Update on significant changes to labour hire licensing schemes in South Australia and Victoria.

As part of our ongoing commitment to keep members informed of regulatory and compliance developments, APSCo is providing this update on significant changes to labour hire licensing schemes in South Australia and Victoria.

These reforms have important implications for all labour hire and recruitment firms - particularly those operating across multiple jurisdictions.

South Australia - Scheme expanding to all industries

The South Australian Government has amended the Labour Hire Licensing Act 2017, largely reverting it to its initial design - requiring all labour hire providers to be licensed, not just those in high-risk sectors.

Currently, only five sectors require licensing, however, newly added sectors will soon be required to register. 

The commencement date is yet to be announced, and once released, industry will be given a 6-month transition period to submit applications and meet all requirements.

The amended Act allows for limited exemptions, though these will apply only in narrowly defined circumstances following consultation. Further information and consultation documents are available at: yoursay.sa.gov.au/labourhire

APSCo will notify members as soon as the SA Government confirms the commencement date and supporting regulations. 

Victoria - Strengthening of Labour Hire Authority Powers

In October, the Victorian Government introduced significant reforms designed to strengthen the Labour Hire Authority (LHA) and address unlawful conduct in the construction sector. These reforms form part of the Government’s response to the Wilson Review, which examined engagement between government bodies, construction companies and unions.

Key Proposed Changes under the Labour Hire Legislation Amendment (Licensing) Bill:

• Expanded ‘fit and proper person’ test, including circumstances where a close associate is deemed not fit and proper.
• Clearer definition of labour hire services, particularly in supply chain and subcontracting arrangements.
• Strengthened information-gathering powers to support compliance and enforcement.
• Broader LHA powers to publish contextual information relating to licensing decisions, helping to educate hosts and providers and promote compliance.

APSCo will continue to update members as the legislation progresses and further regulatory details are released. More information can be found here.

National & Other State Schemes

Across Australia, labour hire regulation continues to evolve toward a more consistent national framework. APSCo will provide members with further updates as soon as new information becomes available regarding national alignment efforts or changes in other state schemes.

APSCo is aware of the financial burden of licensing and the impact of inconsistent fee structures between States. We are lobbying the relevant authorities to convey the need for a fairer fee mechanism for labour hire providers and in line with our previous submissions, will continue to question the relevance of LHL across professional sectors. If you have concerns, questions, or specific examples that you would like to share, please contact APSCo for support.