Second-Hand Dealers and Pawnbrokers Regulations 1997

Version No. 011

Second-Hand Dealers and Pawnbrokers Regulations 1997

S.R. No. 175/1997

Version incorporating amendments as at 1 July 2004

table of provisions

RegulationPage

1

RegulationPage

PART 1—PRELIMINARY

1.Objectives

2.Commencement

3.Authorising provisions

4.Revocation

5.Definition

PART 2—EXEMPTIONS

6.Exemptions

PART 3—REGISTRATION

7.Fees

8.Register

9.Prescribed categories of evidence as to identity—applicants
for registration

10.Display of sign

PART 4—CONDUCT OF BUSINESS

11.Prescribed categories of evidence as to identity—persons
selling or pawning goods

12.Recording transactions

13.Identifying mark or number

14.Pawn ticket

15.Lost pawn ticket

16.Period of loan

17.Redemption of goods

18.Sale of unredeemed goods

PART 5—ENFORCEMENT

19.Entry and search of premises

20.Embargo notice

21.Infringement penalties

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SCHEDULES

SCHEDULE 1—Revoked Regulations

SCHEDULE 2—Exempt Goods

SCHEDULE 3—Pawn Ticket

SCHEDULE 4—What are My Rights when I Pawn Goods?

SCHEDULE 5—Notice of Sale of Pawned Goods

SCHEDULE 6—Acknowledgment of Consent to Entry and Search
of Premises

SCHEDULE 7—Embargo Notice

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ENDnotes

1. General Information

2. Table of Amendment

3. Explanatory Details

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Version No. 011

Second-Hand Dealers and Pawnbrokers Regulations 1997

S.R. No. 175/1997

Version incorporating amendments as at 1 July 2004

1

Second-Hand Dealers and Pawnbrokers Regulations 1997

S.R. No. 175/1997

Part 1—Preliminary

1.Objectives

The objectives of these Regulations are to provide for—

(a)the exemption of certain persons and goods from the application of the whole or part of the Second-Hand Dealers and Pawnbrokers Act 1989 or these Regulations;

(b)fees payable under the Act;

(c)the particulars to be recorded in the register of second-hand dealers;

(d)categories of documents as to identity;

(e)record-keeping requirements;

(f)forms;

Reg. 1(g) amended by S.R. No. 61/2002 reg. 5(a).

(g)the manner of disposal by pawnbrokers of unredeemed goods;

Reg. 1(h) amended by S.R. No. 61/2002 reg. 5(b).

(h)offences in respect of which an infringement notice may be issued.

2.Commencement

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These Regulations come into operation on 1 January 1998.

3.Authorising provisions

These Regulations are made under sections 7(2), 11, 13, 19(1), 20 and 31 of the Second-Hand Dealers and Pawnbrokers Act 1989.

4.Revocation

The Regulations referred to in Schedule 1 are revoked.

5.Definition

In these Regulations, "Act" means the Second-Hand Dealers and Pawnbrokers Act 1989.

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Part 2—Exemptions

6.Exemptions

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(1)A second-hand dealer is exempted from the application of the whole of the Act and these Regulations—

(a)when carrying on business exclusively for or on behalf of any charitable, benevolent or philanthropic organisation; or

(b)when carrying on business at any event known as an antique fair which is conducted exclusively for or on behalf of any charitable, benevolent or philanthropic organisation.

(2)A second-hand dealer is exempted from section 19 of the Act when a person attempting to sell goods to the second-hand dealer previously purchased those goods from that second-hand dealer.

(3)If—

(a)a second-hand dealer arranges, by means of telephone, facsimile machine or other similar means of communication, to purchase second-hand goods from a person; and

(b)the second-hand dealer requires the person to provide evidence as to the person's identity by means of a copy of the document or documents referred to in section 19 of the Act or regulation 11—

the second-hand dealer is exempted from the application of section 19(1) of the Act.

Reg. 6(4) revoked by S.R. No. 92/2002 reg. 3(1).

*****

(5)Goods which have been worn or otherwise used and which belong to a class of goods described in Schedule 2 are goods that are exempted from the application of the whole of the Act and these Regulations.

(6)The following goods are exempted from the application of section 21(1) of the Act—

(a)an engine constructed for use as a motor tractor;

(b)a motor vehicle so constructed that its engine is used to drive or operate an agricultural, construction or earthmoving implement forming an integral part of the motor vehicle.

Reg. 6(7) inserted by S.R. No. 92/2002 reg. 3(2).

(7)Section 3(2) of the Act does not apply to goods received by—

(a)a registered corporation within the meaning of the Financial Corporations Act 1974 of the Commonwealth; or

(b)an authorised deposit-taking institution within the meaning of the Banking Act 1959 of the Commonwealth; or

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(c)a bank constituted under the law of the Commonwealth or of a State or Territory.

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Part 3—Registration

7.Fees

Reg. 7(1) amended by S.R. No. 88/2004 reg. 4(Sch. 1 item 43.1).

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(1)For the purposes of section 7(2)(c) of the Act, the prescribed fee which must accompany an application for registration is 11 fee units.

Reg. 7(2) amended by S.R. No. 88/2004 reg. 4(Sch. 1 item 43.2).

(2)For the purposes of section 11 of the Act, the prescribed fee which must accompany a statement is 3 fee units.

(3)For the purposes of section 13(3) of the Act, the prescribed fee for a copy of or an extract from the register is $5.

8.Register

For the purposes of section 13(1) of the Act, the following are the prescribed particulars to be contained in the register in respect of each person registered under Part 2 of the Act—

(a)the person's registration number in the register;

(b)the date of registration under Part 2 of the Act;

(c)the person's full name;

(d)if the person is a body corporate, the corporation's ACN or registration number;

(e)every address at which the person carries on business;

(f)any business names under which the person carries on business.

9.Prescribed categories of evidence as to identity—applicants for registration

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In addition to the documents referred to in section 7(2)(b) of the Act, the following categories of documents as to identity are prescribed for the purposes of section 7(2)(b)—

(a)certificates of Australian citizenship;

(b)marriage certificates;

(c)licences issued under the Firearms Act 1996.

10.Display of sign

A person registered as a second-hand dealer under Part 2 of the Act must display in a prominent position outside each business premises above or beside the principal entrance to the premises a legible sign measuring not less than 50 centimetres by 30 centimetres and stating the person's full name and the words "Registered second-hand dealer".

Penalty: 20 penalty units.

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Part 4—Conduct of Business

11.Prescribed categories of evidence as to identity—persons selling or pawning goods

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In addition to the documents referred to in section 19(1) of the Act, the following categories of documents as to identity are prescribed for the purposes of section 19(1)—

(a)in the case of natural persons—

(i)full birth certificates or extracts of birth;

(ii)certificates of Australian citizenship;

(iii)marriage certificates;

Reg. 11(a)(iv) substituted by S.R. No. 61/2002 reg. 6.

(iv)the following cards issued by or on behalf of the Commonwealth Department of Family and Community Services or the Commonwealth Department of Health and Ageing—

(A)Commonwealth seniors health cards;

(B)health care cards;

(C)pensioner concession cards;

Reg. 11(a)(v) substituted by S.R. No. 61/2002 reg. 6.

(v)any other card issued by or on behalf of the Commonwealth Department of Family and Community Services, the Commonwealth Department of Health and Ageing or the Commonwealth Department of Veterans' Affairs that certifies entitlement to Commonwealth health concessions;

(vi)identification cards issued by a tertiary education institution;

(vii)licences issued under the Firearms Act 1996;

(b)in the case of incorporated bodies, certificates of registration or incorporation.

12.Recording transactions

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(1)For the purposes of section 20 of the Act, a second-hand dealer or pawnbroker must maintain a bound record book or operate and maintain a computerised record-keeping system in place of a bound record book.

(2)A second-hand dealer must record in the bound record book or record onto the computerised record-keeping system, during or immediately after every transaction in which the second-hand dealer receives second-hand goods, the following information—

(a)an accurate description of the goods received, including a description of any identifying mark or label on the goods;

(b)the identifying mark or number assigned by the second-hand dealer to the goods;

(c)the full name and address of the person from whom the goods are received;

(d)details of the identification provided by that person;

(e)the date and time at which the goods are received;

(f)the price, if any, paid for the goods;

(g)the name of the person acting on behalf of the second-hand dealer in the transaction.

(3)A pawnbroker must record in the bound record book or record onto the computerised record-keeping system, during or immediately after each transaction, the following information in respect of each transaction—

(a)the number of the transaction (corresponding with the number of the pawn ticket issued);

Reg. 12(3)(b) amended by S.R. No. 61/2002 reg. 7(1).

(b)an accurate description of the goods pawned, including a description of any identifying mark or label on the goods;

(c)the full name and address of the person from whom the goods are received;

Reg. 12(3)(ca) inserted by S.R. No. 61/2002 reg. 7(2).

(ca)details of the identification provided by that person;

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Reg. 12(3)(cb) inserted by S.R. No. 61/2002 reg. 7(2).

(cb)the address to which notices to the person are to be sent;

(d)an alternative address for the service of notices on the person from whom the goods are received if the person has so requested;

(e)the date on which the goods are pawned;

(f)the amount of money advanced on the security of the pawned goods;

(g)the charge imposed on the transaction;

(h)the amount and date of every payment;

(i)the period of the loan;

(j)if the goods are redeemed, the date of redemption;

(k)if the goods are not redeemed—

(i)the date of sale of the goods, the price paid and the reasonable costs of sale; or

(ii)if not sold, the manner of disposal of the goods.

(4)If a computerised record-keeping system is operated and maintained, a second-hand dealer or pawnbroker must—

(a)produce, on a daily basis, a printed and sequentially pre-numbered hard copy of all transactions recorded onto the computerised record keeping system on that day; and

Reg. 12(4)(b) amended by S.R. No. 61/2002 reg. 7(3).

(b)keep, at the business premises notified to the Authority from time to time, the records of transactions produced in accordance with paragraph (a).

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(5)If a second-hand dealer buys or exchanges second-hand goods—

(a)in a lot or parcel at the same time; and

(b)the value of each item in the lot or parcel is less than $50—

sub-regulation (2) is satisfied if the lot or parcel is described in one entry in the record book or on the computerised record-keeping system.

(6)If a second-hand dealer buys or exchanges second-hand goods—

(a)in a lot or parcel at the same time; and

(b)the value of any item in the lot or parcel is $50 or more; and

(c)that item has an identifying mark or label—

the second-hand dealer must enter a record of that item in the record book or onto the computerised record-keeping system, in accordance with sub-regulation (2) and the remainder of the lot or parcel may be recorded in accordance with sub-regulation (5).

(7)If a second-hand dealer buys second-hand goods at auction, sub-regulation (2) is satisfied if the second-hand dealer—

(a)obtains a receipt signed by the auctioneer containing the following information—

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(i)an accurate description of the goods received, including a description of any identifying mark or label on the goods;

(ii)the identifying mark or number assigned by the second-hand dealer to the goods;

(iii)the full name and business address of the auctioneer by whom the auction was conducted;

(iv)the date on which the goods are received;

(v)the price paid for the goods;

(vi)the name of the person acting on behalf of the second-hand dealer in the transaction; and

(b)enters in the record book or onto the computerised record-keeping system a reference to identify the receipt.

(8)If a second-hand dealer imports second-hand goods from outside Australia, sub-regulation (2) is satisfied if the second-hand dealer—

(a)produces on demand the documents of consignment and relevant customs documents relating to the goods; and

(b)enters in the record book or onto the computerised record-keeping system a reference to identify the documents.

Reg. 12(9) amended by S.R. No. 61/2002 reg. 7(3).

(9)If a second-hand dealer or pawnbroker receives second-hand or pawned goods at any premises other than those notified to the Authority from time to time, the second-hand dealer or pawnbroker must record the transaction in the bound record book or onto the computerised record-keeping system as soon as practicable after the transaction.

13.Identifying mark or number

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If a second-hand dealer is required to assign an identifying mark or number to second-hand goods received by him, her or it, that mark or number must remain affixed to the goods at all times until the goods are sold or otherwise disposed of by the second-hand dealer.

14.Pawn ticket

Reg. 14(1) substituted by S.R. No. 61/2002 reg. 8.

(1)A pawn ticket issued by a pawnbroker under section 23(3)(a) of the Act must contain the particulars listed in Schedule 3 completed as appropriate.

Reg. 14(1A) inserted by S.R. No. 61/2002 reg. 8.

(1A)A notice under section 23(3)(b) of the Act must be in the form of Schedule 4 and—

(a)the heading to the form and the headings "In brief", "For further information" and "In more detail" must be printed in at least 14 point bold font; and

(b)the words between "In brief" and "For further information" must be printed in at least 12 point bold font; and

(c)other headings must be printed in at least 12 point bold font; and

(d)the remainder of the form must be printed in at least 12 point font.

(2)A pawnbroker must not charge a fee for the issue of a pawn ticket.

Penalty applying to this sub-regulation: 20 penalty units.

15.Lost pawn ticket

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If a person who has pawned goods produces to the pawnbroker—

(a)a statutory declaration that the person has lost the pawn ticket or the pawn ticket has been stolen; and

(b)evidence as to the person's identity referred to in section 19(1)(a) or (b) of the Act—

the pawnbroker must issue a duplicate pawn ticket.

Penalty: 20 penalty units.

16.Period of loan

(1)A pawnbroker must fix the period of the loan on the security of pawned goods at the time the goods are pawned.

Penalty: 20 penalty units.

(2)The period of a loan commences on the day the goods are pawned.

17.Redemption of goods

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(1)A person who has pawned goods may redeem the goods by paying the outstanding amount of the loan and producing to the pawnbroker—

(a)the pawn ticket or duplicate pawn ticket; and

(b)evidence as to the person's identity referred to in section 19(1)(a) or (b) of the Act.

(2)A person who has pawned goods may redeem the goods at any time before the pawnbroker sells or disposes of them, despite the expiry of the period of the loan.

18.Sale of unredeemed goods

(1)Subject to this regulation, if—

(a)the period of a loan expires and is not extended; and

(b)the goods pawned as security on the loan are unredeemed—

the pawnbroker must offer the goods for sale as soon as practicable and so as to receive the best price reasonably obtainable.

Penalty: 20 penalty units.

Reg. 18(2) substituted by S.R. No. 61/2002 reg. 9.

(2)A notice under section 23A(3) of the Act must be in the form of Schedule 5 and—

(a)the heading to the form and the words commencing "Name and address of pawnbroker" and ending "Date by which you must claim this money" and the words "What you need to do" and "Details of pawned goods and sale" must be printed in at least 14 point bold font; and

(b)the remainder of the form must be printed in at least 12 point font.

Reg. 18(3)–(5) revoked by S.R. No. 61/2002 reg. 9.

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(6)A pawnbroker must not purchase goods that have been pawned as security with the pawnbroker and have not been redeemed at or after the expiration of the period of the loan.

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Penalty: 20 penalty units.

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Pt 5
(Regs 19–21) inserted by S.R. No. 61/2002 reg. 10.

Part 5—Enforcement

Reg. 19 inserted by S.R. No. 61/2002 reg. 10.

19.Entry and search of premises

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For the purposes of section 26J(3) of the Act, an acknowledgment of consent to an entry and search of premises must be in the form of Schedule 6.

Reg. 20 inserted by S.R. No. 61/2002 reg. 10.

20.Embargo notice

For the purposes of section 26P(1) of the Act, an embargo notice must be in the form of Schedule 7.

Reg. 21 inserted by S.R. No. 61/2002 reg. 10.

21.Infringement penalties

For the purposes of Division 3 of Part 5 of the Act, the infringement penalty shown in column 2 of the following Table opposite an offence against a provision in column 1 is the infringement penalty prescribed for that offence.

Column 1 / Column 2
Offence / Penalty units
section 20 / 2
section 21(1) / 2
section 21A / 2
section 23(2) / 2
section 23(3) / 2
section 23A(3) / 2
section 24B / 2

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SCHEDULES

SCHEDULE 1

Sch. 1

Revoked Regulations

Title / S.R. No.
Second-Hand Dealers and Pawnbrokers Regulations 1990 / 243/1990
Second-Hand Dealers and Pawnbrokers (Amendment) Regulations 1991 /
41/1991
Second-Hand Dealers and Pawnbrokers (Exemptions) Regulations 1992 /
219/1992
Second-Hand Dealers and Pawnbrokers (Exemption)
(No. 2) Regulations 1997 /
23/1997

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Sch. 2 amended by S.R. No. 92/2002 reg. 3(3).

SCHEDULE 2

Sch. 2

Exempt Goods

Item
1. / Goods collected under a local government recycling scheme
2. / Clothing, including footwear
3. / Kitchenware, including pots, pans and crockery (but not electrical or electronic appliances)
4. / Cutlery, where the price paid for the goods by the second-hand dealer does not exceed $50
5. / Glassware (including bottles), where the price paid for the goods by the second-hand dealer does not exceed $50
6. / Cans of any kind
7. / Waste plastic materials
8. / Waste paper materials
9. / Salvaged building materials including doors, window frames, tiles, bricks and timber
10. / Domestic white goods, including refrigerators, freezers, washing machines, clothes driers, ovens and ironing presses (but not portable or camping refrigerators or microwave ovens)
11. / Factory seconds
12. / Books, magazines and periodicals
13. / Ferrous and non-ferrous scrap metal (excluding goods containing copper, gold or silver)

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SCHEDULE 3

Sch. 3

Pawn Ticket

Name of pawnbroker:

Address:

Full name and address of person from whom goods are received:

Date of loan:

Amount loaned:

Description of goods pawned:

Number of transaction:

Charges:

Period of loan:

Amount(s) paid and date(s) of payment:

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Sch. 4 substituted by S.R. No. 61/2002 reg. 11.

SCHEDULE 4

Sch. 4

What are My Rights when I Pawn Goods?

Second-Hand Dealers and Pawnbrokers Act 1989 (section 23A(3)(b))

In brief

The pawnbroker must give you a pawn ticket and written notice of the charge you will have to pay in addition to the loan.

If you do not repay your loan in time, the pawnbroker can sell your goods without telling you.

If the pawnbroker sells your goods, you are entitled to claim the money left from the proceeds of sale after the money you owe under the loan, any unpaid pawnbroker's charge and the reasonable costs of sale of the goods have been deducted.