Several key definitions in section 3 shape the operation of the Act. A second-hand dealer is a person who carries on the business of buying, selling, exchanging or otherwise dealing in second-hand goods (goods which have been worn or otherwise used), regardless of where goods are bought. A pawnbroker is a person who carries on the business of advancing money on the security of pledged goods. The concept of pawning is expanded by section 3(2) to include so-called buy-back arrangements: a person is deemed to have advanced money on security of pledged goods, and to have received goods in pawn, if the goods are received under a contract for sale under or in conjunction with which the seller is given the right to repurchase them. In that case, the price at which the goods are sold is deemed the principal sum advanced, and the difference between that amount and the repurchase price is deemed the total interest payable. The Act also introduces the concept of endorsed pawnbroker: a person whose registration is endorsed under Part 2 to carry on business as a pawnbroker (section 3(1)). Scrap metal is given a broad definition: any thing of commercial value made from or containing metal that is sold or obtained as scrap for recycling or reprocessing, excluding anything prescribed not to be scrap metal. The definition of motor vehicle includes not only a motor vehicle within the Road Safety Act 1986 but also the body, engine or chassis of a motor vehicle, and vehicle identifier has the same meaning as in that Act. Two categories of criminal history are relevant to eligibility: a disqualifying offence is an offence involving fraud, dishonesty, violence or drug trafficking punishable on conviction by imprisonment for three months or more (natural person) or a fine of 100 penalty units or more (body corporate) (section 3(1)). A serious criminal offence is an offence punishable by imprisonment for two years or more (section 3(1), inserted in 2019). The definition of associate (section 3(1)) is broad: it includes a spouse or domestic partner (unless never involved and will not be involved in the business), a business partner, and a participant in a business arrangement or relationship in respect of the business. This scope means that the criminal history of an associate can affect the eligibility of the applicant or trigger automatic cancellation of registration (section 10(2)(a)). The Authority is the Business Licensing Authority established under the Business Licensing Authority Act 1998; the Registrar is its Registrar; the Director means the Director within the Australian Consumer Law and Fair Trading Act 2012; and the Tribunal means VCAT.

The Act directly affects any person who carries on a business of buying, selling, exchanging or otherwise dealing in second-hand goods in Victoria. That includes traditional second-hand shops, pawnbrokers, scrap metal dealers, and online traders if they are carrying on a business (as distinct from occasional private sales). It also affects persons who wish to carry on business as a pawnbroker: they must first be registered as a second-hand dealer and then obtain an endorsement under Part 2 (section 5(1A)). The eligibility criteria in section 6 apply to the applicant and also to certain associated persons, business partners, and directors of body corporate applicants. Therefore, the Act indirectly affects spouses, domestic partners, business partners, and participants in business arrangements with the applicant. Directors of corporate applicants are subject to the same disqualifying criteria. The Act also imposes duties on customers: a person attempting to sell or pawn second-hand goods must produce the required evidence of identity (section 19(1), (3)), and a person under 16 years of age cannot pawn goods (section 23(1)). Police officers and inspectors have extensive powers and duties under Part 5. The Chief Commissioner of Police may apply for disciplinary inquiries (section 18A(1)) and may issue interim closure notices (section 26ZT). The Director and inspectors appointed under the Australian Consumer Law and Fair Trading Act 2012 have powers to require information, enter premises with consent or under warrant, and seize evidence. Third parties such as financial institutions, publishers, broadcasters, and telecommunications providers may be required to produce information relating to an endorsed pawnbroker's business (section 26G). The Magistrates' Court plays a role in determining disputes over ownership of goods (section 24), issuing search warrants, extending the retention period for seized documents, and making long-term closure orders (section 26ZU). The Tribunal (VCAT) conducts disciplinary inquiries and reviews decisions of the Authority (section 9B). The Act also creates a class of persons who are exempt: auctioneers (acting as such), licensed firearms dealers, licensed motor car traders (when dealing in motor cars), and persons conducting fundraising appeals. Persons dealing in goods that are subject to a hire-purchase or bailment are also outside the scope. The 2017 amendments specifically targeted persons dealing in scrap metal and motor vehicle parts, imposing additional prohibitions and enforcement powers.

The Act imposes a range of duties on registered second-hand dealers and endorsed pawnbrokers. The fundamental duty is to hold current registration or endorsement (section 5). Dealers must display the current certificate of registration at each place of business (section 17(1)) and not display a certificate that is not in force (section 17(2)). They must require every person attempting to sell or pawn goods to produce prescribed evidence of identity: a passport, driver licence, a document issued by a statutory authority bearing a photograph, or two documents from different prescribed categories (section 19(1)). If the person cannot produce the required evidence, the dealer or pawnbroker must refuse to accept the goods (section 19(2)). For scrap metal transactions, a second-hand dealer must not pay or receive payment in cash; payment must be by non-transferable cheque, electronic transfer not involving e-currency, or other prescribed form (section 19A). A dealer must not buy, sell, dispose of, or possess scrap metal consisting of a motor vehicle if the vehicle identifier has been removed, obliterated, defaced or altered (section 19B(1)-(3)), unless authorised by a police officer in writing. Every transaction by which the dealer receives second-hand goods must be recorded accurately and completely in the form and containing the information required by the regulations (section 20(1)); similar records must be kept for scrap metal transactions (section 20(2)). Goods must be retained for at least seven days after receipt in the form in which they were received (section 21(1)). The dealer must keep records of the storage location of each item (section 21A). Dealers must co-operate with police: check goods against any notice describing stolen goods served by a police officer, and immediately inform a police officer if they suspect goods may have been stolen (section 22). Pawnbrokers have additional duties: they must not receive goods in pawn from a person under 16 (section 23(1)), must not receive a motor car as a pawn (section 23(1A)), must display a notice showing the maximum charge (section 23(2)), and must give the pawnor a pawn ticket, a notice of rights and responsibilities, and written notice of the charge (section 23(3)). Where unredeemed pawned goods are sold after the loan period, the pawnor is entitled to claim residual equity for 12 months (section 23A(2)); the pawnbroker must notify the pawnor within 14 days if the residual equity is $10 or more (section 23A(3)) and must pay on demand (section 23A(5)). Dealers must display a prescribed sign informing the public of their rights under sections 24 and 26 (section 24B). There are obligations to notify the Authority of changes: change of business premises, directors of a body corporate, associates, or cessation of business, all within 7 days (section 12); and to provide an address for notices (section 12A). Annual registration and endorsement fees must be paid on time (sections 11, 11AA). The Authority may impose conditions on registration or endorsement (section 8B) and may require notification of conditions on the certificate (section 8C). Dealers also have rights: they may apply for review of certain decisions of the Authority to VCAT (section 9B), apply for permission to be registered or continue despite disqualification (section 10A), surrender their registration or endorsement (section 11C), and, in cases of death or disability, certain persons may carry on the business for up to 30 days and apply for longer permission (section 18). Persons claiming to be entitled to possession of goods may apply to the Magistrates’ Court for an order for delivery (section 24(1)).

The Act creates a graduated system of penalties and enforcement mechanisms. Contraventions of key duties attract penalty units expressed in the Act. For example, carrying on business without registration or endorsement attracts a maximum of 100 penalty units (section 5). The prohibitions on cash payments for scrap metal and on dealing with unidentified motor vehicles each carry 200 penalty units (sections 19A, 19B). Failure to keep records, to retain goods for seven days, or to record storage locations each carry 20 penalty units (sections 20(1), 20(2), 21(1), 21A). Displaying an incorrect certificate carries 60 penalty units (section 17(2)). Failure to comply with a court order under section 24 carries 50 penalty units (section 24A). The Act also provides for infringement notices (Division 3 of Part 5) for certain offences: an authorised officer (inspector, police officer, or person authorised by the Director) may serve an infringement notice for offences against sections 20(1), 20(2), 21(1), 21A, 23(2), 23(3), 23A(3), 24B, or other offences specified by regulation (section 26ZB). The form of the notice is governed by the Infringements Act 2006. Enforcement is divided between pawnbrokers (Division 2) and second-hand dealers (Division 4, inserted 2017). For pawnbrokers, inspectors have significant powers: they may require production of documents and answers to questions (sections 26D, 26E), apply to the Magistrates' Court for an order requiring information (section 26I), enter premises with consent (section 26J) or without consent between 9am and 5pm when premises are open (section 26K), and obtain search warrants (section 26L). The rule against self-incrimination is modified: a person is not excused from answering or producing documents on the ground of self-incrimination, but if a claim is made before answering, the answer is not admissible in criminal proceedings other than for falsity (section 26V). For second-hand dealers, police officers have analogous powers: search warrants (section 26ZG), entry with warrant, and the ability to require assistance (section 26ZO). The Act also creates a stand-alone closure regime in Division 5 of Part 5 (inserted in 2019). The Chief Commissioner of Police may issue an interim closure notice for up to 72 hours if satisfied that an unregistered person is carrying on business at the premises, or if they reasonably suspect a serious criminal offence is being committed at the premises of a registered dealer (section 26ZT). The Magistrates' Court may make a long-term closure order for a specified period on application by the Chief Commissioner (section 26ZU). Failure to comply with a closure notice or order knowingly or recklessly carries a penalty of 200 penalty units (section 26ZW). No compensation is payable by the State in respect of anything done under or arising out of these closure powers (section 26ZX). Disciplinary action is available under Division 2 of Part 2: the Chief Commissioner or the Director may apply to VCAT for an inquiry (section 18A). If grounds are found (e.g., improper holding of registration, contravention of Act, dishonest conduct), VCAT may impose reprimand, a penalty of up to 50 times the value of a penalty unit, suspension for up to 1 year, conditions, compensation up to $5,000, or cancellation and disqualification (section 18B). A person whose registration is suspended is treated as unregistered during the suspension period (section 18C). Prosecutions for offences against the Act may be commenced within 3 years after the date of the alleged offence (section 28D), and proceedings may generally be brought only by the Director, an authorised person, or a police officer (section 28E).

The Act does not operate in a legislative vacuum; it expressly incorporates and cross-references several other Victorian and Commonwealth statutes. Section 30 applies sections 195, 196, and Part 8.2 (except sections 209 and 213) of the Australian Consumer Law and Fair Trading Act 2012 to this Act with necessary modifications, meaning that enforcement and court order provisions from that consumer protection statute are available for breaches of this Act. Specifically, section 210 of that Act applies as if a reference to Part 3.1 or Part 6.3 were a reference to this Act, and section 212 applies as if prescribed proceedings included proceedings for offences under most parts of this Act. The definition of inspector comes from the Australian Consumer Law and Fair Trading Act 2012; section 26X applies various sections of that Act (sections 144, 152, 155, 170, 172, 173, 176, 178, 179) to inspections under Division 2 of Part 5. The Act also interacts with the Business Licensing Authority Act 1998: the Authority is established under that Act, its Registrar keeps the register of second-hand dealers and pawnbrokers (section 13), and the registration and endorsement regime is administered through that body. The definition of e-currency in section 3(1) is taken from the Commonwealth Anti-Money Laundering and Counter-Terrorism Financing Act 2006, linking the cash payment prohibition for scrap metal to federal anti‑money laundering standards. The Act defers to the Motor Car Traders Act 1986: a licensed motor car trader dealing in motor cars is exempt from the requirement to register under this Act (section 4(f)), but a pawnbroker cannot accept a motor car as pawn, and motor car has the same meaning as in the Motor Car Traders Act (section 23(1B)). The Firearms Act 1996 similarly provides an exemption for licensed firearms dealers and firearms (section 4(b)). The Fundraising Act 1998 exempts persons conducting fundraising appeals (section 4(c)). The Corporations Act is relevant: an externally-administered body corporate has the same meaning as in that Act, and section 27(2) provides that the service provisions in this Act do not derogate from the Corporations Act. The Relationships Act 2008 supplies the definition of registered relationship for the purpose of the domestic partner definition (section 3(3)). The Infringements Act 2006 governs the form and procedure of infringement notices issued under Division 3 of Part 5. The Sentencing Act 1991 is applied: section 86 of that Act (which treats loss of property as a result of an offence) applies to an offence under section 23A(5) (failure to pay residual equity) (section 23A(6)). The Magistrates' Court Act 1989 provides the framework for search warrants (sections 26L, 26ZG) and for orders under section 24. The Victorian Civil and Administrative Tribunal Act 1998 establishes the Tribunal and provides for review of decisions. The Guardianship and Administration Act 2019 is relevant for defining represented person under section 6(1)(a) and for automatic cancellation under section 10(1)(a). The Road Safety Act 1986 and the Victoria Police Act 2013 are referenced for definitions of motor vehicle, vehicle identifier, and police officer. Section 30(3) provides that in that section, this Act includes the regulations, ensuring that subordinate legislation is also subject to the applied consumer law provisions.

The Act has been substantially amended since its commencement on 10 September 1990. The original Act replaced the Second-hand Dealers Act 1958, the Pawnbrokers Act 1958, and the Marine Stores and Old Metals Act 1958. A major restructuring occurred via the Law and Justice Legislation Amendment Act 1997 (Act 44/1997), which substituted a new Part 2 (registration), introduced the concept of disqualifying offences, expanded the definition of associate, and inserted sections on identity evidence and record-keeping. The Tribunals and Licensing Authorities (Miscellaneous Amendments) Act 1998 (Act 52/1998) abolished the former licensing system and transferred administration to the newly established Business Licensing Authority. The Licensing and Tribunal (Amendment) Act 1998 (Act 101/1998) further refined eligibility and introduced the permission regime under section 10A for persons otherwise disqualified. The Second-Hand Dealers and Pawnbrokers (Amendment) Act 2001 (Act 93/2001) was a comprehensive revision: it introduced the concept of endorsement for pawnbroking, created a new disciplinary regime (Division 2 of Part 2), inserted an enforcement division specifically for pawnbrokers (Division 2 of Part 5) with inspector powers, added residual equity provisions (section 23A), required display of registration certificates (section 17), and enhanced consumer protection. The Fair Trading (Further Amendment) Act 2003 (Act 106/2003) adjusted fee provisions. The Monetary Units Act 2004 (Act 10/2004) substituted references to penalty units. The Fair Trading (Enhanced Compliance) Act 2004 (Act 103/2004) amended section 30 to apply certain Australian Consumer Law provisions and inserted section 28E restricting who may bring proceedings. The Infringements (Consequential and Other Amendments) Act 2006 (Act 32/2006) substituted provisions for infringement notices to align with the Infringements Act 2006. The Consumer Acts and Other Acts Amendment Act 2016 (Act 23/2016) inserted section 18B(7) to clarify that disciplinary action can proceed even after a person ceases to be registered. The Justice Legislation Amendment (Protective Services Officers and Other Matters) Act 2017 (Act 45/2017) was significant: it inserted the purposes relating to scrap metal, added definitions for scrap metal, motor vehicle, vehicle identifier, and e-currency, created new offences for cash payments for scrap metal and dealing with unidentified motor vehicles (sections 19A, 19B), inserted a new Division 4 in Part 5 for enforcement against second-hand dealers (search warrants, embargo notices, etc.), and added a transitional provision (Part 7, section 32) confirming that the prohibition on selling/disposing/possessing unidentified motor vehicles applies to scrap metal coming into possession after commencement. The Justice Legislation Amendment (Police and Other Matters) Act 2019 (Act 3/2019) inserted Division 5 (interim closure notices and long-term closure orders) and the definition of serious criminal offence. The Guardianship and Administration Act 2019 (Act 13/2019) updated references to represented person. As at 1 March 2020, no further amendments were in operation. The endnotes list the table of amendments and indicate that this version does not contain amendments not yet in operation.

The Act itself does not specify any reported case names or judicial interpretation of its provisions. However, the Act creates several avenues for litigation and tribunal proceedings that are likely to generate case law. Section 9B provides for review by VCAT of decisions of the Authority concerning registration, endorsement, conditions, and permissions. Section 18A allows the Chief Commissioner of Police or the Director to apply to VCAT for an inquiry into a registered second-hand dealer or endorsed pawnbroker; VCAT can then impose disciplinary measures under section 18B, including reprimand, penalties, suspension, cancellation, and disqualification. The disciplinary provisions have been applied in practice, and VCAT decisions in this jurisdiction are issued under the Victorian Civil and Administrative Tribunal Act 1998. Disputes over ownership of goods are determined by the Magistrates' Court under section 24. An applicant may apply without notice for an order for delivery of goods (section 24(3)); the dealer may then object within 21 days, triggering a contested hearing before a magistrate (section 24(7)). The court may order delivery, payment of the assessed value, or dismiss the matter. Non-compliance with a court order is an offence (section 24A). The Magistrates' Court also has jurisdiction to issue search warrants (sections 26L, 26ZG), extend the retention period for seized documents (sections 26S, 26ZN), and make long-term closure orders (section 26ZU). Appeals from VCAT decisions would go to the Supreme Court of Victoria under the Victorian Civil and Administrative Tribunal Act 1998. The Act provides for an extended time for prosecutions: proceedings for an offence may be commenced within three years after the date on which the offence is alleged to have been committed (section 28D). This is broader than the usual time limit under the Criminal Procedure Act 2009. Proceedings for offences may be brought only by the Director, an authorised person, or a police officer (section 28E), except for indictable offences. The evidentiary provisions in section 29 assist the prosecution: goods are deemed to be in the possession or control of a dealer when on premises occupied by or under the control of the dealer; a certificate from the Registrar stating whether a person was registered or endorsed is proof of that fact in the absence of proof to the contrary. While the source text does not name specific cases, practitioners should be aware that VCAT decisions concerning disciplinary action and review of registration decisions are published and may provide guidance on the interpretation of eligibility criteria, grounds for disciplinary action, and the scope of inspector powers.

Several provisions in the Act create traps for the unwary. The definition of second-hand dealer is extremely broad: it catches any person who carries on a business of buying, selling, exchanging or otherwise dealing in second-hand goods, regardless of where goods are bought (section 3(1)). This means an online trader who buys used goods for resale may be required to register, even if they operate entirely from a private residence. The Act also applies to transactions conducted off business premises (section 20(1)), so a dealer who buys goods at a garage sale or through an online platform is still required to keep records and retain goods for seven days. Failure to register can result in prosecution, and the Act's extended limitation period of three years (section 28D) means that historical breaches may still be pursued. The identification requirements in section 19 are strict: the dealer must require evidence of identity from every person attempting to sell or pawn goods, and must refuse to accept the goods if the person cannot produce the required documents. Accepting goods without proper identity verification is an offence, even if the goods turn out not to be stolen. The cash payment prohibition for scrap metal (section 19A) applies to both buying and selling; a dealer who receives cash for scrap metal from a member of the public could be liable. The provisions concerning unidentified motor vehicles (section 19B) are absolute in effect: a dealer must not buy, sell, dispose of, or possess scrap metal consisting of a motor vehicle if the vehicle identifier has been removed, obliterated, defaced or altered, unless authorised in writing by a police officer. There is no defence of due diligence or reasonable belief. The ban on pawnbrokers accepting motor cars as pawn (section 23(1A)) is absolute, with penalties of 60 penalty units for a natural person and 300 for a body corporate. The retention period of seven days (section 21(1)) forbids any form of disposal or alteration during that period; even selling the goods on the eighth day is permitted only if no other obligation (such as a police notice or court order) extends the period. The duty to co-operate with police under section 22 requires a dealer to immediately inform a police officer if they suspect goods may have been stolen; failure to do so is an offence, and a dealer cannot rely on ignorance if the circumstances would have aroused suspicion. The reporting obligations under section 12 are tight: changes to business premises, directors, associates, or cessation of business must be notified in writing within 7 days. Failure to do so attracts a penalty of 10 penalty units. Annual registration and endorsement fees must be paid on the anniversary date; late payment triggers a notice from the Authority giving at least 14 days to comply, and if not paid by the specified date, the registration or endorsement is automatically cancelled (section 11A). There is no grace period beyond the notice period. The closure notice provisions (Division 5 of Part 5) are a significant new power: the Chief Commissioner can issue an interim closure notice for up to 72 hours without a court hearing if they reasonably suspect a serious criminal offence is being committed at the premises (section 26ZT). No compensation is payable for any loss arising from a closure notice or order (section 26ZX). The rule against self-incrimination is abrogated for certain information requirements under sections 26V, 26ZQ, and 28B: a person must answer questions or produce documents even if the answers may incriminate them, though the answers are not admissible in criminal proceedings other than for falsity if a claim is made before answering. This means that a dealer could be compelled to provide potentially incriminating information about their compliance with the Act. Finally, the disciplinary regime under sections 18A-18D applies even after a person has ceased to be registered or endorsed (section 18B(7)), and the definition of endorsed pawnbroker in the enforcement division includes persons whose endorsement has been surrendered or cancelled within the last three years (section 26A), meaning that documents relating to a former business must still be made available for inspection.

Compliance with the Act requires a systematic approach covering registration, record-keeping, transaction procedures, reporting, and cooperation with enforcement. The first step is to obtain registration as a second-hand dealer from the Business Licensing Authority. The application must be in writing, verified by statutory declaration, accompanied by prescribed identity evidence (e.g., birth certificate, passport, driver licence), and lodged at least one month before the proposed commencement of business (section 7(2)). If the applicant intends to also operate as a pawnbroker, they must apply for an endorsement (section 7A). Before applying, the applicant should ensure that neither they nor any associate, director, or business partner has been convicted of a disqualifying offence within the preceding five years, or if they have, that they have obtained the Authority's permission under section 10A. Ongoing compliance begins once registration is obtained. The certificate of registration must be displayed in a prominent position at each place of business (section 17(1)). A sign in the form set out in the Schedule must be displayed in legible letters at least 15 millimetres high, clearly visible to the public (section 24B). For every transaction where second-hand goods are received, the dealer must require the seller or pawnor to produce evidence of identity as prescribed (section 19(1)). Acceptable identification includes a passport, driver licence, or a document issued by a statutory authority bearing a photograph, or two documents from different prescribed categories. If the person cannot provide such evidence, the goods must be refused (section 19(2)). Complete and accurate records must be kept for every transaction, whether on premises or elsewhere, in the form and containing the information required by regulations (section 20(1)). For scrap metal transactions, separate records must be kept (section 20(2)). Goods must be retained for at least seven days after receipt without alteration or disposal (section 21(1)), and records must be kept of the storage location of each item (section 21A). For scrap metal dealers, payment must not be made or received in cash; only non-transferable cheques, electronic transfers not involving e-currency, or other prescribed forms are permitted (section 19A). Motor vehicle parts must not be bought, sold, disposed of, or possessed if the vehicle identifier has been removed or defaced unless authorised by a police officer in writing (section 19B). Pawnbrokers must comply with additional obligations: do not accept goods from persons under 16, do not accept motor cars as pawn, display a notice showing the maximum charge, and provide a pawn ticket, a notice of rights, and written notice of the charge for each transaction (sections 23(1)-(3)). The pawnbroker must keep a record of the residual equity for sold unredeemed goods and, if the equity is $10 or more, notify the pawnor within 14 days of the sale (section 23A(3)). Residual equity must be paid on demand within 12 months (section 23A(5)). Annual fees must be paid on the anniversary of registration (section 11) and endorsement (section 11AA) on the same date. The payment must be accompanied by a statement in the approved form. Any change to business premises, directors (for a body corporate), associates, or cessation of business must be notified in writing to the Authority within 7 days (section 12). A current address for notices must be provided (section 12A). Records must be kept available for inspection by police or inspectors at all reasonable times (section 26C for pawnbrokers; general police powers under section 25). Dealers must check goods against police notices of stolen goods and immediately inform police if they suspect goods may be stolen (section 22). If a police officer enters premises under section 25, the dealer must produce goods, the certificate of registration, and records on request. An inspector investigating a pawnbroker may require documents and answers; the dealer must comply, subject to the modified self-incrimination rules. If an interim closure notice is issued, the dealer must cease trading and not dispose of goods at the premises until the notice expires or is cancelled (section 26ZT). Any court order under section 24 must be complied with (section 24A). A practical tip is to maintain a compliance calendar to track fee payment deadlines and the notification period for changes. It is also prudent to keep a log of identity verification attempts and to train staff on the strict requirements for accepting goods, particularly for scrap metal and motor vehicle parts. Given the extended prosecution period of three years (section 28D), records should be retained for at least that long after the transaction. Seeking legal advice before dealing with goods where ownership is disputed or where a police notice has been served is advisable to avoid the risk of prosecution or civil liability.