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Scrap Metal Industry Act 2016 and the proposed Scrap metal Industry Regulation 2016

Effective 1st March 2017 all businesses dealing in scrap metal will be required to be registered to comply with the provisions of the Act. 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.
  • Aluminium cans are excluded from the definition of "scrap metal"in the Act, meaning that scrap metal dealers can pay cash for these items
  • 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.


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