What the 2025 Amendments Mean for Your Business
At People2.0, keeping our partners informed and prepared is a top priority. With that in mind, we’re bringing to your attention a significant legislative update that may affect your business operations in South Australia.
The South Australian Government has passed the Labour Hire Licensing (Scope of Act) Amendment Act 2025, which expands the Labour Hire Licensing Act 2017 (SA) to require all labour hire providers to be licensed. This aligns South Australia’s scheme with those already operating in Victoria, Queensland, and the ACT.
Once a start date is announced, newly captured industries will have a six-month transition period to apply for a licence and meet all requirements.
Background: How We Got Here
The Labour Hire Licensing Act 2017 first took effect in March 2018 with a broad mandate: all labour hire providers needed a licence to operate. However, the Act was amended in 2020, scaling back the scheme to cover only five industries deemed to have higher risks of worker exploitation:
- Horticulture processing
- Meat processing
- Seafood processing
- Cleaning
- Trolley collection
The State Government grew concerned that the narrowed law left some labour hire workers without important protections. It also allowed labour hire providers to operate without meeting licensing criteria, such as police checks and fit and proper assessments for management personnel.
The 2025 amendments largely revert the Act to its original form. According to Consumer and Business Services SA, these changes mean the same licensing laws and protections will now apply across all labour hire firms and their workers.
What’s Changing
The key changes under the Labour Hire Licensing (Scope of Act) Amendment Act 2025 include:
- Expanded scope. The previous limitation to five prescribed sectors has been removed. Once the changes take effect, most providers who supply workers for a fee in South Australia will need to hold a valid licence.
- Updated definitions. The amendments include updated definitions of labour hire services, labour hire workers, and suppliers.
- Transition period. Newly captured industries will receive a six-month grace period to submit an application and meet all licensing requirements once a commencement date is announced.
- Limited exemptions. The amended legislation allows some exemptions from the requirement to be licensed, but only in very limited circumstances.
Why This Matters for Your Business
These reforms affect the compliance landscape for workforce models our partners use, including labour hire, contracting, and contingent workforce arrangements.
- For host businesses: When the new laws commence, any business engaging a labour hire provider must verify that the supplier is licensed. Failure to do so carries significant penalties. This places the responsibility squarely on the hiring company to confirm licence status before engaging a supplier.
- For labour hire providers: Providers who were not previously required to be licensed under the five-sector limitation will now need to apply for a licence during the transition period.
- For businesses that don’t see themselves as labour hire providers: Some organisations may not traditionally view themselves as labour hire providers but may now fall within scope under the updated definitions. It’s worth reviewing your arrangements to determine whether licensing applies.
Key Exemptions to Understand
While the scope has broadened significantly, some exemptions remain:
- Genuine service contracts. If your arrangement involves paying for a defined outcome or project where the supplier controls how the work gets done using their own methods and expertise, it may be exempt. The key distinction is whether you’re paying for a completed service rather than directing workers yourself.
- In-house employee secondments. Businesses that temporarily lend their own permanent employees to another organisation may also be exempt. This applies when the seconded worker’s primary employment relationship remains with the original employer and they expect to return to their regular role.
SA’s labour hire licensing laws establish minimum standards for providers with the goal of protecting workers from exploitation. By extending these requirements to all labour hire firms, the government aims to create a level playing field for compliant businesses while minimising unnecessary administrative burden.
What You Should Do Now
Even though the commencement date has not yet been announced, there are steps you can take now to prepare:
- Review your current operations. Determine whether your business provides or engages labour hire services that would fall under the expanded scope.
- Audit your supplier relationships. If you engage labour hire providers, review their licence status and prepare to verify compliance once the new requirements commence.
- Update your onboarding processes. Consider adding licence verification steps to your supplier onboarding procedures. This includes requesting licence numbers, provider contact details, and responsible person details before engaging a supplier.
- Monitor for updates. The commencement date will be communicated to industry by Consumer and Business Services SA. Keep an eye on the official CBS labour hire licensing page for announcements.
Part of a Broader National Trend
South Australia’s expanded scheme now aligns with labour hire licensing requirements in Victoria, Queensland, and the ACT. This reflects a broader national trend toward consistent regulation of the labour hire industry to protect workers from exploitation.
For businesses operating across multiple Australian jurisdictions, this alignment may simplify compliance by creating more consistent requirements. However, it also means that organisations who previously operated without licensing obligations in South Australia will now need to meet the same standards as their counterparts in other states.
Looking Ahead
Staying proactive and informed about legislative changes like the Labour Hire Licensing (Scope of Act) Amendment Act 2025 is essential for business success. By understanding these requirements now, you can position your organisation to remain compliant and competitive as the regulatory landscape evolves.
For more information on the reforms, visit the YourSAy consultation page for background materials, or the Consumer and Business Services SA website for the latest updates on commencement timing.
How People2.0 Can Help
The expansion of South Australia’s labour hire licensing scheme highlights both risk and opportunity. It is illegal to operate without appropriate licences once the changes commence. But there’s also opportunity to work with a knowledgeable partner to ensure compliant and sound workforce structures as the regulatory net widens.
People2.0’s expertise in workforce compliance across Australia and globally means we’re well positioned to help organisations navigate these changes. Whether you need guidance on understanding your obligations, reviewing your current arrangements, or ensuring your workforce models remain compliant, we’re here to help.
Ready to learn more? Connect with our team to discuss how we can support your compliance needs in Australia and beyond.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. While we strive to keep the information accurate and up to date, legislative requirements can change, and the application of laws may vary based on individual circumstances. We recommend consulting with qualified legal counsel or contacting the relevant regulatory authorities for advice specific to your situation. People2.0 is not responsible for any actions taken or not taken based on the information provided herein.
