News: NSW Fair Trading has released the Tow truck operator self-audit checklist, use the checklist to check your tow truck business meets its obligations under the law.
This information has been developed to help tow truck operators understand the requirements of their job.
Quick links:
- Do I need a tow truck operator licence?
- Licence types
- How to apply for a licence
- Tow truck operator forms
- Electronic records
- Basic requirements
- Tow truck driver obligations
- Towing authorisation books
- Tow truck holding yard
- Disposal of unclaimed motor vehicles
- Towing fees
- Code of practice
- Environmental policy
- Auto Torque
- Questions?
As a tow truck operator, you have certain responsibilities under the Tow Truck Industry Act 1998 (the Act) or the Tow Truck Industry Regulation 2020 (the Regulation).
The information provided below is intended as a guide to those responsibilities. Refer to the Act or the Regulation for more detailed advice.
Do I need a tow truck operator licence?
You need a tow truck operator licence to conduct a business involving the operation of any tow truck for the purposes of towing motor vehicles. These licences are issued by NSW Fair Trading.
Serious penalties may be imposed for operating a tow truck without an appropriate licence.
Licence types
Different types of towing work require different licences:
- Category A (4 digit TT plates) – Accident and breakdown/trade tow
- Category B (3 digit TT or TTT plates) – Breakdown/trade tow
- Category B - Restricted (3 digit TT or TTT plates) – Metal recycling or vehicle demolishing/dismantling
- Category C – Prohibited tow truck.
Note: You do not need a tow truck operator licence if you are towing, salvaging or storing certain exempt vehicles and trailers. Read the list of all exempt vehicles.
How to apply for a licence
Learn how to apply for a tow truck operator licence.
Tow truck operator forms
Each licence category requires the completion of specific forms. These are set out below.
Category A (4 digit TT plates) – Accident and breakdown/trade tow
- Approved holding yard register: Complete this form for all motor vehicles coming into and out of your holding yard. This includes motor vehicles transferred from another operator holding yard or from another approved holding yard you maintain.
Note: You must keep all documents relating to the release of any motor vehicle from the holding yard, including the name of the person authorising the release.
- Tow truck usage log: Complete this form when a tow truck attends a motor vehicle accident, whether or not a tow was obtained.
- Tow truck driver register: Fill out all licensed tow truck driver details using this form. This only needs to be completed once.
- Non-accident towing record: Use this form for all non-accident tows.
Category B (3 digit TT or TTT plates) – Breakdown/trade tow
- Non-accident towing record: Use this form for all non-accident tows.
- Tow truck driver register: Fill out all licensed tow truck driver details using this form. This only needs to be completed once.
Category B-Restricted (3 digit TT or TTT plates) – Scrap work
- Non-accident towing record: Use this form for all non-accident tows.
- Tow truck driver register: Fill out all licensed tow truck driver details using this form. This only needs to be completed once.
Category C – Prohibited tow truck
- Non-accident towing record: Use this form for all non-accident tows.
- Tow truck driver register: Fill out all licensed tow truck driver details using this form. This only needs to be completed once.
Electronic records
It is now acceptable to keep your tow truck records electronically.
Before you do, you will need to apply to NSW Fair Trading via email and demonstrate that:
- the proposed electronic forms contain all of the required information set out in the current approved forms, and
- if requested by Police or an authorised officer, they can be printed immediately.
Please be aware that the hardcopy approved forms must be maintained until the required approval is granted and included on your licence as a condition.
Basic requirements
As a tow truck operator, there are a number of specific requirements you must comply with. These are explained below.
Signage
Each tow truck you operate must display your full licensee name and licence number on the right-hand or driver's side of the tow truck.
These details must appear in block letters at least 50mm high in the places indicated in the image below (A,B and C).
Note: This is the name that appears on your tow truck licence, not a trading name.
Advertising
If you advertise your towing business in written or electronic form, including on the internet, the advertisement must contain your operator name and number.
If you are using a trading name or any other name that is not the same as your operator name, this name must be registered and endorsed on your tow truck operator licence with NSW Fair Trading.
Tow truck equipment
You must ensure the following equipment is kept and maintained in each tow truck that you drive:
- an amber flashing or rotating warning light (indicated in the red box in the image below). It must be maintained and in good working order, and
- fully adjustable mounted lights (indicated in green boxes in the image below) for loading and unloading of motor vehicles during hours of darkness. They must be in good working order.
Note: This equipment must be fitted and operational to reduce the risk of potentially hazardous incidents for you and others while the tow truck is in the process of loading or unloading motor vehicles.
Category A tow trucks
If you operate a Category A tow truck that is permitted to attend accidents, the truck must also contain the following equipment at all times:
Broom | Shovel | Durable container | Fire extinguisher |
 |  |  |  |
| Handle must be at least 1 metre long. | Handle must be at least 1 metre long. | For the storage of any accident debris, ie bucket or similar container. Plastic garbage bags or hessian sacks are not suitable for this use. | Foam or dry chemical powder fire extinguisher (at least 4.5 kg capacity) that is maintained in a serviceable condition. |
Tow truck licence
Each licensed tow truck you operate must have a hard copy of your current operator licence (see below). An electronic copy of the licence held by the driver on a mobile device does not comply.
The licensee name and licence number appear on the right-hand side of the tow truck.
Note: Only the number sequence is required to be displayed, not the TTOPT prefix.
Tow truck driver obligations
As an operator, it is important that you ensure each driver you employ understands their responsibilities when driving your tow truck. Refer to tow truck driver information for more on these requirements.
It is your responsibility to ensure that the drivers you employ are appropriately licensed for the class of tow truck they are driving and that their driver's licence is valid. You should regularly check the currency and status of the driver's licences of all your employed drivers.
Police have detected drivers operating tow trucks with either suspended, cancelled or expired driver's licences. They have also found drivers driving tow trucks that are heavier than the class of the driver's licence they
Towing authorisation books
All Category A (accident towing) tow trucks must contain a towing authorisation book. These must be used for all accident tows.
The towing authorisation form (below) must be completed in full and signed by the owner/driver of the motor vehicle. The blue copy of the form must be provided to the owner, driver or the person who has authorised the tow.
Tow truck holding yard
Category A tow truck operators are required to maintain safe and secure premises for the temporary storage of motor vehicles towed under their licence. Read the tow truck holding yard requirements to learn more about your obligations.
Note: Any unreasonable refusal of access to collect a vehicle from the holding yard – by the owner, appointed insurer or a tow truck operator acting on behalf of the customer – is a breach of the conditions of your operator licence. It is also a breach if you remove a vehicle from your holding yard for repair work, or to obtain a quotation for repair work, without the approval of the owner of the motor vehicle, or the owner’s agent.
Disposal of unclaimed motor vehicles
You are not permitted to remove a motor vehicle from your holding yard without explicit permission from the client or their representative.
However, in certain circumstances, a tow truck operator can lawfully dispose of a motor vehicle that is being held in a holding yard without the consent of the vehicle's owner. For full guidelines and actions that must be taken before disposing of the vehicle, refer to section 84 of the Regulation.
Towing fees
You cannot charge more than the maximum fee determined by NSW Fair Trading for an accident or salvage tow.
Read the current fees for tow truck services.
Code of practice
The tow truck industry code of practice has been developed as a guide to influence professional, safe, equitable and ethical behaviour in the tow truck industry. It clearly sets out the expectations and responsibilities of tow truck operators and drivers.
Environmental policy
The tow truck industry environmental policy has been developed as a best practice guide for operators and drivers. It includes information on how to deal with and dispose of hazardous fluids.
Auto Torque
NSW Fair Trading publishes a quarterly e-newsletter called Auto Torque. It includes tow truck-related information and articles on industry information, legislation changes, licensing issues and recent court outcomes. Subscribe to Auto Torque.
Questions?
If you have any questions or you would like clarification of any of the responsibilities listed above, please contact the NSW Fair Trading Tow Truck Investigation Unit or phone 133 220.