Second-hand dealing and pawnbroking industry breaches and penalties
Unlicensed work
Unlicensed second-hand dealer or pawnbroker work is against the law. The following penalties apply.
| Type of offence | Maximum penalty |
|---|---|
| Operating unlicensed | $30,960 |
| Forging a licence | $30,960 |
| Unlawfully possessing a document that resembles a licence | $30,960 |
| Using another person's licence | $30,960 |
| Letting another person use your licence | $30,960 |
| Possessing someone else’s licence without a reasonable excuse | $30,960 |
| Altering a licence | $30,960 |
Invalid licences
If you’re found guilty of a disqualifying offence, you must show cause why you should keep your licence.
| Type of offence | Maximum penalty |
|---|---|
| Possessing a cancelled or suspended licence | $15,480 |
| Not reporting to us that your licence is lost, stolen, destroyed or damaged | $7,740 |
| Possessing a surrendered or expired licence | $3,096 |
| Not returning a surrendered licence | $3,096 |
| Not returning an expired licence | $3,096 |
Change of details
| Type of offence | Maximum penalty |
|---|---|
| Not returning a licence | $3,096 |
| Not returning an old licence when you add an authorised place | $7,740 |
| Not advising us if you change your home address | $7,740 |
| Not returning your old licence when you change an address | $7,740 |
| Not advising us if you add or remove any associates | $7,740 |
Place of business
You must work from an authorised place of business. All of your locations must be authorised.
| Type of offence | Maximum penalty |
|---|---|
| Pretending that your place of business is authorised by a second-hand dealer’s licence | $30,960 |
| Carrying on business at a place other than an authorised place | $30,960 |
| Pretending that your place of business is authorised by a pawnbroker's licence | $30,960 |
| Not identifying an place of business as being authorised by a pawnbroker’s licence | $7,740 |
Transaction registers
You must keep a transactions register if you’re:
Second-hand dealer register
| Type of offence | Maximum penalty |
|---|---|
| Not keeping a register for each authorised place of business (printed or electronic) | $30,960 |
| Not entering relevant details into the register | $30,960 |
| Separating goods into parts to avoid entering the particulars in the register | $30,960 |
| Not filling out the register promptly after transactions not done at an authorised place | $30,960 |
| Not giving information from your register to the police | $30,960 |
| Making false or misleading entries in transaction register | $30,960 |
| Removing an entry from the register | $30,960 |
| Not keeping your register at the relevant premises | $15,480 |
| Not keeping a register for a location at the address stated in the licence | $15,480 |
Pawnbroker register
| Type of offence | Maximum penalty |
|---|---|
| Not keeping a register | $30,960 |
| Not entering the required details into the register | $30,960 |
| Not giving information from your register to the police | $30,960 |
| Making false and misleading entries in the register | $30,960 |
| Not entering details about disposing of the property into the register | $30,960 |
| Not keeping the register at the premises to which it relates | $15,480 |
| Not keeping a register for a location at the address stated in the licence | $15,480 |
| Not recording in the property register if a redemption period is longer than 3 months | $3,096 |
Trade conduct
You must follow certain restrictions if you’re:
Second-hand dealer conduct
| Type of offence | Maximum penalty |
|---|---|
| Employing a person under the age of 17 to acquire second-hand goods | $30,960 |
| Not keeping certain goods for 7 days | $30,960 |
| Acquiring goods from someone under the age of 17, drunk or affected by drugs | $30,960 |
| Collecting second-hand goods on a Sunday or a public holiday | $30,960 |
| Collecting second-hand goods from a person if the time is 6pm–7am | $30,960 |
| Not asking for the required information from the person who’s selling the property | $30,960 |
| Not telling the police if you suspect you have stolen goods in your possession | $30,960 |
| Not showing your licence to a customer if they ask to see it | $7,740 |
Pawnbroker conduct
| Type of offence | Maximum penalty |
|---|---|
| Not giving your client a pawn ticket | $30,960 |
| Not depositing your proceeds from selling pawned property into a trust account | $30,960 |
| Not holding the proceeds in your trust account for 12 months | $30,960 |
| Not giving unclaimed proceeds to the public trustee | $30,960 |
| Employing a person under the age of 17 | $30,960 |
| Acquiring property from someone under the age of 17, drunk or affected by drugs | $30,960 |
| Not asking for the required information from the person who’s pawning the property | $30,960 |
| Not telling the police if you suspect you have stolen goods in your possession | $30,960 |
| Selling an article before its redemption period expires | $30,960 |
| Not giving adequate notice about an upcoming auction of pawned goods | $15,480 |
| Not showing your licence to a customer if they ask to see it | $7,740 |
Inspectors
As a second-hand dealer or pawnbroker, you may face an inspection. Inspectors have the legal authority to make sure that you don’t break the law. You must follow their lawful directions, or you risk a fine.
Our inspectors must show you their signed photo ID.
These officers may:
- enter any public place that is open
- enter an area with the owner's permission
- enter any area if they have a warrant from the Magistrates Court
- search the premises
- seize possessions
- take copies of documents
- take other people or equipment into the area.
Dealing with inspectors
| Type of offence | Maximum penalty |
|---|---|
| Giving false or misleading information to an inspector | $30,960 or 2 years imprisonment |
| Obstructing an inspector | $30,960 or 1 year imprisonment |
| Not giving reasonable help to an inspector | $30,960 or 1 year imprisonment |
| Not showing your licence to an inspector if asked | $30,960 |
| Not giving your name and address | $7,740 |