Learn / Tax on Selling Scrap Metal
There's no single dollar figure that makes scrap sales taxable. What actually matters is whether you're clearing out something you own, or running something closer to a business.
A genuinely one-off sale, clearing an old battery, appliance, or scrap from a job out of your own garage, generally isn't assessable income at all, no matter the amount. What changes the picture is doing it regularly, with the intention of making a profit from it, in a way that starts to resemble an actual business.
Are you selling because you want to make money from it regularly, or clearing out something you no longer need once?
A one-off garage clean-out looks very different to weekly or monthly sales run in an organised way.
The volume and value involved matter, occasional small amounts read very differently to consistent, business-scale quantities.
Are you operating the way an actual scrap dealer would, sourcing material, grading it, seeking out buyers, or just offloading your own stuff?
If you're operating as a business and your annual turnover passes $75,000, you'll generally need an ABN and GST registration. That's a concrete, real threshold, but it's about GST registration for a business, not a general tax-free allowance on scrap sales. If you're thinking about this because you're planning to trade regularly rather than clear something out once, see our guide on starting a scrap business for the fuller picture.
This page explains the general framework the ATO uses, it isn't personal tax advice. If you're selling with any regularity or real volume, talk to a registered tax agent or the ATO directly about your specific situation rather than relying on a general guide.
Whether you're clearing out one item or setting up to trade regularly, knowing what your material is actually worth is the first step either way. Check what sets your scrap's price or a live reference price before you sell.
Not in the sense of a tax-free threshold on scrap sales specifically. A genuinely one-off, personal sale (clearing out your own garage or shed) generally isn't assessable income at all, regardless of the amount. The $75,000 figure people often cite is the annual turnover threshold for mandatory GST registration once you're operating as a business, a different question from whether a single sale is taxable.
The ATO looks at the whole picture rather than one factor: your intention to profit, how regular and organised the activity is, whether you're operating in a business-like way, and the scale involved. Selling your own old car battery once looks nothing like sourcing and reselling scrap on an ongoing basis, even though both technically involve a dollar changing hands.
Not for occasional personal sales. If you're trading regularly or at commercial volume, most buyers and yards will expect one, and it affects how payment and reporting are handled. Operating a business without an ABN isn't illegal, but payers can be required to withhold a high percentage of payments to you without one.
It's an ATO framework specifically for the scrap metal industry, aimed at making it easier for scrap dealers and buyers to meet GST obligations consistently. It exists because the industry has historically had higher rates of cash-economy activity than many others, it's aimed at businesses in the trade, not someone clearing out a shed once.
Yes, for anything beyond a clearly one-off personal sale. This page explains the general framework, not your specific situation. If you're selling with any regularity or at real volume, a registered tax agent or the ATO directly can tell you exactly where you stand.
