QLD Uncertain if I will require a Secondhand Dealer Licence

Discussion in 'Commercial Law Forum' started by Roger O'Leary, 22 January 2020.

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  1. Roger O'Leary

    Roger O'Leary Member

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    Hello all

    I've started a hobby buying video games on places like GumTree and Facebook Marketplace to resell at a profit on places like eBay.

    I am looking at the possibility of scaling this up and registering it as a business. However I am wondering if this would mean having to get a second hand dealer licence. I have checked the costs and requirements of getting one and that is no problem. The problem is that if registered as a second hand dealer I would have to get information from people I buy from including name, address, licence number, etc. Since I'm just responding to adverts on GumTree or Facebook this would rule 95%+ of my purchases out since the average person who places an ad would not want to have to go through such details just to sell.

    Below is some information about my situation:
    - I live in Queensland but buy from people all over Australia.
    - 95% of purchases I make are completely online where I will pay by bank deposit or paypal and they then post to me.
    - Some purchases are done in person where I will pick up locally and pay in cash.
    - Since I'm buying video games, most are low priced transactions. Many are just games for less than $50 but some could be up to $400 or so if buying a gaming console and multiple games from the one person.

    I would appreciate any general advice before having to see a solicitor. As I have little capital at the moment and don't want to spend money on business planning if I will need to get personal details from everyone I purchase from since this will mean it is simply not a viable business option.

    Please do let me know if any more information is needed.

    Many thanks.
     
  2. Rob Legat - SBPL

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    My understanding is that you will need a licence - the games will be considered second-hand property, and you are obtaining them for the purpose of reselling them.

    However, under section 37 of the Act (SECOND-HAND DEALERS AND PAWNBROKERS ACT 2003 - SECT 37 Second-hand dealer must keep a transactions register), while you must have a register you only need to keep records for transactions where the property:

    (a) has a resale value of at least $55; or
    (b) is jewellery or contains precious metals; or
    (c) can be identified by a make, model, serial number, or inscription.
     
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