoned.
The current Unclaimed Goods Act requires a person to hold unclaimed goods for three months. Following the 3-month period, they must then follow a set process of sale or disposal depending on the value of the goods, which may require public auctions and advertisements.
One common example of where the current Act has proved to be overly burdensome is where a mechanic is left with a car that the owner abandons after deciding it is not worth the cost of repairs.
Under the reforms in the Bill, the threshold values that determine how unclaimed goods must be dealt with have been updated along with corresponding waiting times, while several outdated provisions – including a requirement to place public notice ads in the newspaper before disposing of unclaimed property – have also been removed.
Lower value goods – worth a total of $200 or less or, in the case of motor vehicles, $1,000 or less – can be kept or sold if not collected within 14 days after a disposal notice is given.
Where the goods are valued at between $200 and $20,000, they can be sold by private sale or public auction after 28 days, while a court order is required before unclaimed goods totalling $20,000 or more are sold.
Special rules will also apply to the disposal of unclaimed rubbish, perishables, personal documents and motor vehicles.
The reforms were developed after extensive consultation with key stakeholder groups such as the Motor Trade Association, as well as the broader community. The Government will be consulting with key stakeholders before determining when the new laws will commence.
As put by Kyam Maher
Nobody wants to be stuck holding onto or storing things for extended periods that they don't want and that don't belong to them.
Given the current Act has not been reviewed since it was first introduced in the late 1980s, changes have been needed to ensure they are easy to understand, practical and not overly cumbersome, while maintaining necessary protections for high-value goods.
We heard loud and clear both from individuals and businesses that if goods aren't claimed, there should be a simple process for everyone to follow so, after a reasonable period, they no longer have responsibility for the unwanted goods.
Making the laws easier to understand, reducing the level of red tape, and simplifying processes will help people and businesses to deal with unclaimed goods left in their possession.
The Government would like to acknowledge and thank the Motor Trade Association for raising the impracticalities of this outdated legislation and for working with us throughout consultation and drafting legislation.
As put by Motor Trade Association SA/NT CEO, Darrell Jacobs
Abandoned vehicles are clogging up workshop hoists and customer car parks across the State. It's not fair to use a repairer as a free dump for unwanted vehicles.
These new laws strike the right balance by being modern, simpler and fairer for all.
The MTA appreciates the State Government listening to and acting on the concerns of businesses in the automotive industry.
