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Changes to how we calculate business tiers

30 June 2021
Changes to how we calculate business tiers - June 2021

Changes to how we calculate business tiers

The Victorian Government is making the way business tiers are calculated fairer.

From 1 July 2021, business tiers will be based on the labour hire provider’s turnover for the last 4 quarters at the time of licence fee payments. 

This does not apply to outstanding fees first due before 1 July 2021.

These changes are due to amendments to the Labour Hire Licensing Act 2018. Before 1 July, business tiers were set at licence application for the duration of the licence and could only be changed at licence renewal.

How can labour hire providers change their business tier?

Providers will be automatically asked if their business tier has changed when they go to pay their annual licence fee in the Labour Hire Licensing Online portal (LHLO portal).

If your business tier has changed, you will need to declare your turnover in the LHLO portal and provide business activity statements (BAS) or activity statements (AS) for the previous 4 quarters. 

What if a labour hire provider’s business tier is the same?

If your turnover for the previous 4 quarters means your business tier remains the same, you must make a declaration that your business tier has not changed in the LHLO portal.

The Authority can ask providers to provide further evidence to support declarations at any time, as a condition of a labour hire licence.

Learn more