If you supply workers to other businesses, one of the first compliance questions you’ll face is whether you need a labour hire licence. In Australia there’s no single national scheme — licensing is handled state by state, and the rules differ depending on where you operate. This guide explains what a labour hire licence is, which states require one, what happens if you operate without one, and how workforce-management software helps you stay on the right side of the rules.
A note on scope: OnCrew is a software vendor, not a labour-hire provider, so OnCrew itself doesn’t hold a labour hire licence. This guide is written to help our agency customers — the businesses that do need one — understand their obligations. It’s general information, not legal advice. Licensing rules and penalties change, so always confirm the current requirements with the relevant state regulator before you act.
What is a labour hire licence?
A labour hire licence is a state-issued authorisation that permits a business to supply workers to a host business in return for payment. The schemes exist to stamp out worker exploitation — underpayment, sham contracting, unsafe conditions and non-payment of entitlements — by making labour-hire providers accountable and traceable.
Where a scheme applies, the licence generally comes with ongoing obligations: you have to be a “fit and proper” operator, comply with workplace, tax and superannuation laws, keep proper records, and often report periodically to the regulator. In several states it’s also an offence for a host business to knowingly use an unlicensed provider — so licensing isn’t only your problem; your clients care about it too.
Which Australian states require a labour hire licence?
As things stand, a licensing scheme applies in Queensland, Victoria, South Australia and the Australian Capital Territory. Other states and territories have not implemented an equivalent general scheme, though this can change — labour-hire regulation has been actively debated and expanded in recent years, so it’s worth re-checking your state’s current position rather than assuming.
Queensland
Queensland operates one of the country’s established labour-hire licensing schemes. If you provide labour-hire services to someone in Queensland, you generally need a licence, and there are ongoing reporting obligations attached to holding one. Check eligibility, application steps and current fees directly with the Queensland regulator, as these are updated periodically.
Victoria
Victoria runs a labour-hire licensing scheme administered by the Labour Hire Authority. It applies broadly to providers in Victoria, including sectors such as horticulture, meat processing, cleaning and security where the scheme has particular focus. Providers must apply, meet fit-and-proper requirements, and comply with ongoing conditions. Confirm the current process and fees with the Victorian Labour Hire Authority.
South Australia
South Australia also has a labour-hire licensing scheme requiring providers to be licensed to operate lawfully in the state. As with the others, it carries fit-and-proper and ongoing-compliance requirements. Verify the current details with the South Australian regulator.
Australian Capital Territory
The ACT has its own labour-hire licensing scheme with requirements broadly aligned to the objectives of the other state schemes. Providers operating in the ACT should confirm their obligations and the current application process with the relevant ACT regulator.
Operating across state lines
If you supply workers into more than one of these states, you may need to be licensed in each relevant jurisdiction — the schemes are separate. Multi-state operators should map their obligations carefully rather than assuming one licence covers them everywhere.
What happens if you operate without a licence?
In the states with a scheme, providing labour-hire services without a required licence is a serious offence, and in several jurisdictions using an unlicensed provider is also an offence for the host business. Penalties can be substantial and may apply to both individuals and corporations. Because the exact penalty amounts and enforcement approach differ by state and are updated over time, we won’t quote figures here — check the current penalties published by the relevant state regulator. The practical point is simple: the cost of non-compliance is designed to be far higher than the cost of getting licensed and staying compliant.
Ongoing obligations once you’re licensed
A licence isn’t a one-and-done exercise. Holding one typically means you must continue to:
- operate as a fit and proper person or business;
- comply with workplace laws, including correct pay, entitlements, tax and superannuation;
- maintain accurate records of your workers, placements and hours;
- report to the regulator on the required schedule; and
- keep worker qualifications and right-to-work status current.
That last point is where day-to-day operations and licensing intersect — and where the right software earns its keep.
How software helps you stay licence-compliant
Holding a labour hire licence is really a promise that you can demonstrate compliance at any time. That’s much easier when your operation runs on a system built for it, rather than on spreadsheets and memory. Workforce-management platforms like OnCrew support licence compliance by:
- Tracking every ticket and licence with its expiry date — White Card, RSA, AHPRA registration, Working with Children Checks (WWCC), NDIS Worker Screening, right-to-work status and more — with automatic reminders before anything lapses.
- Blocking non-compliant placements. OnCrew’s compliance gate stops a worker who isn’t qualified or in-date from being dispatched to a shift that requires it, so a lapsed ticket can’t quietly become a breach. Placing them anyway takes a conscious, logged override.
- Keeping an audit trail. Onboarding records, verified geofenced clock-ins and approved hours create the traceable, defensible record that regulator reporting and fit-and-proper obligations depend on.
- Storing worker data securely under the Australian Privacy Principles, with encryption, access controls and logging.
Software doesn’t replace your licence obligations — but it makes meeting them a default of how you work, instead of a scramble when a regulator, client or auditor comes asking. See how it works on our labour hire software and compliance & ticket tracking pages.
