What newly captured providers need to know about the 29 January 2026 start date
Following our earlier update on the expansion of South Australia’s labour hire licensing laws, the Government of South Australia’s Consumer and Business Services (CBS) has confirmed the commencement date and key transition timelines.
From 29 January 2026, South Australia’s labour hire licensing laws formally expand to cover all labour hire providers—no longer limited to the five prescribed industries of horticulture, meat and seafood processing, cleaning, and trolley collection.
Here’s what you need to know about these changes and what they mean for your operations.
What’s Confirmed
Commencement Date: 29 January 2026
The Labour Hire Licensing (Scope of Act) Amendment Act 2025 commences on 29 January 2026. From this date, the expanded licensing requirements officially take effect across South Australia.
Six-Month Transition Period
Labour hire providers newly captured by the expanded scheme have until 29 July 2026 to obtain their licence. This six-month transition period gives newly affected businesses time to submit applications and meet all licensing requirements.
No Changes for Currently Licensed Providers
If your business already operates in one of the five previously prescribed industries and holds a valid licence, nothing changes. Your licensing obligations continue as normal—you simply maintain your current compliance requirements.
Who This Affects
Newly Captured Providers
If you provide labour hire services in South Australia outside the five previously prescribed industries, you now fall within scope of the licensing scheme. You must apply for and obtain a licence by 29 July 2026.
The expanded definition captures most arrangements where you supply workers for a fee to another business. This includes staffing agencies, recruitment firms, professional services firms, and any other businesses that place workers with host organisations.
Host Businesses
Organisations that engage labour hire providers must verify that their suppliers hold valid licences. While there’s no formal requirement to check licences during the transition period, this will become mandatory once the 29 July 2026 deadline passes.
Engaging an unlicensed provider after the transition period carries significant penalties. We recommend starting licence verification processes now to ensure smooth compliance when the deadline arrives.
Businesses Unsure of Their Status
Some organisations may not traditionally view themselves as labour hire providers but could fall within the updated definitions. If you supply workers to another business in any capacity, review your arrangements carefully to determine whether licensing requirements apply.
Understanding the Transition Period
The six-month transition period from 29 January 2026 to 29 July 2026 is designed to give newly captured providers time to complete the licensing process without immediate penalties.
During this period, newly captured providers can continue operating while their applications are processed. However, you must submit your application before the 29 July 2026 deadline to maintain legal operation beyond that date.
Applications submitted after 29 July 2026 will be considered late, and operating without a licence beyond that date is illegal and subject to enforcement action.
What You Need to Do Now
Step 1: Determine Your Status
Review your business operations to confirm whether you provide labour hire services that fall under the expanded licensing scheme. If you supply workers to other businesses for a fee, you likely need a licence.
Consider consulting with legal or compliance advisors if you’re uncertain about your status. The definitions in the amended Act are broad, and it’s better to clarify your obligations now rather than face enforcement action later.
Step 2: Prepare Your Application
If you determine that licensing applies to your business, start preparing your application immediately. The licensing process requires:
- Police checks for key personnel
- Fit and proper person assessments for management
- Evidence of appropriate workplace relations systems
- Proof of insurance coverage
- Financial records demonstrating business viability
- Documented compliance procedures
Gathering this documentation takes time. Starting early ensures you can submit a complete application well before the 29 July 2026 deadline.
Step 3: Review Your Host Business Relationships
If you engage labour hire providers, begin implementing licence verification processes now. Contact your current suppliers to confirm their licence status and establish procedures for checking licences before engaging new providers.
This proactive approach protects your business from inadvertently engaging unlicensed providers after the transition period ends.
Step 4: Monitor Official Updates
CBS continues to provide updates and guidance on the expanded licensing scheme. Stay informed by regularly checking the official CBS labour hire licensing page for new information, application forms, and compliance resources.
Why These Changes Matter
South Australia’s expanded licensing scheme aligns with similar requirements in Victoria, Queensland, and the ACT. This national trend toward comprehensive labour hire regulation reflects growing government focus on worker protection and compliance standardisation.
For compliant businesses, these changes create a more level playing field by ensuring all providers meet the same standards. For workers, the expansion extends important protections beyond the five previously prescribed industries.
The expanded scheme also increases accountability throughout the supply chain. Host businesses now share responsibility for ensuring their labour hire providers operate legally, creating incentives for thorough due diligence when selecting workforce partners.
Common Questions
Do I need a licence if I only occasionally place workers?
The legislation doesn’t include frequency thresholds. If you provide labour hire services in South Australia, you need a licence regardless of how often you place workers.
What happens if my application is still being processed after 29 July 2026?
You can continue operating during the application process as long as you submitted your application before the deadline. However, you cannot operate legally if you haven’t submitted an application by 29 July 2026.
Do I need separate licences for different industries?
No. A single labour hire licence covers all industries and all types of labour hire arrangements in South Australia.
What are the penalties for operating without a licence?
Operating without a required licence is illegal under South Australian law. Penalties can include significant fines and prosecution. Host businesses that knowingly engage unlicensed providers also face penalties.
Looking Ahead
With the commencement date now confirmed, the next few months are critical for newly captured providers. The six-month transition period provides adequate time to complete the licensing process—but only if you start now.
People2.0 has monitored labour hire licensing developments across Australia for years and will remain compliant with South Australia’s expanded labour hire licensing requirements.
How People2.0 Can Help
Navigating South Australia’s expanded labour hire licensing scheme requires careful attention to compliance details and deadlines. As a global workforce solutions provider with deep expertise in Australian employment law, People2.0 helps businesses maintain compliance while focusing on their core operations.
Our employer of record (EOR) and agent of record (AOR) services also provide alternative workforce solutions that may address your business needs while simplifying compliance management.
Connect with our team to discuss how we can support your compliance needs.
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.
