• Legislation & regulations

Providers should be aware of new information they may need to provide to the Labour Hire Authority (LHA), after changes to Victoria’s labour hire laws came into effect on 1 June, 2026.

Businesses will supply a range of new information through licence applications, renewal applications and annual reports, to enable LHA to assess compliance with the new requirements.

This article outlines:

• new information required in key licensing transactions
• new requirements around persons that may control or influence a licence holder
• how businesses’ capacity to comply is assessed, including via business compliance plans
• new standard licence conditions for applicants in high-risk industries
• upcoming information sessions where providers can learn more about the changes.

Key changes now in effect

The following changes have been implemented for all labour hire licence holders and applicants:

• People who wish to be involved in running a labour hire company – as a nominated officer or relevant person – need to pass a more rigorous ‘fit and proper person test’.
• LHA has more scope to consider previous, current and ongoing compliance with relevant laws, as well as a wider range of relevant laws, to make licensing decisions – including to refuse an application or cancel a licence.
• To apply for or renew a licence, a labour hire business now needs to declare that it is financially viable, and LHA must be satisfied that a business is financially viable.

The changes form part of the Labour Hire Legislation Amendment (Licensing) Bill 2025 (Vic) passed in December 2025 – for more information, see Labour Hire Law Changes 2026.

New information required in licence transactions

Depending on the nature of the business and individual circumstances, the new information that businesses will supply to LHA in key transactions may include:

• information and supporting documents to determine the fit and proper person status of the applicant, the nominated officer and all relevant persons
• details of any persons that control or influence the licence holder
•  a declaration of compliance with an expanded list of relevant laws
• a declaration that the licence holder is financially viable, with supporting information and documents
• tax and superannuation information relating to independent contractors
• evidence of approval to engage apprentices or trainees from VRQA, if relevant
• details of any cash payments to workers, any deductions from worker payments and the address of any accommodation provided to workers. 

Control or influence of persons who are not fit and proper

LHA now considers new factors to determine whether a person is fit and proper, including character, professionalism and integrity.

Businesses also need to declare whether a nominated officer or relevant person is under the control of, or substantially influenced by, another person or body corporate not already listed as a relevant person.

This may include:

• a shareholder or investor in a business
• an external adviser whose guidance is routinely followed
• the holding company of a subsidiary, where there is a relationship of control or influence under the Corporations Act 2001 (Cth)
• a spouse or relative who exercises substantial influence over a business.

A business will need to provide the contact details of the person or body corporate that they are under control of, or substantially influenced by; and a description of the nature of the relationship and how they influence relevant persons or the business.

For example, this may be a non-director owner or a person acting as a shadow director. For organisations, the ABN and ACN or ARBN are also required. If a person or body corporate controlling or influencing the applicant or its relevant persons is not fit and proper, LHA may refuse the application.

LHA may conduct checks to identify undisclosed persons or body corporates that are controlling or influencing the business or its relevant persons. Failure to disclose may result in licensing action, including refusal or cancellation of a licence.

Business compliance plan

LHA now has more scope to assess compliance with relevant laws to make licensing decisions – including to refuse an application or cancel a licence – by considering:

• previous, current and ongoing compliance with relevant laws
• a wider range of relevant laws, in addition to the existing labour hire and workplace laws, including laws relating to bankruptcy, consumer protection, fair trading and corporate regulation.

To assess a business’s compliance capacity, LHA may request a copy of a business compliance plan that explains how a business operates and ensures compliance with its legal obligations.

The plan must be specific to the industry, workforce and business model of a business. Generic, templated or marketing style business plans may not be accepted. The plan should explain how compliance is built into day-to-day operations, not simply list policies or legal obligations.

A business compliance plan should address, at a minimum:

• business operating model (industry, workforce, hosts, use of subcontractors)
• how this model meets legal obligations in practice, including workplace, employment, tax, super, work health and safety, migration and labour hire laws
• key compliance controls relevant to the industry and business model.
  

Standard conditions for new licences in high-risk industries

All applicants in high-risk industries with licences granted after 1 June 2026 will have new standard licence conditions applied, including businesses in:

• horticulture
• commercial cleaning
• security
• meat and poultry processing.

The conditions will also be rolled out progressively to existing licence holders in high-risk industries from late 2026.

The standard conditions include provisions to limit the risk of worker exploitation, such as worker misclassification, complex supply chains and underpayments.

The conditions include:

• limitation on the supply of independent contractors
• provision of an LHA Information Sheet to all workers
• reporting obligations and restriction on the use of subcontractors to one tier only
• reporting obligations on the use of payroll service providers
• restriction on the use of cash payments to workers and subcontractors – unless granted variation or emergency payment, to which reporting obligations apply
• obligation to report a change in industry
• provision of PPE without charge
• obligation to comply with minimum accommodation standards when providing or procuring worker accommodation (horticulture, meat and poultry processing only). 

Upcoming information sessions

To inform the industry about the new laws, LHA is undertaking a Regulatory Reform Roadshow in June and July, with information sessions held across Victoria and online.

Labour hire businesses and stakeholders are encouraged to attend a session in their area to learn more about the changes and ask questions to ensure their compliance with the new laws.

Key topics of these sessions cover:

• changes to who is considered suitable to hold a labour hire licence, and on what basis
• new requirements to the information businesses must supply to LHA
• tools and resources to support businesses on the changes.

Capacity is limited and registration is required for admission. For more information or to register for one of the following sessions, visit the Events page on the LHA website.

• Thursday, 18 June – Melbourne
• Friday, 19 June – Online
• Tuesday, 23 June – Bendigo
• Wednesday, 24 June – Online
• Thursday, 25 June – Healesville
• Monday, 29 June - Geelong
• Tuesday, 30 June – Ballarat
• Thursday, 2 July – Traralgon
• Tuesday, 7 July – Melbourne
• Thursday, 9 July – Mildura
• Wednesday, 15 July – Online
• Thursday, 16 July – Narre Warren

More information on the changes to labour hire laws from 1 June, and across 2026, is also available on LHA’s webpage – visit Labour hire law changes 2026.