When you need these licences, eligibility requirements, and how to apply.
On this page
Key information
When a pawnbroker or second-hand dealer licence is needed
Eligibility
How to apply
Renew a licence
Change the details on your licence
Working interstate and in New Zealand
Contact us
Key information
- In NSW, you need a pawnbroker licence to lend money on the security of pawned goods.
- You need a second-hand dealer licence to buy, sell, or exchange certain used goods.
- These licences can be issued separately, or together as a combined licence.
- You can apply as an individual, a partnership, or a corporation.
- You can apply for a 1, 3 or 5 year licence.
When a pawnbroker or second-hand dealer licence is needed
Pawnbroker licence
You need a pawnbroker licence to run a business offering loans to people who leave items of value as collateral. Employees of the business do not need a licence.
Pawnbrokers must notify Fair Trading of all premises that will be used to conduct business and for the storage of goods.
Second-hand dealer licence
You need a second-hand dealer licence to run a business that buys, sells, or exchanges prescribed goods that have been used, or goods that have been bought by another person but are unused (for example, an unwanted gift).
Second-hand dealers must notify Fair Trading of any places they intend to use regularly to conduct business. Trading in second-hand goods can be conducted from a shopfront, market stall, or other places used infrequently.
Some second-hand dealers do not need a licence. Before applying, check if you sell regulated goods below.
These licences can be issued separately, or together as a combined licence. The different classes are:
- Pawnbroker licence
- Second-hand dealer licence
- Pawnbroker and second-hand dealer licence
You can apply for either licence class as an individual, a partnership, or as a corporation.
Prescribed second-hand goods
Second-hand goods are those that have been used, and goods that have not been used but have been purchased before.
In NSW, you only need a second-hand dealer licence to deal in:
- jewellery (including watches) with gemstones or precious metals
- gemstones and precious metals
- electric or electronic goods (like mobile phones, GPS equipment and audio devices)
- computer hardware (like tablet computers and video game consoles)
- photographic and video equipment (including digital cameras, digital imaging equipment and video recording devices)
- musical instruments
- sporting and recreational goods
- watercraft and parts of a watercraft
- portable engine-powered, motorised and air-powered tools and equipment
- car accessories.
You don’t need a licence to deal in:
- items that are not listed above
- items that are not easily able to be carried or moved, like non-electronic pianos and machinery that cannot be driven and is not portable
- removable video or computer game cartridges or discs
- wheelchairs and other mobility aids
- microwave ovens, refrigerators, washing machines or other white goods
- watercraft that cannot be lawfully towed or otherwise conveyed by a light vehicle, within the meaning of the Road Transport Act 2013.
Learn more about your obligations working as a pawnbroker and second-hand dealer.
When a licence is not needed
You do not need a licence under the Pawnbrokers and Second-hand Dealers Act 1996 to:
- trade in second-hand goods for a business or activity that you carry out in accordance with another authority (for example, under the Motor Dealers and Repairers Act 2013)
- deal in second-hand goods as part of a fundraising appeal under the Charitable Fundraising Act 1991
- conduct the business of an auctioneer (the business of an auctioneer does not include selling goods by tender)
- engage in recycling and rubbish collection programs
- sell goods in accordance with the Uncollected Goods Act 1995
- take goods as a trade-in as part payment for any new or used goods, or to on sell any goods taken as a trade-in
- sell any goods that have become second-hand goods by reason of being used in the course of a rental business conducted by the person
- sell any goods so as to take or enforce securities over them.
Eligibility
There are requirements you must meet to get a pawnbroker and/or second-hand dealer licence.
Who can apply
To be eligible you must:
- be 18 years old or over
- be a ‘fit and proper person’ to hold a licence (see below)
- not be a disqualified person
A corporation is only eligible to hold a licence if:
- the corporation is a fit and proper person to hold a licence, and
- each director of the corporation is a fit and proper person to hold a licence, and
- the corporation is not a disqualified person.
What does 'fit and proper' mean?
Fair Trading will perform checks (including financial and police checks) to determine whether you are a fit and proper person.
For example, this means you:
- have not been found guilty of an offence involving fraud or dishonesty in the last 10 years, and are not currently involved in court proceedings for such an offence
- have not been convicted of an offence under the Pawnbrokers and Second-hand Dealers Act 1996, the regulations, or another Act administered by the Minister for Fair Trading
- are not a member of or regularly associate with members of a declared criminal organisation.
Who can be disqualified?
A person or corporation can be disqualified from holding a licence if:
- the person is an undischarged bankrupt or is taking advantage of bankruptcy laws
- a corporation is the subject of a winding-up order or similar
- the person has been convicted of a relevant offence
- there is an exclusion order against that person
- the person is mentally incapacitated.
Relevant offences are listed in the Act. They include operating without a licence, failing to keep goods at approved premises, and providing false or misleading information.
Where a person has been charged with an offence involving dishonesty, the Commissioner for Fair Trading may await the outcome of proceedings before determining the application.
How to apply
What you need
Before you begin your application for a new licence, make sure you have:
- proof of identity (such as driver’s licence or passport)
- corporation and business registration details (if applicable)
- the address of any premises where goods will be held, stored and sold
- completed the licence application form
- payment for the licence fee. See our fees page for details.
Apply now
To submit your application:
- download and complete the application form
- visit your nearest Service NSW Centre to apply in person, or email it to [email protected].
You can apply for a 1, 3 or 5-year licence.
You can apply as an individual, a partnership (apply individually), or a corporation. Each person associated with the partnership, or each director of the corporation must be a fit and proper person to hold a licence.
This is for new applicants only. Find out how to renew your licence below.
What happens next?
Review application
Your application will be reviewed and assessed to check it meets eligibility requirements. This can take up to 30 business days.
We might contact you (by email or post) if we need more information.
You cannot operate as a pawnbroker or second-hand dealer while your application is being assessed.
Outcome advised
We will send an email to advise you if your application has been successful.
If your application is successful, the email will include a copy of your licence.
If your application is unsuccessful, you’ll be advised of the reasons in writing within 21 days and be provided with your options.
Renew your licence
You need to renew your pawnbroker and/or second-hand dealer licence before it expires.
How to renew
We will send you a renewal form about four weeks before the expiry date with details of how to renew. We will also send you an SMS reminder.
You can renew online or in-person at your nearest Service NSW Centre.
To renew, you will need:
- your licence number
- your renewal number (from your renewal notice), or full personal details
If your licence isn't renewed by the due date it will expire, and you will no longer be authorised to work as a pawnbroker and/or second-hand dealer in NSW.
Restoring your licence after expiry
If your licence expired less than three months ago, you can restore it (for a fee) at a Service NSW Centre .
You can use the details on your renewal form to restore your licence.
If your licence is restored, you’ll keep your existing licence number. In this instance, your licence is considered to have been renewed from the day the licence expired.
If your licence has been expired for more than 3 months and you have not been granted an extension by the Commissioner, restoration may not be an option and you will need to reapply. You cannot trade until your new licence is issued.
In certain circumstances, the Fair Trading Commissioner may extend the period to restore your licence if satisfied that:
- failing to apply before renewal was unintentional, or
- restoring your licence is a fair and just outcome.
Replacing your licence
If your licence has been destroyed, lost or stolen, you can order a replacement (for a fee ) at a Service NSW Centre.
To replace a licence you will need:
- Your personal details
- Your licence details
- A request in writing explaining the reason why a replacement licence is needed
Change the details on your licence
As a licence holder, it is your responsibility to tell us within 14 days if your name, address or other details change.
Before you apply to make changes to your licence, make sure you have:
- your personal details
- your licence number
- a copy of a name change document, such as a marriage certificate or change of name certificate (if applicable)
- a completed Application for Licence Amendment form
- a signed letter that identifies the details that need to be changed.
Submit your request with supporting documents in-person at your nearest Service NSW Centre or by email to [email protected] .
Change the class of your licence
You can change the class of your licence. For example, you can change from a pawnbroker licence to a second-hand dealer licence, or to a combined pawnbroker and second-hand dealer licence.
You can also remove licence classes if no longer required.
Before you change the class of your licence, make sure you have:
- your personal details
- your licence number
- a signed letter requesting the change, including your name and licence details
Submit your request with supporting documents in-person at your nearest Service NSW Centre.
It can take up to 30 days to process your application. You will be advised of the outcome by email.
Working interstate and in New Zealand
There are several ways of working across borders and you can find information on each of these at our Working interstate and in New Zealand page.
Mutual recognition
Mutual Recognition (MR) arrangements enable a licensed or registered worker to work in another state or territory by having their qualifications recognised in NSW and vice versa.
Interstate licensees need to apply for recognition of their existing licence in NSW and pay any applicable fees.
If you hold a current and equivalent licence in another state or territory:
- you can use this form to apply for recognition of your qualifications to work in NSW, and
- you must also complete the application for a Licence form and pay the fee.
Both forms and supporting documentation must be submitted together by email to [email protected].
Trans-Tasman Mutual Recognition
The Trans-Tasman Mutual Recognition Arrangements operate under similar principles to MR where New Zealand licence holders are able to apply for recognition of their existing licence in Australia. The arrangement also enables Australian licence holders to have their licence recognised for regulated work in New Zealand.
Contact us
Need help applying?
If you need help with your application or have a question, please call 13 32 20.
Unsuccessful applications
If your application is unsuccessful, you can ask for a review within 28 days of receiving the result.
A review involves another officer from Fair Trading, who was not involved in the original decision, reviewing the decision on your application.
For more information about the process see reviews of Fair Trading decisions.