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Starting a Scrap Business FAQ

What licence do I actually need to legally operate as a scrap metal dealer in my state?

Short answer: Licensing requirements for scrap metal dealers vary significantly by state and territory in Australia, typically involving registration with a state-based second-hand dealer or scrap metal licensing scheme, so the specific licence you need depends entirely on where you plan to operate — check directly with your state's relevant department, since requirements and terminology differ and have changed over time in several jurisdictions.

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Why licensing varies so much by state

Scrap metal dealer licensing in Australia is regulated at the state and territory level rather than nationally, which means requirements, the specific licence name, and application processes differ meaningfully depending on where you plan to operate — there’s no single national scrap dealer licence covering the whole country.

What these schemes typically aim to address

Most state-based scrap metal dealer licensing schemes are designed around preventing trade in stolen goods, requiring things like seller identification collection, record-keeping, and sometimes cash payment restrictions — understanding the underlying purpose helps make sense of the specific requirements you’ll encounter.

Where to actually check

Your state or territory’s consumer affairs, fair trading, or police licensing department is the authoritative source for current requirements — checking directly rather than relying on general information ensures you’re working from accurate, up-to-date rules for your specific location.

How ScrapTrade Makes This Easier

Once properly licensed, building your buyer and seller network through ScrapTrade gives your new operation real transaction volume without needing to establish every relationship from scratch.

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