If you’ve searched “cash for scrap metal near me,” you’ve probably noticed almost every scrap yard in Melbourne uses that exact phrase. It’s the industry’s shorthand for “we’ll pay you for your metal” – but taken literally, it’s not actually accurate. In Victoria, paying or receiving physical cash for scrap metal has been against the law since 2018.
That doesn’t mean you won’t get paid. It just means the payment won’t land in your hand as notes and coins. Here’s exactly what the law requires, what it means for you as a seller, and what to expect when you book a scrap metal collection or drop-off anywhere in Melbourne’s south-east.
1. The Quick Answer
No. According to Consumer Affairs Victoria’s official scrap metal laws, cash payments for scrap metal are banned in Victoria under the Second-Hand Dealers and Pawnbrokers Act 1989 and its associated Regulations. Every registered scrap metal dealer in the state – including SGS Metal Alloys – must pay sellers by non-transferable cheque or electronic funds transfer (EFT). Bitcoin and other e-currency don’t count as valid payment either.
Why Cash Was Banned in the First Place
The ban wasn’t introduced to slow down honest sellers – it was introduced to make stolen metal harder to sell. Copper stripped from construction sites and public infrastructure, stolen vehicles, and building materials were being converted into untraceable cash through scrap yards. By forcing every transaction through a bank account, the law creates a paper trail: if metal turns out to be stolen, there’s a record of exactly who sold it and when.
For genuine sellers – homeowners, tradies, and businesses clearing out old metal – this doesn’t add friction to a legitimate sale. It just means you’re paid electronically instead of walking out with notes in your pocket.
What Payment Methods Are Actually Legal
Under the Regulations, a scrap metal dealer can only pay you with:
- A cheque that is not transferable and not payable to cash, or
- An electronic funds transfer (EFT) to your bank account.
E-currency, including cryptocurrency, is explicitly excluded and cannot be used to pay for scrap metal in Victoria.
What You’ll Need to Bring When You Sell
Because dealers are legally required to keep a record of every transaction, you’ll need to provide:
- Your name and address
- Valid identification details
- Your bank details, so the EFT payment can be processed
For a motor vehicle sold as scrap, the dealer must also record the vehicle identifier (its VIN or chassis number), so bring your registration papers or be ready to confirm this on-site.
What the Dealer Has to Record
This part protects you as much as it protects the dealer. Every time you sell scrap metal, a registered dealer is legally required to record:
- An accurate description of the metal, including quantity and/or weight
- Your name, address, and identification details
- The date and time the metal was received
- A copy of the cheque or EFT transaction
If you’re selling a small mixed lot worth under $100 per item, dealers can log it as a single combined entry rather than itemising everything separately – so a boot full of household scrap doesn’t need to be recorded piece by piece.
Vehicles Are Treated a Little Differently
If you’re scrapping a car, there are extra rules. A dealer cannot buy, possess, or dispose of a vehicle if its VIN has been removed, defaced, or altered – this is specifically aimed at stopping stolen vehicles from being scrapped for parts or metal. If a vehicle’s identifier has simply become illegible through age or damage, a dealer can still accept it, but without payment, and only with a police officer’s written consent before it’s resold or dismantled.
This is worth knowing if you’re clearing an old, weathered vehicle – it’s why a dealer may ask more questions about an older car’s paperwork than you’d expect.
What This Means If You’re Selling Scrap in Melbourne’s South-East
Whether you’re clearing out a garage in Pakenham, a renovation site in Berwick, or an old car battery in Narre Warren, the same rules apply everywhere in Victoria – there’s no suburb-by-suburb variation. The practical difference for you is simply which dealer you choose to work with, and how smoothly they handle the paperwork side of the transaction.
At SGS Metal Alloys, every collection and drop-off is processed as a compliant EFT transaction, with your details recorded exactly as the law requires – no cash, no shortcuts, and no surprises when it’s time to get paid. If you’re clearing a vehicle rather than loose metal, our Cash For Cars service follows the same payment and identification rules outlined above.
We service Pakenham and the wider south-east Melbourne region, with same-day and next-day pickups available for households, tradies, and businesses. If you’re not sure what your load is worth before you book, our industrial scrap metal and metal-specific service pages break down what we accept and how each material is assessed.
Frequently Asked Questions
Do I need an ABN to sell scrap metal in Victoria?
No. An ABN is only required if you’re a registered business selling on a commercial basis. Individual household sellers don’t need one.
Can a scrap dealer legally give me cash if I ask for it?
No. It’s an offence for both the dealer and the seller if cash changes hands for scrap metal in Victoria, regardless of the amount involved.
What happens if I don’t have ID on me?
A registered dealer is required to record your identification details for every transaction, so you won’t be able to complete a sale without it. Bring a driver’s licence or other government-issued photo ID.
Does this apply to small loads too, like a single car battery?
Yes. The payment and record-keeping rules apply to every scrap metal transaction in Victoria, regardless of size – though very small mixed items under $100 can be logged as a single combined entry rather than itemised individually.
Ready to Sell Your Scrap Metal the Right Way?
SGS Metal Alloys has been operating as a fully licensed, compliant scrap metal dealer for over 25 years. Get a free quote or call 03 9088 0299 to book a pickup anywhere across Pakenham and Melbourne’s south-east.