Do I need an ABN to Sell Scrap Metal?
I took some time today to organize and throw away some of the accumulated clutter in my home.
Over the past few years, my wife and I have rebuilt a few rooms, resulting in a growing collection of aluminum and copper fixtures that I salvaged from the trash.
I went to the scrap yard and was told to get paid for my scrap brass and copper. I need to provide proof of business ownership in the form of an ABN. However, my scrap aluminum extrusions were accepted without question because they were deemed to be only household trash.
This seems like excessive red tape; when is it illegal for anyone to sell scrap? I should have listened to the tradesman and put it all in the garbage without giving it a second thought.
In any event, the scrap value of my meager pail of discarded faucets and fixtures was $70.
Some rules must be followed by anyone who wants to buy or sell scrap metal in Australia, including being unable to use cash, having to keep detailed records of all transactions, and registering as a secondhand dealer.
Both the Secondhand Dealers and Pawnbrokers Act 1989 (the Act) and the Secondhand Dealers and Pawnbrokers (General, Exemption, and Record-Keeping) Regulations have been updated to reflect the new legal framework (the Regulations).
Procedure for Signing Up
A valid secondhand dealer licence is required for the trade of scrap metal.
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Just what is metal scrap?
Anything of commercial value made of or containing metal sold or obtained as scrap for recycling or reprocessing is considered scrap metal.
Vehicles in operating condition or not, as well as their components (body, engine, and chassis), can be sold or obtained as scrap.
Metals with less than 2% gold or silver or 80% copper content are considered scrap under the new rules.
Your items may be classified as used goods or vehicles if they don’t qualify as scrap metal. For instance, anything containing 80 percent or greater copper by weight is not considered scrap metal but secondhand commodities. The Act’s prohibition on cash for scrap does not apply to those who deal in such items, but they must follow the Act’s additional criteria for secondhand goods. Please refer to the Documentation for further details.
Trading in bundles or lots of scrap metal
Dealers in scrap metal or “car removal gold coast” will no longer have to keep individual records for each piece of metal purchased or sold. Only one entry will be accepted in the database, keeping track of these particulars.
If The rule does not apply if all of the items combined in a lot or parcel are worth less than $100. Otherwise, the dealer must keep separate records for all items worth more than $100.
Used items won at an auction.
It is possible for an auctioneer to electronically transmit a receipt to a secondhand dealer for used items or scrap metal that was purchased at auction.