Step-by-Step Guide to Applying for an LMCT Licence in Victoria

If you’re planning to sell, buy, or trade motor cars in Victoria, you’ll need a Licensed Motor Car Trader (LMCT) Licence. This licence is issued by Consumer Affairs Victoria (CAV) and ensures that businesses in the automotive industry comply with legal standards and consumer protection laws.

Applying for an LMCT licence can seem complicated, but with the right steps, you can navigate the process smoothly. This guide walks you through everything you need to know.

What is an LMCT Licence?

An LMCT Licence allows you to legally:

Sell new or used motor vehicles.

Operate a car dealership or trade cars at wholesale.

Auction motor vehicles.

Without an LMCT licence, trading in motor cars can lead to hefty fines and legal action.

Step 1: Confirm if You Need an LMCT Licence

Not every business in Victoria requires an LMCT licence. You need one if you:

Sell, buy, or exchange more than 4 motor cars in 12 months.

Auction motor vehicles.

Act as a motor car trader for profit.

If you’re only selling your own personal car occasionally, you don’t need one.

Step 2: Meet the Eligibility Requirements

Before you apply, make sure you and your business meet these conditions:

Age & Residency: You must be at least 18 years old and live in Victoria.

Business Structure: Decide whether you’ll operate as a sole trader, partnership, or company.

Fit and Proper Person Test: CAV will check if you have a clean record—no serious criminal offences, bankruptcy, or previous licence disqualifications.

Business Premises: You must have a commercial business location that complies with planning permits and local council requirements.

Step 3: Obtain a Planning Permit

A planning permit from your local council is now one of the most critical steps. Councils will assess whether your chosen premises can legally operate as a motor car trading site.

Key points:

Ensure your property is zoned for commercial use.

Parking and display space for vehicles may be required.

Secure your planning permit before lodging the LMCT application.

Step 4: Prepare Your Business Documents

You’ll need to gather key documents to submit with your application:

Business registration certificate (from ASIC if applying as a company).

ABN or ACN details.

Lease agreement or proof of premises ownership.

Planning permit from local council.

Police checks for directors, partners, or key persons in the business.

Step 5: Lodge Your Application with CAV

Applications are submitted through Consumer Affairs Victoria. You can apply online or by post.

Application form: Complete with accurate business and personal details.

Supporting documents: Attach all required paperwork.

Application fee: As of now, the fee is $1,500+ (subject to change).

Step 6: Pay the Contribution to the Motor Car Traders Guarantee Fund

Every LMCT applicant must contribute to the Motor Car Traders Guarantee Fund. This fund protects consumers against financial loss if a trader fails to meet obligations.

Contribution is usually $8,500 (may vary).

This amount is refunded if you exit the industry and meet all obligations.

Step 7: Undergo Assessment by CAV

Once submitted, CAV will review your application. They may:

Verify your documents.

Check your premises.

Assess your background for suitability.

If everything is in order, your application will be approved. If not, CAV may request further information.

Step 8: Receive Your LMCT Licence

Upon approval, you’ll receive your official LMCT licence number. You must:

Display this number clearly in your business premises.

Include it in all advertisements, websites, and contracts.

Your LMCT licence must be renewed annually, and compliance with CAV regulations is mandatory.

Tips for a Smooth Application

Plan ahead: Start with securing your planning permit early.

Check requirements carefully: Missing documents often delay applications.

Keep compliance in mind: Even after approval, CAV conducts audits.

Seek expert help: Many businesses use consultants or legal advisers to speed up the process.

Conclusion

Getting an LMCT licence in Victoria is a detailed process, but following these steps makes it manageable. From confirming your need for a licence to securing a planning permit and preparing your documents, each stage is essential for approval.

By ensuring your business complies with CAV requirements, you’ll be on your way to running a legal, successful, and trustworthy motor car trading business in Victoria.

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