Licence for the work
In NSW you need a contractor licence for residential building or trade work valued at more than $5,000 in labour and materials, including GST. Specialist work, including electrical wiring, plumbing, drainage, gasfitting and air conditioning and refrigeration, needs a licence whatever it costs. Anyone can check a NSW licence, its categories, expiry and any conditions on the Verify Licence site.
In Queensland the QBCC generally requires a licence for building work valued over $3,300. Plumbing, drainage, gasfitting, fire protection and mechanical services need a licence regardless of value, and electrical work is licensed separately through the Electrical Safety Office. If you subcontract to a licensed builder you need a contractor licence of the right class for your work. If you subcontract to a licensed trade contractor you may not need your own contractor licence, though occupational licences still apply.
Check that the licence covers the actual work, not just the trade in general, and that it has not expired or been suspended.
White Card and high risk work licences
A general construction induction card (White Card) is needed for construction work, and NSW accepts cards issued in other states and territories. Operating certain plant or access equipment also needs a high risk work licence, so check those for anyone using scaffolds, cranes, forklifts or elevating work platforms that require one.
ABN, insurance and written terms
Confirm the subbie’s ABN on the Australian Business Register and ask for current insurance certificates. Most head contractors require public liability cover, and some jobs need more.
Put the scope, rates, payment terms, start date and any variations process in writing. A short, clear agreement prevents most disputes.
Payment rules you need to know
Both NSW and Queensland have security of payment laws that give people who carry out construction work a process to claim progress payments. In NSW, a party that does not intend to pay a payment claim in full must respond with a payment schedule within 10 business days of receiving it.
Queensland’s rules sit in the Building Industry Fairness (Security of Payment) Act 2017. If you hire subbies regularly, read the guidance for your state or get advice.
Keep the records together
Keep a copy of each subbie’s licence, tickets, ABN and insurance with the job they worked on, and note expiry dates. SubbieSpace Work Passports show a subbie’s trade, tickets and licences up front, and Project Workspaces keep job files, notices and records in one place.
- Licence covers the work and is current
- White Card sighted
- High risk work licences for the equipment used
- ABN confirmed
- Insurance certificates current
- Scope, rates and payment terms agreed in writing
Sources: Checking your contractor or tradesperson is qualified (NSW Government) · Verify a NSW licence · When you need a licence (QBCC) · Find a licensed contractor (QBCC) · White cards (SafeWork NSW) · Security of payment FAQs (NSW Government) · Building Industry Fairness (Security of Payment) Act 2017 (Qld) · ABN Lookup (Australian Business Register)
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