Legislative Update
The Labour Hire Licensing (Scope of Act) Amendment Act 2025 (SA) (the Act) commenced on 29 January 2026. The amendments largely restore the Labour Hire Licensing Act 2017 (SA) to its original scope. Subject to limited exemptions, the licensing framework is intended to apply to all labour hire providers operating in South Australia, rather than being confined to prescribed industries.
What Has Changed
Prior to these amendments, labour hire licensing obligations applied only to providers operating within five sectors:
- horticulture processing;
- meat processing;
- seafood processing;
- cleaning; and
- trolley collection.
The amended legislation removes this sector-based limitation. As a result, most entities that supply workers for a fee in South Australia are now captured by the Act, unless an exemption applies.
The amendments also update key statutory definitions, which may broaden the range of workforce and contracting arrangements that fall within the licensing regime.
Transition Period for Newly Captured Industries
Although the Act commenced on 29 January 2026, the Act provides a six-month transition period for industries newly brought within the licensing scheme. From this date, affected providers will have six months to apply for a labour hire licence and satisfy all legislative requirements.
Practical Implications
Labour hire providers
Providers that were not previously required to be licensed should assess whether they now fall within the expanded scope of the Act and prepare to apply for a licence during the transition period.
Host businesses
Businesses engaging labour hire providers must ensure that those providers are appropriately licensed once licensing obligations apply. Responsibility for verifying licence status rests with the host business.
Businesses assessing applicability
Some organisations may be captured by the updated definitions despite not traditionally identifying as labour hire providers. A review of staffing, contracting and workforce arrangements is recommended.
Exemptions
The amended Act allows for exemptions from licensing, but only in limited circumstances. Whether an exemption applies depends on the substance of the arrangement and should be assessed on a case-by-case basis.
Preparing for Compliance
While further guidance on transition arrangements is expected, businesses should consider taking steps now to:
- review whether their operations fall within the expanded scope of the Act;
- audit labour hire and supplier arrangements; and
- update internal processes to support licence verification and ongoing compliance.
As a recognised long standing member of Master Builders Association of SA, Wadlow Solicitors can provide advice on how the amended labour hire licensing requirements apply to your business. For further information, contact (08) 8212 2955.
