New licensing obligations for the construction industry

The new Regulations apply to Victoria’s construction industry from 18 January 2027.

With a high volume of additional compliance checks being completed during the application period, licence applications may take six or more months to progress from submission to decision.

While LHA completes these checks, businesses requiring a licence due to the new Regulations may continue to trade after 18 January 2027 if their full and proper application is received by LHA before that date.

The licence application deadline of 18 January 2027 only applies to businesses newly covered by the broader laws, not to those that already require a labour hire licence, including most businesses supplying security guards and cleaners of commercial premises in Victoria.

Any company found providing the newly prescribed services without having applied for a licence by the deadline – and any company that uses their services – faces penalties exceeding:

• $660,000 per breach by a company
• $160,000 per breach by an individual.

Companies should prepare and submit their application as soon as possible, noting:

• Action may be required to ensure the business and its relevant persons meet labour hire licensing requirements.
• Preparing your application may take time – a range of documentation is required, and all business decision-makers must supply personal information for LHA checks.
• It may be necessary to seek external legal, business or compliance advice.
• Once an application is received, company details are recorded on the Licence Application Register so construction companies and the public can view them.

For more information on labour hire licensing requirements, and to start an application, visit Apply for a Licence.

Construction is a broad industry, with projects defined and delivered through a variety of structures and arrangements.

The new Regulations adopt broad definitions of the industry, its projects and funding models, and each of the prescribed construction activities.

Under the Regulations, construction projects are those involving any work – including preparation and planning – in connection with the construction, alteration, conversion, fitting out, commissioning, renovation, refurbishment, decommissioning, or demolition of any building or structure, or any similar activity.

The new Regulations apply to construction activities undertaken on Victorian Government construction projects with a total value of more than $50 million.

The Wilson Review identified specific harms associated with construction sites, such as alleged criminal, corrupt and coercive conduct, and improper influence over site operations.

The Review found that the scale, complexity, and timeframes of large government-funded construction projects may increase incentives and opportunities for unlawful conduct.

Victorian Government-funded construction projects that meet the $50m threshold are listed on the Local Jobs First website. 

The new laws apply to all projects in Victoria’s Big Build – for a list, visit the Big Build website.

The new Regulations prescribe construction activities where the risks and harms identified in the Wilson Review may be elevated, including due to control over site access, a sustained on-site presence, or significant impact on delivery timelines.

The construction activities covered by the new Regulations are defined as follows:

Traffic management or control

Workers undertaking traffic management or control activities performed on or adjacent to a construction site may include:

• controlling or diverting traffic (of vehicles, pedestrians or mobile plant and equipment), including using a Portable Traffic Control Device or STOP/SLOW bat
• communicating and reporting incidents whilst at the road worksite
• monitoring of queue length(s)
• guiding traffic
• managing vulnerable road user movements.

Site security activities

Workers undertaking site security activities performed on or adjacent to a construction site may include security guards or crowd controllers.

Concreting activities

Workers undertaking concreting activities performed on or adjacent to a construction site may include finishing, batching, seeding, patching and cutting of concrete and the operation of a concrete pump but does not include the transport of concrete to and from a public construction site or the driving of an agitator or a tip truck.

Crane operating activities

Workers undertaking crane operating activities performed on or adjacent to a construction site may include the driving, rigging, dogging and spotting of a crane.

Activities already considered to be labour hire

The activities prescribed in the new Regulations requiring a licence are in addition to activities that are already considered labour hire under the existing definition.

The application deadline of 18 January 2027 applies only to businesses newly covered by the broader laws, not those that already require a labour hire licence – such as most providers of security guards and cleaners of commercial premises including construction sites.