Selling scrap online has transformed from informal roadside deals into a structured, transparent part of Australia’s circular economy. A digital scrap marketplace like ScrapTrade – Australia’s Online Scrap Trading Marketplace makes it easier to connect with verified buyers and sell scrap online. But before you dive in, understanding the regulatory landscape is essential.
Australia’s approach to scrap trading combines environmental protection, waste management regulations, and commercial compliance. This blog walks you through what licenses and registrations you might need from hobby sellers to full-time operators so you can trade scrap legally and confidently.
Why Licensing Matters for Selling Scrap Online
Scrap isn’t just “junk metal.” Many materials particularly metals, e-waste, batteries, and regulated waste streams have environmental and safety implications. Licensing helps protect:
- Public safety (e.g., safe handling of hazardous materials)
- Environmental outcomes (e.g., lawful recycling)
- Market transparency (e.g., traceability for buyers and regulators)
Even when you use a trusted platform like ScrapTrade to list materials, compliance with Australian laws remains your responsibility.
Internal link: https://scraptrade.com.au/how-it-works
Understanding Your Role in the Supply Chain
Before we list specific licenses, identify where you fit on the spectrum:
- Casual sellers: Individuals selling occasional scrap they’ve accumulated from household projects.
- Side business operators: People selling scrap regularly but not yet registered as a formal business.
- Commercial scrap traders/recyclers: Entities that collect, process, and sell scrap as part of their business operations.
Licensing requirements increase with scale, material type, and how you handle or store scrap.
1. Business Registration
If you intend to sell scrap online regularly or as a source of income, start by registering a business. This doesn’t necessarily require a special “scrap dealer license,” but it sets the legal foundation.
You’ll typically choose between:
- Sole trader
- Partnership
- Company
Business registration is done through the Australian Business Register (ABR) and may include an Australian Business Number (ABN).
External reference: Australian Business Register
https://www.abr.gov.au/
2. State/Territory Waste or Scrap Dealer Licenses
Australia’s environmental and waste laws vary by state and territory. If you’re dealing with regulated waste streams or operating as a scrap dealer, you often need a specific waste management or dealer license.
Common examples include:
- Victoria: Resource Recovery Licence for handling controlled waste.
- New South Wales: Waste and resource recovery licensing for recyclers.
- Queensland: Environmental authority for recyclable material processors.
These licenses ensure you comply with local requirements for storage, transport, record-keeping, and public safety. Requirements depend on:
- The type of material (e.g., metals vs. hazardous e-waste)
- Volume being handled
- Whether you accept materials from the public
External reference: State environmental authorities (e.g., NSW EPA, EPA Victoria)
3. Hazardous Waste Handling and Transport Permits
Some scrap categories especially batteries, PCB-containing equipment, fluorescent lamps, and some electronic waste are classified as hazardous or regulated waste.
In these cases, additional permits may be needed to:
- Store hazardous materials safely
- Transport materials legally
- Ensure disposal or recycling meets standards
Transport regulations may also require compliance with the Australian Dangerous Goods Code, depending on the substance.
External reference: Australian Dangerous Goods Code
https://www.ntc.gov.au/
4. Local Council Requirements
Local councils often regulate activities like:
- Waste storage on property
- Business operations from residential premises
- Noise and environmental impact
If you plan to hold large volumes of scrap onsite — even if you sell it sell scrap online via ScrapTrade — your council may impose additional permits or usage approvals.
Check with your local council for details applicable to your area.
5. Record-Keeping and Reporting
Even when formal licensing isn’t required, strong record-keeping is essential. Good records help:
- Track where materials came from
- Demonstrate lawful transactions
- Support tax reporting for your business
Digital marketplaces like ScrapTrade help by providing transaction histories, messaging records, and documentation of offers and sales.
Internal link: https://scraptrade.com.au/
How ScrapTrade Makes Compliance Easier
A digital platform doesn’t replace legal requirements, but ScrapTrade supports your compliance journey by:
- Connecting you with verified scrap buyers in Australia
- Providing digital transaction trails for audits or reporting
- Allowing clear, documented listings to support material traceability
- Reducing risk through secure payments and transparent offers
Selling scrap online becomes not only convenient but also more defensible from a regulatory perspective when you operate through a structured marketplace.
Internal link: https://scraptrade.com.au/sell
Tips for New Scrap Traders in Australia
Start with these practical steps:
- Register for an ABN if you plan to trade regularly.
- Identify the materials you’ll trade and research whether they are classified as hazardous.
- Check state/territory guidance for dealer or waste licenses.
- Talk to your local council about any planning or zoning requirements.
- Keep detailed records of every scrap listing, buyer interaction, and transaction.
- Use secure platforms like ScrapTrade to enhance transparency and accountability.