Second-hand Dealers and Pawnbrokers Act 2003

The Act turns on two defined business types: "second-hand dealer" and "pawnbroker". A second-hand dealer is a person who carries on a business of dealing in second-hand property; a pawnbroker is a person who advances money on interest, or in expectation of profit or reward, on the principal or collateral security of property taken as a pawn (s 6). One person may hold both types of licence simultaneously (s 10(2)(b)(i)). Licences are personal and non-transferable; they cannot be assigned to another person (s 34).

"Nominated property" is a regulatory category defined by regulation rather than fully elaborated in the Act itself. The Act incorporates it by reference (s 44) to impose the seven-day holding requirement on dealers.

"Associate" is defined broadly (s 5). It includes any person, not the licensee, who is in effective control of the licensee's business at a place. Control covers being regularly in charge, regularly directing staff, or being in a position to control or influence the business in a substantial way. For corporate licensees, every executive officer is automatically an associate. The associate concept matters throughout the Act: suitability of associates is assessed alongside the applicant, changes in associates must be notified, and the criminal history and control-order status of associates can trigger adverse licensing consequences.

"Authorised place" (s 24) is the location or premises named in the licence or subsequently approved by the chief executive. Dealers and pawnbrokers must conduct business only at authorised places, subject to narrow exceptions (ss 35, 51). Dealers can acquire property away from their authorised place but must enter those transactions in the principal-place register.

The "redemption period" for pawned property (s 60) is the contractual duration during which the pawner may buy back the goods. The default is three months. A longer period may be agreed and, if agreed, must be recorded in the property register. Below a threshold advance of $40 (or a higher prescribed amount), unredeemed property simply vests in the pawnbroker on expiry. Above that threshold, the pawnbroker may sell but must account for surplus proceeds.

"Disqualifying offence" and "relevant control order" are defined terms whose precise content is set in other legislation (notably the Penalties and Sentences Act 1992 and the Serious and Organised Crime Legislation Amendment Act 2016 framework). Their significance in this Act is mechanical: conviction or the making of a relevant control order cancels the licence automatically under s 21A.

The primary regulated parties are second-hand dealers, pawnbrokers, and their associates. The compliance burden falls most heavily on sole traders and small operators who deal in jewellery, electronics, tools, and other readily identifiable goods, because those categories generate the most register-keeping and police-notification obligations.

Several categories of person are explicitly excluded from the licensing requirement for second-hand dealers (s 6(2)): pawnbrokers operating within their own licence, motor dealers and chattel auctioneers under the Motor Dealers and Chattel Auctioneers Act 2014, weapons dealers under the Weapons Act 1990, hire-business operators, charities under the Collections Act 1966, local governments, authorised deposit-taking institutions, life insurance companies under Commonwealth law, and trustee companies. For pawnbrokers, chattel auctioneers, authorised deposit-taking institutions, and brokers or commission agents making advances in the ordinary course of banking or mercantile transactions are exempt (s 6(4)).

Private individuals who dispose of or acquire second-hand property incidentally are not licensees and bear no register or notification duties, but they do acquire a right to inspect a dealer's or pawnbroker's licence on request (ss 49, 72). Consumers who pawn goods acquire specific statutory rights: a pawn ticket, a minimum redemption period, the right to a replacement ticket on proof of identity and loss, and the right to the surplus of any auction proceeds held in trust (ss 58, 64).

Police and regulatory inspectors gain the most from the scheme. The mandatory data flows from dealer and pawnbroker registers to the Police Commissioner (ss 39, 55) give police routine access to transaction records without the need for individual production orders.

For second-hand dealers, the core duties are:

Licensing and place: carry on business only as a licensed dealer and only at an authorised place, with limited exceptions for acquiring property away from the premises (ss 6, 35).

Signage: display name (at least 50 mm high), the words "licensed dealer in second-hand property", and, if applicable, the associate's name and the word "associate" (s 36).

Transactions register: keep a printed or electronic register in the prescribed manner for each authorised place; enter prescribed particulars before or immediately after each "second-hand property transaction", defined as a transaction for acquisition, sale or disposal of property with a resale value of at least $55 or any jewellery, precious-metal item, or item identifiable by make, model, serial number or inscription (s 37(5)). The register must not be falsified or altered; corrections require a new entry (ss 40-41).

Police data transmission: provide the Commissioner with prescribed particulars from the register, in the prescribed manner and within the prescribed period (s 39).

Seven-day hold: keep nominated property in possession for seven clear working days after acquiring it (s 44).

Identity verification: before acquiring property, obtain and verify the seller's name and address, whether the seller is the owner, and if not, the owner's details and how the seller acquired the property (s 47).

Vulnerability rules: do not acquire property from a person under 17 years, or a person under the influence of alcohol or a drug (s 45). Do not acquire property at a person's home on Sunday, a public holiday, or between 6 p.m. and 7 a.m. unless prior consent was obtained at least one day earlier (s 46). Do not employ a person under 17 to acquire property (s 42).

Stolen-property notification: advise a police officer as soon as practicable upon becoming aware that acquired property may be stolen or unlawfully obtained (s 48).

For pawnbrokers, the duties mirror those above, with adaptations for the credit-against-security model: property register (ss 53-54), police data transmission (s 55), pawn ticket issued to the pawner (s 58), no sale before redemption period expires (s 60), trust account for surplus proceeds with twelve-month holding and subsequent transfer to the public trustee (s 64), disposal-of-pledges court application if the licence is cancelled (s 74).

Rights of licensees include: seeking a QCAT review of adverse decisions (s 107); a 28-day period to make representations before any adverse licensing action takes effect under the show-cause process (s 20); automatic continuation of the licence while a renewal application is pending (s 16); and the ability to choose a one-year or three-year licence term (s 10).

Most conduct obligations carry a maximum of 200 penalty units. These include operating without a licence (s 6), register-keeping failures (ss 37, 40, 41, 53, 56, 57), failure to hold nominated property for seven days (s 44), acquiring property from minors or intoxicated persons (s 45), breaching acquisition-time restrictions (s 46), failing to verify seller identity (s 47), failing to report suspected stolen property (s 48, 71), falsifying register entries (ss 40, 56), failing to transmit register data to police (ss 39, 55), issuing no pawn ticket (s 58), selling pawned property before redemption period expires (s 60), and failing to maintain the sale-proceeds trust account (s 64). Forging a licence, using another person's licence, and giving false or misleading information to the chief executive each carry 200 penalty units (ss 96, 98, 100).

Mid-range penalties of 100 penalty units apply to signage failures (ss 36, 52), carrying property at the wrong place (ss 28, 38, 54), and failing to give public auction notice before selling pawned goods (s 63).

Lower penalties of 50 penalty units apply to administrative failures: failing to notify change of authorised place within seven days (s 25), failing to notify change of address within seven days (s 27), failing to notify change of associate within 14 days (s 29), and failing to show a licence on request (ss 49, 72).

The 20-penalty-unit tier covers licence-return obligations after suspension, cancellation, or surrender (ss 21, 21A, 32, 33) and failure to record an agreed extended redemption period (s 60(3)).

Attempts to commit any offence against the Act are themselves offences attracting half the maximum for the completed offence (s 106). Proceedings must be taken summarily under the Justices Act 1886, within one year of the offence or six months of the complainant's knowledge, but not beyond two years (s 102).

Beyond fines, a court convicting a licensee of knowingly dealing in property obtained by fraud or dishonest means may cancel the licence and order the licensee ineligible to hold one for five years (s 105). Automatic licence cancellation without court order applies on conviction for a disqualifying offence or the making of a relevant control order (s 21A). The chief executive may suspend or cancel a licence through the show-cause process on four grounds: material misrepresentation in obtaining the licence, breach of licence conditions, conviction of an offence under this or an equivalent interstate Act within five years, or the licensee no longer being a suitable person (s 19).

Inspectors may prosecute proceedings personally (s 103) and may use inspector certificates as evidence of licence status without further proof (s 104). Entries in registers kept on premises are presumed made with the authority of the person who keeps them (s 104(5)).

The Act expressly displaces the Second-hand Dealers and Collectors Act 1984 and the Pawnbrokers Act 1984 (s 116), which it wholly repeals. Transitional provisions in Parts 9 preserve existing licences, pending applications, and pending appeals under those Acts.

The Fair Trading Inspectors Act 2014 (FTI Act) provides the common inspection powers framework. Section 3A specifies that FTI Act powers are additional to, not limiting of, powers under this Act. The FTI Act also authorises seizure of property held by a pawnbroker, which is one of the conditions suspending a pawner's right to redeem (s 59).

The Motor Dealers and Chattel Auctioneers Act 2014 creates overlapping coverage for chattel auctioneers; licensees under that Act are carved out of the second-hand dealer licensing requirement to the extent they deal in second-hand property lawfully under that Act (s 6(2)(b)). Similarly, weapons dealers licensed under the Weapons Act 1990 are carved out (s 6(2)(c)).

The Corporations Act 2001 (Cth) supplies the definition of "Chapter 5 body corporate" used in the suitability provisions: a person whose affairs are being administered under external administration or similar insolvency procedure cannot hold a licence (s 7(1)(d)).

The Personal Property Securities Act 2009 (Cth) is engaged by the proceeds-of-sale provisions. A pawnbroker's interest in sale proceeds is declared a statutory interest to which s 73(2) of that Act applies, taking priority over other security interests (s 64(1A)-(1B)).

The Criminal Law (Criminal Organisations Disruption) and Other Legislation Amendment Act 2013 amended suitability grounds related to control orders (s 139 transitional). The Serious and Organised Crime Legislation Amendment Act 2016 restructured the control-order regime and introduced automatic cancellation under s 21A, replacing the pre-2016 scheme that routed such decisions through QCAT review (s 141 transitional). The Justice and Other Legislation Amendment Act 2020 made further suitability amendments (s 142 transitional).

Criminal intelligence flows under s 111 information-sharing arrangements are excluded from the Crime and Corruption Act 2001 data-sharing scope; that intelligence may be used only for monitoring compliance with this Act and cannot be used as a basis for an adverse licensing decision (ss 7(3), 9A, 111(4)).

The QCAT Act governs the review mechanism; QCAT has jurisdiction over all adverse licensing decisions of the chief executive (s 107). The Justices Act 1886 governs summary prosecution (s 102). The Oaths Act 1867 is the vehicle for the statutory declaration a pawner can use to obtain a replacement pawn ticket (s 58(3)). The Collections Act 1966 definition of charity is imported to define the charitable-exemption class in s 6(2). The Banking Act 1959 (Cth) and Life Insurance Act 1995 (Cth) supply the definitions used to identify exempt financial institutions.

The Act was originally passed in 2003 (as Queensland Act No. 73 of 2003) to replace two 1984-era statutes. The source records the following subsequent amendments:

Section 6 was amended by the Motor Dealers and Chattel Auctioneers Act 2014 (2014 No. 20, sch 3 pt 2) to update cross-references from its predecessor legislation.

Section 7 (suitability) was amended by 2013 No. 64 (the Criminal Law (Criminal Organisations Disruption) and Other Legislation Amendment Act 2013), 2016 No. 62 (the Serious and Organised Crime Legislation Amendment Act 2016), 2020 No. 15 (the Justice and Other Legislation Amendment Act 2020), and 2023 No. 23 sch 1 s 37.

Sections 8, 8A, and 9 were amended in 2008 (No. 69) and 2013 (No. 64) to refine criminal history investigation powers and costs-recovery.

Section 9A (limiting use of charge information in licensing decisions) was inserted by 2016 No. 62.

Section 12 (decision on application) was amended in 2006, 2009, 2013, and 2016 to update references and align with QCAT after the Queensland Civil and Administrative Tribunal Act 2009 created that body.

Sections 13-15 (renewal, restoration, decision) were amended in 2008, 2009, 2013, and 2016 similarly.

Section 19 (grounds for adverse action) was amended in 2006, 2008, 2013, and 2016.

Section 20A was inserted by 2013 No. 64 and then omitted by 2016 No. 62.

Section 21A (automatic cancellation on disqualifying conviction or relevant control order) was inserted by 2016 No. 62.

Section 27 was amended by 2016 No. 62.

Sections 59 and 75-95 were amended or omitted by the Fair Trading Inspectors Act 2014 (2014 No. 8), which transferred the generic inspection and enforcement powers into that common Act.

Section 64 was amended in 2010 (No. 44) to introduce the Personal Property Securities Act interface provisions.

Section 96 was amended by 2014 No. 8. Section 103, 104, and 113 were amended by 2014 No. 8 to update inspector references.

Section 107 was substituted by 2009 No. 24 (the QCAT creation Act). Sections 107A and 107B (inserted 2013, omitted 2016) provided a criminal-intelligence-protected review procedure that was removed when the 2016 amendments restructured the organised-crime response.

Section 111 (information-sharing arrangement) was inserted (replacing a previously omitted version) by 2016 No. 62.

Section 112 (confidentiality) was inserted by 2016 No. 62 (replacing a provision omitted in 2013) and was further amended by 2023 No. 33 sch 4 to update the public-records Act reference.

Section 112A was inserted in 2005 (No. 14) to allow delegation by the chief executive.

The source text names no decided cases. No litigation history can be reported from the source alone.

The "associate" definition creates significant exposure for business owners who do not personally hold the licence. Any person who regularly directs staff at the business, is regularly in charge, or can control or influence the business in a substantial way qualifies as an associate (s 5(2)). Their criminal history and control-order status is assessed alongside the licensee's, and a disqualifying conviction against an associate triggers automatic licence cancellation under s 21A just as if the licensee themselves had been convicted. A licensee who appoints a manager without notifying the chief executive within 14 days (s 29) has already committed an offence before any suitability problem becomes apparent.

For corporate licensees, every executive officer is automatically an associate (s 5(3)). This means that a conviction of any director for a disqualifying offence cancels the company's licence by operation of s 21A, with no opportunity to show cause and no administrative lead time, regardless of whether that director has any role in the day-to-day licensed business. Given the broad definition of "relevant control order" imported from the organised-crime legislation, this is a material governance risk for businesses that expand their boards.

The automatic-cancellation mechanism (s 21A) is deliberately excluded from the show-cause procedure in s 20. Section 19(2) makes plain that conviction for a disqualifying offence or the making of a relevant control order are not grounds for the show-cause process; instead, they trigger s 21A. There is no right of review before cancellation takes effect. Review by QCAT is available under s 107 after the fact, but the licence is already cancelled.

Charges, as opposed to convictions, cannot be used as the basis for a suitability decision (s 9A(3)). The chief executive is explicitly barred from relying on a charge when deciding whether an applicant or licensee remains suitable. However, the Police Commissioner may notify the chief executive when a charge is laid (s 9(6) extends the definition of "criminal history change" to include charges not yet dismissed), which means the chief executive is aware but formally constrained in how that awareness is used. This is an asymmetric information position that a licensee may not fully appreciate.

The transactions register must record particulars before or immediately after the transaction (s 37(2)), not at the end of the business day. The prohibition on separating property into parts to avoid the recording threshold (s 37(3)) means that intentionally splitting a single acquisition to keep component values below $55 is itself a distinct offence carrying 200 penalty units.

The seven-day holding period applies to "nominated property" as defined by regulation, not to all second-hand property. Practitioners need to check the current regulation to identify exactly which categories are nominated. A dealer who does not know what is nominated is exposed to a 200-penalty-unit offence for on-selling nominated property too early (s 44).

The pawnbroker's surplus-proceeds obligation runs only from the date of sale, not from the date of expiry of the redemption period. If the pawnbroker delays the auction, the twelve-month clock does not start until the property is actually sold (s 64(3)). If proceeds are not claimed within that twelve months, the pawnbroker must pay to the public trustee, not keep the money (s 64(4)); retaining it is a 200-penalty-unit offence.

The newspaper-notice requirement for public auction of pawned goods (s 63(2)) requires at least two notices in a newspaper circulating generally in the area where the property was pawned, at least four days before the sale. "Newspaper" is not defined as including online publications in the text of this Act. The transition of the notice requirement to digital media is not addressed in the Act.

Licence non-transferability (s 34) means that a business sale does not carry the licence. A buyer who intends to continue operating as a second-hand dealer or pawnbroker must apply for a fresh licence before commencing operations. Trading in the gap is an offence.

Apply for a licence before commencing business. Applications must be in the approved form, state the intended places of business and the names and addresses of all associates, specify whether the licence is for second-hand dealing, pawnbroking, or both, and indicate whether a one-year or three-year term is sought (s 10). Pay the prescribed application fee and any criminal history report costs required by the chief executive (s 8A). Identify your principal place of business and ensure it is a physical address where documents can be served; a post office box is not permitted (s 11). Where the business has multiple directors or managers, audit who qualifies as an associate under s 5 before submitting the application, because each associate's criminal history will be assessed.

Display the required signage at each authorised place: your name in characters at least 50 mm high, the prescribed descriptor ("licensed dealer in second-hand property" or "licensed pawnbroker"), and, if an associate is in effective control at that place, the associate's name and the word "associate" (ss 36, 52).

Set up your transactions register or property register in the prescribed format on day one of operations and enter particulars before or immediately after each qualifying transaction. Do not separate property into component parts to avoid the threshold. Keep the register at the relevant authorised premises (or at the nominated address for mobile operations). Establish a routine for transmitting prescribed register data to the Police Commissioner in the manner and within the period set by regulation (ss 39, 55).

For second-hand dealers: before acquiring property, obtain and record the seller's name, address, proof of identity, ownership status, and (if not the owner) the owner's details and how the seller came to have the property (s 47). Do not acquire from anyone under 17 or visibly intoxicated. Do not attend a person's home on Sundays, public holidays, or between 6 p.m. and 7 a.m. without written pre-consent obtained at least one day earlier (s 46). Hold nominated property (as defined by regulation) for seven clear working days before selling or disposing of it (s 44). If you become aware that acquired property may be stolen, contact police as soon as practicable (s 48).

For pawnbrokers: issue a pawn ticket (a legible copy of the property register entry, including the transaction number and your name) to every pawner immediately (s 58). Record any agreed redemption period longer than three months in the property register (s 60(3)). Do not sell or dispose of pawned property until the redemption period expires. After expiry, if the advance was $40 or more, you may sell only at the premises or by public auction after at least two newspaper notices at least four days before sale (s 63). Deduct your advance and notional last-day interest from sale proceeds and pay any surplus into a trust account maintained in the pawner's name. Hold those proceeds for twelve months; then pay unclaimed balances to the public trustee (s 64).

Notify the chief executive within seven days of any change of home address or register address (s 27), within seven days of any change to an authorised place (s 25), and within 14 days of any change in the composition of your associates (s 29). Renew your licence before it expires; a lapsed licence can be restored within 14 days of expiry, and the licence continues in force while a timely renewal application is pending (ss 16-17). If you receive a show-cause notice, engage with it: you have at least 28 days to make written representations, and failing to respond leaves the chief executive free to act on the proposed adverse action (s 20).

Keep the licence or a copy at each authorised premises (or carry it when operating at a location); produce it on request by any person acquiring or disposing of property to or from you within 24 hours of the transaction (ss 28, 49, 72). Monitor the criminal history and control-order status of all associates, because an adverse event affecting any of them may trigger automatic licence cancellation under s 21A with no opportunity for prior representations.