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 of May 2018. Under this law scrap, metal dealers and auto wreckers are banned from paying and receiving cash for scrap metals or scrap cars.
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 have 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 and have worked closely with the Australian Metal Recycling Industry Association, the Victorian Automobile Chamber of Commerce and Victoria Police.