Unclaimed Goods (Miscellaneous) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 13 November 2025.)

The Hon. J.K. SZAKACS (Cheltenham—Minister for Trade and Investment, Minister for Industry, Innovation and Science, Minister for Local Government, Minister for Veterans' Affairs) (16:37): I am pleased to recommence my second reading contribution in respect of this bill. This bill makes a number of changes to modernise the act and to ensure the processes prescribed under the act are reasonable, practicable and readily understood.

The language in the act is updated in the bill, including replacement of the term 'bailee' with 'recipient' to refer to a person who is left in possession of goods, and replacement of the term 'bailor' with 'provider' to refer to a person who leaves goods in the possession of another. The bill also refers to the 'owner' of goods, where that person is different from the provider. For simplicity, I will use the updated terms to explain the changes contained in this bill.

Under the act goods are classified as scale 1, 2 or 3 goods based upon their value. The act prescribes differing requirements for the sale or disposal of goods depending upon which scale the goods fall within. The bill provides that where multiple goods are unclaimed, the relevant scale is to be determined by reference to the cumulative value of goods in the bailee's possession. This provides clarity and is expected to achieve a fairer result where the individual terms, such as individual pieces of jewellery within a collection, are of low to moderate value but their cumulative value is considerable.

The bill increases the threshold for scale 3 goods to $20,000 taking into account the onerous obligations placed on recipients before disposing of these goods, including the requirement to seek a court order. Conversely, the upper limit for scale 1 is reduced to $200 to complement amendments in the bill which simplify the process for dealing with these goods. To facilitate a simpler and expedited process to dispose of unclaimed motor vehicles, which are destined for scrap metal, the bill sets a higher scale 1 upper limit of $1,000 in relation to motor vehicles. The various waiting or retention periods prescribed in the act are also reduced. For example, the act currently requires the recipient to hold the goods for a blanket period of three months from the date on which the goods are classified as unclaimed goods before they are permitted to take any further steps in accordance with the act.

The bill instead prescribes differing holding periods, depending on the value of the goods. A mechanism is also introduced to enable a recipient to apply to the court to dispose of goods earlier than permitted under the act where compliance would be unreasonable in the circumstances. The bill modernises the notice requirements under the act, including updating the approved methods of service to include electronic forms of communication, abolishing antiquated public notice requirements and introducing a requirement to search the commonwealth Personal Property Securities Register in respect of unclaimed motor vehicles.

The bill also introduces a new requirement on recipients to give the provider of goods and, where known, any owner of the goods referred to in the bill as a relevant person, notice of their intent to dispose of the goods under the act. The holding period does not commence until such notice has been given unless the recipient is unable to obtain the person's contact details despite reasonable attempts to do so. Where the goods remain unclaimed after the holding period ends, the act authorises disposal of the goods through certain approved methods.

The bill simplifies these processes, particularly with respect to scale 1 and 2 goods. Under the bill, scale 1 goods are simply vested in the recipient at the expiry of the holding period, meaning the recipient can retain or dispose of the goods as they wish. Scale 2 goods may be sold by public auction, by private sale for fair value, or otherwise in accordance with any court order. The existing requirement to obtain a court order for disposing of scale 3 goods is retained. The bill makes special provision for the disposal of special categories of goods, including rubbish, perishable goods or goods that are likely to cause a risk to the health and safety of a person, personal documents and motor vehicles.

Where the goods are claimed by the provider or owner of the goods, the act permits the recipient to require payment of certain costs before handing over the goods. Similarly, if the goods are ultimately sold, the recipient may retain costs from the proceeds of sale before depositing the balance with the Treasurer. This existing right is revised in the bill to ensure the recipient is not left out of pocket significantly in relation to costs incurred prior to the goods being unclaimed goods in the act, but the act only permits the recipient to claim or retain the amount of any lien established over the goods.

As a result, recipients who cannot establish a lien over unclaimed goods may not be permitted to demand or retain all of the charges due to them in connection with the goods. An illustration as to how this may operate unfairly was provided by the Law Society in its feedback to the government during the development of this bill.

The Law Society highlighted that no lien is created in South Australia over animals which have been abandoned in agistment kennels, catteries and pet day care. As a result, a recipient left in possession of an abandoned animal would not be permitted to retain the costs of feeding and sheltering the abandoned animal from the proceeds of sale if those costs were incurred prior to the animal being classified as unclaimed goods. Nor would they be able to demand those costs before handing the animal back to the owner. Instead, the recipient would be required to pursue those costs as a debt.

The bill removes the requirement to establish a lien over the goods and instead permits the recipient to demand or retain the amount agreed (or in the absence of agreement such amount as is reasonable) as the charges due for any inspection, carriage, storage and maintenance of the goods, or for any repair or other treatment or work done in connection with the goods.

The bill also expands the rights of third parties, such as those with a security interest over the goods, to establish their interest in unclaimed goods. Currently, the only remedy available under the act to third parties who claim an interest in unclaimed goods is to make a claim with the Treasurer for payment from the proceeds of sale.

The bill introduces a mechanism for any person who claims an interest in unclaimed goods to apply to the court to declare their interests and determine how the goods should be dealt with. A number of other amendments are made to the act, including:

making explicit that the act only applies to the extent that there is no existing agreement between the parties about how unclaimed goods may be disposed of—this will allow businesses to set conditions regarding the disposal of unclaimed goods prior to agreeing to any goods being left in their possession;

the introduction of record-keeping requirements;

clear protection from civil or criminal liability for action taken in good faith in accordance with the act;

new provisions which regulate how the proceeds from the sale of unclaimed goods are dealt with by the Treasurer for greater consistency with the Unclaimed Money Act 2021; and

the inclusion of a declaration in accordance with section 73(2) of the Commonwealth Personal Property Securities Act 2009, to clarify the priority of rights as between the recipients and third parties with a security interest in the goods.

I commend the bill to members and seek leave to have the explanation of clauses inserted in Hansard without my reading it.

Leave granted.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

Part 2—Amendment of Unclaimed Goods Act 1987

3—Amendment of long title

This clause makes a minor consequential amendment to the long title.

4—Substitution of section 3

This clause substitutes new definitions for the purposes of the measure and clarifies that the Act does not apply to the disposal of unclaimed goods to the extent that an agreement or understanding between the provider and the recipient deals with the disposal of the goods.

5—Amendment of section 5—Unclaimed goods

This clause:

changes terminology used (to replace references to a 'bailee' of goods with references to a 'recipient' of goods and to replace references to a 'bailor' or goods with references to a 'provider' of goods);

makes changes to facilitate an expedited process for disposal of unclaimed goods that are perishable or rubbish;

makes changes to ensure reasonable attempts are made to contact the provider or an owner of the goods and to shorten the time period before the goods become 'unclaimed' from 42 days to 14 days from the date of a request to collect the goods.

6—Substitution of sections 6 and 7

This clause substitutes new sections as follows:

5A—Special requirements relating to motor vehicles

If unclaimed goods consist of or include a motor vehicle, it will not vest in the recipient and may not be disposed of under the measure unless a search of the PPS register has been undertaken and registered interest holders notified.

6—Vesting of scale 1 unclaimed goods in recipient

This provision specifies when the recipient of unclaimed goods (other than personal documents) the value of which lies within scale 1 (ie not more than $200 or, in the case of a motor vehicle, not more than $1,000) will be taken to be vested with a good title to those goods.

6A—Disposal of scale 2 or 3 unclaimed goods

This provision specifies when the recipient of unclaimed goods the value of which lies within scale 2 (ie more than $200 but not more than $20,000 or, in the case of a motor vehicle, more than $1,000 but not more than $20,000) or scale 3 (ie $20,000 or more) may dispose of the goods.

6B—Disposal of unclaimed goods that are personal documents

This provision imposes special requirements in relation to the disposal of personal documents.

6C—Disposal of unclaimed goods that are rubbish etc

This provision provides an expedited procedure for the disposal of goods that are rubbish or are perishable or likely to cause a risk to the health or safety of a person.

6D—Court may order disposal of unclaimed goods earlier than permitted under Act

This provision allows the Court (being either the Magistrates Court or the District Court, depending on the value of the unclaimed goods) to order that unclaimed goods vest in, or may be disposed of by, the recipient without compliance with a provision of the measure if it is satisfied that compliance with the provision would be unreasonable in the circumstances.

7—Claim by owner or provider before goods disposed of etc

This provision provides a mechanism for a recipient of goods to claim reasonable expenses where the provider or owner claims goods after they have become unclaimed goods under the measure but before they are vested in, or disposed of by, the recipient.

7A—Determination of claims by interest holders

This provision allows a person who claims an interest in unclaimed goods to apply to the Court (being either the Magistrates Court or the District Court, depending on the value of the unclaimed goods) for an order declaring their interest in the goods at any time before the goods are vested in, or disposed of by, the recipient.

7—Amendment of section 8—Proceeds of sale

This clause:

updates terminology;

makes some clarifying amendments;

declares the costs and charges of the recipient in relation to goods sold under the Act to be statutory interests to which section 73(2) of the Personal Property Securities Act 2009 of the Commonwealth applies (have to have priority over all security interests in relation to the goods);

makes other provisions consistent with the Unclaimed Money Act 2021.

8—Insertion of sections 8A, 8B and 8C

This clause inserts new sections as follows:

8A—Treasurer may pay money to lawful claimant

This provision allows the Treasurer to pay money to a claimant who had an interest in goods that have been sold pursuant to the Act (or who have an interest in the proceeds of such a sale).

8B—Record keeping

This provision requires the keeping of certain records by a recipient who disposes of unclaimed goods under section 6A or pursuant to an order under section 6D.

8C—Protection from liability

No liability attaches to a recipient for an action taken in good faith in accordance with the Act.

9—Amendment of section 9—Purchaser's title to goods sold under this Act

10—Amendment of section 10—This Act does not affect bailee's remedy under other Acts

These clauses update terminology.

11—Insertion of sections 10A and 10B

This clause inserts a new provision specifying the manner of giving notices and a provision making it clear that the Treasurer can delegate functions.

12—Amendment of section 11—Regulations

This clause allows regulations to be made specifying what constitutes taking reasonable steps for the purposes of any provision of the Act.

Schedule 1—Related amendment and transitional provision

Part 1—Amendment of Local Government Act 1999

1—Amendment of section 237—Removal of vehicles

This clause makes a consequential amendment.

Part 2—Transitional provision

2—Application of Act as in force before commencement

The principal Act as in force before the commencement of the clause, continues to apply to any goods that became unclaimed goods before the commencement of this clause.

S.E. ANDREWS (Gibson) (16:46): I rise to speak in support of the Unclaimed Goods (Miscellaneous) Amendment Bill 2025, another example of this Labor government's commitment to cutting red tape, supporting small businesses and bringing our laws into the modern era.

This bill updates the Unclaimed Goods Act 1987, a law written almost 40 years ago at a time when fax machines were considered new technology. The act was well intentioned in its day, but it has become cumbersome, outdated and out of step with the way South Australians live and work in 2025. For too long it has imposed unnecessary regulatory burdens, especially on small and family-run businesses that do not have the time, money or resources to navigate a maze of red tape. This bill fixes that.

The call for reform came from the Motor Trade Association, representing mechanics and auto workshops right across the state. They told us about the growing problem of customers abandoning vehicles at their workshops, often as they are unable to afford repairs or simply walking away. Under the current law, those businesses are stuck holding onto the vehicle for months, forced to go through complex notice and disposal procedures that often cost more than the vehicle itself. It is unfair, it is inefficient and it is a perfect example of what happens when outdated regulation does not keep up with reality. This government has listened, consulted widely and delivered a practical, commonsense solution.

This bill makes the act clearer, faster and fairer. Firstly, it modernises the language, replacing old-fashioned legal terms with plain modern English. That might sound simple, but clarity matters when small businesses are trying to follow the law. Secondly, it recognises prior agreements between businesses and customers. If they have already agreed on what should happen if goods are left behind, that agreement will apply. It is a commonsense measure that gives businesses certainty and flexibility. Thirdly, it updates outdated value thresholds.

The upper limit for goods, which require a court order to dispose of them, will rise from $2,000 to $20,000—a long overdue change that reflects today's prices, simplifies the process for lower value goods and reduces waiting times. Goods can now be treated as unclaimed after 14 days if reasonable efforts have been made to contact the owner. Holding periods have been shortened to 14, 28 and 60 days depending on the value of the goods. These are small but significant changes that make the laws work for small business, not against it.

This bill also brings the law into the 21^st century. At present, businesses are required to send notices by post or even publish them in newspapers, an expensive, outdated process that no longer serves any real purpose. Under this bill notices can be given by email or any other approved method. The newspaper requirement is scrapped. That is real red-tape reduction, saving small businesses time, money and frustration. The rules for disposal are now straightforward and fair. Low-value goods will automatically vest in the business after the holding period. Mid-value goods can be sold privately or at auction and high-value goods will still require a court order ensuring proper oversight where it is needed.

The bill also introduces special provisions for particular types of goods. Rubbish and perishable items can be disposed of quickly. Personal documents must be destroyed securely to protect privacy and motor vehicles come with added protections including mandatory checks of the Personal Property Securities Register to identify any financial interests. This ensures we maintain fairness and accountability while still cutting unnecessary delay. This bill reflects strong consultation across industry and government. Their feedback led to several important improvements including setting a higher $1,000 threshold for low-value motor vehicles, expanding the right for owners to reclaim goods and clarifying how disputed ownership can be resolved through the courts. It is another example of this government listening, engaging and delivering balanced reform.

Small businesses are the backbone of South Australia's economy. They employ hundreds of thousands of people. They sponsor local footy, netball and cricket teams. They give apprentices their first start but they are also the ones, so often, affected by slow, outdated and overly complicated rules. We understand that. We are not interested in regulation for regulation's sake. We are interested in practical solutions that let people get on with running their business. The Unclaimed Goods (Miscellaneous) Amendment Bill 2025 is a simple but important step in that direction, cutting red tape, supporting local jobs and modernising a law that should have been updated long ago. It is exactly the kind of commonsense reform that South Australians expect from a Labor government that backs small businesses and gets things done. I commend the bill to the house.

Debate adjourned on motion of Mr Odenwalder.