Operator Guide · Updated 18 May 2026
Motor Trade Licence by State, Australia
Australia has no national motor trade licence, each state and territory licenses motor dealers and repairers under its own Act. This guide compares every scheme: LMCT (VIC), MD/MR (NSW), the Motor Dealers and Chattel Auctioneers Act (QLD), MVDA (WA), and the schemes in SA, TAS, ACT, NT, each with a direct link to the state licence authority.
Step 1, Identify Your Jurisdiction
State-by-state licensing framework
Australia has no national motor trades licence, each state and territory runs its own scheme under its own Act. If you operate across borders (e.g., a mobile mechanic working both ACT and NSW), you need licensing in each jurisdiction you trade in.
Motor Dealers and Repairers Act 2013
Regulator: NSW Fair Trading (Service NSW) (NSW licence authority)
Separate dealer and repairer licences. Each repair trade (mechanical, body, paint, electrical) needs a tradesperson certificate held by the person doing the work. Three-year licence terms; police, financial, and qualification checks required.
Motor Car Traders Act 1986
Regulator: Consumer Affairs Victoria (CAV) (VIC licence authority)
LMCT is the dealer licence, required to sell motor cars for profit. Repair workshops register separately with the Victorian Building Authority for trade qualifications. VicRoads licenses roadworthy testers (VTRS) for RWC issuing. LMCT requires trust account, security bond, and audited returns.
Motor Dealers and Chattel Auctioneers Act 2014
Regulator: Office of Fair Trading (OFT) (QLD licence authority)
Dealer licences cover used and new vehicle sales. Each salesperson must hold their own MS registration. Repair workshops aren't separately licensed in QLD but must register Approved Inspection Stations (AIS) for safety certificates. Trust account compulsory for dealers holding customer money.
Second-hand Vehicle Dealers Act 1995
Regulator: Consumer and Business Services (CBS) (SA licence authority)
Dealer licence applies to anyone selling 4+ used vehicles in 12 months. Repair workshops don't require a state licence but technicians need recognised trade qualifications. SA Productivity Commission published a 2024 review recommending alignment with eastern states, watch for reform.
Motor Vehicle Dealers Act 1973
Regulator: Department of Mines, Industry Regulation and Safety (DMIRS) (WA licence authority)
Distinct dealer and repairer licences. The repairer licence covers 23 separate classes (engine repair, transmission, brakes, body, paint, etc.) and you can only perform classes listed on your licence. Annual returns and continuous-disclosure obligations on company directors.
Motor Vehicle Traders Act 2011
Regulator: Consumer, Building and Occupational Services (CBOS) (TAS licence authority)
Trader licence covers dealers and wholesalers. No separate state repairer licence, federal licence (e.g., AURETR certifications) and ASIC business registration apply. Approved Inspection Stations licensed separately for safety certificate issuing.
Sale of Motor Vehicles Act 1977
Regulator: Access Canberra (ACT licence authority)
Dealer licence required to sell 5+ vehicles per year. No discrete repairer licence; trade qualifications via training package (AUR / AUT). Roadworthy inspections via ACT Government Inspection Stations only.
Consumer Affairs and Fair Trading Act 1990 (NT)
Regulator: NT Consumer Affairs (NT licence authority)
Dealer licence for commercial sale of motor vehicles. No standalone repairer licensing scheme; technicians rely on AURETR / AURTH qualifications. NT MVR (Motor Vehicle Registry) authorises roadworthy inspectors.
Step 2, Pick the Right Licence Type
Repairer, dealer, wholesaler, body-repair
The state schemes overlap but aren't identical. Each licence type maps to a different risk profile and a different set of ongoing obligations, picking the right one matters more than the headline fee.
Repairer-only licence
For workshops doing mechanical, body, paint, electrical, or air-conditioning repair, but no vehicle sales. Most relevant in NSW (MR), WA (MVR), and VIC (VBA registration). Repair work for trade-ins, courtesy cars, or fleet pre-delivery is fine; selling repaired vehicles you've taken in trade is not.
Dealer licence (used)
Required once you sell or offer for sale used vehicles for profit. The 4 to 5 vehicle annual threshold (varies by state) triggers the licence requirement. Includes obligations on statutory warranty (varies by state, VIC 3 months / 5,000 km, NSW 3 months / 5,000 km, QLD 3 months / 5,000 km), cooling-off rights for buyers, and disclosure of vehicle history.
Dealer licence (new)
Adds franchise / dealer-agreement requirements with the manufacturer. Same regulatory framework as used-vehicle dealer in each state, plus contractual obligations under the new vehicle franchising regime (Franchising Code of Conduct, ACCC oversight).
Wholesaler licence
For operators selling only to other licensed dealers (B2B), auction floor traders, fleet remarketers, reconditioners selling at auction. Some states issue a distinct wholesale endorsement; others use the standard dealer licence with a recorded business model.
Body-repair / smash-repair licence
In NSW, body repair is a specific class under the MR licence, you must hold the MR licence AND a tradesperson certificate in panel beating, spray painting, or vehicle body building. WA's MVR scheme similarly itemises body-repair classes. Insurance work also requires Recognised Repairer status with insurer panels (Suncorp, IAG, Allianz, etc.), separate from state licensing.
Auto-electrical & specialised
Auto-electrical, air-conditioning (requires ARC tradesperson licence for refrigerant handling), and EV-high-voltage work generally fall under your state's repairer scheme with specialised endorsements. EV high-voltage work also requires Open Cable Licence (electrical) in most states once unisolated >50V DC is touched.
Step 3, Repair vs Dealer Activity
When does repair work tip into dealer activity?
The most common compliance blind-spot for workshops is the slow creep from repair into trading. Each of the scenarios below has tripped real operators into unlicensed-dealer findings.
| Scenario | Detail | Verdict |
|---|---|---|
| Customer brings car in for repair only | Standard repair work. Repairer licence (where required) is sufficient, no dealer activity. | Repair only, no dealer licence needed. |
| Customer asks you to sell their car for them | Acting as agent. In most states this is dealer activity, you're trading vehicles for profit (commission). Requires a dealer licence in NSW, VIC, QLD, SA, WA, ACT, NT. | Dealer activity, licence required. |
| You buy a wrecked car, repair it, sell it | Repairer becomes dealer the moment you take title and on-sell. Almost universally requires a dealer licence regardless of volume framing, if it's your business model rather than incidental, you're a dealer. | Dealer activity, dealer licence required. |
| Customer can't pay, you take car as payment, then sell it | Workshop liens and abandoned-vehicle sale processes are state-regulated. Even acting under lien, the on-sale of the vehicle into the market can be dealer activity once you exceed the state threshold (e.g., 4 vehicles in QLD, similar in other states). | Watch volume, dealer licence triggers around 4 to 5 vehicles/year. |
| You sell 3 personal cars at auction in 12 months | Below threshold in most states. Personal vehicles sold privately don't typically trigger dealer obligations even from a registered repairer, but commercial intent and frequency matter. | Generally fine, confirm against state threshold. |
| Trade-in vehicles you re-sell from your repair yard | If your workshop accepts trade-ins as part of a service package, you're conducting dealer activity. Most reputable workshops either (a) hold both licences, or (b) refer trade-ins to a partner dealer for a referral fee. | Dealer activity, most operators hold both licences or refer out. |
Step 4, Trust Accounts & Customer Money
Trust account, cooling-off, deposit rules
Dealer licensing pulls operators into a trust-account regime that repairers usually escape. The rules are strict, mixing customer deposit money with operating cash is one of the fastest ways to lose a licence.
Dealer trust accounts are mandatory
All states with dealer licensing require dealers holding customer deposits or trust money (e.g., bond on a vehicle, order deposit on a custom build) to maintain a separate trust account. Mixing trust money with operating funds is a serious offence, instant licence-suspension risk.
Cooling-off rights apply to buyers
Most states give private buyers from licensed dealers a 1 to 3 business day cooling-off period. NSW: 1 business day. VIC: 3 business days. QLD: 1 business day. The deposit (capped, often $100 or 0.5% to 1%) is non-refundable but the balance must be returned if the buyer exercises cooling-off.
Statutory warranty on used vehicles
Dealers must provide statutory warranty on used cars meeting age/kilometre criteria. VIC: 3 months / 5,000 km on cars under 10 years and 160,000 km. NSW: similar coverage under the MD/MR Act. QLD: 3 months / 5,000 km. Repair workshops without dealer licences sell 'as inspected' but dealer status removes that defence.
Annual audit + financial returns
Dealers in NSW, VIC, WA file annual audited financial returns. Trust-account reconciliations are spot-audited. ASIC requires annual statements; the state regulator overlays an industry-specific audit on top of that.
Practical tips for operators
Hold both licences early if there's any chance you'll trade
The fee delta between a repairer licence and adding a dealer licence is usually only a few hundred dollars more per year. If there's any future where you'd take a trade-in or sell a repaired write-off, applying for both upfront avoids a scramble and an audit trigger later.
Trade-qualification certificates are person-bound
In NSW and WA the individual tradesperson holds the trade certificate, the business holds the workshop licence. If your key body repairer leaves, you can't legally complete body repairs until you employ another certified tradesperson. Build redundancy into your hiring plan.
Roadworthy / safety certificates are a separate licence
VIC RWC, QLD Safety Certificate, NSW Pink Slip, each is administered by the transport regulator (VicRoads, TMR, TfNSW) separately from the dealer/repairer licence. Issuing a certificate when not authorised is a separate offence, independent of motor trade licensing.
Renew well before expiry
Most state regulators won't let you trade during a lapse, even a 1-day gap can void insurance and trigger contractual breaches with fleet customers. Diary the renewal at 90 days out and have continuous-disclosure documents (director PIDs, financial returns) ready.
Frequently Asked Questions
What is the difference between a motor dealer licence and a repairer licence?
A motor dealer licence (MD in NSW/QLD, LMCT in VIC, MVD/SHVD/MVT/SMV elsewhere) authorises selling vehicles for profit, while a repairer licence (MR in NSW, MVR in WA, VBA registration in VIC) authorises mechanical, body, paint, or electrical repair work. They are issued separately under each state's Act. Repairing customer vehicles needs only the repairer licence; the moment you buy, repair, and on-sell a vehicle you also need the dealer licence.
I'm a mechanic in NSW, do I need both MR and MD licences?
Only an MR (Motor Vehicle Repairer) licence if you're doing repairs only. The MD (Motor Dealer) licence kicks in the moment you start selling vehicles for profit, trade-ins, fleet remarketing, even a single sale where the intent is commercial. NSW Fair Trading treats the 'business of selling' as low-threshold; if you take a vehicle in trade and on-sell it, you need the MD licence.
I run a smash-repair shop. Do I need a state dealer licence to handle insurance write-offs?
Generally no, provided you're repairing and returning the vehicle to the insurer or owner. The licence question changes when you buy the write-off (statutory or repairable), repair it, and sell it back into the market, that's dealer activity in every state. Many smash repairers operate this as a separate business arm under a dealer licence.
What's the difference between VIC's LMCT and the VicRoads testing licence?
LMCT (Licensed Motor Car Trader) is your business licence to sell cars, administered by Consumer Affairs Victoria. The VicRoads Vehicle Testing Roadworthy Scheme (VTRS) is a tester licence held by individual mechanics, allowing them to issue Roadworthy Certificates. They're entirely separate, a workshop can have one, both, or neither depending on services offered.
Can I sell wholesale-only without a full dealer licence?
Most states require the same dealer licence whether you sell to private buyers or only to other dealers. Some (e.g., WA) issue a wholesale-endorsed variant with different fee structures. You're still subject to trust account, financial-returns, and director-disclosure obligations, wholesale doesn't exempt you from the framework.
Do I need a licence to sell 1 or 2 cars per year from my repair shop?
Most states use a threshold of around 4 to 5 vehicles in 12 months as the trigger for dealer-licence requirements. Below the threshold and as a genuine private sale (not part of your business activity) you can typically sell without a licence, but document the private nature carefully. Commercial intent is what matters most; sustained sales out of a repair shop are commercial regardless of volume.
Are EV-only repair workshops licensed differently?
Not yet, most states fold EV-specific work into the existing repairer scheme. The wrinkle is the high-voltage work involved, which intersects with the state electrical licensing regime. In most states, anyone working on the HV pack (>50V DC) needs an Open Cable / Restricted Electrical Licence (REL) on top of the motor trades qualification. Expect specific EV repairer classes to emerge as the fleet grows.
Run your workshop, not your paperwork
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Reviewed by Bishal Shrestha
About the author
Bishal Shrestha
Founder & CEO, OneBookPlus
Bishal spent a decade running digital projects for Australian small businesses before founding OneBookPlus. He writes and maintains these pages, and publishes what OneBookPlus does not do alongside what it does.
Read the founder bioHow this page was researched
The compliance and licensing statements above are taken from the bodies this page links to, including the NSW Government, the NT Government and the Queensland Government, so you can read the rule rather than take our word for it. Plan prices come from the OneBookPlus price registry, so the page and the checkout cannot disagree. Everything said about OneBookPlus describes what the product does today, and the page says so where it does not do something.
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