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The Andrews Labor Government has passed landmark new laws banning cash for scrap metal, which will turn the screws on the stolen car trade in Victoria.

Businesses will be banned from making or taking cash payments and possessing or trading an unidentified motor vehicle, and will be required to keep records of all transactions involving scrap metal.

There will be traceable information for every transaction, with businesses facing maximum fines of more than $30,000 if they don’t comply with these new regulations.

Police will also be equipped with greater search powers to allow officers to search second-hand dealers’ business or storage premises without a warrant.

“Banning cash for scrap metal will undermine the business model of criminals who steal cars. We are closing a loophole that for too long has been exploited by organised crime groups,” said Minister for Police, Lisa Neville