Driving or operating a tow truck in NSW

Find out what responsibilities a tow truck operator has in NSW.

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As a tow truck operator, you have certain responsibilities under the Tow Truck Industry Act 1998 (the Act) and the Tow Truck Industry Regulation 2020 (the Regulation).

The information on this page is a guide to your responsibilities as a tow truck operator. Refer to the Act or the Regulation for more detailed advice.

You need a licence to conduct a tow truck business

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. NSW Fair Trading issues these licences.

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. 

Applying for a tow truck licence

Learn how to apply for a tow truck operator licence.

Tow truck operator forms

Each licence category requires the completion of specific forms.

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’s 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.

Category B (3 digit TT or TTT plates) – Breakdown/trade tow

Category B-Restricted (3 digit TT or TTT plates) – Scrap work

Category C – Prohibited tow truck

You can keep 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 by email: tti@customerservice.nsw.gov.au 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 with which you must comply.

You must display your full licensee name and licence number

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.

Note: This is the name that appears on your tow truck licence, not a trading name.

These details must appear in block letters at least 50mm high in the places indicated in the image below (A, B and C).

Side view of tow truck with car loaded, showing parts A,B and C. A is the door, B is the side of the tip tray and C is the panel below the tip tray.
Driver's side of tow truck showing locations for tow truck licence details.

Advertising

If you advertise your towing business in written or electronic form, including on the internet, the advertisement must contain your operator number.

If you are using a trading name or any other name that is different from 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 motor vehicles during hours of darkness. They must be in good working order.
Back of a tow truck cabin, showing warning light locations. The top one is outlined with a red box and the others are outlined in green.
Tow truck warning light (red) and mounted light (green) locations.

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 – handle must be at least 1 metre long
  • shovel – handle must be at least 1 metre long
  • durable container – for the storage of any accident debris, such as bucket or similar container. Plastic garbage bags or hessian sacks are not suitable for this use.
  • fire extinguisher – 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. An electronic copy of the licence held by the driver on a mobile device does not comply.

Screen shot of sample tow truck operator licence with location of licence holder (green) and number (brown) highlighted.
Tow truck licence example, showing locations of licensee name and licence number.

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.

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 hold.

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 or 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

Example of tow truck operator's copy of a towing authorisation form.
Sample towing authorisation form - tow truck operator copy.

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 their 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. 

See all towing fees for light vehicles (gross vehicle mass (GVM) up to 4.5 tonnes) or for heavy vehicles (GVM over 4.5 tonnes).

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 policyhas 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
  • recent court outcomes.

Subscribe to Auto Torque

Ask a question

If you have any questions or you would like clarification of any of the responsibilities, please contact the NSW Fair Trading Tow Truck Investigation Unit by email at tti@customerservice.nsw.gov.au or phone 133 220.

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