BLA - Second-hand dealers and pawnbrokers

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The Second-Hand Dealers and Pawnbrokers Act 1989 and the
Second-Hand Dealers and Pawnbrokers Regulations 1997 cover persons and corporations that:

Trade in second-hand goods (second-hand dealers); and,
Advance money on the security of pledged goods (pawnbrokers).

Under the Act, you cannot trade as a second-hand dealer, alone or in partnership, unless you are registered, and cannot trade as a pawnbroker unless your second-hand dealer registration is endorsed authorising you to do so.

Exemptions
In some cases you may not need to be registered as a second-hand dealer or pawnbroker. This includes people who:

Hold a motor car trader's licence under the Motor Car Traders Act 1986 who deal in second-hand motor car parts, as long as they comply with all other provisions of the Second-Hand Dealers and Pawnbrokers Act 1989;
Trade exclusively for charitable or benevolent organisations; or,
Deal in goods described in Schedule 2 of the Regulations.

Penalties
People or corporations that trade as a second-hand dealer without being registered or a pawnbroker without being registered and endorsed, either alone or in partnership, are liable to a penalty of up to 100 penalty units (one penalty unit = $110.20).

Australian Corporations Legislation
If you intend to operate a business through a company, you need to be aware of both the Director's and Company Secretary's responsibilities under the Australian Corporations Legislation. Visit the Australian Securities & Investments Commission website to find out more about the legislation requirements.

Select a scenario to quickly go to an area that might be of interest.

Applying for second-hand dealer registration.
Applying for pawnbroker endorsement.
Ongoing responsibilities.
Business Licensing Authority Glossary.
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Last Updated: 08/07/2008