Labour hire licensing South Australia: CBS scheme under the 2017 Act

What it is

South Australia has a mandatory labour hire licensing scheme under the Labour Hire Licensing Act 2017 (SA). The scheme is administered by Consumer and Business Services (CBS) inside the Attorney Generals Department. Any person who carries on a business of providing labour hire services in South Australia generally needs a current CBS licence before workers can be supplied.

The Act has had a complicated history. It commenced in 2018, was rolled back to a narrower industry-specific scope in 2020, and from 29 January 2026 returns to broad coverage of all labour hire industries with a transition period to 29 July 2026 for businesses outside the previously regulated sectors. Residential builders in SA need to be across both sides of the scheme. Builders should still confirm the current commencement and transition dates against CBS announcements before relying on them, as transition arrangements can be adjusted by regulation.

Who needs a licence

Section 7 of the Act sets out the meaning of "labour hire services" and defines the scope of the scheme. The definition covers a person who, in the course of carrying on a business, provides the services of one or more workers to another person to do work, where the provider is responsible for the workers payment. The definition is intentionally broad and covers labour-only subcontract arrangements that have the substance of labour hire.

From 29 January 2026 the licensing requirement applies across all industries. Providers in industries that were previously regulated (such as horticulture, meat processing, seafood processing, cleaning and trolley collection) must already be licensed. Providers in newly captured industries, including construction labour hire, have a six-month transition period to 29 July 2026 to apply and be licensed before enforcement begins. The Commissioner can also grant exemptions in prescribed circumstances under section 46.

Common residential triggers

• A trade business that supplies its own employees to other builders sites under the host builders direction
• Group training organisations supplying apprentices to host residential builders
• Workforce hire businesses supplying labourers, carpenters or formworkers on a daily or hourly basis

Fit and proper person and financial probity

Applicants and each relevant person (directors, partners, key personnel and controllers) must satisfy a fit and proper person test. Section 10 of the Act sets the meaning of fit and proper person, and prescribed bodies such as government agencies and registered industrial associations can object to an application under section 16 on the basis that the applicant, a director or a nominated responsible person is not fit and proper to hold a licence. CBS considers compliance history under workplace, tax, work health and safety, migration and labour hire laws, insolvency events, disqualification under the Corporations Act 2001 (Cth) and any conduct that would put workers at risk.

Applicants must also show they can meet financial obligations to workers, including wages, superannuation, tax, workers compensation premiums and any portable long service leave levies. Recent unpaid worker entitlements or insolvency events weigh against an application.

Application and fees

Applications are made online through the CBS portal. Fees are set in the Labour Hire Licensing Regulations 2018 (SA) and are indexed each financial year. A licence is granted for a defined term set by CBS and is subject to annual fees that must be paid for the licence to remain current. Cancellation for non-payment is possible.

Host duties

Section 11 of the Act sets the offence for providing labour hire services without a licence. Section 12 makes it a separate offence for a host to enter into an arrangement for the supply of workers with an unlicensed provider in South Australia. Penalty units apply to both individuals and bodies corporate. The Act also creates offences for avoidance arrangements designed to disguise labour hire as a contract for services.

Before engaging a labour hire provider, residential builders in SA should:

• Search the CBS labour hire public register by ABN or licence number at cbs.sa.gov.au
• Record the licence number and expiry on the purchase order or subcontract
• Refresh the search before any new engagement
• Treat suspensions or cancellations as a stop-work trigger for that supplier

A host that, before entering the arrangement, checked the register and reasonably believed the provider was licensed may have a reasonable mistake defence under the Act. Builders should still confirm the exact form of the defence with current CBS guidance before relying on it.

2026 reforms and transition

From 29 January 2026 the South Australian scheme returns to broad coverage of all labour hire industries. Businesses in newly captured sectors, including residential construction labour hire, have a six-month transition period to 29 July 2026 to be licensed by CBS. CBS recommends applying at least six weeks before the deadline so the fit and proper person and financial viability assessments can be completed. These dates should still be checked against current CBS announcements at the time of relying on them.

During the transition window, hosts that engage providers in newly captured industries are not yet exposed to the host offence for those engagements, but they should still ask for evidence of a pending application and a target licence date. Once 29 July 2026 passes, the host offence applies in full.

Enforcement

CBS officers can inspect premises, audit records and issue compliance notices. The Magistrates Court hears prosecutions under the Act. Suspensions, cancellations and refusals are published on the CBS register so hosts can confirm provider status in real time. Avoidance arrangements designed to defeat the scheme attract separate penalties and are a particular focus of CBS compliance work.

Practical playbook for builders

If your residential business supplies workers to other builders or developers in South Australia, treat licensing as a 2026 project rather than a wait and see exercise. If you only engage labour hire as a host, fold a CBS register check into subcontractor onboarding so a lapsed licence cannot reach site without being flagged.