Australia is tightening labour hire laws to prevent worker exploitation, close compliance gaps, and strengthen protections for vulnerable workers. These regulatory changes directly affect companies that supply, engage, or host labour hire workers, including internationally owned businesses operating in Australia.
Labour hire providers employ workers and place them with host businesses for a fee or under contractual arrangements, rather than delivering services directly. Businesses involved in these arrangements must stay ahead of evolving labour hire regulations to remain compliant.
National context
There is currently no national labour hire licence, though the federal government is moving toward a unified scheme with consistent licensing, fit-and-proper person tests, and penalties. In the meantime, state and territory rules vary, creating compliance complexity for businesses operating across multiple jurisdictions.
State-by-state overview
South Australia
South Australia (SA) has moved from a sector-specific scheme to a broad labour hire licensing requirement covering virtually all providers that supply workers for a fee. This follows the Labour Hire Licensing (Scope of Act) Amendment Act 2025, which received Royal Assent on 4 December 2025.
Under the new law:
Any labour hire business supplying workers in SA will need a licence.
There is a six-month transition period once commencement is proclaimed, giving firms time to apply.
Hosts must verify suppliers are licensed before engaging them.
The amended legislation allows some licensing exemptions, but only in limited cases.
This change aligns SA with Queensland (QLD) and Victoria (VIC), closing a previous regulatory gap where only five “high-risk” sectors were covered.
Key points about the licence:
Individuals and corporate bodies must be financially solvent, have relevant knowledge and experience, and have at least two fit and proper persons responsible for day-to-day management.
All directors and responsible persons must hold a current National Police Certificate.
The licence remains valid until it is surrendered, cancelled, or the corporate body is dissolved.
Licence fees for 2025-2026 are:
Natural person: $973
A body corporate: $2,212
For changing or substituting a responsible person: $152
Applications are administered by Consumer and Business Services.
Queensland
Queensland was one of the first jurisdictions to implement a mandatory labour hire licensing scheme under the Labour Hire Licensing Act 2017, effective from 16 April 2018. The scheme protects workers and ensures that only responsible providers operate in the state. All labour hire providers supplying workers in QLD, including those based interstate or overseas, must hold a licence.
Key points about the licence:
Applicants and proposed nominated officers must be fit and proper persons. For corporations, the executive officer must also meet this requirement.
The business must be financially viable and comply with all relevant laws.
Licences are valid for one year.
Licence fees for 2025-2026 depend on total wages paid in the preceding financial year:
$1.5 million or less: $1,158.47
$1.5–5 million: $3,475.42
Over $5 million: $5,792.36
The Office of Industrial Relations administers the scheme via the Labour Hire Licensing Queensland portal.
Approval time for applications is typically 28 days.
This framework ensures safe, lawful, and transparent labour hire practices in QLD for both workers and businesses.
Victoria
Victoria’s scheme sets one of Australia’s highest compliance bars and is often seen as the national benchmark. In VIC, businesses supplying one or more individuals to work in a business owned by another person must hold a labour hire licence under the Labour Hire Licensing Act 2018 and associated regulations. The scheme ensures that labour hire services operate lawfully and protect both workers and host businesses.
Key points about the licence:
Each relevant person in the application must be a fit and proper person. Applicants should consult the responsible agency for full eligibility requirements.
Licences are valid for up to 3 years.
Licence fees for 2025-2026 are tiered based on business turnover:
Tier 1: Turnover ≤ $2,000,000
Application: $1,815.48
Annual: $1,260.75
Renewal: $1,815.48
Tier 2: Turnover $2,000,001-$10,000,000
Application: $4,841.28
Annual: $3,362.00
Renewal: $4,841.28
Tier 3: Turnover > $10,000,000
Application: $8,942.92
Annual: $6,186.08:
Renewal: $8,942.92
Business tiers are reviewed automatically each year; turnover declarations and supporting BAS or activity statements may be required.
A certified copy or extract of the register costs $16.81 plus $0.50 per page after 20 pages.
The scheme is administered through the Labour Hire Licensing Online portal, ensuring safe, transparent, and compliant labour hire operations across Victoria.
Australian Capital Territory
The Australian Capital Territory requires all labour hire providers to hold a labour hire licence before supplying workers to host businesses for a fee or under a contractual arrangement. The Labour Hire Licensing Act 2020 (ACT) and the Labour Hire Licensing Regulation 2021 (ACT) govern this licensing regime. WorkSafe ACT administers the scheme, and licences remain valid for one year.
To qualify, applicants must demonstrate that:
they are suitable persons
they may need to maintain appropriate insurance
they may need to be registered as a long service leave employer, and
they must pay an application fee of $3,341 for the 2025-2026 financial year.
Western Australia
Western Australia has signalled interest in introducing a labour hire licensing scheme. Studies and reports have recommended a model similar to QLD and VIC, but no formal implementation has occurred.
However, in WA, businesses or individuals operating as employment agents must hold a licence under the Employment Agents Act 1976 and the Employment Agents Regulation 1976. An employment agent is anyone who receives payment for helping people find employment or helping businesses find employees. This includes traditional employment agencies, employment brokers, booking agencies, babysitting agencies, house sitting agencies, and cleaning agencies.
Exemptions:
Newspaper publications
Labour hire companies
Persons licensed to handle the employment of seafarers
Key points about the licence:
Applicants must be natural persons, fit and proper, and hold a current National Police Certificate.
Applications on behalf of a partnership or body corporate require the applicant to be a member, officer, or employee.
Licences are valid for three years.
Fees for 2025-2026:
Application: $1,140
Renewal: $807
Duplicate certificate: $35
Transfer: $98
The licence is administered by the Department of Local Government, Industry Regulation and Safety – Consumer Protection.
This licence ensures employment agencies in WA operate legally, transparently, and professionally, protecting both job seekers and employers.
New South Wales, the Northern Territory, Tasmania
New South Wales (NSW), the Northern Territory (NT) and Tasmania (TAS) currently do not have a labour hire licensing scheme. NSW has faced criticism from anti-slavery advocates for not licensing labour hire companies, particularly given concerns around migrant worker exploitation.
Why this matters to your business
Legal risk for businesses using labour hire services is increasing, as inspectors and regulators actively enforce labour hire laws. For example, unlicensed operations in QLD have resulted in substantial fines, while VIC has revoked licences linked to criminal activity. In addition, businesses that engage unlicensed providers can be held liable, facing civil penalties and potential reputational damage. As a result, conducting due diligence has become essential. Under expanded SA rules and similar frameworks in other states, verifying a provider’s licence before signing a contract is now considered standard best practice. If you operate across state borders, you cannot assume one licence covers all jurisdictions. You must treat each state’s regime as a separate compliance obligation.
How ABN Australia can help
For international businesses seeking to engage workers in Australia, ABN Australia’s Employer of Record (EOR) service offers a compliant alternative to navigating complex labour hire regimes. As the legal employer, we manage employment, payroll, tax, superannuation, and regulatory obligations. We are fully licensed across key states, allowing you to engage workers lawfully while reducing compliance risk as labour hire enforcement continues to tighten.
Contact ABN Australia to discuss how our EOR solution can support your Australian workforce strategy.
Last updated: 30th Jan 2026
About the Author
Ro Elvinia is ABN Australia's Customer Success and Marketing Manager. She holds a bachelor’s degree in mass communication, majoring in journalism, and also has an academic background in civil engineering. With over a decade of experience in professional writing and a background spanning journalism, Australian immigration, and business services, Ro brings a unique mix of communication and analytical expertise. She works closely with international clients and contributes to ABN Australia's content strategy, helping global businesses stay informed and confident as they navigate the Australian market.
Ro Elvinia
Customer Success and Marketing Manager