Transport Victoria invites the public to report two things about club permit vehicles: over-modification, and commercial use. Neither phrase is defined on the published pages, which leaves owners guessing at a line they can be reported for crossing. There is, however, a rule that is defined, and it is far narrower than the phrase suggests. It is regulation 186.
Does VicRoads define "commercial purposes"?
No. The phrase appears on Transport Victoria's "report a breach of club permit rules" section, which asks the public to tell VicRoads if someone is using their club permit vehicle for commercial purposes. No test is attached to it, and no examples are given. Nowhere on VicRoads or Transport Victoria is "commercial purposes" defined for the club permit scheme.
That is worth knowing before you go looking for an answer, because it means any list of "what counts as commercial use on a club permit" is somebody's opinion unless it cites a source. The regulations, on the other hand, do say something precise.
The rule that actually binds: regulation 186
The Road Safety (Vehicles) Regulations 2021 contain one club permit provision about commercial activity. Regulation 186 is headed "Offence to use a club permit vehicle as commercial passenger vehicle service", and it requires a club permit holder to ensure that a vehicle operated under a club permit is not used "(a) for hire or reward for the carriage of goods or freight; or (b) to provide a commercial passenger vehicle service (within the meaning of section 4 of the Commercial Passenger Vehicle Industry Act 2017)". The penalty is 10 penalty units.
Two limbs, both narrow, one of them pointing at a definition in another Act. That is the enforceable rule. The same two prohibitions are printed on the VicRoads club permit application form under "Responsibilities of Club Permit holders", so you agree to them at the counter when you apply.
Where does that leave a specific arrangement?
With VicRoads or with a lawyer, not with us. Whether a particular arrangement amounts to "hire or reward", or falls inside the statutory meaning of a commercial passenger vehicle service, is a legal question about your own facts. We run a club. We are not in a position to tell you which side of regulation 186 your situation sits on, and neither is a forum thread.
What we can tell you is where to ask. VicRoads is on 13 11 71, and the club permit pages are linked at the foot of this article. If the money involved is significant, or the arrangement is ongoing rather than one-off, the question is worth putting to a lawyer rather than to a call centre — the penalty in regulation 186 attaches to the permit holder, which is you.
Does driving to work count?
Neither limb of regulation 186 is about driving yourself to work. What does bite on commuting is the day allowance, and it bites hard. A trip to work is a logbook day. Do it twice a week and a 45-day permit is gone before winter; do it daily and even 90 days runs out. Days do not carry over, and there is no way to buy extras mid-period.
There is a second problem. A thin logbook on a vehicle covering high annual kilometres is exactly the pattern an audit inspection is designed to surface, and VicRoads can require one at any time. A car that is genuinely doing the commute belongs on full registration. Our rules and logbook guide covers how days are counted and what to do when they run short.
Carrying goods, and towing
Regulation 186(a) is the limb that deals with goods, and it turns on payment: use "for hire or reward for the carriage of goods or freight". Carrying your own things is not what that describes. Being paid to move somebody else's is squarely what it describes.
Towing itself is expressly allowed. Transport Victoria confirms you can tow a trailer or caravan with a club permit vehicle, provided the vehicle being towed is registered and the driver follows their licence conditions. Nothing in the towing rule turns on what is on the trailer — but regulation 186(a) turns on whether you are being paid to carry it.
Swap meets and selling parts
Driving your club permit vehicle to a swap meet is an ordinary permit day, logged like any other. Running a stall out of the boot is a different question, and it is one to put to VicRoads before the day rather than after it. We are not going to draw a line the regulations have not drawn.
Selling the car itself
Different rules again. VicRoads states plainly that you cannot transfer a club permit: if you give or sell the club permit vehicle to another person, you need to cancel the permit. A vehicle already listed on a club permit also cannot be put on another one, so the seller's permit has to be dealt with before the buyer's can exist. Our guide to buying or selling a car on a club permit sets out who does what, and in what order.
What happens if it is reported?
Regulation 186 carries a penalty of 10 penalty units. Separately, Transport Victoria's wording on consequences is short and covers everything: if you do not follow club permit rules, you may be fined, and if you do not follow the vehicle standards rules, VicRoads may suspend or cancel your club permit. Alongside that sit the enforcement powers — VicRoads can require an audit inspection, ask for a roadworthy certificate or a VASS approval certificate, or direct the vehicle to a nominated testing site or an authorised officer.
The fine is rarely the worst outcome. Losing the permit means the vehicle comes off club plates, and getting back on means the whole application again: roadworthy, club-signed declaration, lodgement in person, new plates. There is also an insurance dimension, since policies written for club permit vehicles generally assume the permit conditions are being met.
The safe posture
Three habits keep you clear. Log every trip before you drive, so the record of what the car was doing exists independently of anyone's memory. Before entering any arrangement where money changes hands over the use of the vehicle, get an answer from VicRoads or a lawyer rather than from a forum. And if the vehicle's real pattern of use has drifted towards work or business, move it to full registration rather than logging around the problem.
If you are still deciding whether the scheme fits how you actually use the car, our guide to the Club Permit Scheme in Victoria lays out what it is and is not designed for.
Regulation 186 quoted from the authorised version of the Road Safety (Vehicles) Regulations 2021; reportable breaches, towing and consequences from the Transport Victoria club permit rules page; the no-transfer rule from the VicRoads modify, update or transfer a club permit page; permit holder responsibilities from the VicRoads club permit application form. All retrieved 5 September 2026. VicRoads publishes no definition of "commercial purposes", and whether a particular arrangement falls inside regulation 186 is a question for VicRoads or a lawyer, not for this page.
Questions
Does VicRoads define commercial use on a club permit?
No. Transport Victoria names using a club permit vehicle for commercial purposes as a reportable breach and attaches no test or examples to it. The phrase is not defined anywhere on VicRoads or Transport Victoria for the club permit scheme.
What does regulation 186 actually prohibit?
Two things. A club permit holder must ensure the vehicle is not used for hire or reward for the carriage of goods or freight, and not used to provide a commercial passenger vehicle service within the meaning of section 4 of the Commercial Passenger Vehicle Industry Act 2017. The penalty is 10 penalty units.
Is my arrangement allowed?
We cannot tell you. Whether a particular arrangement amounts to hire or reward, or to a commercial passenger vehicle service, is a legal question about your own facts. Ask VicRoads on 13 11 71, and if the money is significant or the arrangement is ongoing, ask a lawyer.
Can I drive my club permit car to work?
Neither limb of regulation 186 is about commuting. The constraint that does bite is the day allowance: every trip more than 100 metres from the garage address costs a logbook day, and a car used for the commute will exhaust 45 or even 90 days quickly. At that point the vehicle belongs on full registration.
Can I tow with a club permit vehicle?
Yes. Transport Victoria confirms you may tow a trailer or caravan with a club permit vehicle, provided the vehicle being towed is registered and the driver follows their licence conditions. Being paid to carry goods or freight is a separate matter, and that is what regulation 186(a) prohibits.
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