Short answer. If you sell scrap copper as a business you need an ABN, or the buyer withholds 47%, and both sides should keep a record of the sale.
Copper from a rewire or a plumbing job is easy to sell and easy to get wrong on the paperwork. Trade sellers are treated differently from a householder clearing a shed. This page covers the tax and record points that apply, drawn from the ATO's scrap code, and flags where you need your own adviser. ScrapTrade operates a scrap marketplace, so it has a commercial interest in this trade.
Business or householder?
The rules turn on whether you sell as a business. A householder selling their own scrap can give the buyer a signed statement. If copper from jobs is part of your trade, treat it as business income.
ABN and withholding
If you sell as a business, the ATO expects an ABN, or the buyer withholds 47% unless an exception applies. Supply it before you are paid.
ID and records
- For sales above A$82.50 the scrap code asks a GST-registered buyer to record identification with a traceable identifier, such as a driver licence number.
- Keep your own record: date, grade, weight, rate and who bought it.
- Keep the buyer's tax invoice or receipt for your books.
Selling in a way that stays clean
- Dealers cannot pay cash in NSW or Victoria, so expect a transfer.
- Sort cable and pipe by grade before you go. See Scrap Copper Cable: Strip It or Sell Whole and Scrap Copper Pipe: Grades and How to Sell It.
- Never strip wiring that could be live.
The wider picture
How the scrap code changes the way sales are recorded is in What If Every Scrap Trade Were on the Books?.
Where ScrapTrade fits
List copper on ScrapTrade for free: there is no commission, verified buyers bid, and the buyer's 5% deposit is held in escrow once you accept a bid. Businesses and individuals can sell after verification.
What we could not verify
- How the ATO treats a particular trade's scrap income. Ask a tax agent.
- Record-keeping periods for your situation.
- Current copper rates.
Frequently asked questions
Do I need an ABN to sell copper from a job?
If you sell as a business the ATO expects one, or the buyer withholds 47% unless an exception applies. Ask a tax agent.
Is scrap income taxable?
It can be, as business income. We cannot give tax advice, so check with an accountant.
Sources
- Australian Taxation Office, GST and scrap metal: code of compliance (3 July 2023).
General information, not tax or legal advice.