Guide
Contractor licence in NSW: who needs one, and the insurance that goes with it
In NSW you need a contractor licence to carry out, advertise or contract for residential building work worth more than $5,000, and a licence or certificate for specialist work at any value. Here is who needs which credential, the difference between a contractor licence and a qualified supervisor certificate, the insurance the work requires, and what unlicensed work costs.
- The $5,000 threshold and specialist trades
- Contractor licence vs supervisor certificate
- HBCF and public liability explained
When you need a contractor licence in NSW
The NSW Government says you must have a contractor licence to carry out, advertise or contract for residential building work, including general trade work, where the labour and materials are worth more than $5,000 including GST. Specialist work needs a licence or certificate whatever it’s worth: electrical wiring, plumbing, draining and gasfitting, and air conditioning and refrigeration work are all specialist work.
Work on class 2, 3 and 9c buildings, such as apartment blocks, also needs registration as a design and building practitioner.
The credentials NSW Fair Trading issues
| Credential | What it lets you do |
|---|---|
| Contractor licence (individual) | Contract for and carry out the work in your own name |
| Contractor licence (company or partnership) | Contract for the work as a company or partnership. You must nominate a qualified supervisor for each class |
| Qualified supervisor certificate | Do and supervise the work described on the certificate. It doesn’t let you contract for work |
| Endorsed contractor licence | A contractor licence that is also equivalent to a qualified supervisor certificate, marked “contractor licence (Q)” |
| Provisional tradesperson certificate | For electrical work, a certificate that lets you work under supervision while you qualify |
For electrical work, NSW Fair Trading issues an individual contractor licence, a company or partnership contractor licence, a qualified supervisor certificate and a provisional tradesperson certificate.
The insurance the licence and the work require
| Cover | When it applies |
|---|---|
| Home Building Compensation (HBCF) | Residential building work over $20,000, taken out before you start or take a deposit |
| Public liability | The NSW licence pages don’t set a minimum, so limits come from your contracts, head contractors and councils. Most ask for a certificate of currency |
| Workers compensation | Once you employ, unless you pay $7,500 or less in wages with no apprentice or trainee |
| Tools & equipment | Not required by the licence, but the gear a licence depends on |
| Commercial vehicle | The ute or van, under a commercial policy |
What unlicensed work costs
For electrical work, NSW says it is a breach of the Home Building Act 1989 to carry out electrical wiring work without a licence or certificate, with fines of up to $22,000 for an individual or $110,000 for a company. Unlicensed contracting for other residential building work is dealt with under the same Act.
Insurance follows the licence. An insurer asked to cover work you aren’t licensed for will usually exclude it, and a head contractor won’t let you on site without both the licence and a certificate of currency.
Compare the covers your licence work needs
NSW contractor licence questions
Do I need a licence for building work under $5,000 in NSW?
Not for general residential building work under $5,000 in labour and materials including GST. Specialist work, such as electrical, plumbing and air conditioning, needs a licence or certificate at any value.
What is the difference between a contractor licence and a qualified supervisor certificate?
A contractor licence lets you contract for the work. A qualified supervisor certificate lets you do and supervise it, but not contract for it. An endorsed contractor licence does both.
Does a NSW contractor licence require public liability insurance?
The NSW licence pages don’t set a public liability minimum. Home Building Compensation cover is required on residential work over $20,000, and contracts, head contractors and councils set the public liability limits they want to see.
Can a company hold a NSW contractor licence?
Yes. A company or partnership contractor licence needs a nominated qualified supervisor for each licence class.
What is the fine for unlicensed electrical work in NSW?
NSW says up to $22,000 for an individual or $110,000 for a company, under the Home Building Act 1989.
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