Cash Ban For Scrap Dealers In Sydney

Cash For Scrap Cars

By now, we all are aware of the Cash Ban for Scrap Metal Dealers and Cash for Scrap Car Dealers in Sydney. This new bill was passed in 2018, under which paying the sellers of scrap metal and scrap cars in cash was banned and deemed as an illegal act punishable under law.

However, if you are still unaware about this amendment, here is a quick summary to help you get an idea of the deal.


What the bill said:


  • According to this new bill, all the metal scrap dealing and scrap car dealing businesses needed to be registered with the local government.
  • All the dealings need to be documented with proper details.
  • Any buying or selling of scrap metal or scrap car needs to be done only after recording the identification of the buyer and seller on both the ends.
  • Paying in cash is banned to allow better documentation.
  • Payments can be done through cheques, drafts or EFTPOS.
  • Any failure to follow these regulations will be punishable under law and can result in high penalties or even jail.
  • The Bill also gave a right to the police to undertake searches or enquiries at the dealer’s office at any moment without the necessity of a search warrant.
  • The police can also ask for the details of any deals made, which need to be investigated for any criminal records or complaints.

Cash for scrap car

Why the Bill was passed:


  • A lot of unregistered dealers in the area — The metal dealing business and scrap car dealing business have been increasing in the Sydney region incessantly, and a lot of these businesses are not registered. This can give rise to illegal dealings and other illegal acts. It can also mean that the buyers are trying to evade tax.
  • No Documentation — All these businesses that are not registered are working in very unethical ways. It means that they are not keeping records of their buying and selling or even identifications of their buyers or sellers. As a result, some of them are even buying stolen or abandoned stuff, be it metal or cars.
  • Tracking stolen cars — Next to no documentation of the dealings makes it impossible to track a stolen car, or track the thieves. An increase is visible in the number of cases of stolen cars in the area. Buying stolen cars unknowingly could become a huge problem for the buyers themselves. No documentation makes it worse.


All in all, the bill has been passed to penalise all these people trying to evade tax as well as to keep a check of the increasing theft cases in the area. Considering all these points, the bill was deemed necessary and has been supported widely by the public as well as dealers who are ethical and honest.


What you should do:


  • If you are a dealer — If you are a scrap metal dealer or a scrap car dealer like Broken Cars Removal, you should make sure that all your dealings are legal, and documented properly. In case of a seller is shady and tries to sell something by force, without submitting any identification to you, you should responsibly refuse to make a deal with that person and report it to the police.
  •  If you are a seller — if you are selling your scrap metal or your scrap car in Sydney, it is your responsibility to make sure that you carry a copy of your identity proof and submit it to your dealer, without any excuses. However, if you see your dealer involved in any shady business, you can report him and contribute to keeping a check on the illegal businesses operating in the Sydney region.