Auction industry breaches and penalties
Unlicensed work
Unlicensed auctioneer or chattel auctioneer work is against the law. Maximum penalty
| Offence | Maximum penalty |
|---|---|
Working unlicensed | $30,960 or 2 years imprisonment |
Selling, hiring out or lending a licence | $30,960 or 2 years imprisonment |
Buying, borrowing or hiring a licence | $30,960 or 2 years imprisonment |
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 $15,480.
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 $15,480.
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 $30,960.
Showing a licence on request
| Offence | Maximum penalty |
|---|---|
Not showing an inspector your licence, or a copy of any staff member’s licence, on their request | $30,960 |
Not showing a client or other party (except an inspector) your licence, or a copy of any other staff member's licence, on their request | $15,480 |
Substitute licensee
You must follow the rules when appointing a substitute licensee. If you do not, you risk being fined.
| Offence | Maximum penalty |
|---|---|
Not having the consent and evidence of appointment at the office | $15,480 |
Not lodging extension of appointment substitute licence for more than 30 days | $30,960 |
Acting as licensee while a substitute is appointed | $30,960 |
Person in charge
| Offence | Maximum penalty |
|---|---|
Not having a licensee in charge of place of business | $30,960 |
Being a person in charge at more than one place of business | $30,960 |
Appointment
| Offence | Maximum penalty |
|---|---|
Acting as an auctioneer of real property on behalf of a person without a valid appointment on the approved form | $30,960 |
Acting as a chattel auctioneer on behalf of a person without a valid appointment on the approved form | $30,960 |
Acting as a chattel auctioneer in a livestock auction on behalf of a person without being a valid appointment on the approval form (when appointed in writing) | $30,960 |
Disclosures before or during auction
| Offence | Maximum penalty |
|---|---|
Disclosing a price guide for a real property to bidders or potential bidders | $83,592 |
Disclosing the reserve price for a real property to bidders or potential bidders (except to announce that the reserve price has been met) | $83,592 |
Offering or providing a comparative market analysis for a real property to bidders or potential bidders without seller approval | $83,592 |
Not displaying name of auctioneer or chattel auctioneer at the start of an auction (except when exempted under the Act) | $15,480 |
Not announcing name of auctioneer or chattel auctioneer at the start of an auction (when exempted from display of name) | $15,480 |
Not announcing the name of the client for whom the auctioneer is selling livestock in a livestock auction (except for online auctions) | $1,548 |
Not displaying the name of the client for whom the auctioneer is selling livestock in an online livestock auction | $1,548 |
Books and registers
| Offence | Maximum penalty |
|---|---|
Failing to keep auction store book and auction sales book on site of registered office (chattel auctioneers) | $1,548 |
Failing to enter relevant details of acquired goods into auction store book | $1,548 |
Failing to enter relevant details of auction transactions into auction sales book within 24 hours of auction | $1,548 |
Failing to enter relevant details into livestock auction book if conducting auctions of livestock | $1,548 |
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 before selling any item on behalf of a client (except for livestock auctions)
- give a copy of the appointment to the client. (Note: while you do not have to be appointed in writing for a livestock auction, if you do have an appointment in writing you must give a copy to the client)
If you do not, you risk a maximum fine of $30,960.
Requirements for motor vehicle auctions
Statutory warranty
| Offence | Maximum penalty |
|---|---|
A chattel auctioneer does not correctly advertise or display for sale an unwarranted vehicle | $15,480 |
A chattel auctioneer does not give statutory warranty notice on warranted vehicle immediately after the sale | $15,480 |
Not recording particulars of extension of warranty period, as prescribed | $15,480 |
Failure to repair defects within 14 days | $30,960 |
Written-off vehicles
| Offence | Maximum penalty |
|---|---|
A chattel auctioneer does not announce (immediately before the auction of a motor vehicle) that the vehicle is unregistered and written-off | $15,480 |
Clear title
| Offence | Maximum penalty |
|---|---|
A chattel auctioneer does not guarantee clear title of a motor vehicle | $30,960 |
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.
| Offence | Maximum penalty |
|---|---|
Wrongful conversion and false accounts | $154,800 or 5 years imprisonment |
Unauthorised use of trust account | $30,960 or 2 years imprisonment |
Trust monies are not banked immediately (to trust account) | $30,960 or 2 years imprisonment |
Non-trust monies are banked to a trust account | $30,960 or 1 year imprisonment |
Licensee does not account to client | $30,960 or 2 years imprisonment |
Audit reports
| Offence | Maximum penalty |
|---|---|
Licensee doesn’t appoint an auditor | $30,960 or 1 year imprisonment |
Licensee doesn’t lodge audit report within time limit | $30,960 or 2 years imprisonment |
Licensee doesn’t lodge audit on ceasing to be licensee or within 2 months of carrying on business | $30,960 or 2 years imprisonment |
Auditors
| Offence | Maximum penalty |
|---|---|
Auditor does not file advice of irregularities to chief executive | $30,960 or 1 year imprisonment |
Auditor fails to notify chief executive when denied access to other records | $30,960 or 1 year imprisonment |
Auditor fails to supply report to licensee | $30,960 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.
| Offence | Maximum penalty |
|---|---|
Obstructing an inspector or failing to produce documents or provide information to an inspector | $30,960 or 1 year imprisonment |
Failing to give name and address to an inspector | $7,740 |
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