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Auction industry breaches and penalties

Unlicensed work

Unlicensed auctioneer or chattel auctioneer work is against the law.

OffenceMaximum penalty

Working unlicensed, or employing an unlicensed person

$26,110

Selling, hiring out or lending a licence

$26,110

Buying, borrowing or hiring a licence

$26,110

Dealing with licences

Serious offences

We will cancel your licence if you’re convicted of a serious offence. You will have 14 days to return your licence to us.

The maximum fine for failing to do so is $13,055.

Change of details

You must advise us in writing within 14 days about any changes to:

  • personal details
  • circumstances relating to your licence.

The maximum fine for failing to do so is $13,055.

You must also advise us within 14 days if you have:

  • changed principal place of business
  • opened or closed a place of business.

The maximum fine for failing to do so is $26,110.

Showing a licence on request

OffenceMaximum penalty

Not showing an inspector your licence, or a copy of any staff member’s licence, on their request

$26,110

Not showing a client, debtor or other party (except an inspector) your licence, or a copy of any other staff member's licence, on their request

$13,055

Substitute licensee

You must follow the rules when appointing a substitute licensee. If you do not, you risk being fined.

OffenceMaximum penalty

Not having the consent and evidence of appointment at the office

$13,055

Not lodging extension of appointment substitute licence for more than 30 days

$26,110

Acting as licensee when a substitute appointed

$26,110

Person in charge

OffenceMaximum penalty

Not having a licensee in charge of place of business

$26,110

Being a person in charge at more than one place of business

$26,110

Appointment

OffenceMaximum penalty

Acting as an auctioneer of real property on behalf of a person without a valid appointment on the approved form

$26,110

Acting as a chattel auctioneer on behalf of a person without a valid appointment on the approved form

$26,110

Acting as a chattel auctioneer in a livestock auction on behalf of a person without being appointed in writing

$26,110

Disclosures before or during auction

OffenceMaximum penalty

Disclosing a price guide for a real property to bidders or potential bidders

$70,497

Disclosing the reserve price for a real property to bidders or potential bidders (except to announce that the reserve price has been met)

$70,497

Offering or providing a comparative market analysis for a real property to bidders or potential bidders without seller approval

$70,497

Not displaying name of auctioneer or chattel auctioneer at the start of an auction (except when exempted under the Act)

$13,055

Not announcing name of auctioneer or chattel auctioneer at the start of an auction (when exempted from display of name)

$13,055

Not announcing the name of the client for whom the auctioneer is selling livestock in a livestock auction (except for online auctions)

$1,305

Not displaying the name of the client for whom the auctioneer is selling livestock in an online livestock auction

$1,305

Books and registers

OffenceMaximum penalty

Failing to keep auction store book and auction sales book on site of registered office (chattel auctioneers)

$1,305

Failing to enter relevant details of acquired goods into auction store book

$1,305

Failing to enter relevant details of auction transactions into auction sales book within 24 hours of auction

$1,305

Failing to enter relevant details into livestock auction book if conducting auctions of livestock

$1,305

Documentation

You must make sure that you:

  • complete all of your documents correctly
  • give copies to consumers when the law says you need to.

For example, you must:

  • be appointed in writing to act as an agent
  • give a copy of the appointment to the client.
  • If you do not, you risk a maximum fine of $26,110.

Requirements for motor vehicle auctions

Statutory warranty

OffenceMaximum penalty

A chattel auctioneer does not advertise or display for sale an unwarranted vehicle only in the right way

$13,055

A chattel auctioneer does not give statutory warranty notice on warranted vehicle immediately after the sale

$13,055

A chattel auctioneer does not give statutory warranty notice on warranted vehicle immediately after the sale, in the approved form

$13,055

Not recording particulars of extension of warranty period

$13,055

Not recording particulars of extension of warranty period, as prescribed

$13,055

Not repairing defects

$26,110

Failure to repair defects within 14 days

$26,110

Written-off vehicles

OffenceMaximum penalty

A chattel auctioneer does not announce (immediately before the auction of a motor vehicle) that is the vehicle is unregistered and written-off

$13,055

Clear title

OffenceMaximum penalty

A chattel auctioneer does not clear title of a motor vehicle

$26,110

Trust account offences

It is in an offence to steal or misuse trust monies. You risk a fine and imprisonment if you break the law.

OffenceMaximum penalty

Wrongful conversion and false accounts

$130,550 or 5 years imprisonment

Unauthorised use of trust account

$26,110 or 3 years imprisonment

Trust monies are not banked immediately (to trust account)

$26,110 or 3 years imprisonment

Non-trust monies are banked to a trust account

$26,110 or 1 year imprisonment

Licensee does not account to client

$26,110 or 3 years imprisonment

Audit reports

OffenceMaximum penalty

Licensee doesn’t appoint an auditor

$26,110 or 1 year imprisonment

Licensee doesn’t lodge audit report within time limit

$26,110 or 2 years imprisonment

Licensee doesn’t lodge audit on ceasing to be licensee or within 2 months of carrying on business

$26,110 or 2 years imprisonment

Auditors

OffenceMaximum penalty

Auditor does not file advice of irregularities to chief executive

$26,110 or 1 year imprisonment

Auditor fails to notify chief executive when denied access to other records

$26,110 or 1 year imprisonment

Auditor fails to supply report to licensee

$26,110 or 1 year imprisonment

Inspector's powers

Inspectors have the legal authority to make sure that you don’t break the law. You must follow their lawful directions, or you risk a fine.

OffenceMaximum penalty

Failing to comply with warrant, produce documents or provide information to an inspector

$26,110

Failing to give name and address to an inspector

$2,611

Enforceable undertaking

An enforceable undertaking is:

  • a written promise by a business not to keep breaking the law
  • an alternative to court action.

Find out more about enforceable undertakings

Last updated
1 July 2018
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