You can start in scrap in Australia without a yard, a truck or a shredder. ScrapTrade offers two roles for it: scrap broker and scrap agent. They sound similar and work very differently, so the first job is picking the right one. This guide explains each, how you earn, what you still need to pay for and what to check in Australia before you start. It is based on ScrapTrade's published Australian broker and agent pages, and we say where those pages do not answer a question.
A point that comes up often: starting this way is not the same as starting for free. You do not need a yard, but you will still use your own time, phone and transport, a broker may need cash to buy material and standard platform fees apply to sales. We set out below what the pages do and do not say.
The two roles in one table
| Scrap broker | Scrap agent | |
|---|---|---|
| What you do | Source scrap from an original seller, then list and sell it to buyers as the seller | Work for a seller or buyer who hires you to create listings or run deals |
| Who you work for | Yourself, as a seller | The seller or buyer who hires you |
| How you earn | The difference between your buy price and your sell price, a margin agreed privately with the original seller | A commission set when you are hired, 5% by default |
| Who sets the rate | You and the original seller, privately | The hirer sets it at hiring and it locks once the agreement is confirmed |
| Does ScrapTrade calculate it? | No | Yes, and it shows the calculation and payment status |
| Stock risk | Possibly, if you buy the material | No, you are working for the owner |
| Page | Scrap broker Australia | Scrap agent Australia |
Source: ScrapTrade's broker and agent pages [1][2]. For a longer comparison see Scrap Agent vs Scrap Broker.
Becoming a scrap broker
A broker is an intermediary who sources scrap and resells it through ScrapTrade. To the platform you work like any other seller, with a broker classification on your account and a reference to the original seller on each listing [1].
The steps, as ScrapTrade describes them:
- Register in the broker category.
- Agree terms with the original seller: price, margin or commission, and your authority to sell, privately.
- Create the listing with the material described and the reference to the seller you represent.
- A buyer purchases through the normal ScrapTrade process.
- The platform processes the payment as a standard seller transaction.
- You settle with the original seller under your own agreement. ScrapTrade does not manage this [1].
The money. You buy or take the material on terms agreed with the original seller, then list it at your own price. The difference, before your expenses, is your potential margin. ScrapTrade does not calculate it, take a share of it or pay any of it to the original seller. Standard platform fees apply to the sale [1]. See Broker margin explained.
Your responsibilities. The platform treats you as the seller. You are responsible for the authenticity of the listing, for delivering what you described, for having the authority to sell and for paying the original seller [1]. Read Broker responsibilities, Listing requirements and Agreement with the original seller before you list. To test whether it fits, see Is scrap brokering right for you?.
Who it suits. People who already know someone with scrap, such as a workshop, a builder, a demolition crew or a factory, and who can describe and price material well.
Becoming a scrap agent
An agent works for clients. A seller or buyer hires you to create listings, respond to buyers, negotiate for them and help coordinate collection, and you report to the client and keep records [2].
How you are paid. The hirer sets your commission percentage at hiring, from a 5% default that they can change before confirming. Once the hiring agreement is confirmed the rate is locked. When the deal settles you receive the commission through ScrapTrade and can see the calculation and payment status [2]. According to ScrapTrade's fees page, a seller-hired commission is deducted from the seller's proceeds and a buyer-hired commission is added on top of the purchase price. The page tells you to check what the percentage applies to and how cancellations, refunds, returns and failed payments are treated, so read the hiring agreement checklist before you agree [3].
An illustration of our own, not a quote. If a seller hires you at 5% and the deal settles at A$10,000, the commission is A$500. That ignores platform charges, tax and your own costs.
What helps. Material knowledge, accurate descriptions, clear updates to clients, honesty about who else you work for and good records [2]. To see what clients look for, read How to choose a scrap agent.
The rules you work under. Only list material your client owns or may sell, describe it accurately and avoid promising a price or a buyer, keep deals and payment on ScrapTrade, and stop and ask before handling hazardous or regulated material [2].
What it costs, and what we cannot tell you
Stated on ScrapTrade's pages:
- No yard or warehouse is needed for either role.
- Standard platform fees apply to broker transactions.
- Agent commission is set by the hirer, 5% by default, and locked on confirmation.
- Income is not guaranteed.
Not stated, so we do not claim it:
- Whether registering is free, and the exact platform fee percentages.
- How long payment takes after delivery.
- Whether your state requires you to register as a dealer.
Do not assume "free". Check current fees on ScrapTrade before committing, and count your own costs: phone, internet, transport, time and, for a broker who buys the material, working capital. How Much Money to Start a Scrap Business? explains how much cash a lot of scrap can tie up.
What to check in Australia
ScrapTrade's Australian pages say two things [1][2].
An ABN and tax. Most people working as an agent in Australia will need to think about an ABN to be paid, and brokers should ask a registered tax agent whether they need an ABN and how GST applies to their margin and to the sale. The Australian Business Register says not everyone is entitled to an ABN and that applying when you are not entitled can lead to prosecution, so apply only if you qualify [4].
State and territory rules. Brokering and agency sit under state and territory rules on dealing in scrap, so ask your state regulator what applies to the material and to you. The rules differ: NSW requires dealers to register with NSW Police, Victoria requires registration as a second-hand dealer, and Queensland and South Australia are changing their laws. See Scrap Business Rules in Australia by State. We cannot say whether a broker who never holds the material counts as a dealer in any given state, or whether an agent working for a commission does. NSW Police's licensing directorate can be reached on 1300 362 001 and WA Police Licensing Services on 1300 171 011.
Which should you choose?
- Choose agent if you want to work for clients without owning material, you like negotiating and organising and you want a set commission with no stock risk.
- Choose broker if you already have a source of scrap, can agree a margin with the seller and are comfortable being responsible as the seller.
- Choose neither yet if you do not know your grades or your state's rules. Read how to grade scrap metal and How to Start a Scrap Business in Australia first.
If you need someone to handle your own scrap, see Hire a scrap agent. To see how ScrapTrade checks counterparties, read trust and safety.
How to start this week
- Read the broker page or the agent page in full.
- Ask your state regulator whether your activity needs registration.
- Ask a registered tax agent about an ABN and GST.
- Check ScrapTrade's current fees.
- If you are a broker, agree terms with one original seller in writing. If you are an agent, tell people you know you can handle listings.
- Register on ScrapTrade when you are ready.
Frequently asked questions
What is the difference between a scrap broker and a scrap agent?
A broker sources scrap and resells it as the seller on a margin agreed privately. An agent works for a seller or buyer who hires them and earns a commission set at hiring [1][2].
Can I start without a yard or money?
You do not need a yard. You still need your own time, phone and transport, and a broker may need money to buy material. The pages do not say whether registration is free, so check current fees.
How much do scrap agents earn?
The commission set when you are hired, 5% by default. Income is not guaranteed [2].
Do I need an ABN?
Most people working as an agent will need to think about one, but not everyone is entitled. Ask a registered tax agent [2][4].
Do I need to register with the police or a regulator?
It depends on your state and what you do. Ask your regulator.
Sources
- ScrapTrade Australia, Scrap broker, as published in October 2026.
- ScrapTrade Australia, Become a scrap agent, as published in October 2026.
- ScrapTrade, Scrap agent fees and commission, as published in October 2026.
- Australian Business Register, Applying for an ABN.
This article describes ScrapTrade's published broker and agent pages and is general information, not legal, tax or financial advice. Fees and terms may change, so check the current pages. Income is not guaranteed. ScrapTrade operates a scrap marketplace and has a commercial interest in the scrap trade.