No, if you are selling your own property which you acquired for your own use you do not have to become a licence holder under the Secondhand Dealers and Pawnbrokers Act 2004. You only have to be licensed in certain circumstances.

The Act is not concerned with your chosen method of dealing in secondhand goods. It is only concerned with whether you are "in business as a secondhand dealer".

It concerns itself with the type of goods you are dealing with, the source from which you obtained those goods, and the frequency of and revenue that you generate through dealing in secondhand articles. Does it apply to me?

The Act is concerned with whether you fit within the phrase "in business as a secondhand dealer".

In determining whether you are "in business as a secondhand dealer" the Act looks at the type of goods you are dealing in, where you obtain the articles that you trade, the frequency with which you trade and the revenue that you generate from trading the articles you obtained for the purpose of trade.

You will need to decide whether you are "in business as a secondhand dealer" against the wording of the Act. You might find some helpful guidance here. You may also find helpful information on the Ministry of Justice's website.

This site provides general information about the processes, but to get specific information about the licensing process, including being able to access the forms and ascertain the costs involved, please visit the Ministry of Justice website.

The new Act actually reduces the scope of secondhand goods transactions that may only be conducted by a licensed dealer. Under the previous law everyone who dealt with any type of secondhand goods (for example, secondhand books).

Now, however, it is those who are "in business as secondhand dealers" who need to be licensed and it is only those transactions involving "articles" or scrap metal which are subject to the additional requirements of the law.

Books, for example, are no longer covered within the list of "articles". With the increase in penalties for unlicensed secondhand dealing and pawnbroking (they now carry a fine of up to $20,000) there would appear to be plenty of incentives to become licensed and comply with the Act.

You will need to take legal advice as to what, if any, other laws may impact on your business.

Only certain criminal convictions disqualify you from holding a licence or a certificate.

If you are disqualified because of a criminal conviction, you can apply for a "waiver", as long as you have not been convicted of a "specified offence" within the last five year.

If you hold a current licence under either of the preceding Act on 1 April 2005 that licence will become what is known as a "Transitional Licence". That licence will continue to have effect for another 12 months.

If you wish to continue to operate on or after 1 April 2006 you must have applied for a new licence before that date. If you wish to carry on your business after that date, you must do so before 1 April 2006.

While you are conducting secondhand dealing or pawnbroking transactions on a valid transitional licence, the staff you authorise to enter into transactions on your behalf, do not have to be certificate holders.

However, when you apply for and are issued a licence under the new Act, your staff must become certificate holders. For more information on licensing and certification matters please see: www.justice.govt.nz/secondhand-dealers-pawnbrokers/index.html.

The five year licensing cycle ensures that applicants for licences and certificates are regularly vetted.