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Cash Ban Comes into Effect in Sydney – Time to Say Goodbye To Cash for Scrap Cars

Posted on 22th, November 18

In the last decade or so, cash for scrap cars has been a popular way for scrap car owners to dispose of their unwanted cars. Picture this. You have an old car sitting in your garage. The car hasn’t run in years and you suspect it will take a fortune to get it roadworthy again. It’s just sitting in the garage, taking up space – space that you could use for a much more productive purpose. So, what do you do? You contact cash for the car business and have the car sold for cash that very same day. And as the cherry on top, the company also provides free towing, coming to your location to collect and tow away the car.

Government Says “No” to Cash Payments

But such cash for car sales is a thing of the past now. The government has put its foot down, bearing down on cash payments for scrap metals. Taking a strong stand against tax 0evasion and car theft, the NSW government has introduced the cash ban, prohibiting scrap metal buyers from paying cash for their purchases.

Every Transaction Must Be Traceable

The prevalence of cash payments for scrap cars made it easy for some dodgy cash for car dealers to evade tax. And that, along with pressure to crack down on car thefts in Sydney, is what has pushed the NSW government to implement the cash ban.

With cash payments deemed illegal, cash for car dealers can only make payments through EFTPOS or by cheques, ensuring every transaction is documented and traceable. Furthermore, the scrap metal buyers should also have proper documentation of who they’re buying the scrap cars from, the VIN number of the vehicle (for vehicle identification purposes) and other relevant information.

Police Can Enter & Search A Cash for Car Business Premise Without A Warrant

The new laws also bestow police with the power to enter and search cash for car business premises without a search warrant. If there’s reasonable doubt that illegal activities are being carried out on the premises, the police can search.

Tough Penalties for Failure to Follow Rules

If a car removal company is caught making cash payments, it can be fined up to $30,000. Scrap car sellers are urged to do business only with licensed and registered scrap car buyers, to avoid getting inadvertently pulled into being a part of illegal activities.