Why Ban On Cash Payments For Scrap Cars Introduced?
Payments in cash for scrap cars has been a very successful business model. It allowed scrap car sellers to sell their unwanted cars quickly – and receive an instant cash payment for the sale. But there were unscrupulous people taking advantage of this model as well. Stolen cars were being sold for cash, and since the cars were recycled, tracking them became impossible. Such illegal activities forced the NSW government to introduce the Scrap Metal Industry Bill. The bill is meant to better regulate the scrap metal industry, ensuring that every sale is documented and traceable.
Scrap Metal Industry Bill – What’s Its Purpose?
The main purpose of the Scrap Metal Industry Bill is to put a stop to car thefts and tax evasion. The Scrap Metal Industry Bill was passed, with many changes introduced to the current system so that the ‘criminal getaways’ could be brought to an end or at least reduced.
Police Have The Power To Conduct Searches Without Warrant
The bill empowers the police to be able to conduct searches in business premises without warrant and to investigate any suspected illegal property that may have been sold to the business.
Scrap Metal Dealers Must Register Their Business
The bill also requires the companies to have themselves registered before continuing their business since any company dealing without the certificate of registration will be committing a crime.
Proper Documentation of Every Scrap Metal Sale/Purchase Is Mandatory
Moreover, the dealers must now also record the details of the customer and the scrap they are selling before making the transaction. This is to ensure that if there are any reports of stolen vehicles, tracking them becomes easier.
No More Cash Payments For Scrap Cars – EFTPOS Transfers or Cheques Are The Preferred Payment Methods
There will be NO cash payments or cash cheques involved throughout the transaction. Payments will be made through EFTPOS transfers or via cheques. Any dealer found guilty of paying in cash will be heavily penalised.