Legal requirements for second-hand dealers and pawnbrokers

Licensed second-hand dealers and pawnbrokers must meet these legal requirements.

Display your licence

You must display a sign at your place of business to show that you have a licence.

The sign must:

• show the licensee's name in text that's at least 50mm high
• include 'licensed dealer in second-hand property' or 'licensed pawnbroker' near your name
• show the names of an associate in charge of the business in text that's at least 50mm high
• include the word 'associate' near their name.

Trade with integrity

You must:

• trade only from the places listed on your licence
• not hire staff who are under 17
• tell the police if you receive goods that could be stolen.

You must not accept goods from someone who is (or seems to be) younger than 17 or under the influence of drugs or alcohol.

Second-hand dealers must keep nominated goods for 7 working days after they're received.

Nominated goods include:

• items that are identifiable by make, model, serial number or inscription (except household furniture)
• electrical goods (except refrigerators, washing machines, clothes dryers, stoves and dishwashers)
• jewellery
• precious metals
• musical instruments
• photographic equipment
• natural diamonds and gemstones.

Unless you get the owner's permission at least 24 hours beforehand, you can't collect goods from a client's home:

• between 6pm and 7am
• on a Sunday
• on a public holiday.

Keep a transaction register

You must keep a transaction register for each place of business.

Your register can be electronic or a record book.

You must give police the information in your register if they ask for it.

When to record a transaction

You must enter each transaction immediately before or after the transaction.

Pawnbrokers must record each time they accept a pawn or a pledge on any object.

Second-hand dealers must record each receipt, sale or disposal of second-hand goods that:

• has a resale value of at least $55
• appears to be jewellery
• contains precious metals
• is identifiable by a make, model, serial number or inscription.

How to record a transaction

You must not:

• make false or misleading entries in the register
• alter the register by removing an entry or making it illegible
• split second-hand goods into parts (this is not the true details of a transaction).

You must correct an existing entry only by making a new entry.

Details to record

You must see identification (ID)—such as a driver licence—verifying the seller's name and address. You don't need to take a photocopy of it.

You must record the following details about the seller for each transaction:

• their name and address and confirmation you've viewed their ID
• a statement to confirm if they own the goods
• the owner's name and address (if the seller isn't the owner)
• a statement to confirm how they obtained the goods.

Pawnbrokers must also record the following details when offered goods:

• pawnbroker's name
• the entry and pledge number
• current time and date
• description of the goods, including brand name, model and serial number
• details of any engraving, inscription or unique mark on the goods
• the amount of money you advanced
• the interest you will charge
• the redemption period.

Sample register

As long as you record the necessary information, you can set out your register however you like.

As an example, see the:

• sample transactions register (second-hand-dealers)
• sample transactions register (pawnbrokers).

You don't need to follow this format.