Unclaimed Goods Procedure
November 2009
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Unclaimed Goods Procedure
November 2009
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1
Purpose and Scope
Impounded vehicles can contain items which must be treated according to the
Unclaimed Goods Act. This procedure commences when goods have been removed
from a vehicle in Council’s possession and covers the steps necessary to return or
dispose of them. It follows on from Removing a Vehicle Procedure or Emergency
Vehicle Removal Procedure
Its purpose is to ensure the consistent and accurate application of relevant legislation
and Council Policy.
1.1
Responsibility
This procedure applies to persons responsible for the sale or disposal of unclaimed
goods.
Officers are required to act reasonably and transparently, demonstrate good
customer service, undertake their responsibilities in a proficient manner and use their
judgement where necessary to ensure an outcome in line with legal requirements
and Council’s Enforcement Policy.
1.2
Legislation & Policy
Unclaimed Goods Act 1987
Unclaimed Goods Regulations 1998
1.3
Definitions
Bailee means a person in possession of goods belonging to another, in this
Procedure referred to as ‘Council’.
Bailor means the owner of the goods in the possession of a bailee.
Unclaimed goods has the same meaning as section 5 of the Unclaimed Goods Act
1987.
1.4
General Notes
For the purposes of this SOP, goods found in a vehicle which has been removed
under the authority of section 237 of the Local Government Act (or section 40N of the
Road Traffic Act) are ‘unclaimed goods’ once they meet the definition set out below.
Section 5 definition of Unclaimed Goods
Goods become unclaimed if, and only if, the bailee (in this case, Council) has
requested the bailor (owner of the goods) to collect the goods and:
 the bailor has refused; or
 42 days have elapsed from the date of the request and the owner has not
collected the goods.
Calculation of Time: The elapse of 42 days from the date at which request is made
is key to determining the day on which the goods become ‘unclaimed goods’. The
days should be counted from the day after the request is made to the bailor. If the
request has been sent by post, allow extra days for the letter to be received in the
ordinary course of the post.
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November 2009
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Unclaimed goods must be kept for at least 3 calendar months from the expiry of the
42 day period. The calculation of the 3 month period begins on the day after the
expiry day.
The statutory time frames mean that the goods will be in the possession of the
Council for 42 days, plus 3 calendar months, before they can be sold or disposed of
as ‘unclaimed goods’.
In any case goods should not be disposed of before the disposal of the associated
vehicle has been finalised.
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Relevant Documentation
Best Practice Procedures for Appointing Authorised Persons
3
Record Management
All documents, notes, photographs and correspondence must be retained and stored
in accordance with Council’s Records Management protocols as required by Section
125 of the Local Government Act.
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Procedure
4.1
Request to collect the Goods
4.1.1
Vehicle owner identified
As soon as practicable, preferably at the same time as serving the Notice to
Registered Vehicle Owner re Impounded Vehicle (see Removal of Vehicle
Procedure, 4.6 Impounding a vehicle with identification) advise the last known owner
of the vehicle about any goods removed from the vehicle when impounded and
request collection.
This must be done by sending Notice of request for collection of goods [as per
Schedule 1 of the Regulations](Attachment A) by post to the last known address of
the bailor.
4.1.2
Identity or whereabouts of bailor is unknown
Where it is not possible to post the notice to the vehicle owner, arrange for a notice in
the prescribed form [as per Schedule 1 of the Regulations] to be placed in The
Advertiser.
4.1.3
Request for collection
The request must include:
 The address at which the goods are available for collection
 A brief description of the goods
 The times at which, or the hours between which, the goods will be available
for collection.
(Note: The request will only be valid if it allows the bailor a reasonable opportunity to
collect the goods – that is, a proper amount of time).
The bailor has 42 days to collect the goods from the date of the request.
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4.2
Sale of Unclaimed Goods
If the goods are not collected after the 42 day period has elapsed, they become
unclaimed goods and may be sold by the bailee (Council) – but only after another 3
calendar months have elapsed and only in accordance with the procedure set out
below.
Obtain permission from your Manager before disposing of any goods under this
Procedure.
4.2.1
Determine the value
The manner of sale or disposal of unclaimed goods is determined by their value.
Use Council’s preferred expert to ensure that goods are assigned a defendable,
reasonable value.
The Unclaimed Goods Act has 3 scales of value:
Scale 1 - a value of $200 or less
Scale 2 - a value of more than $200 but less than $1,000
Scale 3 - a value of $1,000 or more.
The UG Act sets out the general rule that unclaimed goods should not be sold
without an authorisation from the Magistrates Court (if the goods are worth less than
$80,000). However, there is leeway in the Act for goods that fall within Scales 1 & 2.
4.2.2
Sale of Scale 1 Goods
If the value of the goods falls within Scale 1 ($200 or less) then goods may be sold or
disposed of without Court authorisation.
Arrange for advertising or transfer to a second hand dealer, in accordance with
Council policy.
4.2.3
Sale of Scale 2 Goods
If the value of the goods falls within Scale 2 (more than $200-less than $1,000), then
the goods may be sold without Court authorisation, but: the goods must be sold by
public auction.
Liaise with the Auction House to determine a place and time for the auction which
must be at least 1 calendar month after advice to the Police Commissioner and the
bailor.
Complete a Notice of proposed sale of goods [as per Schedule 2 of the Regulations]
(Attachment B) and fax a copy to the Police Commissioner.
Where the address of the bailor is known post to the Notice to the last known address of
the bailor.
Where the identity or whereabouts of the bailor is unknown, arrange for notice in the
prescribed form Notice of proposed sale of goods [as per Schedule 2 of the
Regulations] (Attachment B) to be published in The Advertiser.
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4.2.4
Sale of Scale 3 Goods
Goods that fall within Scale 3 must not be sold without the authorisation of the Court.
Obtain permission from your Manager to make an application.
Where an application is made to the Court by the bailee (Council), notice of the
application must also be given to:
 the Police Commissioner; and
 if the Court thinks appropriate, to the bailor or any other person the Court thinks
might have an interest in the goods.
Where the Court grants an authorisation for sale of the goods, it can also give directions
as it sees fit in relation to the sale or disposal of the goods.
4.2.5
Disposal other than by sale
If the value of the goods would be insufficient to defray costs of sale, goods can be
disposed of by other means.
4.3
Claims made by the Bailor after sale process has begun
On occasion the bailor may come forward to claim goods after all the time periods have
elapsed and the bailee (Council) has begun proceedings for the sale of the goods.
The bailee (Council) must not proceed with the sale and must return the goods to the
bailor. However, the bailee (Council) can require the bailor to pay:
 the reasonable costs incurred by the bailee (Council) in proceeding under the
Act;
 the reasonable costs incurred by the bailee (Council) in storing and maintaining
the goods after the date that the bailor should have collected them.
Prepare a written account for the costs and provide to the bailor. If the bailor has not
paid the account after 42 days from the date on which the account was rendered, then
the bailee (Council) may proceed with the sale or disposal.
However, the bailor may apply to the Court for a review of the account and, if this
happens, the goods must not be sold until the review is completed.
4.4
Proceeds of a Sale
The proceeds of the sale of goods must be dealt with in accordance with the Unclaimed
Goods Act. The bailee (Council) may retain from the proceeds:
 the reasonable costs of the sale and of proceeding under the Act
 the reasonable costs of storing and maintaining the goods prior to sale
Any remaining proceeds must be paid to the Treasurer.
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Monitoring and Review of Procedure
This procedure was endorsed by ______________________________to take effect
on __________________________
Thereafter it will be reviewed annually. The next date of review is__________
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Attachments
Attachment A
Attachment B
Notice of request for collection of goods
Notice of proposed sale of goods
Best Practice Notes


Councils will need to have means of assessing the value of unclaimed
goods.
Councils will need a policy on how to store and maintain goods.
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November 2009
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