What you need to know if you run a business that buys, sells, demolishes, or dismantles motor vehicles, parts or accessories. Includes information on conduct, licensing, and the records you need to keep.
On this page
Key information
- In NSW, people working in the motor vehicle industry have certain responsibilities and requirements they must meet.
- You must hold a current recycler licence and display your licence details at your place of business.
- You must keep all prescribed records of motor vehicles and used parts that are recycled, bought, or sold.
- If you suspect a motor vehicle or parts have been stolen or illegally obtained, you must inform Fair Trading NSW.
Licensing
You need a motor vehicle recycler licence if you own or operate a motor vehicle recycling business.
If you run a recycling business without a licence, you could be fined $5,500 or face prosecution with a maximum penalty of $110,000.
If you continue to operate without a licence, you could get a penalty of up to $110,000, imprisonment for 12 months, or both.
Laws to follow
There are federal and state laws that you must follow as a motor vehicle recycler.
This page explains the rules you need to follow in simple language. You should refer to the legislation for specific legal requirements.
Australian Consumer Law
Under Australian Consumer Law, most products and services bought in Australia come with automatic consumer guarantees that the product or service purchased will work and do what is expected.
Motor vehicle recycling is one of these services.
The sale of recycled parts should be done with due care and skill. Parts must be fit for purpose.
If your business fails to meet any of these guarantees, your customers have the right to:
- a repair, replacement, or refund
- reimbursement for damages and loss.
Learn more about consumer guarantees under Australian Consumer Law.
Motor Dealers and Repairers Act
The Motor Dealers and Repairers Act sets out the rules that must be followed by all motor vehicle recyclers in NSW.
The Act provides protection for consumers, outlines appropriate standards of conduct, and prevents misleading or dishonest dealings.
Motor Dealers and Repairers Regulation
The Motor Dealers and Repairers Regulation explains the rules for motor vehicle recyclers in NSW.
It includes detailed information on licensing, record keeping and reporting requirements, fees, and business conduct.
Signage
You must have a sign showing your business licence details at your registered place of business. It must be visible to everyone approaching the business.
Your business signage must display:
- your name as it appears on the licence
- the words ‘licence number’ (or an abbreviation) followed by the licence number itself.
If your business name appears on the licence, it can also be included on the sign, but not in place of the licensee’s name.
If you don’t display signs correctly you can be fined $330 or prosecuted up to $2,200.
Record Keeping
Depending on the type of work you do, you will need to keep registers for both recycled vehicles and parts.
Entries in a register must be made within one business day of any transaction.
Registers must be kept for six years after the last entry was made.
Motor vehicle recycler register (for parts)
You need to keep a detailed register of certain used parts that you receive and/or sell.
You can keep a physical register or a digital one. Our sample motor vehicle recycler register (Form 3) can be used as a guide.
The register must include details of each vehicle or part, and each vehicle or part must have its own entry number.
Register entries must include:
- the date you received and sold the part
- the name, address and licence number of the person who supplied it
- details of the vehicle the part was removed from
- a description of the prescribed part (including if it was salvaged)
- how the part was sold, details of the buyer and the receipt number.
All prescribed parts must be clearly marked with the corresponding register entry number. This can be done using indelible ink or a durable label.
Damaged parts that have no value and are going to be scrapped must have a ‘no’ recorded in the register.
You can be fined $550 or prosecuted up to $2,200 for failing to keep appropriate records.
Which second-hand parts do I need to register?
You need to register the following prescribed parts:
- chassis
- major body section
- bonnet
- right side door (front)
- left side door (front)
- right side door (back)
- left side door (back)
- hatchback door
- boot lid
- right front guard
- left front guard
- front bumper bar
- rear bumper bar
- engine/engine block
- gearbox/transmission/transaxle (front wheel drive vehicles)
- instrument cluster/odometer/hour gauge
- car radio/tape/compact disc (CD equipment)
- electronic navigation equipment
- multimedia equipment
- airbags and air curtains (side impact airbags)
- alloy wheels
- seats
- final drive (differential for rear-wheel-drive vehicles)
- headlights.
Motor vehicle recycler register (for whole vehicles)
Whole vehicles that you receive and/or dispose of must have details recorded in a separate register. This is called the motor vehicle recycler register for whole vehicles (Form 3A).
You can keep a physical register or a digital one. Our sample register above can be used as a guide.
Register entries must include:
- your licence details and the date you received the vehicle
- details of the vehicle and engine number
- the name, address, and identification details of the person who supplied it
- disposal details of any parts removed from the vehicle.
All parts must be clearly marked with the corresponding register entry number. This can be done using indelible ink or a durable label.
Damaged parts on a vehicle that have no value and are going to be scrapped must have a ‘no’ recorded in the register. If the part is not attached to a vehicle, ‘N/A’ (not applicable) must be recorded.
How to keep a register
Keeping a physical register
A physical register needs to:
- be written in a book or series of books (with bound pages)
- must only be used for one kind of register and for no other purpose
- if you are using multiple books, each one must have a corresponding series number on its front (such as book 1, book 2 and so on).
Keeping a digital register
A digital register must be created on software that:
- can be displayed and printed at each place of business on request
- clearly shows all entry details have been made and completed
- includes the date each record was made.
A digital register must also keep a record of any changes. For example, if an entry is updated, the reason and date of the change/deletion is noted in the register.
Number plates
Number plates from any recycled vehicle must be returned to Transport for NSW as soon as possible.
You can be fined $330 if you don’t return old number plates. You can also be prosecuted for up to $2,200 for failing to return number plates or selling a motor vehicle with a number plate attached.
Selling motor vehicles and engines
You can only sell motor vehicles that have been:
- substantially demolished or dismantled
- acquired and used by you (or an employee) mostly for private use
- used mostly for your motor vehicle recycling business.
If you sell a motor vehicle engine you must issue a receipt with:
- the date of disposal
- a description of the engine
- the entry number marked on the engine
- the buyer’s name and address.
Receipts must be duplicated and consecutively numbered. Registers and receipts must be kept for at least six years.
Advertising
If you advertise motor vehicles or parts for sale, you have certain obligations under Australian Consumer Law. This applies to both print and online advertising.
Advertising damaged vehicles
Where damaged vehicles are offered for sale, advertisements must include a disclosure statement saying that the vehicle has been damaged and whether or not the damage has been repaired (other than a second-hand motor vehicle). This message must be in writing, the same size and prominent.
You can be prosecuted up to $2,200 if you break the law.
False and misleading advertisements
Under Australian Consumer Law, you must not engage in misleading or deceptive conduct (or engage in conduct that is likely to mislead or deceive).
Advertisements should not make statements or representations that are not true or likely to mislead or deceive. For example:
- statements and/or pictures in advertisements should not mislead consumers as to the type or quality of the vehicle or part being offered.
If you break the law, you could receive a penalty of up to $500,000 as an individual. Corporations could be penalised $10,000,000, 10% of the annual turnover, or three times the value of the benefit gained by committing the offence – whichever is greater.
Suspicious goods
If you suspect goods have been stolen or illegally obtained, you must inform the Secretary for Fair Trading.Failure to do so is an offence with penalties of up to $2,200.
Use our online contact form to inform the Secretary of suspected stolen or illegally obtained goods.
If an authorised officer (such as a NSW Police officer, Transport NSW officer or a Fair Trading Investigator) believes a recycler is in possession of a motor vehicle, part, or accessory that has been stolen or illegally obtained, the officer can issue a non-disposal notice.
A non-disposal notice stops you from altering, selling, or disposing of suspicious goods for a period of 14 days and can be further extended by application to the Local Court.
Failure to comply with a non-disposal notice can result in a penalty of up to $55,000.
Odometer tampering
Do not tamper with a vehicle odometer.
It’s against the law to interfere with an odometer reading by:
- altering the reading
- removing or replacing the odometer, or
- stopping it from working in any way.
You can only repair or replace an odometer if the Secretary is notified using the approved form, and the odometer reading is restored to reflect the accurate reading of the motor vehicle.
You can be issued with a penalty notice of $1,100 or face prosecution with a maximum penalty of $22,000.
If convicted by a court, you can also be liable to pay compensation to customers for any losses incurred between the sale price and fair price of the vehicle at the time of sale.