The short answer
Labour hire systems now have to prove compliance, not just pay people. Victoria, Queensland, South Australia and the ACT license labour hire providers, South Australia extended licensing to all industries from 29 January 2026, Victoria tightened its tests in 2026 and adds prescribed construction roles from 18 January 2027, and NSW has only a pre election commitment to a scheme. Federally, Fair Work Commission regulated labour hire arrangement orders can require you to pay at least the host's enterprise agreement rate. The custom work that pays is usually a host portal with site timesheets and a rate engine that maps each host's protected rates onto your payroll; indicative market ranges are $40,000 to $150,000 (AUD, ex GST) per module, as ranges, not quotes.
Key takeaways
- Licensing is state law and it changed a lot in 2026. Record which states you supply into and keep each licence, its conditions and its renewal date in the system that books workers.
- A regulated labour hire arrangement order sets a protected rate of pay, generally the full rate in the host's enterprise agreement. Your payroll must apply it per host, per role, after any exemption period.
- Short engagements of 3 months or less are generally exempt from the protected rate, so the system needs to count each worker's time at each host.
- Queensland licensees must report every six months, within 28 days of each period ending, including workers registered and supplied and any accommodation provided.
- Victoria's LHA can ask for a business compliance plan specific to your operating model. Generic or templated plans may not be accepted.
Where does labour hire licensing stand, state by state?
Four jurisdictions license labour hire providers at the time of writing (November 2026), and the rules moved in three of them this year. Licensing attaches to where the work is done, so a provider based in one state that supplies workers into another needs to meet that state’s scheme too. Date stamp anything you build on this table; it will change again.
| Jurisdiction | Status (November 2026) | What it means for your systems |
|---|---|---|
| Victoria | Licensing under the Labour Hire Licensing Act 2018. Stronger fit and proper person and financial viability tests in 2026; supply chain definition clarified from 1 October 2026; prescribed construction roles from 18 January 2027 | Track decision makers, viability evidence, subcontractors and high risk industry licence conditions |
| Queensland | Licensing under the Labour Hire Licensing Act 2017 | Six monthly reports within 28 days of each period ending |
| South Australia | All industries covered since 29 January 2026; newly covered providers had until 29 July 2026 | Every SA placement now needs a licensed provider |
| ACT | Licensing under the Labour Hire Licensing Act 2020 | Separate licence and obligations |
| NSW | No scheme. On 2 October 2026 the government committed to release a bill within 100 days if re elected | Design for it now: hosts would have to use registered providers |
Victoria’s construction change is narrow but sharp. From 18 January 2027, traffic management, site security, concreting and crane operating on Victorian Government funded construction projects worth more than $50 million are covered, and the LHA puts maximum penalties above $660,000 per breach for a company and $160,000 for an individual. If you supply any of those roles, your booking system needs to know which sites are in scope.
How do you pay Same Job Same Pay correctly?
When a regulated labour hire arrangement order covers a host, you must pay each covered worker at least the protected rate of pay for their work at that host, which is generally the full rate under the host’s enterprise agreement. That is a per host, per classification calculation, and it sits on top of your award logic rather than replacing it.
The Fair Work Commission’s guidance sets the rules your rate engine has to encode:
- Only workers, host employees, unions or the host can apply. You, as the labour hire employer, can’t.
- No order can be made where the host is a small business employer, or where the work is wholly or mainly a service rather than the supply of labour.
- The protected rate doesn’t apply where a training arrangement applies, or during an exemption period. Engagements of 3 months or less are generally exempt, although the Commission can set a longer, shorter or recurring period, or none.
- You can ask the host in writing for what you need to calculate the rate, and the host must provide it.
A workable design has four parts. First, a host register that records whether an order covers the host, its effective date and its exemption period. Second, a rates table per host and classification, loaded from the host’s written answer and versioned when the agreement changes. Third, a tenure counter per worker per host, so the system switches to the protected rate on the right day. Fourth, a reconciliation report showing, for each pay run, which workers were on protected rates and why. This is classic workflow automation work, and it is where errors become underpayment claims.
Why do host site timesheets cause most disputes?
Because the person who approves the hours works for someone else. Paper timesheets signed at the gate, photos sent by text and spreadsheets from the host’s supervisor are the usual reality. Each one invites a dispute about breaks, overtime or who was actually on site.
A host site timesheet app fixes the evidence rather than the people:
- The worker clocks on and off on a phone, with location captured only at those moments and the worker told it is captured.
- Breaks and allowances are recorded against the shift, not reconstructed later.
- The host supervisor approves on their own login, so approval is attributable.
- Disputed shifts go to an exceptions queue with both sides’ notes, not an email chain.
- Approved hours flow to payroll through an integration with tools such as Astute Payroll, which lets you configure award and enterprise agreement rules, or to Employment Hero, ELMO or your own payroll.
Rostering tools such as Deputy handle the scheduling side well. The gap is usually the host approval step and the flow from approval to the right rate.
What evidence will a regulator ask for?
Expect to show how compliance happens day to day, not that you have policies. Victoria’s LHA says it may request a business compliance plan specific to your industry, workforce and business model, and that generic, templated or marketing style plans may not be accepted. Its 2026 changes let it weigh compliance with a wider range of laws, including bankruptcy, consumer protection, fair trading and corporate regulation.
An evidence pack your system should be able to produce on request:
- Every licence held, its conditions, renewal date and the nominated officers behind it.
- Financial viability evidence for the current licence period.
- Each host, the work supplied, and whether a protected rate order applies.
- Subcontractors and payroll services used, which Victoria’s standard conditions in high risk industries require you to report.
- Pay records showing award or protected rates applied and super paid.
- WHS inductions per host site and notifiable incidents.
- Accommodation provided to workers and its cost, where relevant.
- For Queensland, the numbers each six monthly report asks for: workers registered, workers supplied and workers’ compensation claims.
Victoria’s standard licence conditions in horticulture, meat and poultry processing, commercial cleaning and security also restrict cash payments and the use of independent contractors and subcontractors, so your payment and engagement data should make breaches visible before the regulator finds them.
What should a host portal do?
Let hosts order workers, see that each one is licensed, inducted and qualified, and approve hours, all without email. For hosts, the portal is proof they are using a licensed provider. For you, it is fewer phone calls and a record of every order.
Core features: job orders with start dates, site and role; a credential view per worker showing tickets, licences, visa work rights and site inductions with expiry dates; WHS induction completion; timesheet approval; and invoices that tie back to approved hours. If you supply construction, our construction software page covers the site side.
What changes with PALM scheme and visa workers?
More obligations, and more records that have to agree with each other. The PALM scheme lets approved employers hire workers from 9 Pacific islands and Timor-Leste when there are not enough local workers. Approval is assessed against the Approved Employer Deed and Guidelines, and labour hire providers must supply 5 years of accountant prepared financial statements and their labour hire licences where applicable. Read the deed before designing any software; its accommodation, pay, deduction and welfare rules drive the data model. For any visa holder, record work rights checks and visa expiry the same way the recruitment agency page describes.
What does labour hire software cost?
Indicative Australian market ranges, AUD ex GST, for modules around your existing payroll.
| Module | Indicative range |
|---|---|
| Host portal with site timesheet app and approvals | $50k to $150k |
| Same Job Same Pay rate engine over payroll | $40k to $120k |
| Licence and evidence register with reporting packs | $25k to $70k |
| Payroll and accounting integrations, per system | $15k to $40k |
Ranges assume Australian agency rates and include design, build, testing and launch. Our workflow automation cost guide explains the drivers. They are ranges, not quotes.
How AWLabs approaches labour hire software
AWLabs hasn’t yet delivered a project for a labour hire provider, and we aren’t workplace lawyers. We build the systems; your employment lawyer and payroll adviser sign off the rate rules and licensing interpretation before they are coded. After a Development Consult, our paid Discovery Audit maps your hosts, payroll and evidence trail, with the fee credited in full against the build. You then get a fixed price Schedule of Work with three options: The Minimum, The Recommended and The Complete. Senior engineers lead every build, you get updates every Tuesday and Friday, Sydney time, and the code and IP are assigned to you as they are paid for. See our build vs buy guide if you are still weighing an off the shelf platform.
Frequently asked questions
Which states require a labour hire licence?
At the time of writing (November 2026), Victoria, Queensland, South Australia and the ACT run licensing schemes. South Australia's scheme has covered all industries since 29 January 2026, with a grace period to 29 July 2026 for newly covered providers. NSW has no scheme yet; on 2 October 2026 the NSW Government committed that, if re elected, it would release a bill within 100 days to license providers in all industries. Check each regulator's site before you supply workers into a new state.
What is Same Job Same Pay?
It is the Fair Work Act regime for regulated labour hire arrangement orders. On application by a worker, a host employee, a union or the host, the Fair Work Commission must make an order where the conditions are met, and the labour hire employer must then pay at least the protected rate of pay, generally the full rate under the host's enterprise agreement. Orders can't be made where the host is a small business employer or where the work is mainly a service rather than the supply of labour.
How does our payroll know the host's enterprise agreement rate?
The Fair Work Commission says that if an employer needs more information to calculate the protected rate of pay, it can ask the regulated host in writing, and the host must provide it. Your system should track those requests, store the rates and classifications you receive, and flag when the host's agreement is replaced.
Do we need a labour hire licence in NSW?
Not at the time of writing, because NSW has no licensing scheme in force. The government has announced it will legislate if re elected at the next state election, with hosts required to use registered providers. If you supply into Victoria, Queensland, South Australia or the ACT from a NSW base, those states' laws apply to that work.
What records will a labour hire regulator ask for?
Expect questions about who runs the business, financial viability, compliance with workplace, tax, super, WHS and migration laws, subcontractors and payroll services, accommodation and workers' compensation. Victoria's LHA lists these themes in its 2026 changes and may request a business compliance plan. Queensland's six monthly reports cover workers registered and supplied, accommodation and workers' compensation claims.
Can we use software to manage PALM scheme workers?
Yes, but the obligations come from the PALM scheme Approved Employer Deed and Guidelines, which you should read before designing anything. The PALM scheme's employer pages say applications are assessed on eligibility, suitability, capability and capacity, and labour hire providers must supply financial statements and labour hire licences where applicable. Software helps by keeping accommodation, pay, deductions and welfare records together and reportable.
This page is general information about Australian law and regulation, current at the date shown. It is not legal advice. Get advice from a qualified lawyer about your circumstances.
Sources
- Labour hire law changes 2026, Labour Hire Authority (Vic)
- Final changes to labour hire law to take effect from October 2026, Labour Hire Authority (Vic)
- Labour hire licensing reforms, Consumer and Business Services (SA)
- Reporting for labour hire licensees, Labour Hire Licensing Queensland
- Labour Hire Licensing Act 2020, ACT Legislation Register
- A Re-Elected Minns Labor Government will regulate Labour Hire in NSW, NSW Government
- Regulated labour hire arrangement orders, Fair Work Commission
- PALM scheme: employers, Australian Government
- Astute Payroll, Astute Payroll