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 during the impounding of the motor vehicle.

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

Also, if a police officer signs a towing authority under section 777 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.