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dp Jan 19

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Scrap Metal Industy Bill 2016

  • - scrap metal dealers can no longer pay cash; (section 12)
  • - new record keeping measures and registration requirements will ensure that the sale of stolen scrap metal can be traced
  • - police officers now have powers of entry, inspection and seizure.


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From now on scrap metal dealers who accept or make cash payments will face fines of more than $30,000 in a bid to thwart stolen car rackets.

The government hopes the new laws will help combat the stolen car trade in Victoria.

Businesses will be banned from making or taking cash payments and possessing or trading an unidentified motor vehicle, and will be required to keep records of all transactions involving scrap metal.

Police Minister Lisa Neville said: “Banning cash for scrap metal will undermine the business model of criminals who steal cars.

“We are closing a loophole that for too long has been exploited by organised crime groups.”

Businesses will now have to keep records of all transactions involving scrap metal.

The reforms — flagged late last year — come after Victoria Police and the Victorian Law Reform Commission branded the scrap metal and vehicle recycling industries highly susceptible to infiltration by organised crime.

Crime Statistics Agency figures show almost 24,000 motor vehicle thefts were last year recorded across Victoria — a 27 per cent jump on the previous 12 months.

Thefts over the past five years were up almost 50 per cent.

The government has pledged to undertake further work with Victoria Police and the industry to examine options to support legitimate businesses and protect consumers.