If you’re a small business operating in South Australia, there’s a chance that you’ve heard of the Labour Hire Licensing laws and how they seem to be continuously changing. And it’s that time of year again and time for another change.
The Consumer and Business Services (CBS) announced that they will recommence accepting applications for labour hire licences.
What is the Labour Hire Licensing Act?
Simply put, the Labour Hire Licensing Act 2017 requires anyone who provides labour hire in South Australia to be licenced.
This law first started operation on 1 March, 2018. However, as the government changed following the 2018 election, the Marshall government indicated the intention to repeal this legislation and the CBS ceased accepting applications.
Since then, the government hasn’t been able to secure sufficient numbers to repeal this legislation. So that means the original legislation is back in place.
With the recommencement of applications, this means that labour hire providers who operate in South Australia will need to lodge their applications by 31 August, 2019.
Who Will the Labour Hire Licences Affect?
If you’re a labour hire provider in South Australia, you need to know about this Act and how it’s going to affect your business.
You will need a licence if…
- Your business provides labour workers to complete work for someone else as part of their business
- You have an arrangement with your workers to supply them to another person to complete work
- Your workers, while completing work for another business, are paid in part or in full by your business
However, a licence is not required if…
- You hold a current building, plumbing, gas fitting or electrical contractor licence
- You hold a current security or investigation agent licence that is not restricted to being an employee only
- You operate as a company or body corporate with no more than two directors, and the worker provided to another business is a director of the company who participates in the management of the company or shares in its profits
- You provide workers to another business where both businesses are part of the same franchise
- You provide workers to work in another business that collectively operates using the same banner, brand or trading name
If you provide labour services, it will become unlawful for you to provide labour hire services.
However, if you’re looking to hire labour services, it also becomes unlawful to accept labour hire services from an unlicensed provider. So it’s imperative to obtain this licence for all parties to stay above the law and avoid financial penalties.
How to Apply for a Labour Hire Licence in South Australia
Applying for the licence is easy and can be done through the CBS website. Your application must be lodged by 31 August.
You’ll need to provide the following information:
- The details of at least two responsible persons in your business
- A letter, no older than 6 months, from your licence application confirming that your business is solvent. This must be provided by a Chartered Accountant, Certified Practicing Accountant or IPA Public Accountant
- Proof of completion of an approved business pathway
- National Police Certificate less than 12 months old
The cost of your Labour Hire Licence application is based on the application type:
- Natural person application fee $590 + $236 (first year’s fee)
- Body corporate application fee $590 + $1287 (first year’s fee)
- Application to change a responsible person $129
- Application to apply for substitute responsible person $129
If you miss the 31 August deadline, you must have completed one of the four business pathways before you can apply:
You must successfully complete:
- BSBSMB401 – Establish legal and risk management requirements of small business
- BSBHRM505 – Manage remuneration and employee benefits
You can apply for recognition of prior learning if you believe that your past work experience or other qualifications can be assessed against any of the above qualifications. You’ll need to contact a Registered Training Organisation to arrange this. The Real Estate Training Academy offers both of the required units.
Successful completion of an accounting, business, economics or human resource-related degree or diploma from Australia or New Zealand.
Equivalent degrees or diplomas from other countries may be considered.
You hold a current equivalent interstate labour hire licence.
Your company is listed on the Australian Stock Exchange.
While it may seem confusing and that there’s a lot of information to digest – it is pretty simple to know if you’re required to apply.