Product Overview

Summary: This Salvage and Resale Policy Standard Operating Procedure sets out a clear, defensible framework for assessing, processing and reselling salvaged goods in an Australian business context. It helps you maximise recovery value from damaged, returned or obsolete stock while protecting your brand, meeting legal obligations and maintaining robust audit trails.

The Salvage and Resale Policy Standard Operating Procedure provides a structured approach for organisations that regularly deal with damaged, returned, surplus or obsolete goods and materials. Whether you operate in retail, warehousing, manufacturing, construction, transport or utilities, the ability to recover value from salvageable items—without creating compliance or reputational risks—is a critical operational and financial control.

This SOP sets out how items are identified as salvage, how their condition and risk profile are assessed, and how decisions are made about repair, resale, recycling or disposal. It clarifies who is authorised to approve salvage and resale decisions, how pricing is determined, and how records are kept for audit, tax and insurance purposes. It also addresses key Australian considerations such as consumer guarantees, privacy when handling customer returns, product safety recalls, and environmental responsibilities when diverting waste from landfill.

By implementing this procedure, your business can reduce write‑offs, improve stock accuracy and ensure that any resale of salvaged goods is lawful, consistent and transparent. The SOP supports strong corporate governance by embedding controls around conflict of interest, anti‑theft measures, data security (for items that may store information) and segregation of duties between assessment, pricing and sale. It is designed to integrate with your existing WHS, quality, finance and environmental management systems, giving you a practical, ready‑to‑use framework tailored to Australian regulatory and market conditions.

Key Benefits

• Maximise recovery value from damaged, returned and obsolete stock through a consistent salvage decision framework.
• Reduce financial losses and stock write‑offs by standardising assessment, pricing and resale processes.
• Strengthen governance and reduce fraud or theft risk with clear authorisations, documentation and audit trails.
• Ensure compliance with Australian consumer law, product safety and environmental obligations when reselling or disposing of goods.
• Support sustainability goals by diverting suitable items from landfill into repair, reuse or recycling streams.

Who is this for?

• Operations Managers
• Warehouse and Distribution Managers
• Procurement Managers
• Asset and Inventory Managers
• Finance and Risk Managers
• Compliance and Governance Managers
• Store Managers and Retail Supervisors
• Insurance and Claims Coordinators
• Environmental and Sustainability Managers
• Business Owners and Directors

Included Sections

• 1.0 Purpose and Scope
• 2.0 Definitions and Key Terms (Salvage, Resale, Write‑off, Scrap, Returns, Obsolete Stock)
• 3.0 Roles, Responsibilities and Delegations of Authority
• 4.0 Applicable Legislation, Standards and Internal Policies
• 5.0 Identification of Salvageable Items (Damaged, Returned, Surplus, Obsolete)
• 6.0 Condition Assessment and Risk Evaluation Criteria
• 7.0 Decision Matrix: Repair, Resale, Rework, Recycling or Disposal
• 8.0 Pricing Methodology for Salvaged Goods (Fair Value, Discount Structures, Channels)
• 9.0 Approved Resale Channels (Outlet Stores, Auctions, Online Platforms, Third‑Party Brokers)
• 10.0 Controls to Protect Brand, Reputation and Customer Experience
• 11.0 Consumer Law and Product Safety Compliance Requirements
• 12.0 Data Security and Privacy Controls for Salvaged Electronic or Data‑Bearing Items
• 13.0 Inventory, Finance and Insurance Integration (Write‑offs, Claims, Reconciliation)
• 14.0 Fraud, Theft and Conflict of Interest Controls
• 15.0 Environmental and Sustainability Considerations (Waste Hierarchy, Recycling Streams)
• 16.0 Documentation, Record‑Keeping and Audit Trail Requirements
• 17.0 Training, Communication and Competency Requirements
• 18.0 Monitoring, Reporting and Performance Metrics
• 19.0 Non‑Conformance, Incident Management and Corrective Actions
• 20.0 Review, Approval and Document Control

Legislation & References

• Australian Consumer Law (ACL) – Schedule 2 of the Competition and Consumer Act 2010 (Cth)
• Corporations Act 2001 (Cth) – directors’ duties and record‑keeping obligations
• Income Tax Assessment Acts – asset write‑off and disposal record requirements
• Privacy Act 1988 (Cth) – where salvaged items may contain personal or digital data (e.g. electronics, devices)
• Environmental Protection Acts and waste management regulations applicable in relevant Australian states and territories
• AS ISO 10002:2018 – Quality management – Customer satisfaction – Guidelines for complaints handling in organizations (relevant to customer returns feeding into salvage)
• AS ISO 14001:2016 – Environmental management systems – Requirements with guidance for use (for integrating salvage and resale with environmental objectives)