How to Start a Car Dealership in South Australia (SA): Second-Hand Vehicle Dealer Licence, Costs, Steps

• Yes: four or more second-hand vehicles in 12 months means you are presumed to be a dealer.
• Cost: $1,152.00 (individual) or $1,443.00 (company) in year one. The 2026-27 fee notice then sets $777.00 or $1,068.00 a year, including the compensation fund. Licence fees only.
• First step: get a National Police Certificate (NPC) no more than 12 months old, then complete the CBS online application.^[13]

How many cars can I sell in SA before I need a licence? The four-car rule

As at 5 November 2026, section 50 of the Second-hand Vehicle Dealers Act 1995 (version in force from 1 September 2025) presumes you are a dealer if you buy, offer to buy, sell or offer for sale at least 4 second-hand vehicles in 12 months. The presumption stands unless you prove otherwise. Four is where the presumption starts. It is not a safe allowance of three.^[4]

• As at 5 November 2026, section 50 of the Act presumes a person and one close associate are both dealers if, between them, they deal in at least 6 second-hand vehicles in 12 months.
• Close associates (section 3A) include a spouse, domestic partner, parent, brother, sister or child, members of the same household, business partners, and a company with its directors, managers or shareholders.
• 'Sell' includes exchange and selling for someone else, and 'offer for sale' includes advertising (section 3). A swap, or a car you list for a friend, can count.
• When registration is transferred, the Act presumes the person it came from sold the vehicle and the person it went to bought it (section 50).^[4]

Just selling a few cars? As at 5 November 2026, SA.GOV.AU says a vehicle is 'sold' when its registration is transferred. If you buy or sell four or more in 12 months for private use, you must prove you are not a dealer. We did not find a list of accepted proof on 5 November 2026. Next step: ask CBS before you sell a fourth car.^[3]

Section 7 of the Act makes it an offence to carry on business, or hold yourself out, as a dealer without a licence. Holding out means advertising or presenting yourself as a dealer, even if you sell very few cars.^[4]

Who needs a South Australian dealer licence

• Sole traders.
• Companies: the company and its manager need separate licences. The manager holds a licence in their own name but does not register an address or pay the compensation fund fee.
• Partnerships: each partner needs a separate licence.
• Motor wreckers and crash repairers, even if they only sell vehicles that cannot be driven until repaired.^[1]

Section 3 of the Act defines a vehicle as one used or capable of being used for transport on land and designed to be wholly or partly propelled by an engine. That covers cars, utes, vans and motorcycles.^[4]

No licence is needed in some cases. As at 5 November 2026, SA.GOV.AU lists a recognised credit provider whose vehicle sales come from that business, and an auctioneer selling for people who do not need a licence. It also excludes vehicles over 3,000 kg, vehicles designed for agricultural or industrial use, vehicles that cannot transport on land (such as boats) and vehicles without an engine (such as caravans).^[1]

CBS's licence categories guide also exempts vehicles sold by an executor or trustee for a deceased person's estate.^[7]

Terms used in this guide

• Second-hand vehicle dealer: a person who carries on the business of buying or selling second-hand vehicles (section 3).
• Notified premises: premises you have told the regulator you will trade from (section 3).
• Close associate: a family member, household member, business partner or similar person listed in section 3A.
• Fit and proper person: a suitability test in section 9 that every applicant, and every director of a company applicant, must meet.
• Compensation fund: the Second-hand Vehicles Compensation Fund, which can pay buyers and sellers when a dealer does not pay a valid claim (Schedule 3).
• Section 16 notice: the notice a dealer must attach to every second-hand vehicle offered for sale.^[4]

Eligibility: who can hold an SA dealer licence

As at 5 November 2026, section 9 of the Second-hand Vehicle Dealers Act 1995 says a person is entitled to a dealer licence if they are:^[4]

• 18 or over.
• Never convicted of an indictable offence of dishonesty, and not convicted of a summary offence of dishonesty in the last 10 years.
• Not suspended or disqualified from any occupation, trade or business in Australia.
• Not an insolvent under administration.
• Not a director of a company wound up for the benefit of creditors in the last 5 years (while it was wound up, or in the 6 months before).
• A fit and proper person.^[4]

Section 9(2) says a company is entitled to a licence if it is not suspended, disqualified, being wound up or in receivership, and each director meets the same tests. Section 13 requires a licensed company to have its business managed and supervised by a licensed dealer who is a natural person. As at 5 November 2026, the maximum penalty for breaching section 13 is $100,000.^[4]

As at 5 November 2026, SA.GOV.AU says you must send a copy of a National Police Certificate no more than 12 months old with your application. You do not need a new one if you lodged one with CBS in the last year, held a licence in the last year and are applying for an equivalent one, or already supplied one for another licence under this Act. A check that only clears you to work with children is not enough.^[1]

Insurance: section 12 of the Act says a dealer must be insured as the regulations require, and the licence is suspended while the dealer is not. As at 5 November 2026, we did not find an insurance requirement in the Second-hand Vehicle Dealers Regulations 2025. Next step: ask CBS on 131 882 (option 4) what cover it expects.^[4]

How to get an SA second-hand vehicle dealer licence: step by step

1. 1Choose your structure. Sole traders and each partner need their own licence. A company needs a licence plus a licensed manager.
2. 2Check you meet the eligibility tests above, including those for each director.
3. 3Order a National Police Certificate through South Australia Police or an accredited organisation listed by the Australian Criminal Intelligence Commission.
4. 4Secure your premises. You name the address you will trade from in your application.
5. 5Complete the online application, then print, sign, scan and upload it with your documents. Call 131 882 if you cannot complete the form.
6. 6Pay the application and annual fee and the compensation fund contribution for your category.
7. 7Answer any CBS request for more information.
8. 8When CBS emails your licence number and client identification number, print your licence certificate and get your sales notices and contracts ready.^[1]

How much does an SA dealer licence cost?

As at 5 November 2026, SA.GOV.AU lists $952.00 for an individual and $1,243.00 for a company as the application and annual fee for motor vehicles and motorcycles, plus a $200.00 compensation fund contribution. That is $1,152.00 or $1,443.00 in year one. The page was last updated 20 April 2026.^[1]

As at 5 November 2026, SA.GOV.AU lists lower fees for motorbike-only dealers: $650.00 (individual) or $777.00 (company), plus a $60.00 compensation fund contribution. Year one is $710.00 or $837.00.^[1]

As at 5 November 2026, SA.GOV.AU says a person applying only to act as a manager for a licensed dealer pays no compensation fund fee. The page lists no separate manager fee, so we did not confirm it on 5 November 2026. Next step: ask CBS on 131 882 (option 4).^[1]

As at 5 November 2026, two SA.GOV.AU pages give different annual figures. The application page (updated 20 April 2026) lists $952.00 and $1,243.00 as the application and annual fee. The renewal page (updated 2 June 2025) lists $431.00 and $647.00. The Second-hand Vehicle Dealers (Fees) Notice 2026 (South Australian Government Gazette, 14 May 2026, effect from 1 July 2026) explains the gap: a $375.00 application fee plus a licence fee of $577.00 (individual) or $868.00 (company) gives $952.00 and $1,243.00. The renewal page is out of date, so we use the notice for years two and beyond.^[13]

As at 5 November 2026, ABLIS (business.gov.au) lists different 2025-26 figures again, including a $363.00 application fee. We used the SA.GOV.AU pages because they are the licence pages CBS links to.^[8]

Cost examples we built from the SA.GOV.AU application fees and the 2026-27 fee notice (licence fees only; fees change on 1 July each year):^[13]

• Each later year: $577.00 + $200.00 = $777.00 (individual) or $868.00 + $200.00 = $1,068.00 (company).
• First 3 years, individual: $1,152.00 + $777.00 + $777.00 = $2,706.00.
• First 3 years, company: $1,443.00 + $1,068.00 + $1,068.00 = $3,579.00, plus the manager's licence.^[2]

Other start-up costs: not confirmed. As at 5 November 2026, no SA government page we opened gives a figure for a yard lease, stock, signage or insurance. Next step: get council and supplier quotes before you apply.^[1]

SA dealer licence fees: application and renewal

As at 5 November 2026, SA.GOV.AU shows application fees on the licence page (updated 20 April 2026). The table gives renewal fees from the 2026-27 fee notice, in separate rows, because the renewal page (updated 2 June 2025) is out of date. GST: neither page says whether the fees include GST. We did not confirm it on 5 November 2026; ask CBS on 131 882 (option 4).^[13]

The Second-hand Vehicles Compensation Fund

SA.GOV.AU says the Second-hand Vehicles Compensation Fund protects consumers from dealers who do not act legally, and all dealers must pay into it when they renew.^[3]

• Who can claim (Schedule 3 of the Act): a buyer, a person who sold to a dealer, or a person who left a vehicle with a dealer to sell, for an unsatisfied claim against the dealer. A buyer who paid under a contract cancelled in the cooling-off period can claim too.
• The claimant must have no reasonable prospect of recovering the money any other way.
• After a payment, the Commissioner takes over the claimant's rights against the dealer. In plain words, CBS can recover the money from you.
• As at 5 November 2026, the claimant or the dealer can appeal the Commissioner's decision to the Magistrates Court within 3 months.^[4]

As at 5 November 2026, Schedule 4 of the Second-hand Vehicle Dealers Regulations 2025 sets the contribution at $200 for a dealer in motor vehicles and $60 for a motorcycle-only dealer. One contribution is payable a year however many notified premises you have. Dealers who share premises pay one contribution and are jointly liable for it.^[5]

As at 5 November 2026, Schedule 4 also says the first contribution is a proportion of the full amount if 11 complete months or less will pass before the next due date. The licence page shows a flat $200.00, so we did not confirm what a new dealer is charged. Next step: ask CBS.^[5]

How long an SA dealer licence application takes

As at 5 November 2026, neither SA.GOV.AU nor ABLIS gives a processing time for this licence. CBS publishes an estimated timeframes calculator on its occupational licensing page. Estimates run from when a complete application is lodged, and can run longer if CBS needs more information.^[10]

As at 5 November 2026, section 8 of the Act lets the Commissioner ask for more information by written notice, giving at least 28 days. If you do not comply, the application may be refused and the fee kept. You can ask the South Australian Civil and Administrative Tribunal (SACAT) to review a refusal within 1 month.^[4]

As at 5 November 2026, ABLIS lists the licence duration as 12 months and says it cannot be transferred. Section 11 of the Act says the licence stays in force until surrendered or cancelled, with an annual fee and return due each year.^[8]

Premises: registering your yard in South Australia

SA.GOV.AU says the address where vehicles are sold must be registered with CBS. You can register it when you apply, or later when you change or add a location.^[3]

• As at 5 November 2026, section 14 of the Act requires notice before you trade at premises not named in your application. The maximum penalty is $5,000, or a $315 expiation fee.
• As at 5 November 2026, section 14 lets you trade at a motor show or similar event for up to 7 days without notice, if you also trade from notified premises.
• As at 5 November 2026, section 14 requires notice within 14 days after you stop trading at notified premises.^[4]

Council or planning approval: not confirmed. As at 5 November 2026, the SA.GOV.AU licence page does not list planning approval as an application document. Whether your site can be used for car sales is a council question. Next step: ask your council before you sign a lease.^[1]

Rules once you hold an SA dealer licence

Sales notice. As at 5 November 2026, section 16 of the Act requires a notice on each second-hand vehicle offered for sale. It shows the dealer's name and address, whether there is a duty to repair, the cash price including dealer charges, the year of manufacture and first registration, make and model, registration or engine number, and the odometer reading. The maximum penalty is $5,000, or a $315 expiation fee. An advertisement must not mention the odometer reading unless the notice says the reading can be regarded as reasonably accurate.^[4]

Contracts. Section 17 of the Act says a dealer's sale contract must be in writing, in one document, signed by both parties and contain the prescribed details. If it is not in writing and signed by the parties, it cannot be enforced against the buyer. Leaving out a required detail is an offence by the dealer, with a maximum penalty of $5,000. As at 5 November 2026, the Act says to give the buyer a copy straight away if you sign in front of them, or within 7 days if not.^[4]

Cooling-off. As at 5 November 2026, Consumer and Business Services SA says buyers have two clear business days, and Saturdays count. A dealer may take a deposit of up to 10% of the price. If the buyer cancels in writing in time, you refund the deposit less 2% of the price or $100, whichever is less.^[6]

As at 5 November 2026, section 18B of the Act applies cooling-off to sales to natural persons and requires the refund by the end of the next clear business day. The maximum penalty is $5,000, or a $500 expiation fee.^[4]

Duty to repair. As at 5 November 2026, Consumer and Business Services SA says the statutory warranty covers a vehicle priced $3,001 to $6,000 for 3,000 km or two months, whichever comes first, and a vehicle over $6,000 for 5,000 km or three months. It does not apply to vehicles sold for $3,000 or less, driven over 200,000 km before sale, or first registered more than 15 years ago.^[6]

As at 5 November 2026, the notice forms in the Second-hand Vehicle Dealers Regulations 2025 say a vehicle priced up to and including $3,000 carries no duty to repair but must be roadworthy at the time of sale.^[5]

Consumer and Business Services SA says that since 1 September 2025 a buyer can no longer waive the duty to repair, and the duty covers the main propulsion batteries in hybrid and electric vehicles during the warranty. A dealer can disclose defects that will not be repaired, if the vehicle is roadworthy.^[6]

As at 5 November 2026, section 23A of the Act says that disclosure only works if the defect does not affect safe driving, you give the buyer the prescribed notice (Form 17) naming it, and the buyer acknowledges it in the prescribed form. Section 23 excludes motorcycles from the duty to repair.^[4]

Salespeople. As at 5 November 2026, section 13A of the Act says a dealer must not employ a salesperson with an indictable dishonesty conviction, a summary dishonesty conviction in the last 10 years, or a suspension or disqualification. The maximum penalty is $100,000, for the dealer and the salesperson.^[4]

Odometers. Section 34 of the Act makes it an offence to alter, remove, replace or disable an odometer on a second-hand vehicle without the Commissioner's written approval.^[4]

Signs and records under the Second-hand Vehicle Dealers Regulations 2025:

• Regulation 10: display a copy of your licence in a public area of each notified premises, and your business name with "Licensed Second-hand Vehicle Dealer" (or LVD) and your licence number at the main public entrance. As at 5 November 2026, the maximum penalty is $5,000.
• Schedule 2: every advertisement shows "Licensed Second-hand Vehicle Dealer" or LVD with your licence number, the cash price including dealer charges, and the registration or engine number.
• Regulation 14: as at 5 November 2026, keep a copy of each sales contract for at least 2 years from the sale.
• Regulation 11: keep each salesperson's employment records, including any criminal history report, while they work for you.^[5]

Renewing and changing your SA dealer licence

SA.GOV.AU says you must renew every 12 months or the licence is cancelled and you must reapply. Renew online with your licence number, customer identification number and a credit card, by post (cheque or money order payable to the Commissioner Consumer and Business Services), or by phone on 1300 668 531.^[2]

Regulation 7 of the Regulations sets the due date for the annual fee and annual return: the last day of the month CBS nominates in writing, or else the last day of the month your licence was granted.^[5]

As at 5 November 2026, section 11 of the Act says that if you miss it, CBS may serve a notice, and the licence is cancelled if you do not fix the default within 28 days.^[4]

As at 5 November 2026, regulation 8 requires written notice to CBS within 14 days of a change to your residential address, business name, company office address or address for service, a new company director, or entering or leaving a partnership.^[5]

SA.GOV.AU says to use the CBS online forms to add or change premises, change directors, nominate a manager or surrender your licence.^[1]

Interstate dealers and Automatic Mutual Recognition

Consumer and Business Services SA says that if your principal place of residence is in another state or territory, you can use Automatic Mutual Recognition (AMR) to work in SA under your interstate licence. If your principal place of residence moves to SA, you must hold an SA licence, which you can apply for under Mutual Recognition. Licences granted this way appear on the SA licensing register. If you trade from premises in SA, you also pay the annual compensation fund fee shown above.^[6]

Penalties for trading without an SA dealer licence

As at 5 November 2026, section 7 of the Second-hand Vehicle Dealers Act 1995 sets these maximum penalties for trading, or holding yourself out, as a dealer without a licence: $150,000 for an individual's first or second offence; $250,000, 2 years in prison, or both for a third or later offence; and $500,000 for a company.^[4]

• As at 5 November 2026, section 48 adds a daily penalty of up to one-tenth of the maximum for each day an offence continues.
• As at 5 November 2026, section 49 says most prosecutions must start within 2 years of the alleged offence.
• As at 5 November 2026, section 34 sets up to $150,000 for odometer tampering ($150,000, 2 years in prison, or both for a third offence), and section 34A sets up to $30,000 or 2 years in prison for a knowingly false odometer statement.
• As at 5 November 2026, section 31 lets SACAT reprimand a dealer, fine up to $100,000, add conditions, suspend or cancel the licence, or disqualify the person.
• As at 5 November 2026, section 14A lets the Commissioner suspend a licence for up to 6 months, or add conditions, if there is an urgent risk of significant harm or loss.
• Section 12 suspends your licence while you are not insured as the regulations require, and Schedule 3 suspends it until an overdue fund contribution is paid.^[4]

Trade plates in South Australia

As at 5 November 2026, ABLIS says motor dealers, vehicle repairers and others need trade plates to drive an unregistered vehicle for limited purposes, such as delivery from a manufacturer, testing after repairs, or a test drive before sale. You need compulsory third party insurance to be eligible, and plates run for 1, 2 or 3 years. ABLIS shows no fee, saying it depends on your circumstances. Next step: use the forms linked on the ABLIS page.^[9]

ABN and GST for a South Australian dealership

As at 5 November 2026, business.gov.au says you must register for GST once your GST turnover reaches $75,000, and a new business should register if it expects to reach $75,000 in its first year.^[11]

What changed: 14 November 2026: first published.