In Australia there is no national scrap metal licence. Each state and territory makes its own rules, and in recent years several have tightened them to fight metal theft. Whether you must register, how you may pay a seller and how long you keep records all depend on where you operate. This article sets out what we could verify from official sources for New South Wales, Victoria, Queensland, Western Australia and South Australia, flags where a change is pending or unconfirmed and lists the documents you should have ready. It is general information, not legal advice. Confirm the current rules with your state regulator before you buy or sell.
For the wider picture of starting out, see How to Start a Scrap Business in Australia. If you plan to work as a broker or agent rather than buy material yourself, read Become a Scrap Broker or Agent in Australia.
The summary
| State | Registration or licence | Cash for scrap | Status |
|---|---|---|---|
| NSW | Business must be registered with NSW Police, A$260 every three years | Banned (cash, cheque payable to cash, payment in kind) | In force, amended 1 September 2024 |
| Victoria | Registered second-hand dealer | Banned; transfer or non-transferable cheque only | In force |
| Queensland | Licensed second-hand dealer | Not confirmed | New scrap reforms passed 15 October 2026, start date not stated |
| Western Australia | Second-hand dealer licence from WA Police; scrap status not confirmed | Not confirmed | Check with WA Police |
| South Australia | Registration planned under the Scrap Metal Dealers Act 2025 | Planned ban on cash, cheque, crypto and in kind | Act not yet in operation |
The rest of this article gives the detail and the sources.
New South Wales
NSW Police regulates the industry under the Scrap Metal Industry Act 2016 and the Scrap Metal Industry Regulation 2024 [1].
- Registration. A business must not deal in scrap metal without being registered. NSW Police's Security Licensing and Enforcement Directorate (SLED) grants or refuses registration after criminal record and other checks. Registration costs A$260 and must be renewed every three years [1].
- Payment. Dealers must not pay for scrap, or advertise that they will, with cash, a cheque payable to cash or goods and services in kind [1].
- Motor vehicles. A dealer must not buy a motor vehicle as scrap, including the body, engine or chassis, if it does not display its identifier details such as the VIN, chassis or engine number [1].
- Records. A dealer must keep a record of each purchase, including the seller's details, and report suspicious transactions to NSW Police. Records are kept in the form approved by the Commissioner of Police for three years, at a premises where the dealer carries on the business, or in the vehicle if the business operates only from a motor vehicle. Electronic or hard copy is acceptable [1].
- 2024 amendments. Significant changes to the Act and Regulation commenced on 1 September 2024 and apply to existing and new businesses. Registered businesses had to give SLED additional registration information by 1 December 2024, or risk suspension [1].
- Penalties and the six-day rule. Search results quoting NSW Police say a person who deals in scrap on more than six days in a 12-month period is presumed to be carrying on a business, and that the maximum penalty for unregistered dealing is 500 penalty units, about A$55,000. We could not open the fact sheet to confirm this directly, so check it on the NSW Police site [1].
The NSW Police page also lists an application form, the public register of registered dealers and fact sheets on registration, record keeping, motor vehicles and the 2024 changes [1]. SLED's contact centre is 1300 362 001.
Victoria
Consumer Affairs Victoria says anyone dealing in scrap metal must be a registered second-hand dealer [2].
- No cash. Dealers are prohibited from paying or receiving cash. Permitted payments are a non-transferable cheque not payable to cash or an electronic funds transfer, not e-currency.
- Buying records. The description with quantity or weight, the vehicle identifier for vehicles, the seller's name, address and identification details, the date and time received, a copy of the payment and the name of any agent.
- Selling records. The description, the buyer's name and address, the date, time, method and location of disposal, a copy of the payment and any shipping container details.
- Lots. Items worth less than A$100 can be logged as one entry. Items worth A$100 or more must be recorded individually.
- Penalties. 200 penalty units for cash dealing and 20 for failing to keep records. At A$209.10 a unit for 2026-27 that is A$41,820 and A$4,182, plus on-the-spot fines of 10 units for being unregistered and 12 for cash dealing [2].
- Holding period. Scrap metal is exempt from the general seven-day hold. Copper above 80% by weight is exempt if the dealer keeps a photograph, and an end-of-life vehicle has its own conditions [2].
The page does not state a record retention period or registration fees, so ask Consumer Affairs Victoria.
Queensland
The Queensland Government's guidance for licensed second-hand dealers says dealers must trade from licensed premises, keep a transaction register, sight the seller's identification and record their details, and hold nominated goods for seven working days [3].
New scrap-specific reforms have been passed. A Queensland Government statement of 15 October 2026 says Parliament passed legislation delivering stronger protections and tougher enforcement powers against metal theft, including stricter identification and record-keeping requirements for scrap metal dealers and higher penalties for failing to report suspected stolen property [4]. The statement gives no commencement date, does not name the bill and does not say whether cash is restricted. An industry submission to a parliamentary committee in March 2026 said the Government chose heavy penalties and specific identity checks rather than a blanket "no cash for scrap" rule, but that is one submission, not the final law. Check the commencement date and the final text with Queensland's fair trading regulator.
Western Australia
Second-hand dealers and pawnbrokers are licensed by WA Police under the Pawnbroker and Second-Hand Dealer Act 1994 and its 1996 regulations. Fees accompany the application, which is lodged in person at WA Police Licensing Services in Cannington or at a local police station if you live more than 50 km from the Perth GPO [5]. The page does not mention scrap metal, so we cannot say whether scrap dealing needs a licence in WA or whether cash is restricted. An undated industry article suggests scrap dealers may be exempt in some circumstances, but we could not verify it and do not rely on it. WA Police Licensing Services can answer on 1300 171 011.
South Australia
South Australia has passed the Scrap Metal Dealers Act 2025, but the South Australian legislation website states that the legislation has not come into operation [6]. Parliamentary material and the Act's structure indicate that, once in force, dealers will have to register with a register kept by the Commissioner of Police, will be prohibited from paying by cash, cheque, cryptocurrency or in kind, and will have to verify seller identity and keep transaction records [6][7]. Until a start date is proclaimed, check with SA Police on what applies now.
Tasmania, the ACT and the Northern Territory
We did not verify these. Ask the relevant state or territory regulator and police.
Environmental permits
A site that stores, sorts or processes scrap may also need a licence or permit from the state environmental regulator, and carrying waste can have its own requirements. We did not verify the thresholds, so ask your state EPA before you set up a yard.
Documents to have ready
| Document | Why it is asked for |
|---|---|
| Photo identification | To identify you, and for criminal record checks where required, as in NSW |
| An ABN, if you are entitled to one | To operate and invoice as a business. The Australian Business Register says not everyone is entitled and that applying when you are not may lead to prosecution [8] |
| Business structure details | Sole trader, company or partnership, for registration |
| Proof of premises and insurance | For a site, for councils, landlords and buyers |
| Environmental licence | If you process or store material |
| Seller identity details and transaction records | Required by NSW and Victoria and being strengthened in Queensland |
| Bank account | To pay by transfer, since cash is banned in NSW and Victoria |
| Vehicle identifiers | When buying vehicles or vehicle parts as scrap |
ABN and GST questions are for a registered tax agent. We have not stated GST thresholds here because they depend on your circumstances.
How to check the rules for your state
- Start with the regulator: NSW Police SLED, Consumer Affairs Victoria, Queensland's fair trading regulator, WA Police Licensing Services or SA Police.
- Ask three questions. Do I need to register to buy scrap from the public? How must I pay a seller? What records do I keep and for how long?
- Ask your buyer which documents they need from a supplier.
- Keep records from day one, even where the rules are still being written.
For a look at what happens to the scrap after you buy it, see How a Scrap Export Deal Works, Step by Step and Australia's Scrap Metal Exports: 2025-26 Data. You can see how ScrapTrade verifies who you trade with on the trust and safety page.
Frequently asked questions
Do I need a licence to buy scrap metal in Australia?
In NSW you must register your business with NSW Police, and in Victoria you must be a registered second-hand dealer. Queensland licenses second-hand dealers and has passed scrap reforms, and WA and SA are unclear or pending. Ask your state regulator [1][2][3][5][6].
Can I pay for scrap in cash?
Not in NSW or Victoria. Queensland and WA are unconfirmed, and South Australia's ban is not yet in operation [1][2][6].
How long do I keep transaction records?
In NSW, three years. Victoria requires records but its page does not state a period [1][2].
Do I need an ABN?
Many businesses do. Not everyone is entitled to one, so check with the Australian Business Register or a registered tax agent [8].
Do brokers and agents need to register?
It depends on your state and what you do. Ask your regulator, and see our broker and agent guide.
Sources
- NSW Police Force, Scrap Metal Industry (accessed October 2026), including the Scrap Metal Industry Act 2016 and Regulation 2024. The six-day rule and penalty figure are from NSW Police fact sheets as quoted in search results.
- Consumer Affairs Victoria, Scrap metal laws.
- Queensland Government, Legal requirements for second-hand dealers and pawnbrokers.
- Queensland Government, ministerial statement on metal theft reforms (15 October 2026).
- WA Government, Apply for a pawnbroker or second-hand dealer licence.
- South Australian Legislation, Scrap Metal Dealers Act 2025 (marked not yet in operation).
- South Australian Parliament, Hansard, November 2025, Scrap Metal Dealers Bill, as summarised in search results.
- Australian Business Register, Applying for an ABN.
This article is general information, not legal or tax advice. State laws change and several points above are pending or unconfirmed, so verify with your regulator. ScrapTrade operates a scrap marketplace and has a commercial interest in the scrap trade.