Who needs a contractor licence in NSW?
NSW's rule is that you "must have a contractor licence to carry out, advertise or contract for building or trade work that is valued at more than $5,000 in labour and materials (including GST)". That covers building work on homes, and trades like carpentry, tiling, waterproofing, roof plumbing, fencing, concreting and painting.
Specialist work is different. Electrical, plumbing, draining and gasfitting, air conditioning and refrigeration, and medical gas and mechanical services need a licence at any price, on homes, shops or factories alike.
Source: NSW Government, Categories and classes of building and trade work, read 25 October 2026.
The subbie trap. The $5,000 is the whole job, not your part of it. NSW's own example is a plasterer doing $3,000 of dry plastering on a $30,000 kitchen renovation, who still needs a dry plastering contractor licence. Doing unlicensed work can cost "$22,000 as an individual or $110,000 as a company".
Source: NSW Government, General building work, read 25 October 2026.
One exception worth knowing. "Since 2015, stand-alone contracts for internal paintwork no longer need a licence, unless the paintwork is part of other home building work."
Source: NSW Government, Painting work, read 25 October 2026.
Contractor licence or qualified supervisor certificate?
NSW issues three kinds of paper for building and trade work. Going out on your own, you want the first.
Contractor licence
Contract and advertise. Issued to people, companies and partnerships. A person's card says "contractor licence (Q)", which means it doubles as a supervisor certificate.Qualified supervisor certificate
Can't contract or advertise. Lets you do the work and supervise others, for a licensed contractor or as the supervisor a company names.Tradesperson certificate
Can't sign off work. Lets you work under the general supervision of a licence or supervisor certificate holder.Each one runs for 1, 3 or 5 years, your pick. Apprentices and trainees can't apply for any of them.
Source: NSW Government, Apply for a new trade or building licence or certificate (updated 9 October 2026), read 25 October 2026.
What does a builder licence in NSW take?
More than a trade licence. For general building work you need a Certificate IV in Building and Construction with a set list of units (CPC40120 is the current one) or a building degree, and at least two years' experience "in a wide range of building construction work", most of it within the last 10 years.
NSW is strict about whose experience counts. The builder you worked for had to hold a general building licence, someone with a general building Q licence or supervisor certificate had to supervise you and sign your referee's statement, and you had to be paid properly. "If you only have experience in one kind of work, your experience is not enough to apply for a full building licence", and owner builder experience doesn't count at all. If you're bankrupt, NSW can't issue you a building contractor licence.
Source: NSW Government, General building work (updated 3 September 2026), read 25 October 2026.
Not after the whole house? Kitchen, bathroom and laundry renovation, structural landscaping, swimming pool building and prefabricated metal framed additions are "other building work", each with its own licence.
What do you take to Service NSW?
An individual contractor licence is lodged in person at a service centre, by appointment, and you book it with the "Book an appointment" button on Service NSW's apply page. Electrical is the exception, it can be done online. Take these with the completed application form.
- Proof of identity with your address, like a driver licence, and one recent passport sized photo.
- A National Police Check no older than 4 months when you lodge, a name and date of birth check only.
- The original of your qualification. For painting that's a Certificate III in Painting and Decorating (CPC30620).
- Your employment and experience, filled in on the form, for building and specialist work only, and a referee's statement where your category needs one.
- Details of any past compliance issues, insolvency or criminal offences, and a certificate of eligibility to obtain insurance if it applies.
- The fee.
Source: Service NSW, Apply for an individual contractor licence (published 10 August 2026), read 25 October 2026.
A company or partnership licence can be lodged online by a director or partner if the business has an ABN. Making a false statement or leaving information out is an offence, and an incomplete application waits while they ask.
What does it cost, and how long is the wait?
Your licence fee and wait
From Building Commission NSW's fees for July 2026 to June 2027 and its processing times as at 1 October 2026. Everything stays in this browser.
Fees from Building Commission NSW, Fees for contractor licences (July 2026 to June 2027, updated 1 September 2026), and waits from Assessment process and time frames (as at 1 October 2026), both read 25 October 2026. Fees may rise with CPI each July, and a wait runs longer if they have to ask you for more. Partnership fees are different. An estimate, not legal advice.
Source: Building Commission NSW, Fees for contractor licences, supervision and tradesperson certificates, read 25 October 2026.
Source: Building Commission NSW, Assessment process and time frames, read 25 October 2026.
Don't take a job over $5,000 while you wait. NSW says "it is an offence to carry out, advertise or contract for work while not appropriately licensed", and the public register shows when yours is granted.
What insurance do you need before you sign?
Above $20,000, home building compensation cover. NSW says a licensed builder or tradesperson "must get home building compensation (HBC) cover for each home building project over $20,000 including GST". It used to be called home warranty insurance, and it protects the owner if you can't finish the job or fix defects.
Source: NSW Government, Insurance cover for building work (updated 6 July 2026), read 25 October 2026.
icare is the insurer, and it works in two steps. First you get a Certificate of Eligibility, which sets the types of work you can do, the value of each job and how many jobs you can have open at once. Then you get a Certificate of Insurance for each job, before you start work or "take any payment for the project, including a deposit". Cover is for whoever contracts with the owner, so a subbie to a builder doesn't take it out.
Source: icare, Do I need HBCF?, read 25 October 2026.
Apply for eligibility the week your licence arrives, not the week you win your first big job.
The week your licence arrives
Your number goes on everything. Service NSW says "You're legally required to display your licence number on all advertising, stationery and signage." That's your ute, your website, your Facebook page, your quotes and your invoices. You can also carry it in the Service NSW app.
Source: Service NSW, Apply for an individual contractor licence, read 25 October 2026.
Customers look you up. Verify licence is where a customer checks you. It "contains a list of public registers across NSW", contractor and trades people among them. Search your own name the week it arrives, so you know what a customer sees before they call.
Source: NSW Government, Verify licence, read 25 October 2026.
Your contracts change. From $5,000 to $20,000 you need a written small job contract, dated, signed and showing the name and number on your licence. Above $20,000 it's a large job contract with a checklist, a five business day cooling off period and the insurance certificate. Over $5,000 you give the owner the Consumer Building Guide first, and the deposit can't be more than 10%.
Source: NSW Government, Contracts (updated 29 April 2026), read 25 October 2026.
The quote template checks the NSW deposit limit as you type, so a quote never asks for more than 10%.
What inspectors found on 44 Hunter sites
In March 2026 two Building Commission NSW inspectors visited 44 house sites around Newcastle, Cameron Park, Lochinvar and nearby towns. They issued 22 penalty notices and 13 caution letters. Eleven of the notices were for doing residential building work unlicensed, four for unlicensed specialist work, and four were for licensed contractors who'd contracted work to someone without a licence.
Source: Building Commission NSW, Hunter Region March 2026 compliance inspections, read 25 October 2026.
That last group is the one a careful tradie falls into. You can hold your own licence perfectly and still get a notice for the subbie you brought in. Check every subbie's licence on the public register before they start, and keep a screenshot with the job.
Put your licence number on every quote and invoiceYamate sells software to tradies. This guide and its tool are free and ask for nothing. In the app you add your licence once in Settings, and it prints on every quote and invoice you send.
Related
General information, not tax advice and not legal advice. This is a plain reading of NSW Government pages, and Building Commission NSW decides every application. Check your category's page before you apply. Yamate doesn't lodge anything for you.