New law was introduced by the the Government of New South Wales (NSW) effective from 31 January, 2011 The idea was to improve consumer protection, road safety and to stop theft or stolen vehicles.
Based on the new law if the car was assesses as total write off or cannot be repaired then it has to be used for parts or scrap metal and cannot be registered.
These laws apply to NSW light vehicles up to 15 years old, including cars, trailers, caravans and motorcycles. A light vehicle is a registrable vehicle less than 4.5 tonnes gross vehicle mass (GVM )in weight.
In NSW alone more than 3000 vehicles are written off every year. The main reason for the change of law is in the past many car buyers who buy these cars and cosmetically repair it and sold it at higher price.
In recent times RTA or now called RMS has been strict with the written of cars. This has given the opportunity for scrap car buyers to buy the written off cars for cash and use them for parts and scrap metal.