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Charged with Goods in Custody? What You Need to Know
A goods in custody charge in NSW is often described as the easiest dishonesty offence for police to prove. Under section 527C of the Crimes Act 1900 (NSW), the prosecution only needs to show that the property in your custody may be reasonably suspected of being stolen or unlawfully obtained, not that you actually knew it was stolen.
This low threshold means many people are charged in circumstances they would not expect: buying a cheap item from Facebook Marketplace, accepting a gift without a receipt, or being a passenger in a vehicle containing suspicious items.
Many goods in custody allegations arise from everyday transactions involving second-hand items purchased online, discounted merchandise, or products obtained through informal sales channels. In some cases, police suspect the property may be connected to theft, robbery, burglary, or other crime activity, even where the defendant had no involvement in the original offence.
Understanding your legal position at an early stage can help you find the strongest defence and avoid unnecessary consequences.
If you have been charged with goods in custody in Burwood, Sydney CBD, or Parramatta, early legal advice is critical. The way your defence is prepared often determines whether the matter is dismissed or results in a criminal record.
The Australian Legal Practice offers free initial consultations and direct access to principal criminal lawyers across Sydney. Call (02) 8084 9929 any time, day or night, for urgent advice.
What Is Goods in Custody?
Goods in custody is the common name for the offence formally titled “persons unlawfully in possession of property” under section 527C of the Crimes Act 1900 (NSW). The provision is commonly used where police believe items may have originated from theft offences committed by thieves, burglars, or organised crime groups. However, the laws do not require the prosecution to identify the person who allegedly committed the original theft.
The offence covers four distinct ways a person can be in custody of suspected stolen goods:
- (a) Having any thing in their own custody
- (b) Having any thing in the custody of another person on their behalf
- (c) Having any thing in or on their premises, whether belonging to them or not, and whether for their own use or another’s
- (d) Giving custody of any thing to a person not lawfully entitled to possession
“Custody” in this context means immediate de facto control or charge of the article in question (Ex parte McPherson (1933) 50 WN 25). This is narrower than the concept of “possession” used in other criminal offences.
Common situations that lead to goods in custody charges include buying cheap goods on Facebook marketplace or Gumtree without a receipt, possessing tools or electronics with no proof of purchase, holding large amounts of unexplained cash, driving a vehicle with no registration papers or unclear ownership, being a passenger in a vehicle containing suspicious items, or receiving a gift of property that still bears security tags.
Other examples include purchasing products online from unknown sellers, acquiring retail merchandise at unusually low prices, attempting to sell items without proof of ownership, or storing goods that police suspect may have been obtained through theft, burglary, robbery, or related crime activity.
Goods in Custody Under Australian Law
The principal goods in custody offence in NSW is contained in section 527C of the Crimes Act 1900 (NSW). The maximum penalty depends on the type of property involved.
Type of Property | Maximum Imprisonment | Maximum Fine |
Motor vehicle or vessel (or part thereof) | 12 months | $1,100 (10 penalty units) |
Any other property | 6 months | $550 (5 penalty units) |
Section 527C is a summary offence. It is heard only in the Local Court and cannot be heard in the District Court unless it is part of a broader matter involving more serious indictable charges.
The offence sits within a wider statutory framework of property and dishonesty offences. The most important related offence is receiving stolen property under section 188 of the Crimes Act 1900 (NSW), which is materially different in both elements and seriousness.
Offence | Section | What Must Be Proved | Maximum Penalty |
Goods in custody | s 527C | Reasonable suspicion the goods are stolen or unlawfully obtained | 6 months (general) or 12 months (motor vehicle/vessel) |
Receiving stolen property | s 188 | The accused knew or believed the goods were stolen | 10 years (12 years for motor vehicle or vessel) |
Police frequently charge under section 527C rather than section 188 because the reasonable suspicion standard is much easier to prove than knowledge of theft. If the prosecution evidence is strong enough to prove knowledge, a more serious receiving charge is usually laid.
This makes goods in custody allegations comparatively easy for police to investigate, particularly where merchandise, retail products, vehicles, or other valuable items cannot be readily linked to a legitimate source. The defendant may therefore need to provide evidence explaining how the goods were acquired, used, or intended for selling.
A related offence to be aware of is dealing with the proceeds of crime under section 193C of the Crimes Act, which is often used for currency cases where the suspicion attaches to money obtained through criminal activity.
What Must the Prosecution Prove?
To secure a conviction under section 527C, the prosecution must prove the following elements beyond reasonable doubt:
- Custody: The accused had something in their custody, in the custody of another, on their premises, or gave custody to someone not lawfully entitled to possession
- The thing: The property in question is identifiable
- Reasonable suspicion: The thing may be reasonably suspected of being stolen or otherwise unlawfully obtained
A critical legal point is that the suspicion must attach to the goods themselves, not to the person. The court must be satisfied that a reasonable person, looking at the property and the circumstances, would suspect the goods were stolen or unlawfully obtained.
For example, a reasonable suspicion may arise where merchandise is found with removed serial numbers, where retail items remain in original store packaging, or where products are being offered for selling online at prices substantially below market value.
It is not necessary for the prosecution to prove the goods were actually stolen (R v Chan). It is also not necessary to prove the accused knew the goods were stolen. The combination of these factors makes section 527C one of the easiest dishonesty offences to prove.
For currency cases (typically large amounts of cash), the suspicion must attach to the actual banknotes (Anderson v Judges of the District Court; R v Chan). Where the goods themselves are not suspicious but were purchased with proceeds of crime, the correct charge is usually section 193C, not section 527C.
Penalties for Goods in Custody in NSW
The maximum penalties under section 527C are at the lower end of criminal offences in NSW, but a conviction still creates a criminal record and can have significant consequences.
A conviction may affect employment opportunities, professional licences, future business activities, and a person’s ability to demonstrate good character. While the offence is not classified as a felony under NSW law, some people use the term felony when comparing Australian offences with overseas legal systems.
Court / Type of Property | Maximum Penalty |
Local Court, general goods | 6 months and/or $550 |
Local Court, motor vehicle or vessel | 12 months and/or $1,100 |
Sentencing options available to the court include:
- Section 10(1)(a) dismissal (finding of guilt, no penalty, no conviction recorded)
- Conditional Release Order (CRO) with or without conviction
- Fine
- Community Correction Order (CCO), up to 3 years
- Intensive Correction Order (ICO), served in the community
- Full-time imprisonment (uncommon for goods in custody)
For first-time offenders with no prior record and goods of low value, non-conviction outcomes are commonly achieved. Judges regularly impose Section 10 dismissals or non-conviction CROs for matters at the lower end of the scale.
Factors that influence sentence severity: value and nature of the goods, whether the goods were motor vehicles or vessels (higher penalty band), whether the conduct appeared to be commercial or part of a pattern, prior record (particularly for previous dishonesty offences), connection to organised criminal activity, cooperation with police, and steps to identify the lawful owner.
Possible Defences Against Goods in Custody
Section 527C contains a statutory defence in addition to the standard defences available to most criminal charges.
Statutory defence under section 527C(2):
It is a sufficient defence if the accused satisfies the court that they had no reasonable grounds for suspecting the thing was stolen or unlawfully obtained. This is a reverse onus defence: the burden is on the accused, but only to the lower civil standard (balance of probabilities) per Briginshaw v Briginshaw. The accused does not need to prove the goods were not stolen, only that they had no reasonable grounds to suspect.
Practical evidence used to establish the statutory defence includes receipts or proof of purchase, bank statements showing payment, evidence of the price paid (particularly if at or near market price), a plausible explanation of how the property came into the accused’s hands, a clean criminal record (especially with no prior dishonesty offences), and character or context evidence.
Evidence showing that items were purchased through legitimate online marketplaces, retail stores, authorised distributors, or established business transactions can be particularly helpful. Documentation demonstrating the lawful acquisition of merchandise or products often assists in rebutting allegations connected to theft or robbery.
Other defences that may apply:
- No custody: The accused did not have immediate de facto control of the property (such as a passenger in a vehicle containing suspicious items)
- No reasonable suspicion: A reasonable person would not have suspected the goods were stolen, based on the property itself
- The goods were lawfully obtained: Direct evidence of lawful purchase, gift, or claim of right
- Duress or necessity: The accused was forced to act by threats from another person
- Mental health condition: A section 14 order under the Mental Health and Cognitive Impairment Forensic Provisions Act 2020 (NSW)
The early production of receipts, bank records, or character material can often lead to the charge being withdrawn before a hearing.
Your Options When Charged with Goods in Custody
Once you are charged with goods in custody, you generally have three pathways to resolve the matter.
- Negotiate with the police prosecutor. In many goods in custody matters, the charge can be withdrawn if the accused can produce credible evidence of lawful possession at an early stage. This is particularly important where the defendant can show the items were acquired through lawful online purchases, legitimate retail transactions, or ordinary business dealings. Receipts, bank statements, communications with the seller, and a clean record are powerful submissions before a hearing.
- Plead not guilty and contest the matter. Where the statutory defence under section 527C(2) is available, or where the prosecution cannot establish reasonable suspicion or custody, the matter can proceed to a defended hearing in the Local Court. Goods in custody hearings often turn on the production of evidence by the accused. A strong understanding of the circumstances surrounding the acquisition, storage, use, or intended selling of the goods is often central to a successful defence.
- Plead guilty and focus on the best possible sentence. Where the evidence is strong and no defence applies, an early plea of guilty attracts a sentencing discount of up to 25% and demonstrates remorse. For first-time offenders with low-value goods, the focus is on securing a Section 10 dismissal or a non-conviction Conditional Release Order to avoid a criminal record.
The right strategy depends on the strength of the prosecution case and the evidence available to support a defence.
Why Choose The Australian Legal Practice for Goods in Custody Charges
The Australian Legal Practice is a Sydney-based criminal law firm well placed to defend goods in custody charges across Burwood, Sydney CBD, and Parramatta.
- Three court-adjacent offices: Burwood, Sydney CBD, and Parramatta
- 24/7 availability: Direct access to ur office on (02) 8084 9929, day or night
- Free initial consultation: Understand your options and assess your statutory defence before committing
- Principal-level representation: Every matter is managed by senior solicitors with Local Court experience
- Focus on early resolution: We often resolve goods in custody matters through pre-hearing submissions with the police prosecutor
- Practical advice: We help clients find and present receipts, transaction histories, online communications, and other evidence relevant to suspected theft, burglary, robbery, or property crime allegations
- Fixed fee arrangements: Transparent pricing with clear costs disclosure under the Legal Profession Uniform Law (NSW)
Call us now on (02) 8084 9929 to arrange a free consultation.
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Frequently Asked Questions
Goods in custody under section 527C only requires the prosecution to prove the goods may be reasonably suspected of being stolen. Receiving stolen property under section 188 requires the prosecution to prove the accused knew or believed the goods were stolen. Section 527C is a summary offence with a 6 or 12 month maximum; section 188 is indictable with a 10 or 12 year maximum.
Yes. Knowledge of theft is not an element of section 527C. The prosecution only needs to prove the goods may be reasonably suspected of being stolen. The accused has a statutory defence under section 527C(2) if they can satisfy the court (on the balance of probabilities) that they had no reasonable grounds for suspecting the goods were stolen.
Section 527C(2) provides that it is a sufficient defence if the accused satisfies the court that they had no reasonable grounds for suspecting the property was stolen or unlawfully obtained. The standard of proof is the balance of probabilities. Common evidence used includes receipts, bank statements, message threads with sellers, and character material.
Yes. Police may investigate where items, merchandise, or products appear suspicious, even if they were purchased online or from a retail source. The key issue is whether there were reasonable grounds to suspect the goods were connected to theft, robbery, burglary, or another crime. Understanding the circumstances of the purchase and retaining records can help establish a defence.
Imprisonment is uncommon for goods in custody matters, particularly for first-time offenders with low-value goods. Most matters resolve through non-conviction outcomes (Section 10, CRO without conviction), fines, or Community Correction Orders. Imprisonment becomes more realistic for repeat offenders or where the matter is connected to organised criminal activity.
