A guide for business
These guidelines have been out together to help you understand your obligations. It is a guide only and not a substitute for legal advice.
Do I need a licence to sell second-hand goods?
Yes, if you are selling or trade in prescribed second-hand goods on more than six days in a 12 month period, you’re required to hold a second-hand dealers licence. Go to the Australian Business Licence and Information Service (ABLIS) website or call 13 32 20.
What are prescribed second-hand goods?
Prescribed second-hand goods are:
- items of jewellery (including watches) that include gemstones or precious metals,
- gemstones and precious metals,
- sporting and recreational goods,
- electric or electronic pianos and other musical instruments (not including pianos that are not electric or electronic),
- photographic equipment (including digital cameras and digital imaging equipment),
- portable engine-powered, motorised or air-powered tools and equipment,
- water craft of any description used or capable of being used as a means of transportation on water (including parts of a water craft),
- electric or electronic goods (other than microwave ovens, refrigerators, washing machines or other whitegoods),
- computer hardware and interactive game consoles,
- tablet computers,
- devices designed to play digital files (such as MP3 and DVD players and iPods),
- mobile phones,
- car accessories,
- global positioning system equipment.
Second-hand goods do not include:
- motorised wheelchairs, wheeled lounges, spinal carriages and other similar goods designed to carry a person with a disability,
- industrial or farming machinery that cannot be driven or is not portable.
- items of jewellery (including watches) that include gemstones or precious metals, gemstones and precious metals.
What are my obligations when selling products?
If you’re selling products you have a legal obligation to provide goods that are safe for use and free from defects that can cause injury. Certain items must comply with safety requirements before they can be sold (eg. baby dummies, bicycles and childrens toys) and information must be given to the consumers when they purchase those products.
You might also have to provide more information to consumers on other products like clothing (eg. care instructions).
Do I need to register a business name?
When a business operates under a name other than that of the proprietor, that name must be registered under the Business Names Registration Act 2011 (Cth). Business names are administered by the Australian Securities and Investments Commission (ASIC). Visit the ASIC website for more information about business names or to register, cancel or search for a business name.
If you’re still unsure of your obligations or you need more information, go to the Australian Consumer Law and the Pawnbrokers and Second-hand Dealers Act 1996.