Police Powers and Responsibilities Act 2000

A police officer acting in good faith and without negligence is not liable for any damage, loss or depreciation to a motor vehicle, including the motor vehicle’s number plates, during the impounding or immobilisation of the motor vehicle.

If subsection (1) prevents liability attaching to a police officer, liability instead attaches to the State.

Also, if a police officer signs a towing authority under section 77 for the motor vehicle, the State is not liable for any damage, loss or depreciation to the motor vehicle while it is being moved under the towing authority and while it is impounded in the holding yard of the person authorised under the towing authority to tow the motor vehicle or immobilised at a place.