Labour hire licensing in Australia: Victoria, Queensland, South Australia and the ACT
State labour hire licensing schemes, who they apply to, the host obligation not to engage unlicensed providers, and 2025 changes.
Why state licensing exists
Labour hire licensing schemes have been introduced in Victoria, Queensland, South Australia and the Australian Capital Territory to address issues within the labour hire industry. These schemes operate on a state-by-state basis, as there is no equivalent federal legislation.
The primary purpose of these licensing arrangements is to protect workers and ensure fair practices. They aim to prevent worker exploitation, sham contracting, wage theft, and instances of tax or superannuation avoidance that can occur within the labour hire supply chain.
To achieve this, each scheme mandates that labour hire providers hold a licence and prohibits businesses (hosts) from engaging providers that do not.
Queensland scheme
The Queensland scheme is administered by the Labour Hire Licensing Compliance Unit under the Labour Hire Licensing Act 2017 (Qld). The scheme applies broadly to any business that supplies a worker to a host to perform work.
From 1 July 2025, a specific exclusion will apply. High-income employees earning more than $183,100 per annum and not covered by an award or agreement are not subject to the licensing requirements.
Hosts who use an unlicensed labour hire provider may face significant penalties. These penalties include fines exceeding $500,000 for corporations.
Victoria scheme
The Victorian labour hire licensing scheme is administered by the Labour Hire Authority under the Labour Hire Licensing Act 2018 (Vic). This legislation regulates individuals or businesses that supply workers to perform work in or as part of another person’s business.
Hosts are required to check provider licences on the public register before engaging labour hire workers. This ensures compliance with the licensing requirements.
Recent amendments to the Act have introduced new requirements, including financial-viability assessments for licence holders, and expanded public-interest powers for the Labour Hire Authority.
South Australia and ACT
South Australia’s labour hire licensing scheme has broadened significantly. The Labour Hire Licensing (Scope of Act) Amendment Act 2025 came into force on 29 January 2025, extending coverage to all industries. Previously, licensing applied to five sectors: horticulture, meat processing, seafood processing, cleaning, and trolley collection. This expansion means the South Australian scheme now mirrors the coverage of labour hire licensing in Victoria and Queensland.
The Australian Capital Territory operates under the Labour Hire Licensing Act 2020 (ACT), with Access Canberra responsible for administration. This legislation governs labour hire practices within the ACT.
It is important to note that New South Wales, Western Australia, the Northern Territory, and Tasmania do not have general labour hire licensing schemes. New South Wales does, however, have limited licensing requirements specific to the security industry.
Frequently asked
Is internal secondment captured by labour hire licensing?
Secondments within a corporate group are generally not labour hire under the legislation, but secondment to a customer or unrelated entity can be captured. Each scheme has specific carve-outs and the safest course is to check the relevant regulator's guidance.
What if a provider is licensed in Queensland but supplies workers in NSW?
Each scheme licences activity within its own state. A Queensland licence does not authorise labour hire activity in Victoria or SA — separate licences may be needed if the provider operates across state borders.