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Found this in boostcruising forum whilst trying to find the answer:

I've done a little research for you and NSW is the same as QLD in that there is no legislated limit to the number of vehicles an individual may sell before requiring a motor dealers licence.

A person (other than an exempted person may not.....carry on, or advertise that the person carries on or is willing to carry on, the business of a dealer unless the person is the holder of a dealer's licence.

Again, you could be prosecuted for selling a single vehicle but it would be extraordinarily unlikely. In some cases, the authority responsible for enforcement of the relevant Act (Fair Trading in both NSW and QLD) imposes an 'unofficial' limit which when exceeded, they take action. Judging by the following press release this figure is 4 in NSW. There is also an unofficial limit in QLD but depending on individual circumstances this limit is disregarded on occasions.

Fair Trading Press Release

It's also important to note that in both NSW and QLD that no distinction is made between registered and unregistered vehicles in terms of the requirement to hold a dealers licence. If you think selling unregistered vehicles relieves you of your obligation to hold a current licence, think again.

So really there is no 'safe' number, if you are considered to be carrying on the business of motor dealing you could potentially be prosecuted regardless of whether you sell 1 or 100 vehicles. There are also taxation implications to consider, while Fair Trading may turn a blind eye to 2 or 3 vehicles in most cases, if the ATO catches wind of your activities I can guarantee they won't be so forgiving. Also keep in mind that along with possible fines and prison sentences that the proceeds of the illegal activity may also be forfeited.

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Q: How many cars can you sell before you need a car dealer license in qld?
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