From the 30th of May 2018, scrap metal traders operating in Victoria will no longer be able to offer cash for scrap metal. This change is part of a set of Victorian Government reforms designed to crack down on criminal activities and the operation of criminal organisations in the state. In this blog, we’ll take a look at the new legislation and what it means for those wanting to make a profit from scrap metal.
What does scrap metal have to do with crime?
For a number of years now, criminal organisations have taken advantage of Victoria’s loose legislation surrounding cash for scrap metal. Because scrap metal businesses have been able to offer cash in exchange for scrap metal with no questions asked and no paper trail, some criminal organisations have used this industry as a stream of revenue by stealing older model cars and selling them to scrappers for cash.
In recent years, this behavior has been escalating and thefts of older model cars have increased whilst some rogue scrap metal businesses have turned a blind eye to the illegal activities.
What is the new legislation?
Under the new legislation, scrap metal businesses are no longer able to offer cash in exchange for scrap metal. Payments must now be made electronically or via cheque so that there is some documentation of transactions which can be followed up if a scrapped car is found to be stolen.
This simple measure is designed to stop this criminal organisations earning revenue from the sale of stolen vehicles. Scrap metal businesses found to be in possession of an unidentified or stolen vehicle, or with ‘dodgy’ transaction records can face fines of up to $31,000.
Does Metal Men Recycling still pay for scrap metal?
As a legitimate scrap metal business dedicated to helping businesses and members of the public make a profit from their unwanted scrap metal, these changes will have little effect on the way Metal Men Recycling is operated.
We still offer fair prices for a wide range of recyclable metals including copper, brass, aluminum and steel as well as for car batteries and electronic waste.
As a customer of ours, you will now receive payment electronically or via cheque (it’s up to you) and you can expect the same friendly, professional service we have always provided.
If you happen to have some scrap metal that you’ve been meaning to get rid of, please don’t hesitate to drop by our Pakenham location or give us a call on 03 5941 6677. We offer scrap metal collection services throughout the city of Melbourne.