Pawnbroker and second-hand dealer licences

Find out what licence you need as a pawnbroker or second-hand dealer in NSW.

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When a pawnbroker or second-hand dealer licence is needed

Pawnbroker licence

You need a pawnbroker licence to run a business offering loans to people who leave items of value as collateral. Employees of the business do not need a licence.

Pawnbrokers must notify NSW Fair Trading of all premises that will be used to conduct business and for the storage of goods.

Second-hand dealer licence

You need a second-hand dealer licence to run a business that buys, sells, or exchanges prescribed goods that have been used, or goods that have been bought by another person but are unused (for example, an unwanted gift).

These licences can be issued separately, or together as a combined licence. The different classes are:

  • Pawnbroker licence.
  • Second-hand dealer licence.
  • Pawnbroker and second-hand dealer licence.

You can apply for either licence class as:

  • an individual
  • a partnership, or
  • corporation.

Second-hand dealers must notify NSW Fair Trading of any places they intend to use regularly to conduct business. Trading in second-hand goods can be conducted from:

  • a shopfront
  • market stall, or
  • other places used infrequently.

Some second-hand dealers do not need a licence.

Prescribed second-hand goods

Second-hand goods are those that have been used, and goods that have not been used but have been purchased before.

In NSW, you only need a second-hand dealer licence to deal in:

  • items of jewellery that include gemstones or precious metals, including watches
  • gemstones and precious metals
  • electric or electronic goods, such as mobile phones, GPS equipment and audio devices
  • computer hardware, such as tablet computers and video game consoles
  • photographic and video equipment, including digital cameras, digital imaging equipment and video recording devices
  • musical instruments
  • sporting and recreational goods
  • watercraft used or capable of being used as a means of transportation on water, including parts of a watercraft. However, does not include watercraft that cannot be lawfully towed or otherwise conveyed by a light vehicle within the meaning of the Road Transport Act 2013
  • portable engine-powered, motorised and air-powered tools and equipment
  • car accessories.

When a licence is not needed

You do not need a licence under the Pawnbrokers and Second-hand Dealers Act 1996 (the Act) to:

  • trade in second-hand goods for a business or activity that you carry out in accordance with another authority, for example, under the Motor Dealers and Repairers Act 2013
  • deal in second-hand goods as part of a fundraising appeal under the Charitable Fundraising Act 1991
  • conduct the business of an auctioneer which does not include selling goods by tender
  • engage in recycling and rubbish collection programs.

You do not need a licence under the Act to do the following, provided that you are doing the following, while carrying on a business that does not require a licence under the Act:

  • sell goods in accordance with the Uncollected Goods Act 1995
  • take goods as a trade-in as part payment for any new or used goods, or to on sell any goods taken as a trade-in
  • sell any goods that have become second-hand goods by reason of being used in the course of a rental business conducted by the person
  • sell any goods so as to take or enforce securities over them.

You do not need a licence to deal in:

  • items that are not easily able to be carried or moved, such as non-electronic pianos and machinery that cannot be driven and is not portable
  • removable video or computer game cartridges or discs
  • wheelchairs and other mobility aids
  • microwave ovens, refrigerators, washing machines or other white goods
  • watercraft (that cannot be lawfully towed or otherwise conveyed by a light vehicle, within the meaning of the Road Transport Act 2013).

Eligibility requirements for pawnbroker and second-hand dealer licences

There are requirements you must meet to get a pawnbroker and/or second-hand dealer licence.

Who can apply for a licence

To be eligible you must:

  • be 18 years old or over
  • be a ‘fit and proper person’ to hold a licence
  • not be a disqualified person
  • not be a controlled member of a declared criminal organisation.

A corporation is only eligible to hold a licence if:

  • the corporation is a fit and proper person to hold a licence, and
  • each director of the corporation is a fit and proper person to hold a licence, and
  • the corporation is not a disqualified person.

The meaning of fit and proper person

NSW Fair Trading will perform checks, including financial and police checks, to determine whether you are a fit and proper person.

For example, this means you:

  • have not been found guilty of an offence involving fraud or dishonesty in the last 10 years, and are not currently involved in court proceedings for such an offence
  • have not been convicted of an offence under the Act, the regulations, or another Act administered by the Minister for Better Regulation and Fair Trading
  • are not a member of or regularly associates with members of a declared criminal organisation.

When a person or corporation can be disqualified from holding a licence

A person or corporation can be disqualified from holding a licence if:

  • the person is an undischarged bankrupt or is taking advantage of bankruptcy laws
  • a corporation is the subject of a winding-up order or similar
  • the person has been convicted of a relevant offence.

Where a person has been charged with an offence involving dishonesty, the Commissioner for Fair Trading may await the outcome of proceedings before determining the application.

Applying for a licence

What you need before an application

Before you begin your application for a new licence, make sure you have:

Apply for your licence

To submit your application:

You can apply for a 1, 3 or 5-year licence.

You can apply as:

  • an individual
  • a partnership (apply individually), or
  • a corporation.

Each person associated with the partnership, or each director of the corporation must be a fit and proper person to hold a licence.

This is for new applicants only.

What happens after you make an application

Review application

Your application will be reviewed and assessed to check it meets eligibility requirements. We aim to assess your application within 30 days.

We might contact you (by email or post) if we need more information.

You cannot operate as a pawnbroker or second-hand dealer of prescribed goods while your application is being assessed.

You will get a copy of your licence if your application is successful

We will send an email to advise you if your application has been successful.

If your application is successful, the email will include a copy of your licence.

If your application is unsuccessful, you’ll be advised of the reasons in writing within 21 days and be provided with your options

Renewing your licence

You need to renew your pawnbroker and/or second-hand dealer licence before it expires.

How to renew your licence

We will send you a renewal form about four weeks before the expiry date with details of how to renew. We will also send you an SMS reminder.

You can renew online or in-person at your nearest Service NSW Centre.

To renew, you will need:

  • your licence number
  • your renewal number (from your renewal notice), or
  • full personal details.

If your licence is not renewed by the due date it will expire, and you will no longer be authorised to work as a pawnbroker and/or second-hand dealer in NSW.

Restoring your licence after expiry

If your licence expired less than 3 months ago, you can restore it (for a fee) at a Service NSW Centre.

You can use the details on your renewal form to restore your licence.

You can keep using your current licence number if your licence is restored. Your licence is considered renewed from the day it expired.

If your licence has been expired for more than 3 months and you have not been given an extension by the Commissioner for Fair Trading, you will need to reapply for your licence. You cannot trade until you get your new licence.

In certain circumstances, the Commissioner of Fair Trading may extend the period to restore your licence, including if the Commissioner is satisfied that:

  • failing to apply before renewal was unintentional, or
  • restoring your licence is a fair and just outcome.

Replacing your licence

If your licence has been destroyed, lost or stolen, you can order a replacement (for a fee) at a Service NSW Centre.

To replace a licence, you will need:

  • your personal details
  • your licence details
  • a request in writing explaining the reason why a replacement licence is needed.

Changing details on your licence

As a licence holder, it is your responsibility to tell us within 14 days if your name, address or other details change.

Before you apply to make changes to your licence, make sure you have:

  • your personal details
  • your licence number
  • a copy of a name change document, such as a marriage certificate or change of name certificate (if applicable)
  • a completed Application for Licence Amendment form
  • a signed letter that identifies the details that need to be changed.

Submit your request with supporting documents in-person at your nearest Service NSW Centre or by email to businesslicensing@customerservice.nsw.gov.au.

Change the class of your licence

You can change the class of your licence. For example, you can change from a pawnbroker licence to a second-hand dealer licence, or to a combined pawnbroker and second-hand dealer licence.

You can also remove licence classes if no longer required.

Before you change the class of your licence, make sure you have:

  • your personal details
  • your licence number
  • a signed letter requesting the change, including your name and licence details.

Submit your request with supporting documents in-person at your nearest Service NSW Centre.

It can take up to 30 days to process your application. You will be advised of the outcome by email.

Unsuccessful applications

If your application is unsuccessful, you can ask for a review within 28 days of receiving the result.

A review involves another officer from NSW Fair Trading, who was not involved in the original decision, reviewing the decision on your application.

Working interstate and in New Zealand

There are several ways of working across borders and you can find information on each of these at our Working interstate and in New Zealand page.

Mutual recognition

Mutual Recognition (MR) arrangements enable a licensed or registered worker to work in another state or territory by having their qualifications recognised in NSW and vice versa.

Interstate licensees need to apply for recognition of their existing licence in NSW and pay any applicable fees.

If you hold a current and equivalent licence in another state or territory:

Both forms and supporting documentation must be submitted together by email to businesslicensing@customerservice.nsw.gov.au

Trans-Tasman Mutual Recognition

The Trans-Tasman Mutual Recognition Arrangements operate under similar principles to MR where New Zealand licence holders are able to apply for recognition of their existing licence in Australia. The arrangement also enables Australian licence holders to have their licence recognised for regulated work in New Zealand.

Ask a question

If you need help with your application or have a question, please call 13 32 20.

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