• 09 Jul 2025

Local Law for Selling Copper Scrap in Sydney

If you’re considering selling copper scrap in Sydney, it’s crucial to understand the legal framework governing the scrap metal industry in New South Wales (NSW). The Scrap Metal Industry Act 2016 provides comprehensive regulations to ensure transparency, reduce theft, and promote ethical practices in the industry.

Overview of the Scrap Metal Industry Act 2016

Enacted on 21 September 2016, the Scrap Metal Industry Act 2016 aims to regulate the scrap metal industry in NSW. The Act addresses concerns related to property crime, particularly the theft and disposal of stolen motor vehicles and metals like copper. It establishes a framework for the registration of scrap metal dealers, mandates record-keeping, and outlines penalties for non-compliance.

Key Legal Requirements for Selling Copper Scrap

1. Registration of Scrap Metal Dealers

Any person or business intending to deal in scrap metal must be registered under the Act. This includes buying, receiving, or obtaining scrap metal. A presumption exists that a person who deals in scrap metal on more than six days in a 12-month period is carrying on a business of dealing in scrap metal and must be registered.

2. Prohibition on Cash Payments

To deter theft and illegal activities, the Act prohibits paying cash for scrap metal transactions. Payments must be made via traceable methods such as bank transfers or cheques. Additionally, advertising cash payments for scrap metal is prohibited. 

3. Record-Keeping Obligations

Scrap metal dealers are required to maintain detailed records of each transaction, including:

• Personal details of the seller 
• Description of the scrap metal 
• Date and time of the transaction 
• Payment method 

These records must be kept for a specified period and be available for inspection by authorities. 

4. Reporting Suspicious Transactions

Dealers must report any suspicious transactions to the NSW Police Force. This includes transactions involving stolen property or individuals attempting to sell scrap metal without proper identification. 

5. Inspection and Enforcement

NSW Police officers have the authority to inspect scrap metal businesses to ensure compliance with the Act. They can conduct audits, seize property, and issue penalties for non-compliance. 

Recent Amendments and Compliance

Significant amendments to the Act and Regulation commenced on 1 September 2024. These amendments introduced stricter registration requirements and enhanced compliance measures. Scrap metal dealers were required to provide additional registration information to the State and Regional Development (SLED) by 1 December 2024. 

Tips for Compliant Copper Scrap Transactions

• Verify Dealer Registration: Ensure the scrap metal dealer is registered under the Act. 
• Avoid Cash Transactions: Opt for traceable payment methods. 
• Provide Accurate Information: Be prepared to provide identification and details of the scrap metal. 
• Keep Records: Maintain copies of all transaction records. 
• Report Suspicious Activity: Notify authorities of any unusual transactions. 

Final Thoughts

Selling copper scrap in Sydney is a legitimate and environmentally beneficial activity when conducted in compliance with the Scrap Metal Industry Act 2016. By adhering to the legal requirements, you contribute to a lawful and sustainable recycling industry. Always engage with registered and reputable dealers to ensure your transactions are secure and compliant.