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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2025-11-13 Daily Xml
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Scrap Metal Dealers Bill

Second Reading

Adjourned debate on second reading.

(Continued from 12 November 2025.)

Mr BATTY (Bragg) (12:17): I rise to make a contribution on the Scrap Metal Dealers Bill 2025 and I indicate that I will be the lead speaker for the opposition, which, of course, recognises that this is a bill attempting to solve what we accept is a very big and perhaps growing problem, and that is the problem of copper theft.

We know that increasingly copper theft is becoming a very big issue, particularly on building sites. In 2023-24 alone we know there have been over 2,000 instances of scrap metal theft from building sites, and I think the Master Builders Association estimates it is costing their industry in excess of $70 million each and every year.

What it is doing is obviously not just an inconvenience but is a huge cost that is being borne by those who are the victims of this crime. It is probably pushing up the price of housing as well and, frankly, it is downright dangerous. We have seen videos released of people trying to rush out onto railway lines to steal copper, and there are live wires being exposed on building sites. It does risk someone getting seriously hurt. It is a big financial cost, it is a big inconvenience and it is a bit of a safety risk.

The government seemingly acknowledges this and announced quite sometime ago that they had a plan to deal with it, which is the legislation now before us. It has taken over nine months for this legislation to arrive here. It was in February of 2025 when the government first promised tough new laws to crack down on copper theft, and their media release at that time said:

The Malinauskas Labor government is promising a suite of law reforms to crackdown on the theft of copper and scrap metal.

That was in February 2025 by the very newly appointed police minister—who, of course, was the previous police minister—and frankly we have not seen or heard much about the issue since then, which I think is disappointing. Obviously there is a cost to the delay here. If we know this is costing millions of dollars each year, we would have liked to have seen a bit more urgency and perhaps a bit more thoroughness in the process to bring this legislation before the house. It was indeed only once the opposition highlighted the government's inaction on this issue last week or the week before that we saw this bill released just yesterday.

What this bill will do, according to the government, is provide for the regulation of prescribed scrap metal dealers and dealing in prescribed scrap metal. It will make it more difficult to move and dispose of stolen scrap metal, and provides for increased powers for South Australia Police to search, seize and remove evidence from premises. It will also prohibit the buying or selling of scrap metal using cash or cryptocurrency and require proof of ID and accurate records for all scrap metal transactions.

The parliament is now in the fairly unenviable position of having to consider this bill, a bill that has been foreshadowed for nine months, in about nine hours. This bill was introduced only yesterday for the first time. A draft was, I think, provided to the opposition the day before. It is very difficult, frankly, to determine whether the final form of this bill will be an effective solution to the problem that the government has identified. It is an unenviable position that we are in, but it is not an uncommon position, of course.

I commend the industriousness of the new Minister for Police for bringing a flurry of legislation into the parliament over the past couple of weeks, but it does beg the question of what the government has been doing in this portfolio for the past few years and it does put the parliament in a very difficult position when we are being asked to consider legislation that we have hardly had a chance to consider and consult on.

In the past day or two or three, we have had the opportunity to try to speak to as many stakeholders as we can. I think it is fair to say that, as a general rule, the housing industry strongly supports the legislation that the government has introduced. I have had the opportunity to meet with the HIA over the past year on the issue of copper theft more generally and I thank them for their advocacy on this issue, particularly Stephen Knight at the HIA. I had the benefit of hearing from Master Builders recently; they support this bill and have been advocating on the issue of copper theft for some time. The UDIA also supports this bill, I understand. I also had the benefit of a briefing from South Australia Police just yesterday afternoon. I understand that SAPOL supports the bill and I thank those officers for their time yesterday in helping us understand this piece of legislation that we are debating with very little notice.

On the other hand, we have also heard from a number of scrap metal dealers and I think it is fair to say that they oppose this bill. They have made various submissions throughout this process, some a little while ago, but apparently there has been another follow-up round of consultation more recently that has taken place in a bit of a hurry. I think there is a concern amongst a lot of scrap metal dealers that their concerns have not been appropriately listened to or responded to. A number of members of parliament received an email earlier this week from the Waste and Recycling Industry Association raising some concerns with this bill. They said:

The Waste and Recycling Industry Association SA has significant concerns regarding details within the proposed Scrap Metal Dealers Bill 2025 scheduled to be introduced to Parliament this week. Despite claims by the Government that consultation has been adequate engagement with the industry was rushed, with short timeframes to respond and with no follow up on any of the issues raised. Feedback provided by the recycling industry has largely been ignored in the draft Bill.

I have also had the opportunity to talk to another scrap metal dealer who has concerns about this bill and has particular concerns around the consultation process and attempts to engage in a constructive manner that he feels have not been well received. I will read out some of his concerns. He states:

We believe this bill will be HIGHLY counterproductive.

We have made it clear that the introduction of non-cash payment in NSW has led to increased criminal activity that has proven difficult, if not impossible to police.

Members of the police apparently have experienced violence, and it is now not being policed.

We are led to believe that police do not want to enter certain areas so as not to put themselves in danger.

We ask, what investigations have been made based on our previous submission and has SAPOL done any investigations into the practical implementations of this proposal.

Does SAPOL believe it has both the expertise and sufficient personnel to police this adequately.

He went on to say:

Within the last week, the ABC has made us abundantly aware of the refuse problem in SA.

It appears that several councils have a refuse dumping problem and this is costing taxpayers unnecessarily.

It is having both a safety and environmental impact.

As per our submission, this bill will cause more rubbish to be dumped.

Some fairly legitimate concerns have been raised. Frankly, part of the problem in legislating in this sort of way, in this rushed manner at the end of the year, is that you perhaps do not have time to adequately consult with stakeholders and get that detail right. Perhaps part of the problem is having three or four, or four or five different police ministers over the past few years as well. I am thankful to this police minister for bringing legislation before this parliament. I do just wish we could have seen it earlier and perhaps been able to respond to some of these stakeholder concerns.

In talking to SAPOL yesterday, I think the minister or the government has tried to take some of these concerns into account in the final form of this bill, which some of these stakeholders may or may not have seen. In particular, it removes the licensing scheme that was originally proposed but, perhaps more importantly, limiting most of the operation of this act to what is a defined term 'prescribed scrap metal'.

Most of the provisions in this act are only going to apply to that category of scrap metal, which includes catalytic converters, items comprised of copper, prescribed electrical and telecommunication fixtures and fittings, hot water systems, rail fixtures and fittings, prescribed water meters and other classes prescribed by the regulations. I understand that the minister might be taking into account some of the other concerns raised by stakeholders when drafting those regulations.

There is also a clause in this act, which is a review clause that has been added into the bill that has been introduced. We welcome that. It provides for a review of the act after three years. I do foreshadow that I will be moving an amendment to see that review occur after one year. That is really just reflective, I guess, of two things. First, we are conscious that this is a big change for the scrap metal industry and we want to, as soon as possible, make sure that it is working in the intended way. Is it reducing copper theft? Is it operating fairly for scrap metal dealers? Is there going to be a problem with scrap metal on the side of our streets? Can it, in fact, be policed?

We want to take into account that context, but also take into account the context that we are looking at this in a fairly quick manner now. I do concede it has been a nine-month lead-up, but some feel that this final round of consultation might have been a little bit rushed, so the sooner we can have that review to make sure the legislation is operating as intended the better. I might leave it there, having foreshadowed the amendment, which we can talk to in committee.

The Hon. Z.L. BETTISON (Ramsay—Minister for Tourism, Minister for Multicultural Affairs) (12:29): I rise today in support of this bill which introduces the long-overdue regulation of the scrap metal industry in South Australia. At present, South Australia remains the only jurisdiction in the country where the scrap metal industry is not regulated. This bill brings us into alignment with other states and territories for greater oversight in this area. The purpose of this bill is clear: to reduce the incidence of opportunistic metal theft within South Australia and to protect our communities, businesses and infrastructure from the costly consequences of these crimes.

Metal theft may sound minor to some, but its impact is far-reaching and expensive. Master Builders South Australia has estimated that metal theft costs the construction industry more than $70 million per year. That is a staggering figure, and money that could otherwise be invested in new projects, new jobs and new opportunities.

Copper theft in particular has been on the rise across our state. Items such as copper piping, electrical cabling and catalytic converters are frequently targeted by thieves. These materials have high resale value and can be easily traded through unregulated markets, and that is precisely what this bill aims to stop. The consequences of these crimes go well beyond the immediate financial loss. Theft from building sites causes costly delays and disruptions to the building and construction industry. When critical materials or equipment are stolen, projects are halted, workers are stood down and communities are left waiting for essential infrastructure to be completed.

This bill seeks to address these challenges through four key provisions, and the first is through registration. All scrap metal dealers will be required to be registered, ensuring that only legitimate or accountable operators are able to trade in scrap metals. The second element is transaction records. Dealers must verify the seller's identity using photographic identification, obtaining their signature and maintaining accurate digital records of all transactions. This measure will create a traceable record of every transaction and ensure accountability throughout the supply chain.

The third element is around payment regulation: cash, cheque, cryptocurrency and in-kind payments will be prohibited. All transactions will need to be made via digital payment methods which are secure, transparent and traceable. This will make it much harder for criminals to anonymously profit from stolen goods.

The fourth element is around enforcement. The bill strengthens the powers of South Australia Police to inspect premises, seize evidence and take action against noncompliant operators. Importantly, it introduces closure orders, allowing authorities to temporarily shut down businesses that fail to meet the new standards.

In addition, the bill establishes specific rules for dealing with vehicles. It will be illegal to purchase scrap motor vehicles where the vehicle identification number has been removed, defaced, obliterated or altered. This measure will make it far more difficult to disguise stolen vehicles and sell them for scrap. Collectively, these reforms will reduce the theft of valuable metals and help dismantle the black market that enables these crimes. By making it harder for stolen materials to be sold, we make the crime itself less appealing. Let me be clear: it is already a crime in South Australia to steal; however, the existence of an unregulated scrap metal market has made it easier for criminals to exploit the system and profit from their actions.

The ripple effects of metal theft are significant. We have seen public transport delays caused by copper cabling stolen from train lines and signal boxes; we have seen disruptions to internet and telecommunication services when cables are ripped from Telstra pits; even local sporting clubs have suffered with light towers stripped of valuable components; essential car components are being removed from vehicles parked on our streets; and hot water systems, copper piping and cabling continue to be stolen from building sites.

When I built my house in Salisbury, the water meters were taken off, and it delayed the construction process. Although there was, of course, insurance that the builder had, we were surprised one night when suddenly things that had been put in the ground disappeared. It is incidents like this that cause inconvenience, financial loss and frustration for individual businesses and communities alike.

The bill has been carefully designed to ensure that regulation targets criminal behaviour, not legitimate operators. Law-abiding scrap metal dealers and recyclers perform an important role in our economy and in environmental sustainability. This legislation recognises that and focuses enforcement where it belongs: on those attempting to sell stolen goods, particularly copper. By removing this lucrative market that currently exists for stolen metal, we take away the incentive for theft. The government and South Australia Police have undertaken extensive consultation throughout the development of this legislation. Feedback from industry, community stakeholders and law-abiding enforcement has been invaluable in developing this bill. Amendments have been made to earlier drafts to ensure it is both fair and effective.

We have to make sure that this works. As the last jurisdiction, we had been obviously given the opportunity to look at what has been working in other states, and when we implement this we can roll this out very well. Further consultation will occur following the passage of this bill to help inform the detailed regulations that support its implementation. This bill represents a balanced, practical and necessary response to a growing problem. It protects legitimate businesses, supports our construction and infrastructure sectors and reduces opportunity for criminal activity.

Given our focus, our Housing Roadmap and our desire to increase opportunities for South Australians to buy and build their homes in the metro area and throughout the regions, the timeliness of this bill is even more important. We do not want delays. We want to make sure that when people have invested and made that decision, we limit opportunities to prevent theft and that theft impacting on the timeliness of that build and on that construction industry. We know it is an industry we want to encourage more people to become a part of through apprenticeships and traineeships. We need this, whether it is the nonstop South Road, the AUKUS project, and of course the Housing Roadmap particularly is something that will need more people in construction.

I recognise the work of the current police minister and the former police minister in bringing this bill to the house. When you have changes like this, consultation is really important. The regulations, of course, the practicality of how this will work day to day, will be very important. I commend this bill to the house.

Mr ELLIS (Narungga) (12:37): I rise to make a really brief contribution. I have not had a chance to consult with my community about the ins and outs of this bill, unfortunately, such is the speed at which it has been progressed through this parliament. But I do have at hand a couple of examples from our community about the impact that the theft of copper and metals has had and perhaps some evidence of the fact something needs to be done to change it.

The most stark and damning example of the impact that the theft of these metals is having is at the Copper Coast Sport and Leisure Centre. In August last year, there was slated to be the Disability and Lifestyle Expo, which had some 70-odd stallholders there ready to present their wares and their ideas for how they can improve the lives of people living with a disability. It was all slated to go and set up, and overnight, after the whole show had been set up, someone broke into the compound through the car park around the footy oval, levered open the power box, where a great deal of electricity runs through, tied a strap around some copper wiring and piping inside that power box, a high-voltage power box, tied the other end to the back of the car and then just took off at full speed. They ripped the copper out of that power box and kept driving and took it with them presumably to scrap and sell on to someone else.

That, for one, is an incredibly dangerous thing for someone to do, and they must have been in an awfully perilous and desperate situation to have to undertake that action, but, two, it left our community without a significant asset. So the rec centre was out of action for at least the next day and, if memory serves, it took quite a bit of time to get back online and restore that power box activity. It meant the lifestyle expo, to which a great many of the stallholders had travelled from elsewhere to present, had to be postponed.

We had to pack up that expo the next day, using only sunlight to see our way around. It meant that the rec centre was out of action, the gym could not be air-conditioned and the basketball courts were not able to host the weekly competition. It had a tremendous impact on our community, just for the sake of scrapping a few bits of copper piping or wiring out of a live high-voltage power box. That had a tremendous impact on our community and perhaps is evidence of the need for change.

I did a bit of research and found a story in the local paper that reported there had been seven examples of copper theft around that time, so it is quite a prevalent issue in our electorate. Perhaps that has something to do with the fact that we have quite a bit of building work going on on the Copper Coast. There are houses going up aplenty. There have been houses going up aplenty for quite some time, and with that comes opportunity for thieves to steal those materials while they are in use as building material.

I want to relay one more story. It is third-hand so I cannot take direct credit for having talked to the character in it, but I am aware of a plumbing apprentice—not in our electorate candidly—who was tasked with the role of plumbing an entire Housing Trust home ready for its fit-out in the following days. He managed to do it. He spent the whole day plumbing in copper piping here and there so that it was ready to be hooked up and set up. When he returned to work the next day, after having completed that task, he found that the entirety of the copper piping had been removed from that property and he was tasked with restarting the house again the next day. He spent two days in a row piping up this house with copper piping only to find that it had been taken.

Clearly there is a problem with this. I have not had a chance to consider the finer details of the bill, such is the speed with which it has been presented but, hopefully, it solves that problem or at least ameliorates it and we get on with retaining some of those metals where they ought to be. I look forward to seeing the passage of the bill. I wish I had more time to think about it, but such is the way this week has transpired and is transpiring.

Mr PEDERICK (Hammond) (12:41): I rise to make a very brief contribution to the Scrap Metal Dealers Bill. As the member for Narungga has identified, we have had a very brief time to consult on this bill but we have managed to have a conversation with our local scrap metal merchant in Murray Bridge, Shannon Watson at Enviro Scrap Metal Recyclists. He has indicated to me that he already takes ID from everyone who trades in scrap at his premises and he keeps a record of everyone who trades.

He also has police attend his property occasionally and he works with them just in case they can identify any potential stolen copper or such scrap in his yard and he works with them because he is aware of scrap theft, copper theft, that happens all over the state. So he already has those procedures in place and he is happy to work with the police when they visit. He did make one observation, though: he finds it interesting that bottle and can recycling is not involved in this legislation, but I am assuming that is because generally bottles and cans are not stolen, certainly not in the same capacity as copper.

He runs a very worthwhile business in Murray Bridge, which services not just Murray Bridge but surrounding areas and especially when they do scrap pick-ups from farms, when they take the big magnet out, load it up and get rid of a heap of wire or old car bodies or such like scrap, and it is a great service.

The local council seems to give him a hard time about some of his operations and I wonder why because he runs a very good service. It is in behind fencing and it is something that we need to do to make sure that we recycle goods appropriately so that we can make full use of that recycling. I do commend his business.

Just on the discussion around the theft of copper, I think it is at least the second time—maybe the third—that the hot water service that services my electoral office was knocked over again this week, or the copper pipe that services it was taken off. We are certainly aware of these issues happening.

Shannon also emphasised that, yes, it will come at an extra cost to scrap metal dealers because they will obviously have to inform customers that they need to have account numbers to transfer money instead of a cash transaction. I think he is understanding of it coming. I am glad he was aware of this legislation, noting how quickly it has been presented to the house. I do not how long he has been aware, but it would not have been long. It will have an impact, but he just wanted to make those few points to me, and I said I would certainly raise them in the house. I am sure there will be a few questions asked in committee, and I am certainly keen to see our amendment in regard to the one-year review progressed.

Mr HUGHES (Giles) (12:45): I also rise to add a few words in support of the Scrap Metal Dealers Bill 2025. In some ways, given we are essentially talking about copper, this is a perverse outcome of something that is actually really good. As people know, in my electorate metals in various forms provide a significant part of our economic base. Obviously, the steelworks in Whyalla use a degree of scrap, but you do not have many people out and about stealing scrap steel. That is because we talk about scrap steel in terms of how many dollars per tonne. When we talk about copper, though, we talk about it in terms of how many dollars per kilo, so it is an incredibly valuable product and, as a result, attractive to thieves.

As I said, in some respects this is a perverse outcome of something that is really good. South Australia is blessed to have what is a growing copper province, especially in the north of our state, at Carrapateena, Prominent Hill, Olympic Dam. Oak Dam is going to be another big potential copper mine. It is going to be joining the ranks of copper producers under the umbrella of BHP in the not too distant future. Then we have deposits like the Fremantle Doctor and others, so it is in the interests of this state to have high copper prices.

We know that, globally, there are very few big deposits of copper being found, but here in South Australia it is still incredibly prospective. I want to see copper prices go up and up because it is going to be excellent for this state, especially if BHP commit to the twofold to threefold increase in copper production in the north of our state.

Obviously, it produces a little bit of a cloud—and it is a little bit of a cloud compared to what is something massive—in that high copper prices provide an incentive for people to go and steal copper from various locations around the state. When it comes to building in regional communities, we have already faced challenges. For instance, there is already around a 30 per cent premium when building in Whyalla because you often have to mobilise people and equipment from the metropolitan area. When you add something like a copper theft to that, it just adds to the cost of construction.

Not only does it add to the cost of construction, there is also the targeting in both the metropolitan and regional areas of essential services and telecommunication equipment. People break into Telstra and Optus sites to try to get their hands on copper. Here in the metropolitan area we have seen the consequences of people going into our rail infrastructure looking for copper. That can have a profound impact and, indeed, it has had a profound impact.

I was a bit surprised to see even catalytic converters in cars were targeted. I am not sure how much copper is in a catalytic converter. I do not imagine it would be much. Another thing, and maybe it is an unintended consequence of the electrification of the light vehicle fleet, is that when you look at electric cars they have two to three times as much copper in their production as combustion engine cars.

Copper is incredibly essential and the consequences of people stealing copper can be very serious indeed. This bill aims to reduce opportunistic metal theft within South Australia and with it the costly disruptions to the building and construction industries. There is a whole range of victims, from the people who are building, the companies involved, insurance companies—a whole range of things. As has been said, the regulatory environment around copper and other scrap metals in South Australia has lagged behind the other states. Through this bill we have an opportunity to align ourselves with what is being done in the other states. It is an important bill and the figure of what this costs, on an annual basis, in South Australia is not a minor figure. The figure that has been used is about $70 million a year so it is not insignificant.

It has not happened in my electorate, as far as I am aware, but I know that sporting clubs in a number of electorates have been targeted and, especially in relation to lighting in those clubs, that can have a major impact. I mentioned catalytic converters; modern exhaust systems also contain copper as do water heaters, which has been mentioned—and the member for Hammond having three taken, how unlucky can you be? I hope the security has been boosted at your place to ensure a bit of protection in the future.

The bill has been carefully designed but there is always going to be an issue when it comes to consultation. I am always a big fan of doing an effective and detailed consultation so that you try to avoid the unintended consequences. It is good that there is going to be a review. It is good practice when we look at legislative changes, because we do not anticipate what the unintended consequences are going to be. To come back, in a year's time, to review the bill and the regulations that sit under the bill, is a good thing. Like a lot of good legislation it is an iterative process. It is important that we are open to constructive, fair criticism, if any is forthcoming, to see how we can modify what needs to be done.

It does come in surges, depending on price. In some respects the targeting of copper has a long history. I remember as a teenager, not long in Whyalla, they were building the Telecom building—in the great days when we had essential services in public hands—and there was all this copper, all this copper piping and other materials. It was all souvenired by a thief and that caused a lot of disruption to the building of that particular structure.

I also recall, and it is interesting to reflect now I am here in parliament, my first job courtesy of my dad, who thought it would be a good idea if I had a part-time job during school holidays to earn some cash in hand. That job was on a dump face in Whyalla, in the middle of summer—with all the maggots, with all the dust. Your job was to walk along the dump face and go in amongst it to find anything of value. If you did see some copper, you extracted the copper.

I do not look back upon that job with any great pleasure, but it did provide some interesting perspectives. Indeed, when you go back over all of those years, copper was still a valuable asset. The driver—and it depends on the quality of the scrap copper—is that it can fetch anywhere up to $11.50 a kilo.

So if you can find a good stash of copper, and copper from here, there and everywhere, and you have some way of disposing of it, you can make yourself a bit of money. Even copper that is somewhat contaminated by wire or solder still fetches around $10.50 a kilo. So it is potentially a valuable product. That is why the incentive is there. It is why we need to clamp down on it and do what we can that over time is going to be effective. That will ensure that these costs that have been imposed—that $60 or $70 million cost on an annual basis in this state—can be reduced, and hopefully greatly reduced.

As I said at the beginning, I want to see copper prices go up and up, because that will be incredibly good for South Australia. I remember speaking to some geologists a few years back at the Andamooka pub—the old Tuckabox—and at that time they indicated that they were confident that South Australia would become a major international copper province. In the meantime, we have this consequence of copper fetching high values, and we do need to address it.

Ms O'HANLON (Dunstan) (12:57): I rise today to speak in support of the Scrap Metal Dealers Bill 2025. This is an important piece of legislation that responds to issues that are growing across South Australia—issues that are affecting ordinary Australians, local businesses, sporting clubs and, in fact, entire communities. Metal theft is not a new problem, but the scale and disruption we are now seeing requires a modern and balanced response. The bill before us has been carefully designed to reduce opportunistic theft, protect our communities and remove the incentives that currently encourage our criminal activity. It will also bring South Australia in line with other countries and other states that already regulate this industry.

At the moment, the scrap metal industry in South Australia is entirely unregulated. We know that most businesses in the sector do the right thing, but the lack of a clear framework creates gaps that criminal groups are more than willing to exploit. It is already a crime to steal metal—that is very clear under existing law—yet the existence of an unregulated market gives offenders confidence that they can steal copper piping, cabling, catalytic converters and other valuable metals, then dispose of them with little risk of being detected. The result is significant community disruption. It is also incredibly costly. The Master Builders Association of South Australia estimates the cost of metal theft to the building and construction industry alone to be more than $70 million each year. This does not include the impact on individuals, households or public services.

Many of us in the chamber will have spoken with residents who have been directly affected. Metal theft is no longer a hidden crime; it is quite visible in many suburbs, and it is causing real distress. To give a local example, earlier this year my neighbour, Sam, had the catalytic converter stolen from his car, and the damage to the front end of his car was obvious and significant. As many members would know, catalytic converters contain valuable metals and can be sold quickly for cash. This kind of theft is becoming more common. It is quick, it is targeted and it leaves ordinary people with costly repairs and major inconvenience.

Another example was brought to the attention of my office by one of my constituents, Kim. His neighbour was building a new home. When they arrived at the site one morning, they found that all of the newly installed copper piping had been stolen. Offenders had even removed the copper from the gas hot water system and, in doing so, they caused a gas leak that created a serious safety risk, not only for the property but also for the local area. This incident shows how far some offenders will go when the perceived reward outweighs the perceived risk. I wrote to Minister Boyer on that, adding my voice to the need for something to be done. I seek leave to continue my remarks.

Leave granted; debate adjourned.

Sitting suspended from 13:00 to 14:00.

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