Do I need a licence to sell large volumes of ferrous scrap in Australia, and does it vary by state?
Short answer: Individual sellers offloading their own scrap generally don't need a licence, but scrap metal dealers themselves are regulated in several states — including specific second-hand dealer or scrap metal dealer licensing in places like Queensland, South Australia, and Western Australia — largely aimed at reducing metal theft. Requirements genuinely differ by state, so check your specific state's scrap metal dealer regulations if you're operating as a regular buyer or reseller rather than an occasional seller.
Skip the phone calls. List your ferrous scrap once and let verified buyers on ScrapTrade come to you with real offers.
List Free →Why this is regulated at all
Ferrous scrap theft — stolen manhole covers, road signage, construction materials, agricultural equipment — has been a big enough problem in parts of Australia that several states introduced scrap metal dealer licensing specifically to make stolen material harder to sell anonymously through registered dealers.
What this means as an individual seller
You’re very unlikely to need a licence just to sell your own scrap, but expect a licensed dealer to ask for photo ID and to record certain transaction details, particularly for larger volumes or cash payments. This is a compliance obligation on the buyer, not something you need to arrange yourself.
If you’re trading regularly
If you’re buying and reselling ferrous scrap as an ongoing business rather than clearing your own material, check your specific state’s second-hand dealer or scrap metal licensing requirements directly, since obligations and thresholds vary meaningfully between jurisdictions.
How ScrapTrade Makes This Easier
ScrapTrade only works with business-verified buyers, so the licensing and ID-check side of a transaction is already handled on a legitimate footing when you sell through the platform.
Ready to sell or source steel and ferrous scrap without the guesswork? ScrapTrade connects verified buyers and sellers with escrow-protected payments and transparent weighing.
List or Find Ferrous Scrap on ScrapTrade →