Information for secondhand dealers

Who is a secondhand dealer?

The Secondhand Dealers and Pawnbrokers Act 2004 states that "every person who engages in business as a secondhand dealer must hold a licence".

A secondhand dealer is defined as:

a person who buys (for the purpose of trade), sells, exchanges, or otherwise deals in
secondhand articles or scrap metal
(but who is not a pawnbroker or an employee of a secondhand dealer and pawnbroker).

This definition includes individuals, partnerships, and companies.

You will only be a "secondhand dealer" if the goods you buy, sell, exchange, or otherwise deal in are listed as "articles" in the Act.

If you trade in any of those items you will be dealing in secondhand articles. You are also covered by the definition of "secondhand dealer" if you deal with scrap metal.

Am I "in business"?

You will be presumed to be in business as a secondhand dealer if you or your company, in any 12-month period:

buys secondhand articles or scrap metal
for the purpose of trade
on six or more different days.

You will also be presumed to be in business as a secondhand dealer if, in any 12-month period, you or your company:

sell, exchange, or otherwise deal in
secondhand articles or scrap metal (being secondhand articles or scrap metal acquired for the purpose of trade)
on six or more different days or
so as to receive revenue of $2,000 or more.

Requirement to be licensed

If you fall within the definitions of both "secondhand dealer" and "in business" you will need to be licensed under the Secondhand Dealers and Pawnbrokers Act 2004.

There are some exceptions.

How to become a licence holder.

Note: If you carry on business as a secondhand dealer without a licence you could be prosecuted and have a fine of up to $20,000 imposed on you by a Court.