From copper to catalytic converters, scrap metal theft has been an ongoing issue for businesses across South Australia.
Whether it’s building sites or between the engine and muffler, almost everyone has been directly or indirectly affected by this illegal trade costing the State millions.
While dismantlers have long acquainted themselves with regulatory oversight of automotive parts as a prescribed good under the Second-hand Dealers and Pawnbrokers Act 1996, MTA members in the sector have raised loopholes exploited by wrecking yards who argue they only trade in scrap metal and not parts.
This is about to change with the Scrap Metal Dealers Bill 2025 introduced into South Australia’s Parliament.
The Bill would mean that businesses can no longer advertise or pay cash, gift cards or cryptocurrency for scrap metal, and they would need to keep records of customer identification and payment details.
Throughout the consultation process, the MTA has worked hard to ensure industry insights have shaped the proposed legislation.
This includes a win for MTA members, which excludes automotive businesses who undertake mechanical or collision repair of vehicles that want to sell to legitimate scrap metal dealer (or automotive dismantler) under the prosed legislation.
With only a couple of weeks of sitting left in Parliament, the South Australian Government is racing the clock to pass these laws before going into campaign season for the 2026 State Election.
The MTA will continue to monitor the progress of this legislation and update the industry as the Bill progresses.
