Important Update on NSW Tolls Payment Processes

New South Wales (NSW) dealers are advised of an important update to the process for managing tolls incurred by other drivers when a dealership remains listed as the registered owner of a vehicle. AADA has received advice from the NSW Government outlining a new process intended to reduce the financial and administrative burden.

The NSW Government has recognised the concerns raised by AADA on behalf of NSW motor vehicle dealers about unpaid toll liability where vehicles have been sold but the transfer of the vehicle registration has not yet been completed. While the previous nomination process is no longer available, dealers can object a Toll Payment Demand (TPD) and provide evidence that the vehicle had been sold or was no longer under their control when the toll was incurred.

Evidence may include a Notice of Disposal (NOD). Where the evidence demonstrates that ownership transferred before the toll was incurred, the relevant toll service provider can remove the dealer’s liability.

Following engagement with AADA, NSW Motorways has developed a revised business fact sheet explaining:

• the available objection pathways
• the evidence businesses can provide
• practical steps for managing Toll Payment Demands and unpaid tolls

MANAGING TOLL PAYMENT DEMANDS FOR SOLD VEHICLES

DEALER PROCESS: PREVENT AND RESPOND TO TOLL PAYMENT DEMANDS (FLOW CHART)

Five critical points that NSW dealers must understand

1. A NSW Licensed Motor Vehicle Dealer (LMVD) may receive a TPD for a vehicle that has already been sold by their dealership. This can occur if the NOD was not successfully lodged, or the ownership information available to the tolling system had not been updated, when the demand was issued. It is critical that dealerships follow their obligation under Regulation 38(2) of the Road Transport (Vehicle Registration) Regulation 2017 (NSW) and immediately submit a NOD through Dealer-on-Line (DoL) at the time of sale. The AADA recommends that this occur before the customer drives the vehicle from the dealership.
2. Where a vehicle has been sold by a dealership and the new owner incurs toll charges before an NOD is lodged through DoL, any resulting TPD may initially be issued to the dealership.
3. A purchaser cannot be nominated at the TPD stage; however, an objection process remains available where the vehicle was sold, stolen or otherwise not under the dealership’s control. LMVDs should contact the toll provider shown on the TPD and lodge an objection before the due date. Evidence must be provided in support of the objection which may include:
   • successfully lodged Notice of Disposal
   • Dealer Online or Service NSW receipt
   • vehicle sale invoice or contract
   • sale & delivery date and any other information requested by the toll provider
4. The toll provider will assess the objection. Where the evidence demonstrates that ownership transferred and a NOD was submitted before the toll was incurred, the provider may remove the dealership’s liability. Where that occurs, the TPD will be re-directed to the new vehicle owner instead of the LMVD after the NOD has been successfully lodged through Dealer Online. Further information about the objections process can be found here: Lodge an objection | NSW Government
5. Alternatively, LMVDs may also make their own arrangements with purchasers, and/or pursue available debt collection processes, for the recovery of any toll costs incurred after ownership transferred and a NOD was submitted.

Previous payment of TPD incurred in the dealer’s name

For toll fees paid by a dealer, where the dealer had followed the process as required under Regulation 38(2) and immediately completed and lodged a NOD, and the vehicle had not yet transferred in name to the new owner at the time the toll was incurred, a dealer can lodge an objection within 60 days after the liability to pay the toll is incurred. The same evidentiary requirements as outlined above will be required.

Loan and demonstrator vehicles

It is recommended that LMVDs ensure they have an internal process in place that will allow for the recovery of toll fees incurred by a consumer who was provided with a demonstrator or service loan demonstrator vehicle. Loan and demonstrator vehicles should also be linked to the dealer’s toll account.

AADA acknowledges the contribution and willingness to act by NSW new car dealers on this issue. Many gave time and provided critical data to help arrive at a workable alternative. Those dealers have assisted in delivering an outcome that will assist the entire NSW dealer cohort.