Victoria's New Scrap Metal Law Bans Cash-For-Scrap Transactions

SEATTLE (Scrap Monster):  The Southeast Australian state of Victoria will have new scrap metal laws effective 30 May, 2018. Thereafter, scrap metal dealers in Victoria will be prohibited from making cash transactions against sale or purchase of scrap metals. The transactions must be properly recorded. In addition, anybody dealing with scrap metal is required to register as second-hand dealer by 1^st September. The new law is expected to significantly reduce occurrences of scrap theft incidents.

Under the new regulations, scrap metal may also include anything that contains 2% or less by weight of gold or silver. Also, anything that contains 80% or less by weight of copper may also be classified as scrap metal. The materials that do not meet the scrap metal definition may be considered as second-hand goods rather than scrap metal.

No cash payments are allowed. The payments can be made only through a cheque that is not transferable or payable to cash or through an electronic funds transfer, excluding e-currency. When buying or selling scrap, the dealer is required to keep record of accurate description including quantity, weight, date and time, vehicle identifier, identification details of the buyer/seller and a copy of the cheque or electronic funds transfer. In case of buying or selling scrap metal in a lot or parcel, a single entry will be allowed, provided the value of each item is less than $100.

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The new law states that vehicles bought for the purpose of recycling or reprocessing are subject to the laws banning cash-for-scrap. However, second-hand vehicles bought for dismantling and selling the parts are not subject to the ban.

The new scrap metal law permits the police to enter businesses at any time, without a warrant and issue spot fines for violations found. Buying or selling scrap metal for cash attracts 200 penalty units. It must be noted that a penalty unit is currently valued at $158.57. The same penalty units will be applicable for dealing with unidentified motor vehicle. Giving false information to a police officer will be charged 50 penalty units.