How to apply for a labour hire licence in Victoria: A business owner’s guide

Labour Hire Licence

Starting a labour hire business in Victoria involves more than finding clients and supplying workers. Before operating, businesses need to understand the licensing requirements, demonstrate financial viability and prepare documentation that reflects how their business will actually operate.

For new business owners, the application process can be challenging, particularly when it involves workforce costs, compliance planning, occupational health and safety (OHS) and financial forecasting.

Understanding these requirements before applying can help you prepare a more complete application and avoid preventable delays.

Who needs a labour hire licence in Victoria?

Victoria’s labour hire licensing scheme requires labour hire providers to hold the appropriate licence before supplying labour hire services. Businesses that use labour hire providers must also ensure they engage licensed providers.

The rules can apply to different business structures and operating models, so it is important to assess your proposed activities rather than assume that a particular business name or arrangement determines whether a licence is required.

The Victorian Labour Hire Authority (LHA) administers the licensing scheme. Applicants should review its current guidance to establish how the requirements apply to their business.

What do you need before applying for a labour hire licence?

A successful application requires more than completing an online form. Your business needs to demonstrate that it is appropriately structured, financially viable and prepared to meet its obligations.

1. Establish your business structure

Determine the legal structure through which you intend to operate. This may involve a company, partnership, sole trader arrangement or another eligible structure.

You should also identify the relevant people who control or manage the business and understand the information they may need to disclose as part of the application.

2. Prepare your financial viability information

Financial viability is an important consideration in the Victorian licensing process.

Your financial forecast should reflect the actual cost of supplying workers, including award wages, superannuation, WorkCover, payroll tax where applicable and other employment on-costs.

You also need to understand your proposed charge rates, expected margins and working capital requirements.

A business may appear profitable when looking only at the difference between wages and client rates. However, once employment costs, administration and payment delays are included, the financial position can look very different.

Building a realistic workforce cost model before applying can help you assess whether your proposed business is commercially sustainable.

3. Develop a business compliance plan

Your application needs to explain how your labour hire business intends to operate.

A generic business plan may not adequately address the practical details of your proposed model. Your documentation should reflect the industries you intend to serve, how you will source and manage workers, how you will meet relevant obligations and how the business will operate in practice.

The plan should be prepared around your actual business rather than adapted from an unrelated template.

4. Address occupational health and safety

Applicants need to consider the OHS requirements relevant to their proposed operations.

Depending on the business model, this may involve documenting responsibilities, procedures and management arrangements that address applicable workplace safety requirements.

RecruitArt’s advisory service includes administrative support with documenting an OHS plan against the relevant WorkSafe requirements. However, appointing and managing a competent OHS or WHS adviser remains the business owner’s responsibility.

5. Organise registrations and supporting documents

Depending on your circumstances, you may need to coordinate your ABN, GST, PAYG withholding, payroll tax and WorkCover registrations.

You should also identify the supporting information required for your application and ensure the details are consistent across your business documents and financial forecasts.

Preparing these elements early can make the application process more organised.

Why labour hire licence applications can become complicated

Many new business owners focus on obtaining clients and recruiting workers before considering the full operating requirements of a labour hire business.

This can lead to problems when the licensing application requires detailed financial assumptions, business-specific compliance documentation or disclosures that the applicant has not prepared.

Changes to Victoria’s licensing framework during 2026 have also made it particularly important to check the latest requirements. From 1 June 2026, strengthened requirements included an expanded fit-and-proper-person assessment and a financial viability declaration. Applicants should consult the LHA’s current guidance for the requirements applicable to their circumstances.

Allow sufficient time for preparation and assessment. RecruitArt’s landing page indicates that it typically prepares the application documentation within about seven days of engagement, while the LHA’s assessment process may take around 60 days and can take longer if further information is required. These are indicative timeframes, not a guarantee of approval or a decision date.

How RecruitArt helps with the application process

RecruitArt provides a fixed-fee advisory package for preparing and lodging a new-business Victorian labour hire licence application.

The service is designed to help business owners navigate the documentation and planning involved, including:

  • Business structure advice and eligibility screening
  • Fit-and-proper-person disclosure checklists
  • Financial viability documentation and workforce cost modelling
  • A business-specific compliance plan
  • Administrative support documenting the OHS plan
  • Coordination of relevant business registrations
  • Application preparation, lodgement and management of requests during assessment

The advertised advisory fee is $2,995 plus GST. The Labour Hire Authority’s application and first annual licence fees are separate, and additional items such as working capital and ongoing back-office services are not included.

RecruitArt provides advisory and consulting support only. Licence approval remains a decision for the Labour Hire Authority, and approval is not guaranteed.

Prepare your labour hire licence application with confidence

If you are planning to establish a labour hire business in Victoria, preparation should begin before you submit your application.

Understand the licensing requirements, build realistic workforce financials, prepare documentation around your intended business model and identify any compliance gaps early.

With the right preparation and specialist guidance, you can approach the process with a clearer understanding of what is required and what you need to do next.

Planning to apply for a Victorian labour hire licence?

Speak with RecruitArt about preparing your application and establishing the foundations for your labour hire business.

Visit RecruitArt’s labour hire licence advisory page to learn more and enquire about the service.