NSW Labor has pledged to introduce a statewide labour hire licensing scheme if it wins another term of government, following concerns about worker exploitation and complex subcontracting arrangements in industries including construction and horticulture.
Under the proposal announced on 2 October 2026, a re-elected Minns Government would introduce legislation within its first 100 days requiring labour hire providers operating across all industries in NSW to hold a licence.
Businesses using labour hire workers would also be required to engage licensed providers, with penalties proposed for non-compliance.
NSW Currently Has No Labour Hire Licensing Scheme
NSW does not currently operate a dedicated labour hire licensing system.
Victoria, Queensland, the Australian Capital Territory and South Australia have already introduced licensing regimes, while NSW has been participating in work toward nationally consistent principles for labour hire regulation.
The proposed NSW scheme would be designed around those national principles and would apply across both public and private-sector supply chains.
Detailed requirements, including licensing criteria, fees, enforcement arrangements and specific penalties, have not yet been legislated.
Western Sydney Airport Metro Investigation Adds Pressure for Reform
The announcement follows an independent probity investigation into subcontracting arrangements on the Western Sydney Airport Metro project.
The investigation, led by Max Kimber SC, examined Future Form Civil and downstream labour suppliers engaged on the project.
It identified suspected:
- Underpayment of workers
- Tax fraud
- Inadequate or potentially fraudulent insurance arrangements
- Undisclosed subcontracting
- Problems verifying invoices worth more than $10 million
The investigation also found a number of labour supply companies had been incorporated within days of one another at the same residential address, shared the same director and secretary, and exchanged invoices and supporting material through the encrypted Signal messaging platform.
Future Form and its downstream contractors were subsequently removed from the project.
The findings were referred to agencies including NSW Police, the NSW Crime Commission, Independent Commission Against Corruption, National Anti-Corruption Commission, Fair Work Ombudsman, Australian Taxation Office and Revenue NSW.
Proposed Scheme Would Cover All Industries
Unlike some regulatory models focused on higher-risk industries, Labor’s proposed NSW scheme would apply to labour hire providers across all industries and sectors.
Host businesses would only be permitted to use registered or licensed labour hire providers.
The Government says it would also provide education and compliance guidance to businesses as the scheme was introduced.
The final design is expected to draw on existing labour hire systems in other Australian jurisdictions as well as nationally developed principles.
Modern Slavery Inquiry Also Called for Licensing
Pressure for a NSW licensing regime has also come from the NSW Parliament’s Modern Slavery Committee.
Its recent work raised concerns about worker exploitation in industries including horticulture, particularly in regional areas such as Coffs Harbour and the Nambucca Valley.
The committee recommended that NSW introduce a labour hire licensing scheme.
The NSW Anti-slavery Commissioner has separately published a draft model for an economy-wide licensing system, proposing measures including entry requirements for providers, obligations on host businesses and stronger worker protections.
Existing Measures Already Target Labour Hire Compliance
Before the election commitment, NSW had already introduced or begun developing several labour hire compliance measures.
These include expanded information-sharing arrangements between SafeWork NSW and federal agencies, work on a memorandum of understanding with the NSW Anti-slavery Commissioner, and a Labour Hire Code of Practice.
Since 1 July 2026, compliance with approved SafeWork NSW codes of practice has carried greater legal significance under workplace health and safety laws.
SafeWork NSW has also increased inspections of industries that rely heavily on labour hire arrangements and complex supply chains.
Licensing Proposal Remains Conditional on Election Result
The licensing scheme is not yet law and has not yet been introduced to NSW Parliament.
The commitment is conditional on Labor being returned to government, with a bill promised within the first 100 days of a new term.
Until legislation is introduced and passed, labour hire providers in NSW will continue operating under existing workplace health and safety, employment, tax and other regulatory frameworks rather than a dedicated state licensing regime.
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