Accident towing operators across Melbourne may fail if Victoria’s Essential Services Commission continues with current fee structures, an industry group warns.

In May, the commission recommended no change to regulated accident towing and storage fees beyond annual indexation, after considering benchmarks in other states.  

But Victorian Automotive Chamber of Commerce CEO Peter Jones says the decision “appears to have dismissed compelling evidence that demonstrates the current fee structure is no longer adequate to cover basic operational costs.

“We are deeply concerned this decision overlooks the genuine cost pressures our members are experiencing and may jeopardise the long-term sustainability of accident towing services in Victoria.”  

Mr Jones says the chamber’s submission flagged cost rises since 2021, including 34% more for diesel, a 22% increase in insurance premiums, 26% on transport industry labour costs and a 64% surge in industrial land rents.  

He says the decision also ignores increased complexity caused by electric and hybrid vehicles, which require specialised equipment, training and safety protocols.  

“We provided the ESC with a practical, evidence-based solution that has already been successfully implemented in another jurisdiction,” Mr Jones said. “We are disappointed that this recommendation was not given the consideration we believe it warranted, particularly given the thorough consultation process undertaken in Western Australia.”  

A chamber survey of towing operators showed 78% found current fees insufficient to cover operational costs.  

“If operators are unable to maintain financially viable businesses, this could result in longer response times, reduced service quality and ultimately impact road safety and traffic management across Melbourne,” Mr Jones said.

“We believe a comprehensive cost-of-service review would provide a more accurate foundation for setting appropriate fees that balance consumer protection with industry sustainability.”