What are the responsibilities of people who have unclaimed goods?

    When someone comes into possession of goods belonging to someone else, it is expected that they keep and take reasonable care of them until they are collected by the owner. 

    The Unclaimed Goods Act allows people to sell or dispose of goods that are abandoned or have not been collected by the owner. 

    Someone who disposes of unclaimed goods without the consent of the owner, and who does not follow the process set out in the Act (or another Act that applies to the particular situation), risks the owner taking legal action against them.

    Under the current Act, am I able to get rid of or sell someone else’s goods if they don’t come and collect them?

    The legislation currently requires people to wait three months before they are able to dispose of or sell unclaimed goods. 

    In selling/disposing of the goods, they need to follow a process based on the value of the goods. 

    Goods worth $500 or less (scale 1 goods) may be sold by any method or disposed of, if the selling costs would be worth more than their value. 

    Goods valued between $500 and $2000 (scale 2 goods) may be sold by public auction. Before doing so, the owner and the Commissioner of Police must be notified of the time and place of the proposed sale, at least one month before the auction. If the owner or their whereabouts is unknown, notice can be given through an advertisement in a State-wide newspaper.  

    Goods valued at more than $2000 (scale 3 goods) can only be sold or disposed of with the Court’s authorisation. Notice of the court application must be given to the Commissioner of Police, the owner and any other person who, in the opinion of the Court, may have an interest in the goods.

    Who gets the proceeds of any sale of unclaimed goods?

    The person selling the unclaimed goods is able to retain some of the proceeds of the sale, to cover the reasonable costs involved in the selling, as well as the costs of storing and maintaining the goods prior the sale. Any remainder must be paid to the State Treasurer.

    What is proposed to change as part of the review?

    We are inviting comment on a range of possible changes, that could simplify the process of disposing/selling of unclaimed goods. 

    This could include: 

    • Reducing the time that unclaimed goods must be kept before they can be sold/disposed of. 
    • Simplifying the process involved in the disposal of some goods.
    • Adjusting the scale that determines the process for sale/disposal. This could lead to a simpler process for some goods.
    • Changing how and when owners are notified, including public notice requirements.
    • Introducing a requirement for Personal Property Securities Register searches before goods are sold/disposed of and record keeping.
    • New, specific requirements for some goods, including perishables, personal documents, motor vehicles.
    • Making it clearer that parties can come to their own agreement about how goods should be disposed of.

     You can read more about potential areas of reform in the discussion paper.

    Why are changes needed?

    The Act commenced in 1987 and has largely remained unchanged since then. There is an opportunity to update the legislation so it reflects modern forms of communication and business practices.

    Feedback has also said that the required wait periods are an unreasonable burden and the steps involved in selling/disposing of unclaimed goods are cumbersome and inconvenient.