Construction (residential & commercial) compliance obligations in New South Wales: sole trader with employees
Computed by the Rules Mate applicability engine for a sole trader with 1–5 employees, turnover $100K–$1M, in construction (residential & commercial), operating in New South Wales and selling to consumers and small businesses.
Short answer: 38 obligations
38 obligations apply (16 critical) across 27 regulators, plus 21 to check. Risk rating: medium. No licensed regime, but you employ staff (WHS, Fair Work, super and payroll duties); 16 critical obligations apply.
Taking on staff as a sole trader: what changes
Compared with a construction (residential & commercial) business run as a sole trader with no employees in New South Wales, 21 obligations apply that did not.
- Applies: Pay superannuation on every payday (Payday Super)
- Applies: Pay employees in accordance with the applicable modern award
- Applies: Manage psychosocial hazards at work
- Applies: Take reasonable and proportionate measures to prevent sex discrimination, sexual
- Applies: Withhold PAYG from employee and contractor payments
- Applies: Provide 10 days paid family + domestic violence leave (FDV)
- Applies: Document VEVO checks + retain employer records (s 245AYL Migration Act)
- Applies: Casual employment definition + conversion (Closing Loopholes 2024)
- Applies: Report under Single Touch Payroll Phase 2
- Applies: Honour employees' right to disconnect (s 333M)
What switches on if you incorporate
Moving to a Pty Ltd company with 1–5 employees, turnover $100K–$1M adds 10 obligations:
- Apply for a Director Identification Number (Director ID)
- Comply with directors' general law and statutory duties
- Prevent insolvent trading (s 588G)
- Pay company PAYG/GST/SG or face Director Penalty Notice (DPN)
- Lodge the ASIC annual company statement and review fee
- Determine large proprietary company status annually
- Apply for a Tax File Number for new entities and partnerships
- Pay ASIC fees + lodge prescribed forms
- Discharge of directors' duties — practical evidence
- Beneficial ownership transparency (Tranche 3 — under consultation)
New South Wales law that applies
4 New South Wales obligations apply on these facts, and 5 more are worth checking:
| Obligation | Why it applies |
|---|---|
| PCBU primary duty of care (NSW WHS Act s 19) | Every business is a PCBU — the primary duty of care applies whether or not you employ anyone · NSW law |
| Notify SafeWork NSW of notifiable WHS incidents | Every PCBU must notify the regulator of notifiable incidents (death, serious injury, dangerous incident) · NSW law |
| Pay long service leave under the LSL Act 1955 (NSW) | You have employees (1–5) · NSW law |
| Comply with Workplace Surveillance Act 2005 (NSW) | You have employees (1–5) · NSW law |
| Comply with NSW Design and Building Practitioners Act 2020 | Check: applies only if you design or build Class 2 (apartment) buildings |
| Obtain Subcontractor's Statements before paying subcontractors (NSW) | Check: applies only if you are a principal contractor engaging subcontractors |
| NSW development consent (Environmental Planning and Assessment Act 1979) | Check: applies only if you propose development requiring consent or a permit |
| National Parks and Wildlife Act 1974 (NSW) — Aboriginal heritage | Check: applies only if your activity disturbs land that may contain Aboriginal cultural heritage or is subject to native title |
| Home Building Compensation Fund (NSW) | Check: applies only if you do residential building work over $20,000 |
Payroll tax in New South Wales (FY2026-27)
NSW: 5.45% on Australian wages above the $1.2 million tax-free threshold (FY2026-27). On these facts the business is below the New South Wales threshold, so payroll tax does not apply yet.
- How the threshold works
- Flat tax-free threshold, apportioned by the share of Australian wages paid in NSW and by days employed; only one group member claims it.
- Returns
- Monthly by the 7th of the following month; annual reconciliation by 28 July
- Administered by
- Revenue NSW
New South Wales regulators
Where the obligations sit
| Area | Obligations |
|---|---|
| Whs | 8 |
| Workplace | 7 |
| Tax | 5 |
| Privacy | 3 |
| Super | 2 |
| Migration | 2 |
| Consumer law | 2 |
| Wages | 1 |
| Discrimination | 1 |
| Construction | 1 |
Critical obligations on this profile
- Pay superannuation on every payday (Payday Super) (You have employees (1–5))
- Pay employees in accordance with the applicable modern award (You have employees (1–5))
- Manage psychosocial hazards at work (You have employees (1–5))
- Take reasonable and proportionate measures to prevent sex discrimination, sexual (You have employees (1–5))
- Comply with the respirable crystalline silica workplace exposure limit (0.05 mg/m³) (Industry: Construction (residential & commercial))
- Australian Business Number (ABN) application (Every business carrying on an enterprise needs an ABN)
- Lodge Business Activity Statements at assigned frequency (Turnover above the $75K GST registration threshold)
- Hold a Construction Induction (White Card) before construction site work (Industry: Construction (residential & commercial))
Check whether these apply
- Comply with Heavy Vehicle Chain of Responsibility (CoR): only if you consign, pack, load or receive goods by heavy vehicle
- Comply with NSW Design and Building Practitioners Act 2020: only if you design or build Class 2 (apartment) buildings
- EPBC Act — assess + approve controlled actions affecting MNES: only if you propose an action likely to significantly affect a matter of national environmental significance
- Notify + remediate contaminated land (state): only if you own, occupy or caused contamination of land
- Maintain Hazardous Chemicals Register + manifest (WHS Reg): only if you use, handle or store hazardous chemicals
- Lodge an FBT return and pay FBT by 21 May: only if you provide fringe benefits (cars, entertainment, loans) to employees
- Wash outbound marketing lists against the Do Not Call Register: only if you make outbound telemarketing calls
- Hold a Remote Pilot Licence / RPAS operator certificate (drones): only if you fly drones commercially
Thresholds to watch
- Lose the Privacy Act small-business exemption at $3M annual turnover (removal of the exemption altogether is proposed, not yet law) (threshold $3M; approaching)
Questions
- How many compliance obligations apply to construction (residential and commercial) businesses in New South Wales run as a sole trader with 1–5 employees?
- 38 obligations apply (16 critical) across 27 regulators, plus 21 to check. Risk rating: medium. No licensed regime, but you employ staff (WHS, Fair Work, super and payroll duties); 16 critical obligations apply.
- Which New South Wales laws apply?
- PCBU primary duty of care (NSW WHS Act s 19), Notify SafeWork NSW of notifiable WHS incidents, Pay long service leave under the LSL Act 1955 (NSW) and Comply with Workplace Surveillance Act 2005 (NSW)
Related
- Construction (residential & commercial) compliance in New South Wales
- Construction (residential & commercial): all obligations
- Compliance obligations by industry, state and size
- Construction (residential & commercial) in NSW: sole trader
- Construction (residential & commercial) in NSW: partnership
- Construction (residential & commercial) in NSW: trading trust
- Construction (residential & commercial) in NSW: no employees
- Construction (residential & commercial) in NSW: 1–5 employees
- Construction (residential & commercial) in NSW: 100–499 employees
- Construction (residential & commercial) in NSW: 20–99 employees, turnover $1M–$3M
- Construction (residential & commercial) in NSW: 6–19 employees, turnover $3M–$10M
- Construction (residential & commercial) in NSW: 100–499 employees, turnover $100M–$1B
- Construction (residential & commercial) in NSW: 500+ employees, turnover $1B+
- Construction (residential & commercial) in Victoria: sole trader with employees
- Construction (residential & commercial) in Queensland: sole trader with employees
- Construction (residential & commercial) in Western Australia: sole trader with employees
- Construction (residential & commercial) in South Australia: sole trader with employees
- Construction (residential & commercial) in Tasmania: sole trader with employees
- Construction (residential & commercial) in Northern Territory: sole trader with employees
- Construction (residential & commercial) in Australian Capital Territory: sole trader with employees
- Comply with the respirable crystalline silica workplace exposure limit (0.05 mg/m³): does it apply to construction (residential & commercial)?
- Hold a Construction Induction (White Card) before construction site work: does it apply to construction (residential & commercial)?
- Comply with NSW Design and Building Practitioners Act 2020: does it apply to construction (residential & commercial)?
- Maintain VBA registration as builder / draftsperson / surveyor: does it apply to construction (residential & commercial)?
Sources
- Revenue NSW: payroll tax thresholds and rates
- PCBU primary duty of care (NSW WHS Act s 19)
- Notify SafeWork NSW of notifiable WHS incidents
- Pay long service leave under the LSL Act 1955 (NSW)
- Comply with Workplace Surveillance Act 2005 (NSW)
- Pay superannuation on every payday (Payday Super)
- Pay employees in accordance with the applicable modern award
- Manage psychosocial hazards at work
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.