South Australia labour hire licensing changes: what the expanded scope means for your business
South Australia is significantly expanding the reach of its labour hire licensing scheme, and these South Australia labour hire licensing changes are set to reshape how businesses engage talent. The Labour Hire Licensing (Scope of Act) Amendment Act 2025 recently received Royal Assent, broadening the scheme that was previously limited to a handful of sectors like cleaning and horticulture. This change mandates that nearly all providers supplying workers for a fee in South Australia must now hold a valid licence.
This proactive stance aims to protect more workers from exploitation and level the playing field for compliant businesses, aligning SA’s regulations with those in Victoria and Queensland.
South Australia labour hire licensing changes, what your business must do next
The Key Updates and Compliance Burden
The core message for the South Australian business community is clear: due diligence is now essential.
When the new laws commence (expected to be proclaimed with a six-month transition period), any “host” business engaging a labour hire provider must verify that the supplier is licensed. Failure to do so carries significant penalties. This places the onus squarely on the hiring company to check the CBS Public Register before engaging a supplier.
What to do now, a practical host compliance checklist
- Confirm whether the arrangement is labour hire or a genuine service:
Ask whether you are paying for workers under your direction, or paying for an outcomes-based service where the supplier controls how the work is delivered. - Request licence details early:
If a provider is supplying workers for a fee, ask for their licence number and business details before procurement approval. - Check the CBS Public Register and keep evidence:
Do the register check before onboarding, then save a dated screenshot or PDF in the supplier file. - Add a contract clause that protects you:
Include a clause requiring the provider to maintain a valid licence for the term of engagement, and to notify you of any change to licence status. - Set a re-check trigger:
Re-check the register at renewal points, on contract extensions, and before high-risk project mobilisation.
Key Exemptions: Subcontracting and In-House Talent
While the scope has broadened dramatically, critical exemptions remain intact to avoid penalising standard business practices.
- Genuine Service Contracts: Arrangements for a specific project or outcome in which the supplier manages the work using their own expertise and methods are exempt. The host pays for the finished service, not for the day-to-day management of the workers.
- In-House Employees: A key exemption applies to businesses that temporarily supply their own ongoing “in-house” employees to a host (secondment). If the employee primarily works for the original employer and expects to continue regular employment there, a licence is not required for this specific arrangement.
These distinctions are vital. Major projects and typical B2B contracts where a specialist company provides a defined service will continue largely unchanged, provided they meet the criteria for a genuine service arrangement or employee secondment.
How BenchOn Connects Talent Without Disruption
Platforms designed to connect businesses with specialist service providers, such as BenchOn, operate within these service exemptions.
BenchOn typically facilitates two types of compliant connections:
- Genuine Services: The platform connects businesses with specialist providers engaged to deliver an outcomes-based project, aligning perfectly with the “genuine services” exemption.
- Secondment of In-House Talent: BenchOn also facilitates the temporary loaning of a business’s existing, permanent employees who have capacity, connecting them to project hosts as part of a compliant “in-house” secondment arrangement.
This model ensures that companies can still rapidly source niche expertise or utilise existing talent pools compliantly, without falling foul of the new licensing regime. See BenchOn’s enterprise solutions for how outcomes-based services and secondment pathways can be structured clearly in one place.
Summary
South Australia’s amendments are a significant step towards greater regulation. The key takeaway for businesses is heightened vigilance and the responsibility to verify suppliers. However, the vital distinction between supplying labour (requiring a licence) and providing genuine, outcomes-based services or facilitating the secondment of in-house talent (both exempt) means that strategic subcontracting and the use of platforms like BenchOn will continue to be a compliant pathway to acquire expert talent. Businesses should consult the official SA Government labour hire licensing page for detailed guidance.
Frequently asked questions
What details must a labour hire provider give a host business?
A labour hire provider must give the host their labour hire licence number, their name and contact details, and the name and contact details of the responsible person for the licence.
What if we use an agent or intermediary to source labour hire workers?
Agents and intermediaries who source workers from a labour hire provider and then provide them to a host must pass on the provider’s licence number, name and contact details, and responsible person details.
Does an interstate or overseas labour hire licence cover South Australia?
Do not assume it carries across. Check whether the interstate or overseas licence is recognised in South Australia, then document the outcome in your supplier file.
What industries are covered now, and what changes under the reforms?
Right now, licensing applies in five prescribed sectors (including cleaning and horticulture processing). The reforms are intended to broaden the scheme so all labour hire providers must be licensed in South Australia once the changes commence.
When do the South Australia labour hire licensing changes start?
The changes commence by proclamation. Once a start date is announced, there is expected to be a six-month transition period for newly captured providers to apply and get compliant.
What should we do during the transition period?
Update your onboarding process now. Ask for licence details upfront, confirm the engagement type (labour hire vs outcomes-based services vs secondment), and set a re-check point before mobilisation and contract extensions.
