The transaction doesn’t end with a simple handshake and goodbye. In Australia, there are legal requirements when you sell, gift, or otherwise dispose of a vehicle. As part of that legal framework, a notice of disposal must be lodged. Lodging a notice of disposal informs Transport for New South Wales (NSW) that you are no longer the registered operator of the vehicle. This works for your benefit.
In this article, we will explain what a notice of disposal NSW is, why it is important, how to lodge it, and what happens if you do not lodge a notice of disposal.
What is a notice of disposal (NOD) in NSW?
A notice of disposal (NOD) is a formal notification to the Transport of New South Wales that you are no longer a licensed operator of the vehicle. It’s typically lodged when Aussies sell, give away, or get rid of a vehicle. This legal requirement ensures your protection from upcoming liabilities, such as taxes, fines, or criminal acts committed by the vehicle after you no longer possess it.
When a seller submits this notice, Transport for NSW updates the registration records to demonstrate the change in ownership of the vehicle.
When are Australians required to lodge a notice of disposal?
When Australians do a private sale, gift or transfer of ownership of their vehicle, they are obligated to lodge the notice of disposal without delay. Whenever you dispose, in this case, you should lodge the notice of disposal in any of the following ways:
- Selling the vehicle privately
- Trading the vehicle in to a dealer
- Giving it as a gift to a family member or friend
- Donating the vehicle
- Scrapping or permanently disposing of it
Lodge this notice within 14 days of the sale or transfer to avoid future liabilities. Even if you absolutely trust the purchaser, you are obligated to lodge the notice of disposal as soon as possible to update the registration records.
Why is lodging the notice of disposal important?
Submitting a notice of disposal is an important step in the legal and safe sale or disposal of your vehicle. Here are some important reasons to file this notification:
- Avoid future taxes and fines: This notice will protect you from future tolls and fines. If you do not file this notice, any tax, fines, or penalties arising after the sale can be in your name.
- Legislation protection: It legally relinquishes your responsibility for the vehicle and provides you with some legal protection.
- Transaction proof: It provides a record of the transaction or documented proof that you have transferred the vehicle.
- Registration update: This also keeps the vehicle registration updated, which helps avoid future issues.
Therefore, lodging a notice of disposal helps to stay protected legally.
Eligibility to submit the notice of disposal
The eligibility criteria for lodging a notice of disposal also matter. A NOD can be submitted unless any of the following apply:
- You don’t hold a NSW driver’s licence or Photo Card
- You have a limited vehicle registration
- You’re handling the disposal of the vehicle for a company or organisation
- The buyer lives interstate and holds an interstate licence
- The buyer is an interstate motor dealer without a valid NSW dealer licence
What information is required to lodge a NOD?
Make sure you have the following details before submitting a notice of disposal:
- Vehicle identification number (VIN)
- Your NSW driver licence or Photo Card details
- The registration number and details of the vehicle
- Date of sale or transfer (commonly known as the date of disposal)
- The sale price or market value of the vehicle
- Buyer’s full name and NSW driver’s licence
- Buyer’s NSW driver’s licence or Customer Reference Number
- A MyService NSW account (optional)
If the purchaser does not possess a NSW driver licence you might need to provide their contact information and identification.
How to lodge a notice of disposal in NSW
You can lodge your NOD online or in person.
1. Online via Service NSW
Lodging a notice of disposal online is the fastest and most practical method. You can submit this notice online in the following way:
- Visit the Service NSW notice of disposal page.
- Log in with your MyServiceNSW account.
- Enter buyer details (full name, address, and NSW driver licence number or CRN).
- Provide the vehicle details, including the plate number, VIN, sale date, and other relevant info.
- Submit and await confirmation.
2. In person at a Service NSW Centre
If you would rather prefer to lodge it in person:
- Find your closest Service NSW Centre and visit it.
- Bring identity proof and the information of the vehicle.
- Fill out a notice of disposal form.
- Staff will lodge it for you.
Important note: Paper lodgement may be time-consuming to update in the system as compared to online submissions. The reason for this is that online lodgements are electronically processed, while paper forms need to be handled and processed manually.
What comes next after lodging the NOD?
Once the notice of disposal is processed:
- The registration of the vehicle is identified as disposed of from your side.
- The new vehicle owner is legally required to complete the registration transfer within 14 days.
- You’re free for anything that happens with the vehicle
It is also advisable to keep a record of the sale, like a bill of sale or written agreement, for your record.
What happens if you forget to lodge the NOD?
Submitting a notice of disposal is essential to protect yourself from any future liabilities tied to the vehicle. But if someone forgets to lodge the NOD, it can cause:
- Continuing liability for traffic and toll violations.
- Complications to prove that the car is no longer yours.
- Troubles with insurance claims.
- Legal issues if the vehicle gets tied up in any criminal activity.
If you become aware that you did not submit the notice of disposal, lodge it immediately through the online portal or by visiting Service NSW.
Final thoughts
In the end, giving notice of disposal in NSW is a very easy, fast, and crucial step no matter if you are going to sell your car to a friend, get rid of your old car and upgrade to a new vehicle or just dispose of your vehicle. This important legal procedure helps Australians reduce their future liabilities and continue to stay compliant with the traffic laws in NSW. If you are still unsure or need assistance, Service NSW provides assistance online and in person to help make the process as smooth as possible.
