Cash Payment Ban For Scrap Metal Melbourne Victoria Wide

Posted On August 31st, 2018

Victoria government has issued new laws banning cash for scrap metal and cars. The main reason for being to cut organised crime. The law came to effect from the 30th May 2018. Under this law scrap, metal dealer and auto wreckers are banned from paying and receiving cash.

Under the new scrap metal business and auto wreckers are now:

  • Cannot receive or pay cash
  • Cannot trade an unidentified motor vehicle, and
  • Adviced to keep detailed records of all transactions involving scrap metal.
  • Required to be registered as second-hand dealers through (BLA) by 1 September 2018

Cash Payment Ban For Scrap Metal

What This Means For The Scrap Metal Dealer

If any scrap metal dealer who is not previously registered with the second-hand dealer will be assessed by BLA if they are suitable to register. Any previous bad history or criminal history and insolvency will be taken in to account. Police in Victoria now has powers to search any premises or scrap yard if they believe the scrap metal dealers are paying or receiving cash. Penalties up to $30, 000 will apply for buying and selling scrap metal for cash and on the spot penalties up to $1900.

The new laws were developed after Victoria Police and the Victorian Law Reform Commission identified that the scrap metal and vehicle recycling industries are vulnerable to infiltration by organised crime.

The reforms are made by Consumer Affairs Victoria has worked closely with the Australian Metal Recycling Industry Association, the Victorian Automobile Chamber of Commerce and Victoria Police.