Secondhand Dealers & Pawnbrokers Licensing Authority

About Secondhand Dealers and Pawnbrokers

What is a Secondhand Dealer and Pawnbroker?

A Secondhand Dealer is someone that is engaged in buying (for the purpose of trade), selling, exchanging, or otherwise deals in secondhand articles or scrap metal; and who is not a pawnbroker or the employee of a secondhand dealer.

A Pawnbroker broadly means a person (including a company or partnership) who, in expectation of profit, gain, reward, lends money on the security of goods of which the person takes possession, but not ownership; and who is not a secondhand dealer.

What is the threshold to be reached before I need a licence or certificate?

For the purposes of the Act, a person is presumed (in the absence of evidence to the contrary) to be engaged in business as a secondhand dealer if, in any 12-month period, that person:

- buys secondhand articles or scrap metal, for the purpose of trade, on 6 or more different days; or

- sells, exchanges, or otherwise deals in secondhand articles or scrap metal (being articles or scrap metal acquired for the purpose of trade) -

i) on 6 or more different days

ii) so as to receive revenue of $2,000 or more from the sale, exchange, or dealing.

Every one who acts as a Pawnbroker must be licensed. If 2 or more people act in partnership, each must hold a licence.

Anyone who with the authority of a licensed secondhand dealer enters into a transaction on behalf of a secondhand dealer or with the authority of a licensed pawnbroker, issues a pledge ticket on behalf of the pawnbroker must hold a certificate under the Act.

Everyone person must hold a certificate if he or she manages, supervises, or controls any person who enters into a transaction or issues a pledge ticket on behalf of either a licensed secondhand dealer or pawnbroker.

If you have any doubt as to whether you are covered by the Act and need a licence or certificate, you should seek your own legal advice.

Exclusions:

The following will not require to be licensed under the Act:

-an Auctioneer licensed under the Auctioneers Act 1928 selling secondhand articles or scrap metal at auction under that Act

- a charitable or non-profit organisation that sells secondhand articles or scrap metal but only if the goods sold were not acquired, by purchase, or for valuable consideration by the organisation and the proceeds are used solely for the purposes of that organisation.

- an internet auction provider

- an agent of the Crown

- any other prescribed person

Acquiring secondhand articles as trade-ins when selling new goods does not of itself indicate that a person is engaged in business as a secondhand dealer.

Who is not eligible to be licensed or certified?

Anyone is automatically disqualified if they:

- are under the age of 18 years

- have been convicted of a specified offence within the past 5 years

- have been convicted within the past 5 years of an offence under this Act

- have been convicted of any offence under the Pawnbrokers Act 1908 or Secondhand Dealers Act 1963 within the past 5 years

- have been subject to a term of imprisonment, at any time within the past 5 years

- have had a certificate or licence cancelled, or had renewal of a certificate or licence refused, within the past 5 years

- hold a certificate that is suspended

- is, or was at the relevant time, a person concerned in the management of a company that has had a licence cancelled within the past 5 years.

See the Act for the specific wording and definitions.