What Is an LMCT License?
If you’re wondering whether you need an LMCT license to import cars in Australia and sell them, the answer depends entirely on intent and volume.
An LMCT (Licensed Motor Car Trader) License is a legal requirement in Victoria (and equivalents exist in all other states) for anyone carrying on a business of trading motor vehicles. It’s issued by Consumer Affairs Victoria under the Motor Car Traders Act 1986.
If you’re buying, selling, exchanging, or otherwise trading vehicles as a business activity, you generally need one. If you’re importing a vehicle for your own use, you generally don’t.
The distinction matters – and it’s one that catches out people who underestimate how quickly casual vehicle sales tip into territory that requires a License.
The Threshold: When Does Importing Require a License?
In Victoria, the general threshold is four or more vehicle transactions in a 12-month period. If you buy, sell, or exchange four or more vehicles within a calendar year as part of a business activity, you’re deemed to be carrying on a business of motor car trading and must hold an LMCT.
However, the threshold isn’t a clean bright line. Consumer Affairs Victoria can deem someone to be carrying on a business of motor car trading even below four vehicles if the circumstances suggest business activity – for example, if the transactions are structured, repeated, or profit-oriented in a way that resembles trading.
The practical rule: if you’re importing vehicles with the intention of selling them for profit – even one or two at a time – take legal advice on whether you need an LMCT. The financial penalty for operating without one when required is substantial.
Individual vs. Company: Does the Structure Matter?
An LMCT can be held by an individual, company, partnership, or trust. The business structure does not affect the requirement. A sole trader importing and selling four vehicles a year needs an LMCT just as a company does. Operating through a company structure doesn’t exempt you from the licensing requirement.
For companies, all directors will be subject to character and fitness assessments as part of the application. The entity structure must be documented in the application.
When You Do NOT Need an LMCT
You generally do not need an LMCT if:
- You are importing a vehicle for your own personal use – to drive, not to sell
- You’re a private individual selling your own vehicle (which you’ve owned and used)
- You’re selling a vehicle that was previously registered in your name as a personal vehicle, not purchased for the purpose of resale
The defining factor is intent. A vehicle imported for personal use, driven for a period, and then sold privately is a private sale. A vehicle imported with the primary or clear intention of selling it for profit is a trading transaction.
When You Clearly Need an LMCT
You need an LMCT License if you are:
- Operating a car dealership – buying and selling vehicles to the public as a business
- Importing vehicles regularly for resale – even if you’re doing it as a side business alongside other employment
- Selling vehicles online frequently as a business – marketplace sales that constitute business activity
- Carrying on any business of trading in motor vehicles – the legislation is broad
If you’re importing vehicles from Japan through SEVS or the 25-year rule with the intent to sell them, you need to be licensed. Carrying on this business without the proper License is an offence under the Motor Car Traders Act 1986.
What the LMCT License Costs (Victoria, 2026)
- Application fee: $991.30
- First year licensing fee: $1,489.80
- Annual renewal fees apply thereafter
In addition to the fees, applicants must demonstrate they have appropriate business premises, meet fitness and character requirements, and have the relevant knowledge of motor car trading laws.
Importing as an Individual: What You Can Do
If you’re an individual wanting to import a vehicle for your own use – a specific JDM model you want to drive, or a 25-year-old classic you want to keep – the LMCT requirement doesn’t apply. You can import as an individual through the standard VIA process.
What you cannot do (without a License) is make importing and reselling vehicles a regular business activity. Four vehicles a year is the threshold for that conversation to start.
The LMCT and Import Compliance: How They Work Together
The LMCT License governs the trading activity. The import compliance process (SEVS, 25-year rule, compliance plating, RWC, registration) is separate – it’s governed by federal vehicle standards legislation, not state motor car trading law.
A licensed motor car trader still has to comply with all import approval requirements through ROVER, complete compliance at a RAW, and meet state registration requirements. The LMCT doesn’t bypass any of these steps – it’s simply the License required to conduct the *trading* activity legally in Victoria.
Other States: Similar Requirements Apply
While the specific name and threshold may differ slightly by state, all Australian states and territories have similar licensing requirements for motor car traders:
- NSW: Used Car Dealers License (Fair Trading NSW)
- Queensland: Motor Dealer License (QBCC / Office of Fair Trading)
- South Australia: Second-hand Vehicle Dealer’s License (CBS SA)
- Western Australia: Motor Vehicle Dealer’s License (Department of Mines, Industry Regulation and Safety)
If you’re importing and selling vehicles in multiple states, seek advice on licensing requirements in each jurisdiction where you’re conducting business.
Frequently Asked Questions
If I import one car and sell it, do I need an LMCT?
Probably not, if it was genuinely for personal use. But if it was purchased with the intention of selling, even one transaction can raise questions about whether a business is being carried on. If you’re importing with the intent to profit from sale, get advice before assuming you don’t need a License.
Does a company structure protect me from needing an LMCT?
No. The requirement applies regardless of business structure. A company conducting motor car trading needs an LMCT, and directors will be assessed as part of the application.
Can I import through a SEVS pathway without an LMCT?
You can apply for a VIA as an individual without an LMCT – import approval is a separate matter. But if you’re importing SEVS vehicles to sell, you need the License for the selling activity.
What’s the penalty for trading without an LMCT?
Significant fines and potential prosecution under the Motor Car Traders Act 1986. The Act also provides for enforcement action by Consumer Affairs Victoria including injunctions and restitution orders.
Does Garage Apex hold an LMCT?
Yes. Garage Apex holds the appropriate Licenses to import and sell vehicles in Victoria. All vehicles we sell have been through the proper compliance and trading process.
Thinking About Starting an Import Business?
If you’re considering importing vehicles commercially and want to understand whether you need an LMCT and how the licensing works alongside the import process, get in touch with us.
We can point you toward the right resources, and for vehicles you source through us, we’ll handle the import compliance end of it.
*Garage Apex – 54 Miller Street, Epping VIC 3076 | 1300 112 220 | VicRoads approved, ISO9001 certified*
