LHA security industry cost guidance updated for 2026-27

The Labour Hire Authority (LHA) has updated its cost guidance for the security industry for the 2026-27 financial year.

LHA uses its security industry guidance as a benchmark for assessing the risk of non-compliance with relevant legal obligations.

Low contract prices can signal a heightened risk of non-compliance with a provider’s legal obligations, including those related to workers’ pay, entitlements, and taxes.

Some security businesses use the guidance to support their own compliance and to highlight to prospective hosts the cost of meeting legal obligations to workers. Industry feedback suggests it is a valuable tool in contract negotiations.

The security industry remains a key focus area for LHA, to protect workers and continue to improve the transparency and integrity of the industry.

LHA continues to engage with:

• hosts and principal contractors about maintaining responsibility and transparency throughout their supply chains
• providers, about complying with their legal obligations, and by imposing conditions where appropriate to monitor compliance.
  

LHA also works closely with stakeholders and other regulators within the security industry, including meeting quarterly with the Victorian Security Industry Advisory Council (VSIAC) to engage and consult on labour hire related matters.

Where providers are unwilling or unable to comply with their legal obligations, LHA takes firmer compliance actions, including licence cancellation or legal action.

Read and download the 2026-27 security industry guidance.

Recent changes for the security industry and standard licence conditions

Amendments to the Private Security Act 2004 (Vic) and the new Private Security Regulations 2025 (Vic) came into effect in 2025.

These changes included new requirements that:

• workers engaged as independent contractors hold a private security business licence, in addition to a private security individual operator licence
• providers, at both the principal contractor and subcontractor level, gain written consent from the host/client at least one day before subcontracting.
  

To monitor compliance with these new requirements, and to address other risks and harms in the security industry, LHA now applies standard conditions to all new licences for providers operating in the industry.

These licence conditions act to: 

• increase transparency, by ensuring all workers receive information on their rights, and through reporting on the use of subcontractors, payroll services, and any change in industry 
• enforce integrity, through restrictions on cash payments, the use of independent contractors and subcontractors, and clear requirements around provision of PPE.

Under the conditions, a business cannot supply an independent contractor to a host unless the independent contractor also holds a private security business licence.

Licence holders subject to the conditions must not use more than a single tier of subcontracting without permission from LHA, and must report information about their subcontractors and payroll providers annually to LHA.

For more information on licence conditions, including guidance on the use of cash payments, visit Licence Conditions.