Australia is a strong place to be in the scrap trade. The country exported 3.05 million tonnes of metal scrap worth A$4.58 billion in 2025-26, according to the Department of Climate Change, Energy, the Environment and Water, and it has scrap flowing from every state and port [1]. Starting a business to get a share of that does not require a yard. It does require the right registrations, a clear view of your state's rules, a model that fits your money and a price you can trust. This guide walks through the steps in order, with Australian data to ground them, and finishes with a 30-day start plan.
This is general information. Rules differ by state and territory and change over time, so confirm them with your state or territory regulator, your local council and an accountant. We have deliberately not described specific licence conditions, tax thresholds or fees, because they vary and an article is the wrong place to take them from.
The Australian market in five numbers
| Measure, 2025-26 | Figure |
|---|---|
| Metal scrap exported | 3.05 million tonnes, A$4.58 billion |
| Ferrous scrap exported | 2.55 million tonnes, about A$600 a tonne |
| Aluminium scrap exported | 378,000 tonnes, about A$3,790 a tonne |
| Copper and copper-alloy scrap exported | 113,000 tonnes, about A$10,800 a tonne |
| Share of value that is non-ferrous | 67%, from 16% of the weight |
Source: DCCEEW export data collation, September 2026, using Australian Bureau of Statistics records; ScrapTrade calculations. The latest year is provisional [1]. Export values are declared at the border and are not what collectors or small yards are paid. The full analysis is in Australia's Scrap Metal Exports: 2025-26 Data.
Step 1: choose how you will make money
You do not need a yard. The main options are:
| Model | What it is | Money needed |
|---|---|---|
| Agent | Run listings or deals for a seller or buyer for a commission | Very little. No stock |
| Collector | Gather scrap you may legally take and sell it | Gear and a way to carry |
| Broker or trader | Source and resell scrap for a margin | Working capital |
| Yard | Buy, store, process and sell in volume | Site, equipment and approvals |
ScrapTrade's agent and broker roles are described in ScrapTrade Launches Agent and Broker Roles: an agent's commission has a 5% default that is locked once confirmed, and a broker's margin is arranged privately. For a longer look at the options, see our guide to starting a scrap metal business.
Step 2: register your business
Even a small operation should trade as a registered business. In Australia that typically means registering for an ABN and choosing a structure. A sole trader is the simplest start, and a company adds liability protection as you grow. An accountant can set up the right structure for your situation, and it is worth doing before your first serious deal. For the tax side, see tax on selling scrap metal in Australia for the general framework and speak to an adviser about your case.
Step 3: check your state or territory rules
This is the step people most often skip. Buying scrap metal from the public is a regulated activity in many places because of metal theft, and the rules can cover identity checks for sellers, record-keeping and how you pay. They differ by state and territory and by council, and they change.
Before you buy from anyone:
- Ask your state or territory regulator what licence or registration applies to your activity.
- Ask your local council about any approval for the place you work or store material.
- Keep records of who you bought from, what, when and how you paid.
- Prefer traceable payment such as bank transfer.
Step 4: learn grades and prices
Grade decides price. On the ScrapTrade Price Index on 26 October 2026, copper bare bright was indicated at A$11.67 a kilogram, aluminium extrusion at A$2.63 and HMS 1 steel at A$0.40. The index is an AI-generated indicative estimate, not a quote, so confirm prices with buyers. Learn the grades in how to grade scrap metal, check the live prices and read the material guides for copper, aluminium and steel.
Step 5: understand where Australian scrap comes from and goes
The data show how the trade is spread across the country.
| State of origin, 2025-26 | Scrap exported (million tonnes) | Value (A$ billion) |
|---|---|---|
| Victoria | 0.67 | 1.27 |
| Queensland | 0.86 | 1.13 |
| New South Wales | 0.47 | 1.03 |
| Western Australia | 0.79 | 0.79 |
| South Australia | 0.17 | 0.30 |
Source: DCCEEW [1]. Western Australia and Queensland ship the most tonnes, and Victoria and New South Wales the most value, which points to a richer share of non-ferrous metal there. Australia's ferrous scrap goes mainly to Bangladesh, Indonesia, Vietnam, India and Thailand, and its non-ferrous scrap to China, India, South Korea and Thailand [1]. That matters for you because most of the buyers who set prices are overseas, and rule changes in those markets can move what yards pay locally.
Step 6: set up the basics
The practical checklist is in 7 Things You Need to Start a Scrap Business: a legal footing, a price source, grading skill, safety, weighing, transport and a payment trail. Size the cash you need with How Much Money to Start a Scrap Business?, and get quotes for insurance and any equipment.
Step 7: find supply and buyers
Supply is the harder half. Approach local workshops, fabricators, trades and builders with a simple, reliable offer, and always know where material came from. Check demand on the marketplace before you collect anything. Sellers can use Quick Sale, where ScrapTrade's logistics partners collect most scrap loads across Australia for free, with the value assessed against current prices once the load is collected, which trades some control over price for speed. For how deals are protected, read trust and safety.
A 30-day start plan
| Week | Do |
|---|---|
| 1 | Choose your model. Speak to an accountant about registration and ask your state regulator about your rules |
| 2 | Learn grades and check prices daily. Make a list of ten local businesses that produce scrap |
| 3 | Approach three. Do one small trial lot with a buyer lined up first, and record everything |
| 4 | Review your margin per hour, your rejections and the days to be paid. Decide whether to continue |
The method behind the trial is in The Lean Way to Start a Scrap Trading Business.
Frequently asked questions
Do I need a licence to start a scrap business in Australia?
It depends on your state or territory and what you do, especially whether you buy from the public. Ask your state regulator and council before you start.
Do I need an ABN?
Most people trading regularly register for one, and an accountant can advise on the right structure for you.
Do I need a scrapyard?
No. You can start as an agent, collector, broker or trader. See Do You Need a Scrap Yard to Start a Business?.
How much money do I need?
It depends on the model and metal. Agents need very little, and traders need working capital sized to their lots.
Is Australian scrap in demand?
Australia exported A$4.58 billion of metal scrap in 2025-26 [1]. Demand and prices change, so past figures are not a forecast.
Sources
- Department of Climate Change, Energy, the Environment and Water (DCCEEW), Waste exports data collation, September 2026, using Australian Bureau of Statistics export records. ScrapTrade calculations. The latest year is provisional.
- ScrapTrade Price Index, scraptrade.com.au/market-prices, retrieved 26 October 2026. AI-generated indicative estimates, not quotes.
Figures are indicative and as at 26 October 2026. Rules, licences and tax treatment vary by state and territory and change, so confirm them with your regulator and advisers. ScrapTrade operates a marketplace and has a commercial interest in the scrap trade. This article is general information, not legal, tax or financial advice.