LMCT Licence Victoria: Cost, Steps and Interview

• Yes: you need an LMCT licence if you carry on a business of buying, selling or exchanging cars.
• Cost: $2,917.80 (sole trader) or $2,965.20 (company or partnership) in year one, then $1,780.50 a year. Licence fees only.
• First step: create a myCAV account and start the motor car trader application.^[1]

Do you need an LMCT licence in Victoria?

As at 4 November 2026, Consumer Affairs Victoria says you need a licence if you carry on a business of trading in motor cars. Trading means buying, selling or exchanging cars, and it applies to sole traders, partnerships and companies.^[4]

As at 4 November 2026, Consumer Affairs Victoria applies a 4-car test: if you buy, sell or exchange 4 or more cars in any 12-month period, or offer to, the law treats you as a trader. You avoid a licence only if you can prove you were not in the business and did not present yourself as a trader. Fewer than 4 cars does not make you safe if you are clearly running a business.^[4]

Just selling a few cars? As at 4 November 2026, Consumer Affairs Victoria treats the 4-car line as a presumption, not a safe limit. Fewer than 4 can still need a licence if you are clearly running a business or presenting yourself as a trader.^[4]

As at 5 November 2026, section 7A of the Motor Car Traders Act 1986 sets the same 4-car test. Cars bought from, sold to or swapped with a licensed trader do not count towards the 4.^[17]

• As at 4 November 2026, Consumer Affairs Victoria says no licence is needed for tractors, or for vehicles not used and not meant to be used on a road.
• As at 4 November 2026, Consumer Affairs Victoria says no licence is needed to buy from, sell to or swap with a licensed trader.
• As at 4 November 2026, Consumer Affairs Victoria says some customer service staff do not need their own licence; the trader must check them instead (see the duties section).^[2]

Terms used in this guide

• Licensed Motor Car Trader (LMCT): the licence, and the number shown on it, for trading in cars in Victoria.
• Business Licensing Authority (BLA): the body that grants, refuses and cancels the licence.
• myCAV: Consumer Affairs Victoria's online portal, where you apply and lodge your yearly statement.
• Fit and proper person: someone the BLA judges honest and suitable, after police and other record checks.
• Associate: a person with close ties to the business who can sway it, such as a spouse, lender or co-owner.
• Deed of indemnity: your signed, witnessed promise to repay the Guarantee Fund, without limit, for any claim it pays because of your business.
• Dealings book: the register of every car you buy, sell or hold for sale.^[11]

How to get an LMCT licence: step by step

1. 1Check you are eligible: 18 or over, enough money to run the business, and no disqualifying history (see the permission section if you have a record).
2. 2Lock in your trading site. For each one, get a council planning permit, or a council letter saying car trading is lawful there. You can skip this if a licensed trader occupied the site in the 6 months before you apply.
3. 3Create a personal myCAV account and start the motor car trader application. Pick sole trader, or company or partnership.
4. 4Verify your identity online. If you can't, attach a criminal history check consent form and 3 certified ID documents.
5. 5Attach your bank statements, deed of indemnity, 12-month cash flow estimate and declaration of personal finances. Invite each associate to add their details within 14 days.
6. 6Pay $2,917.80 (sole trader) or $2,965.20 (company or partnership) and lodge.
7. 7Answer the BLA's questions in myCAV, then do the phone interview on the Motor Car Traders Act.
8. 8Once granted, display your LMCT number at each premises and in every ad, and set up your dealings book before you trade.^[2]

How much does an LMCT licence cost?

As at 4 November 2026, Consumer Affairs Victoria says you pay a one-off $1,184.70 application fee plus your first annual licence fee, all when you apply. The application fee is not refunded if you are refused or withdraw.^[2]

As at 5 November 2026, section 9 of the Motor Car Traders Act 1986 says the Business Licensing Authority (BLA) must refund the licence fee that came with your application if you are refused, or if you withdraw before the BLA starts considering it. That is the first annual fee ($1,733.10 or $1,780.50).^[17]

Cost example we built from the Consumer Affairs Victoria 2026-27 fees (licence fees only, before any rise on 1 July):^[1]

• Sole trader, year 1: $1,184.70 + $1,733.10 = $2,917.80.
• Company or partnership, year 1: $1,184.70 + $1,780.50 = $2,965.20.
• Each later year: $1,780.50 annual statement fee, plus $29.40 if you lodge late.
• First 3 years, sole trader: $2,917.80 + $1,780.50 + $1,780.50 = $6,478.80. Company or partnership: $6,526.20.^[1]

Other start-up costs: not confirmed. As at 4 November 2026, no Consumer Affairs Victoria page we opened gives a figure for a yard lease, stock, signage or insurance. Next step: get council and supplier quotes for your site before you apply, because the BLA asks for a 12-month cash flow estimate.

LMCT fees in Victoria (2026-27)

GST: as at 4 November 2026, Consumer Affairs Victoria states that all motor car trader licence fees are GST exempt.^[1]

As at 4 November 2026, Consumer Affairs Victoria lists the fees below for 1 July 2026 to 30 June 2027. Updating your details, surrendering a licence and withdrawing an application cost nothing.^[1]

LMCT application: eligibility and documents

As at 4 November 2026, Consumer Affairs Victoria says the BLA must be satisfied that you are at least 18, have and will keep enough funds, are a fit and proper person, have premises you can lawfully trade from, will trade honestly and fairly, will keep effective control of the business, and know the Motor Car Traders Act 1986 and Motor Car Traders Regulations 2018.^[2]

As at 4 November 2026, Consumer Affairs Victoria says you cannot be licensed if you are insolvent, are a company under external administration, or are already disqualified as a trader anywhere. The same applies if VCAT has appointed a guardian or administrator for you, or if you were a partner, director or manager of a business that had a Guarantee Fund claim admitted against it.^[2]

As at 4 November 2026, Consumer Affairs Victoria lists these documents for a sole trader to attach in myCAV:^[2]

• A bank statement for each account, in your name, covering 3 months.
• A statement for each loan or mortgage, or a loan approval letter.
• The sole trader deed of indemnity (a Word form on the fees and forms page).
• The estimated cash flow for your first 12 months of trading (Excel or Word template).
• A balance sheet and profit and loss statement for last financial year, if you already run another business such as a workshop.
• For each site: a planning permit or council letter, plus proof you can use it, such as a lease, a landlord's letter or a rates notice.^[2]

As at 5 November 2026, the Consumer Affairs Victoria deed of indemnity is made in favour of the Motor Car Traders Claims Committee. You repay the Committee for all money it pays from the Guarantee Fund on claims about you. The deed is continuing, irrevocable and unlimited, and must be signed in front of a witness aged 18 or over.^[21]

As at 5 November 2026, under section 80 of the Motor Car Traders Act 1986, company directors are jointly liable for Guarantee Fund claims unless the act happened without their knowledge or consent.^[17]

As at 4 November 2026, Consumer Affairs Victoria says companies and partnerships use the partnership and company deed of indemnity, signed by every director or partner. They also attach the latest monthly statement for each business bank account and a trading statement no more than 6 months old. A newly formed company still needs a balance sheet.^[2]

As at 4 November 2026, Consumer Affairs Victoria requires a declaration of personal finances from each sole trader, partner or director, listing assets, liabilities, income and expenses. You may need proof such as payslips, share statements, rent ledgers or rates notices. The application cannot go ahead without it.^[2]

As at 4 November 2026, Consumer Affairs Victoria says the BLA checks associates, meaning people who could sway the business. For a sole trader that includes a spouse or domestic partner, a business partner and anyone lending money or co-owning assets that back the application. For a company it includes directors, the secretary, the CEO and managers. The BLA checks each for serious offences in the last 10 years and past Guarantee Fund claims.^[11]

As at 4 November 2026, Consumer Affairs Victoria says you cannot pay and submit until every director, partner and invited associate has sent in their own details.^[2]

The LMCT phone interview

As at 4 November 2026, Consumer Affairs Victoria lists no training course on its apply page. Instead, once the BLA has everything it needs, a licensing officer phones you and asks short-answer questions on your legal duties, such as statutory warranties and cooling-off periods. You are also asked whether you plan retail, wholesale, auctions, motorcycles or wrecking.^[2]

To prepare, read the duties section below. As at 4 November 2026, Consumer Affairs Victoria points applicants to its Running your business pages for the same topics. We did not confirm the number of questions or a pass mark on 4 November 2026; next step: ask Consumer Affairs Victoria through its apply page.^[2]

Premises: planning permit or council letter

As at 4 November 2026, Consumer Affairs Victoria requires, for every site where you will trade, a current planning permit or a letter from the council saying you can lawfully run a motor car trading business there. You can skip this only if a licensed trader occupied the site in the 6 months before you apply.^[2]

As at 4 November 2026, Consumer Affairs Victoria says the BLA can make your licence subject to planning permission, limit it to wholesale trading, or require a bank guarantee.^[2]

As at 4 November 2026, Consumer Affairs Victoria lists $829.00 to revoke or vary a licence condition later.^[1]

As at 4 November 2026, Consumer Affairs Victoria requires you to tell the BLA within 14 days if you move, add a storage address or switch from wholesale to retail, using the online change of details form.^[15]

How long an LMCT application takes

As at 4 November 2026, Consumer Affairs Victoria says the BLA's target is to decide 85% of motor car trader applications within 56 days. Its average from 1 July to 30 September 2026 was 37 days.^[3]

As at 4 November 2026, Consumer Affairs Victoria says a correct form with every document attached avoids delays. The BLA may ask for more information through myCAV and can refuse you if you do not reply in a reasonable time.^[2]

As at 4 November 2026, Consumer Affairs Victoria says that if you are refused you are told in myCAV and can appeal to VCAT within 28 days. Otherwise you cannot reapply for 2 years without special permission. You must not trade while you wait for a decision.^[2]

Criminal record or a past claim: applying for permission

As at 4 November 2026, Consumer Affairs Victoria says a conviction in the last 10 years for fraud, dishonesty, drug trafficking or violence (punishable by 3 months or more in prison) disqualifies you. So does a past claim admitted against the Guarantee Fund. You can still apply for permission in myCAV. It costs $2,062.00 and needs 2 written character references. Spent convictions do not need to be disclosed.^[12]

Rules once you hold an LMCT licence

• As at 4 November 2026, Consumer Affairs Victoria requires you to display "LMCT" and your licence number at each place of business and in every advertisement.
• As at 4 November 2026, Consumer Affairs Victoria requires a dealings book (Form 2) at every premises, recording each car you buy, sell, swap or hold for sale with the other party's signature. Keep it for at least 6 years.
• As at 4 November 2026, Consumer Affairs Victoria requires a used car price and data sheet (Form 4) on every used car in the yard, showing the drive-away price and whether the car has a statutory warranty.
• As at 4 November 2026, Consumer Affairs Victoria requires contracts that contain everything the Regulations require, with a copy given to the buyer at the time of sale.
• As at 4 November 2026, Consumer Affairs Victoria requires every used-car buyer to get a guarantee of clear title: a written promise that the car is not stolen and has no money owing on it.^[8]

As at 4 November 2026, Consumer Affairs Victoria says a used car under 10 years old and under 160,000 km comes with a statutory warranty of 3 months or 5,000 km, whichever ends first. You must repair defects found in that time, and pay towing if a defect stops the car being driven. Motorcycles, commercial vehicles and auction sales are not covered.^[8]

As at 4 November 2026, Consumer Affairs Victoria says buyers get 3 clear business days after signing to change their mind, unless they take delivery first. If they cool off, you may keep $100 or 1% of the price for a used car, and $400 or 2% for a new car, whichever is greater.^[7]

As at 5 November 2026, section 43 of the Motor Car Traders Act 1986 gives no cooling-off right to company or trader buyers.^[17]

As at 4 November 2026, Consumer Affairs Victoria says that before handing over a registered car you must give the buyer a current roadworthy certificate, and within 14 days of the sale you must lodge the transfer with VicRoads.^[8]

As at 5 November 2026, section 35A of the Motor Car Traders Act 1986 says you must not employ a person in a customer service capacity until they have given you a signed employee declaration (Form 3). Form 3 comes before they start work.^[17]

As at 5 November 2026, section 35A(4) of the Motor Car Traders Act 1986 says staff who negotiate sales or go on test drives must also give you a police check, either no more than 6 months old when they start or handed over within 6 weeks of starting.^[17]

As at 4 November 2026, Consumer Affairs Victoria says to keep Form 3 and the police check for at least 6 years. Inspectors can ask to see them along with your dealings book, contracts and signed forms.^[10]

As at 4 November 2026, Consumer Affairs Victoria requires you to lodge your annual statement and fee in myCAV in the 6 weeks before your licence anniversary. Only the sole trader, a partner or a director can lodge it. If it is late you get a late notice, and the licence is cancelled on the date in the late notice (Consumer Affairs Victoria says 21 days). A cancelled or surrendered licence means a new application and a new LMCT number.^[5]

No consignment selling in Victoria

As at 4 November 2026, Consumer Affairs Victoria says a licensed trader must not sell, offer to sell, or hold a car to sell for an owner who is not a licensed trader. The maximum is 100 penalty units, court action or both. Public auctions are not covered by this ban. If your plan relies on selling private owners' cars for a commission, it will not work here.^[8]

As at 5 November 2026, section 36 of the Motor Car Traders Act 1986 applies to selling for anyone who is not a licensed motor car trader or a special trader (a separate category in the Act that this guide does not cover). Section 36(3) also lets a court order the trader to pay the owner all of the sale proceeds.^[17]

Penalties for trading without an LMCT licence

As at 5 November 2026, section 7 of the Motor Car Traders Act 1986 (version in force from 6 August 2025) makes it an offence to trade in cars without a licence. The maximum is 100 penalty units for each car bought, sold, exchanged or offered. A court can add, or substitute, a fine of 15% of each car's sale price.^[17]

As at 4 November 2026, Consumer Affairs Victoria lists a penalty unit as $209.10 for 2026-27, so 100 units is $20,910 per car. That dollar total is our calculation from the unit value.^[6]

As at 5 November 2026, the Department of Treasury and Finance (DTF) indexation page gives the same 2026-27 penalty unit value, $209.10.^[20]

As at 4 November 2026, Consumer Affairs Victoria says it finds unlicensed traders through licensed traders, industry groups such as VACC, VicRoads, electronic tracking and site inspections. Options range from a warning notice to court action.^[16]

As at 4 November 2026, Consumer Affairs Victoria lists these court maximums for licensed traders in 2026-27:^[6]

• Odometer tampering: 240 penalty units or up to 2 years' jail, or both (individual); 1,000 penalty units (company).
• Selling a car without cancelling its security interest: 100 penalty units or 12 months' jail.
• No dealings book on the premises, or entries not made: 50 penalty units each. Infringement notice: 5 units.
• LMCT number not displayed at the premises: 10 penalty units, or 1 unit by infringement notice.^[6]

The Motor Car Traders Guarantee Fund

As at 4 November 2026, Consumer Affairs Victoria says your licence fees go into the Motor Car Traders Guarantee Fund. It pays successful claims by people who lose money when a trader breaks certain parts of the Act, then recovers what it paid from the trader, or from the directors or partners of a company or partnership.^[13]

As at 4 November 2026, Consumer Affairs Victoria says buyers can check the public register to see that you are licensed, and your details appear on it once your licence is granted.^[19]

ABN and GST for a Victorian dealership

As at 4 November 2026, business.gov.au says you must register for GST once your GST turnover reaches $75,000 or more, and a new business should register if it expects to reach $75,000 in its first year.^[18]

Trade plates: not confirmed. We could not open VicRoads pages on 4 November 2026, so this guide does not cover their fees or rules. Next step: ask VicRoads directly.

What changed: 8 November 2026: first published.