Paying cash for scrap metal banned in Vic

New laws banning cash payments for scrap metal have come into effect in Victoria, in a bid by the state government to stop car thefts and disrupt organised crime.

From Wednesday, scrap dealers who accept or make cash payments for metal face fines of more than $30,000, while police will have powers to enter a business or storage premises without a warrant if they believe cash dealing in scrap metal is taking place.

"These reforms make it harder for criminals to make quick cash by disposing of their illegal goods through the auto-wreckers and scrap metal dealers," Police Minister Lisa Neville said in a statement.