Second-hand dealing and pawnbroking industry breaches and penalties
On this page you'll find information about the penalties for second-hand dealer and pawnbroker offences. These fines are for individuals—corporations could face up to 5 times the maximum penalty.
These offences relate to your conduct as a second-hand dealer or pawnbroker.
Second-hand dealer conduct
| Offence | Maximum penalty |
|---|---|
| Employing someone who is under 17 to acquire second-hand goods | $33,380 |
| Not keeping certain goods for 7 days | $33,380 |
| Acquiring goods from someone who is under 17, or is drunk or affected by drugs | $33,380 |
| Collecting second-hand goods on a Sunday or public holiday | $33,380 |
| Collecting second-hand goods from someone between 6pm and 7am | $33,380 |
| Not asking for the required information from the seller, including the owner's name and address | $33,380 |
| Not telling the police if you suspect you possess stolen goods | $33,380 |
Pawnbroker conduct
| Offence | Maximum penalty |
|---|---|
| Not giving your client a pawn ticket | $33,380 |
| Not depositing your proceeds from selling pawned property into a trust account | $33,380 |
| Not holding the proceeds in your trust account for 12 months | $33,380 |
| Not giving unclaimed proceeds to the Public Trustee | $33,380 |
| Employing someone who is under 17 | $33,380 |
| Acquiring property from someone who is under 17, or is drunk or affected by drugs | $33,380 |
| Not asking for the required information from the person pawning the property | $33,380 |
| Not telling the police if you suspect you possess stolen goods | $33,380 |
| Selling an article before its redemption period expires | $33,380 |
| Not giving adequate notice about an upcoming auction of pawned goods | $16,690 |
As a second-hand dealer or pawnbroker, you may face an inspection. Office of Fair Trading (OFT) inspectors have the legal authority to make sure you don't break the law—you must follow their lawful directions or risk a fine. Our inspectors must show you their signed photo ID.
Inspectors can:
- 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.
These offences relate to non-compliance with inspectors.
| Offence | Maximum penalty |
|---|---|
| Giving false or misleading information to an inspector | $33,380 or 2 years imprisonment |
| Obstructing an inspector or not giving them reasonable help | $33,380 or 1 year imprisonment |
| Not showing your licence to an inspector if asked | $33,380 |
| Not giving your name and address to an inspector | $8,345 |
If you're found guilty of a disqualifying offence, you must show cause as to why you should keep your licence.
A disqualifying offence under the Second-hand Dealers and Pawnbrokers Act 2003 (SDP Act) includes:
- an offence involving fraud or dishonesty that is punishable by 3 months imprisonment or more, or
- an offence against a specified provision of the Criminal Code (Schedule 1 of the SDP Act) or a similar offence against a provision of another State or Australian law.
The following offences relate to your licence.
Invalid licences
| Offence | Maximum penalty |
|---|---|
| Possessing a cancelled or suspended licence | $16,690 |
| Not reporting to the Office of Fair Trading (OFT) that your licence is lost, stolen, destroyed or damaged | $8,345 |
| Possessing a surrendered or expired licence | $3,338 |
| Not showing your licence to a customer who asks to see it | $8,345 |
Change of details
| Offence | Maximum penalty |
|---|---|
| Not returning a surrendered, expired or changed licence | $3,338 |
| Not returning an old licence when you add an authorised place | $8,345 |
| Not advising OFT if you change your home address | $8,345 |
| Not returning your old licence when you change an address | $8,345 |
| Not advising us if you add or remove any associates | $8,345 |
These offences relate to your place of business.
You must work from an authorised place of business and all of your locations must be authorised.
| Offence | Maximum penalty |
|---|---|
| Pretending your place of business is authorised by a second-hand dealer's licence or pawnbroker's licence | $33,380 |
| Doing business at a place other than an authorised place | $33,380 |
| Not identifying (on a sign) a place of business as being authorised by a pawnbroker's licence | $8,345 |
These offences relate to your records.
Second-hand dealer register
| Offence | Maximum penalty |
|---|---|
| Not keeping a register for each authorised place of business (printed or electronic) | $33,380 |
| Not entering relevant details into the register | $33,380 |
| Separating goods into parts to avoid entering the particulars in the register | $33,380 |
| Not filling out the register promptly after transactions are completed away from an authorised place | $33,380 |
| Not giving information from your register to the police | $33,380 |
| Making false or misleading entries in the transaction register | $33,380 |
| Removing an entry from the register | $33,380 |
| Not keeping your register at the premises to which it relates and is shown on the licence | $16,690 |
Pawnbroker register
| Offence | Maximum penalty |
|---|---|
| Not keeping a register | $33,380 |
| Not entering the required details into—or making false or misleading entries in—the register | $33,380 |
| Not giving information from your register to the police | $33,380 |
| Not entering details about disposal of property into the register | $33,380 |
| Not keeping the register at the premises to which it relates and is shown on the licence | $16,690 |
| Not keeping a register for a location at the address stated in the licence | $16,690 |
| Not recording in the property register that a redemption period is longer than 3 months | $3,338 |
Unlicensed work as a second-hand dealer or pawnbroker is against the law. These penalties relate to unlicensed work.
| Offence | Maximum penalty |
|---|---|
| Operating unlicensed | $33,380 |
| Forging or altering a licence or unlawfully possessing a document that resembles a licence | $33,380 |
| Using another person's licence or letting another person use your licence | $33,380 |
| Possessing someone else's licence without a reasonable excuse | $33,380 |