Scrap Metal Industry

Scrap Metal Industry Act 2016

The purpose of the Scrap Metal Industry Act 2016 is to provide for the regulation of the scrap metal industry primarily to assist police in addressing property crime, including the theft and disposal of stolen motor vehicles, copper and other metal at scrap metal yards.

Regulatory measures provided for by the Act include:

  • require persons who carry on a business of dealing in scrap metal (scrap metal dealers) to register the business with the Commissioner of Police
  • prohibit scrap metal dealers from paying cash for scrap metal
  • require scrap metal dealers to keep and maintain records of transactions for buying scrap metal, including details of the person selling the scrap metal
  • require scrap metal dealers to report suspicious transactions to the police
  • prohibit scrap metal dealers from accepting a motor vehicle (or any motor vehicle body, engine or chassis) as scrap metal if it does not display its identification details
  • provide for short-term and long-term closure orders in respect of premises at which a scrap metal business is being carried on if the business is not registered under the proposed Act or serious criminal offences have been committed on the premises
  • authorise police officers without a warrant to enter premises at which a scrap metal business is being carried on to investigate contraventions of the proposed Act and to search, take photographs and recordings and seize and copy records; and  to provide for other regulatory measures in respect of the scrap metal industry.

The Public Register of Scrap Metal Dealers will be maintained by the NSW Police Force Security Licensing & Enforcement Directorate (SLED) and made available for inspection on the NSW Police Force website.

Businesses must register before 1 March 2017, which is when the offence provisions in the Act commence.


Scrap Metal Industry Regulation 2016

The Scrap Metal Industry Regulation 2016, which supports the Scrap Metal Industry Act 2016 ,has been made and clarifies:

  • that a scrap metal dealer is exempted from recording the unique identifier of a motor vehicle if the vehicle was crushed, cubed or shredded prior to the transaction relating to that motor vehicle occurred.
  • that aluminium cans are excluded from the definition of "scrap metal" in the Act, meaning scrap metal dealers can pay cash for these items
  • the types of photo identification that can be used by individuals selling scrap metal

The Regulation also provides that the fee to register a scrap metal business is $210 for three years' registration and outlines the penalty notice amounts for offences contained within the Act.

Copies of both the Scrap Metal Industry Act 2016 and the Scrap Metal Industry Regulation 2016 can be obtained from the website www.legislation.nsw.gov.au


Further information: