How to Verify a Contractor Licence in New South Wales

New South Wales operates one of Australia's largest contractor licensing systems, with over 178,000 licence records managed by NSW Fair Trading. The licensing framework is established under the Home Building Act 1989, which sets out who needs a licence, what work is covered, and the protections available to consumers who engage licensed contractors.

In NSW, a contractor must hold the appropriate licence to do residential building work — whether that's constructing a new home, renovating a kitchen, installing plumbing, or carrying out electrical work. The threshold is $5,000 or more (including labour and materials) for general trade work, and there is no minimum threshold for specialist work such as plumbing, electrical, and gas fitting. Verifying a contractor's licence is the single most important step you can take to protect yourself when commissioning building work.

Step-by-Step: How to Check an NSW Contractor Licence

What to Look for in NSW Licence Results

NSW licence records contain several critical fields you should review before engaging a contractor:

• Licence status: Must be "Current". Statuses like "Expired", "Suspended", or "Cancelled" mean the contractor cannot legally undertake new work.
• Category of work: NSW licences specify the exact categories of work the holder is authorised to perform. A "General Building" licence covers a broad scope, while a "Plumbing" licence is limited to plumbing and drainage. Verify the category matches your project requirements.
• Contractor vs. tradesperson: NSW distinguishes between a contractor licence (authorises the holder to contract directly with the client and manage work) and a tradesperson certificate (only authorises the holder to carry out work as an employee, not to contract independently). Make sure your builder holds a contractor licence, not just a tradesperson certificate.
• Expiry date: NSW licences are typically valid for 1 or 3 years. Check that the licence is within its validity period.
• Conditions or disciplinary actions: Review whether any conditions, penalty notices, or tribunal orders have been recorded against the licence holder.

NSW Licensing Framework

Governing legislation

Building contractor licensing in NSW is governed primarily by the Home Building Act 1989 and the Home Building Regulation 2014. These establish the licensing requirements, define what constitutes "residential building work", set out the statutory warranties that apply to licensed work, and create the framework for home warranty insurance. The Act is administered by the Commissioner for Fair Trading within the NSW Department of Customer Service.

The licensing body: NSW Fair Trading

NSW Fair Trading is the government agency responsible for issuing and managing contractor licences in New South Wales. It maintains the public register of licence holders, processes licence applications and renewals, investigates complaints about licensed and unlicensed contractors, and takes disciplinary action when necessary. Fair Trading also provides a mediation and dispute resolution service for disputes between homeowners and licensed contractors.

Penalties for unlicensed work

Under the Home Building Act, contracting to do residential building work without the appropriate licence carries maximum penalties of $110,000 for individuals and $330,000 for corporations. Advertising to do licensed work without a licence also attracts significant penalties. Beyond the fines:

• Contracts entered into by unlicensed contractors may be unenforceable
• The statutory warranties under the Home Building Act do not apply to unlicensed work
• Home warranty insurance cannot be obtained for work done by unlicensed contractors
• Fair Trading will not assist with dispute resolution if the contractor was unlicensed

Home warranty insurance

NSW requires licensed contractors to obtain home warranty insurance before commencing any residential building work valued at over $20,000. This insurance is provided by approved private insurers (currently icare HBCF in NSW) and protects the homeowner if the contractor dies, disappears, or becomes insolvent and cannot complete the work or rectify defects. Coverage extends for 6 years for structural defects and 2 years for non-structural defects from the date of completion. The contractor must provide you with a certificate of insurance before starting work.

Common NSW Licence Types

NSW has over 50 licence categories and sub-categories. The General Building licence is the broadest, authorising the holder to coordinate and manage building work of any kind. Specialist categories like plumbing, electrical, and gas fitting require separate licences with specific trade qualifications. Some categories — such as swimming pool building — are unique to the NSW system.

Why Verification Matters in NSW

With nearly 180,000 licence records in the NSW Fair Trading database, the state has the largest pool of licensed contractors in Australia. This scale brings both opportunity and risk: while there are many qualified professionals, there are also contractors whose licences may have lapsed, who may be operating outside their authorised categories, or who may have had disciplinary action taken against them.

The Home Building Act's statutory warranties — which guarantee that residential building work will be done with due care and skill, in accordance with plans, using suitable materials, and completed within a reasonable timeframe — only apply when the work is done by a licensed contractor. By verifying a licence before signing a contract, you ensure you're protected by these warranties and have access to Fair Trading's dispute resolution services if problems arise.

For businesses operating compliance platforms, insurance underwriting systems, or contractor marketplaces in NSW, automated licence verification through WorkClear's API can be integrated into onboarding flows to ensure every contractor on your platform holds a current, valid licence for the work they advertise.