Do You Need a Licence to Sell Plant and Equipment in Victoria?

If you deal in excavators, forklifts, generators, tractors, or other heavy machinery in Victoria, sooner or later you will ask yourself a simple question: do I actually need a licence to sell this stuff? The answer isn’t as straightforward as it is for cars. Plant and equipment sits in its own regulatory lane, separate from the motor vehicle licensing that most Victorian traders already know about.

This guide breaks down exactly where plant and equipment sales fit within Victoria’s licensing framework, when you’re exempt, and what steps to take before you list your first machine for sale.

What Counts as “Plant and Equipment”?

In a trading context, “plant and equipment” generally refers to machinery and heavy items used in construction, agriculture, industry, or materials handling. Common examples include:

• Excavators, bobcats, and skid steer loaders
• Forklifts and pallet handling equipment
• Tractors and other agricultural machinery
• Generators, compressors, and pumps
• Cranes, hoists, and lifting equipment
• Earthmoving and road-making equipment

None of these items are classified as “motor cars” under Victorian law, which is the detail that decides which licensing regime actually applies to you.

Does the LMCT Licence Apply to Plant and Equipment?

In most cases, no. The Licensed Motor Car Trader (LMCT) licence is issued under the Motor Car Traders Act 1986, and it specifically covers the trading of motor cars — a scope that also extends to commercial vehicle licensing obligations for businesses moving trucks. Plant and equipment such as excavators, forklifts, and generators generally fall outside this definition, so an LMCT licence on its own does not authorise you to trade in them.

If your business also sells or trades vehicles alongside equipment, it’s worth reviewing the broader rules around running a compliant vehicle trading business, since the two activities are regulated differently and may both apply to you at once.

The Licence You Actually Need: Second-Hand Dealer Registration

For most sellers of used plant and equipment, the relevant law is the Second-Hand Dealers and Pawnbrokers Act 1989, administered by Consumer Affairs Victoria (CAV). Broadly, if you carry on a business of buying, selling, or exchanging second-hand goods — and used machinery qualifies — you are required to register as a second-hand dealer before you trade.

Registration exists to protect buyers and help authorities track stolen goods. Once registered, dealers must meet ongoing obligations, including:

• Recording the identity of anyone who sells goods to you
• Keeping accurate transaction records
• Displaying your certificate of registration
• In many cases, holding certain goods for a set period before resale

Interestingly, agricultural, construction, and earth-moving vehicles are specifically exempt from the standard seven-day retention requirement that applies to many second-hand goods. That’s a useful concession for equipment dealers, but it does not remove the underlying registration requirement — you still need to be a registered second-hand dealer to trade legally.

When You Might Not Need to Register

There are some genuine exemptions worth checking before you assume registration is required:

• You are selling your own used equipment occasionally, as a private, one-off transaction rather than a business activity
• You only sell brand-new equipment, since the second-hand dealer regime applies specifically to used goods
• You are an auctioneer who has acquired the equipment solely for the purpose of an auction
• You already hold an LMCT licence and deal exclusively in second-hand cars and car parts (this exemption does not extend to plant or equipment)

As with vehicle sales, the line between a private sale and a trading business comes down to the pattern of activity, not just how you personally describe it. Repeated, regular sales for profit will usually be treated as a business, regardless of intent.

Penalties for Trading Without the Right Registration

Operating as an unregistered second-hand dealer is an offence in Victoria and can result in significant fines. Beyond the legal risk, unregistered trading also strips away the record-keeping safeguards that protect both you and your customers if a dispute or a stolen-goods claim arises later. Getting registered before you start trading is a far cheaper and safer path than dealing with enforcement action after the fact — the same logic behind common compliance pitfalls dealers run into once they’re already trading applies just as much before you get started.

How This Compares Across Australia

Licensing for used goods and vehicle-adjacent equipment isn’t uniform across the country, and the rules that apply in Victoria won’t necessarily apply if you trade interstate. Our overview of state-by-state dealer licensing differences is a useful starting point if your equipment trading business operates, or plans to operate, beyond Victoria.

Steps to Take Before You Start Selling

• Confirm whether the items you’re selling are new or second-hand
• Check whether any of the standard exemptions apply to your situation
• If registration is required, apply with Consumer Affairs Victoria before you begin trading
• Set up a compliant record-keeping process for every transaction
• Review whether any of your activity also involves motor vehicles, which may bring the Motor Car Traders Act into play — our page on becoming a licensed vehicle trader in Victoria explains that framework in more detail
• If you’re buying stock rather than just selling it, get comfortable with checking whether a seller’s licence is genuine before you hand over any money

Where Vehicle and Equipment Licensing Overlap

Many businesses that sell plant and equipment also move commercial vehicles, trucks, or trailers through the same yard. If that sounds like your operation, it’s worth understanding the heavy vehicle trading authorisation requirements alongside your second-hand dealer obligations, since the two licences serve different purposes and don’t substitute for one another. We’ve also covered business trading versus a genuine one-off private sale in more detail, and the same underlying logic applies to equipment as much as it does to cars. It’s also worth checking the eligibility criteria for holding a trading licence if your equipment business is likely to grow into vehicle sales down the track.

How We Can Help

Licensing rules for plant, equipment, and vehicles frequently overlap, and getting the wrong registration — or missing one altogether — can delay your business or expose you to penalties. If you’re unsure which licence applies to your situation, speak with a licensing specialist on our team and we can help you work out exactly what’s required. You can also explore more trader compliance resources covering everything from compliance mistakes to premises requirements for Victorian traders.