The Complete Guide to Labour Hire Licensing in Australia

The Complete Guide to Labour Hire Licensing in Australia

Labour hire licensing in Australia is a patchwork of state-based regulations, each with its own requirements, fees, and enforcement mechanisms. For businesses using labour hire — and for providers offering it — understanding these requirements is essential. Non-compliance can result in significant penalties, including fines exceeding $500,000 and even criminal charges.

This guide breaks down the licensing landscape state by state, so you know exactly where you stand.

Why Labour Hire Licensing Exists

Labour hire licensing was introduced to protect workers from exploitation. The schemes aim to ensure that labour hire providers:

• Pay workers correctly under the relevant modern award or enterprise agreement
• Maintain appropriate workers compensation insurance
• Meet workplace health and safety obligations
• Comply with superannuation requirements
• Do not engage in sham contracting or other avoidance behaviours

The licensing requirements give host businesses confidence that their labour hire provider is operating lawfully and treating workers fairly.

State-by-State Breakdown

Queensland

Licensing body: Labour Hire Licensing Compliance Unit (Office of Industrial Relations)

Requirements:

• All labour hire providers operating in Queensland must hold a licence
• Application requires evidence of financial viability, compliance history, and fitness to hold a licence
• Licence holders must report annually on their operations
• Using an unlicensed provider is also an offence for the host business

Penalties: Up to $414,525 for individuals and $1,382,550 for corporations for providing labour hire without a licence.

Queensland was the first state to introduce mandatory labour hire licensing and has the most established scheme.

Victoria

Licensing body: Labour Hire Authority (LHA)

Requirements:

• All labour hire providers operating in Victoria must be registered
• The LHA assesses applicants against a fit and proper person test
• Providers must demonstrate compliance with workplace laws, tax obligations, and workplace safety
• Annual reporting obligations apply

Penalties: Significant fines for operating without registration. Host businesses must also ensure their providers are registered.

The Victorian scheme places a strong emphasis on the character and compliance history of directors and key personnel.

South Australia

Licensing body: Consumer and Business Services (CBS)

Requirements:

• Labour hire providers must hold a licence to operate in South Australia
• Applicants must pass a fit and proper person test
• Evidence of compliance with employment and safety laws is required
• Licences are subject to conditions and ongoing obligations

Penalties: Operating without a licence attracts substantial fines. Host businesses have a duty to verify their provider holds a current licence.

Australian Capital Territory

Licensing body: Access Canberra

Requirements:

• Labour hire providers must be licensed to operate in the ACT
• The scheme covers providers who supply workers in the ACT, regardless of where the provider is based
• Compliance with workplace laws and safety obligations must be demonstrated

Penalties: Fines apply for unlicensed operation and for engaging unlicensed providers.

New South Wales

NSW does not currently have a standalone labour hire licensing scheme. However, labour hire providers must comply with all relevant employment laws, the Building and Construction Industry Long Service Payments Act, and workplace health and safety legislation.

There have been ongoing discussions about introducing licensing in NSW, and businesses should monitor developments. Reputable providers maintain the same standards in NSW as they do in licensed states.

Western Australia

WA does not currently have a mandatory labour hire licensing scheme. However, the state government has signalled interest in introducing one. In the meantime, providers must comply with WA employment laws, workers compensation requirements, and WHS legislation.

Tasmania and Northern Territory

Neither jurisdiction currently has labour hire licensing requirements, though general employment and safety laws apply.

What to Look for in a Licensed Provider

When engaging a labour hire company, verify the following:

1. Current licence status — Check the relevant state register to confirm the licence is active and unconditional
2. Coverage across states — If you operate nationally, your provider should hold licences in all required jurisdictions
3. Compliance history — Has the provider had any licence conditions, suspensions, or enforcement actions?
4. Workers compensation insurance — Current certificates of currency for all states where workers are deployed
5. Modern award compliance — Evidence that workers are paid correctly under the relevant award

HBG Licensing and Compliance

Harrison Barratt Group holds labour hire licences in all required Australian jurisdictions. We maintain rigorous compliance systems that ensure every worker is paid correctly, every obligation is met, and every client can engage us with confidence.

Our compliance framework includes:

• Active labour hire licences in QLD, VIC, SA, and the ACT
• Workers compensation coverage in all states
• Regular internal and external compliance audits
• Dedicated compliance personnel
• Transparent reporting to clients on compliance metrics

We believe that compliance is not a burden — it is a competitive advantage. Clients who engage HBG know they are protected.

The Bottom Line

Labour hire licensing exists to protect workers and give host businesses confidence in their supply chain. Whether you are a provider or a host, understanding your obligations is not optional — it is essential.

Need a labour hire provider you can trust to be fully licensed and compliant? Contact Harrison Barratt Group on 1300 424 247 or visit harrisonbarratt.com.au. We take compliance seriously so you do not have to worry.