Licensees under Secondhand Dealers Act 1963

Are you licensed under the Secondhand Dealers Act 1963?

If so, is that licence still current?

A licence under the Secondhand Dealers Act 1963 will be current unless is has been cancelled. If your licence has not been cancelled, it will still be current at 1 April 2005.

If you answered yes to both of those questions, your current licence under the Secondhand Dealers Act 1963 will become a "transitional licence" under the Secondhand Dealers and Pawnbrokers Act 2004.

Effect of a transitional licence

A holder of a "transitional licence" can trade on that licence for up to one year, without having to apply for a licence under the new Act.

Expiration of transitional licences

"Transitional licences" will expire on 1 April 2006. If, before 1 April 2006, a secondhand dealer applies for and is issued with a licence under the new Act, the transitional licence will expire on the date that the new licence is issued.

Transitional licence holders require a new licence on 1 April 2006

If the new Act applies to your business and you want to continue to operate your business, you will need to apply for a licence under the new Act by 1 April 2006.

To see whether the new Act applies to your business, click here.

If you do not apply for a licence under the new Act you will not be able to continue trading as a secondhand dealer. If you continue to operate your business without licence after 1 April 2006 you could face prosecution by the Police and face a fine of up to $20,000 by the Courts.

Obligations on transitional licence holders

If you trade under a "transitional licence" you have to comply with the requirements of the new Act from 1 April 2005.

Exemption from employee-related requirements for transitional licence holders

From 1 April 2005, anyone:

• who, with the authority of a licence holder, enters into a transaction on that licence holder's behalf; or
• that manages, supervises, or controls someone who enters into a transaction on the licence holder's behalf;

must hold a certificate.

That is the general rule. Those individuals who enter into a transaction with the authority of a transitional licence holder are exempt from having to hold a certificate. That exemption applies until the transitional licence expires.