---
created: 2026-03-12
source: Rivet
tags: [agent-archive, rivet]
---

# Labour Hire Licensing Research Memo
## RateRight Pty Ltd (ABN 55 685 398 083)

**Date:** 7 February 2026  
**Re:** Labour Hire Licensing Requirements Across Australian States  
**Classification:** Internal Legal Research

---

## Executive Summary

**Key Finding:** RateRight's matching-only business model almost certainly **does NOT** require a labour hire licence in any Australian state.

The critical element in ALL state labour hire licensing definitions is that the provider **pays the worker**. RateRight:
- Does NOT employ workers
- Does NOT pay workers  
- Does NOT supply workers
- ONLY facilitates the match (like a job board)

However, proactive steps are recommended to solidify this position.

---

## RateRight Business Model Summary

| Element | RateRight's Position |
|---------|---------------------|
| Employs workers? | ❌ No |
| Pays workers? | ❌ No |
| Supplies workers? | ❌ No — only matches |
| Directs work? | ❌ No — contractor directs |
| Sets worker rates? | ❌ No — workers set their own rates |
| Revenue model | Flat $50 matching fee per hire |
| Relationship | Platform/marketplace facilitator |

---

## State-by-State Analysis

### 1. Queensland — Labour Hire Licensing Act 2017

**Regulator:** Office of Industrial Relations  
**Website:** https://www.labourhire.qld.gov.au/

#### Definition of "Labour Hire Provider"

From the Act and official guidance:
> "A person (provider) provides labour hire services if, in the course of carrying on a business, the person supplies, to another person, a worker to do work."

**Critical detail from official Q&A:**
> "Labour hire providers are broadly defined as a person (individual or business) that in the course of carrying on a business, supplies a worker to do work to another person (the labour hire user). **The workers are paid by the labour hire provider.**"

#### Does RateRight Fall Within This Definition?

| Element | Required | RateRight |
|---------|----------|-----------|
| Carries on a business | ✅ Yes | ✅ Yes |
| Supplies a worker | ✅ Yes | ❌ No — facilitates match only |
| Pays the worker | ✅ Yes (per Q&A) | ❌ No — contractor pays directly |

**Conclusion: RateRight does NOT meet the Queensland definition.**

#### Exemptions

The following are explicitly NOT labour hire:
- **Private employment agents** under the Private Employment Agents Act 2005 (Qld)
- Genuine subcontracting arrangements
- Recruitment and permanent placement services

RateRight's model is more analogous to a private employment agent or job board than a labour hire provider.

#### Penalties for Non-Compliance (If Applicable)

- Individuals: Up to $142,537 or 3 years imprisonment
- Corporations: Up to $413,550

#### Enforcement Approach

The Labour Hire Licensing Compliance Unit actively prosecutes unlicensed providers. Recent prosecution in October 2025 at Mount Isa Magistrates Court. However, enforcement focuses on traditional labour hire arrangements in agriculture, cleaning, and meat processing.

---

### 2. Victoria — Labour Hire Licensing Act 2018

**Regulator:** Labour Hire Authority  
**Website:** https://www.labourhireauthority.vic.gov.au/

#### Definition of "Labour Hire Provider"

From the Act and official guidance:
> "A labour hire provider is an individual or organisation that:
> - **supplies workers and pays them** to perform work in and as part of a host's business
> - recruits workers for a host and provides accommodation, and/or
> - recruits workers as independent contractors for a host **and manages the contract performance**"

**Key clarification from LHA:**
> "Section 7 of the Labour Hire Licensing Act 2018 (Vic.) provides that a labour hire provider is a business that has an arrangement in place with one or more individuals to supply the individuals to perform work in and as part of a host's business or undertaking **and is obliged to pay them**."

#### Does RateRight Fall Within This Definition?

| Element | Required | RateRight |
|---------|----------|-----------|
| Supplies workers | ✅ Yes | ❌ No — facilitates match only |
| Pays the workers | ✅ Yes | ❌ No |
| Manages contract performance | Alternative | ❌ No — contractor manages |
| Provides accommodation | Alternative | ❌ No |

**Conclusion: RateRight does NOT meet the Victorian definition.**

#### Exemptions (Excluded Classes of Workers)

No licence required for:
- Secondees (temporary transfers of in-house employees)
- Intra-group transfers (within related companies)
- Student work placements

#### Penalties for Non-Compliance (If Applicable)

- Individuals: Up to $145,392
- Corporations: Up to $581,568

---

### 3. South Australia — Labour Hire Licensing Act 2017

**Regulator:** Consumer and Business Services (CBS)  
**Website:** https://www.cbs.sa.gov.au/

#### Current Scope

SA has the **narrowest** scheme. Currently, licensing is only required in **5 specific sectors**:
1. Horticulture processing
2. Meat processing
3. Seafood processing
4. Cleaning
5. Trolley collection

**Proposed expansion:** The SA Government is currently considering amendments to expand the scheme to all industries (Labour Hire Licensing Reforms Discussion Paper, 2025).

#### Definition of "Labour Hire Provider"

> "A person provides labour hire services if they supply workers to work in another person's business, have an arrangement to supply workers, **and the workers are paid, whether in full or part, by that business (even if payment is only for accommodation or some other expense)**."

#### Does RateRight Fall Within This Definition?

Even if the construction industry were covered:

| Element | Required | RateRight |
|---------|----------|-----------|
| Supplies workers | ✅ Yes | ❌ No — facilitates match only |
| Has arrangement with workers | ✅ Yes | ❌ No arrangement to supply |
| Pays workers (any payment) | ✅ Yes | ❌ No |

**Conclusion: RateRight does NOT meet the SA definition.**

Additionally, construction is not currently a prescribed industry requiring licensing.

#### Exemptions

- Providing services (not labour)
- Genuine subcontracting
- "In-house" employees
- Acting as an intermediary/agent (contracts with business to supply workers but **sources from a separate labour hire provider**)

#### Penalties for Non-Compliance (If Applicable)

- Individuals: Up to $140,000 + 3 years imprisonment
- Corporations: Up to $400,000

---

### 4. Australian Capital Territory — Labour Hire Licensing Act 2020

**Regulator:** WorkSafe ACT  
**Website:** https://www.worksafe.act.gov.au/

#### Definition

Similar to other states — requires:
- Employment of workers for labour hire services
- Supply of those workers to other companies

#### Does RateRight Fall Within This Definition?

RateRight does not employ workers, so it does not meet the ACT definition.

**Conclusion: RateRight does NOT require an ACT licence.**

#### Penalties for Non-Compliance (If Applicable)

- Individuals: Up to $128,000
- Corporations: Up to $2,430,000 (highest in Australia)

---

### 5. New South Wales — No Licensing Scheme

**Current Position:** NSW has **no labour hire licensing scheme**.

**What to Watch:**
- NSW Labor previously indicated interest in introducing a scheme if elected
- National scheme discussions may supersede state action
- No pending legislation as of February 2026

**Implication for RateRight:** No licence required or available in NSW.

---

### 6. Other States & Territories

| Jurisdiction | Status | Notes |
|--------------|--------|-------|
| **Western Australia** | No scheme | Expressed in-principle support in 2019 following wage theft inquiry; no legislation enacted |
| **Northern Territory** | No scheme | No current proposals |
| **Tasmania** | No scheme | No current proposals |

---

### 7. National Labour Hire Licensing Scheme (Proposed)

**Status:** Under development by the Federal Department of Employment and Workplace Relations (DEWR).

**Key Documents:**
- National Labour Hire Regulation Consultation Paper (2023)
- National Partnership Agreement funding ($3.953m allocated through June 2025)

**Proposed Features:**
- Single national scheme to replace state/territory schemes
- Mutual recognition of licences
- Reduced administrative burden for multi-state operators

**Timeline:** No firm implementation date; preparatory work ongoing through 2025.

**Implication for RateRight:** Monitor developments. If a national scheme is implemented, the definition of "labour hire provider" will be critical. Current state definitions (requiring payment of workers) suggest matching platforms would remain exempt.

---

## The Critical Question: Does a Matching Platform Need a Licence?

### Analysis

**In all four licensing jurisdictions (QLD, VIC, SA, ACT), the definition requires that the provider PAYS the worker.**

RateRight:
1. Does not pay workers — contractors pay workers directly
2. Does not employ workers — no employment relationship exists
3. Does not supply workers — only facilitates connections
4. Does not direct work — contractors direct the work
5. Does not manage contract performance — parties manage directly

**This is functionally a job board with enhanced features, not labour hire.**

### Legal Distinction: Recruitment vs Labour Hire

| Feature | Recruitment/Matching Service | Labour Hire |
|---------|------------------------------|-------------|
| Who employs the worker? | Host/client | Labour hire provider |
| Who pays the worker? | Host/client | Labour hire provider |
| Who directs the work? | Host/client | Host/client |
| Ongoing relationship? | Worker → Host | Worker → Provider |
| Worker's employer? | Host/client | Provider |

RateRight clearly falls in the **Recruitment/Matching** column.

---

## Comparison with Similar Platforms

### Airtasker

**Business Model:**
- Connects "Posters" (people who need tasks done) with "Taskers" (people who do tasks)
- Takes 15-22% service fee from the task payment
- Does NOT employ Taskers
- Does NOT pay Taskers (Poster pays via platform)

**Labour Hire Position:**
- Terms explicitly state: "No agency, partnership, joint venture, employee-employer or other similar relationship is created"
- Taskers are "independent contractors" not employees
- Has been criticised by unions (Unions NSW) as potentially operating as labour hire
- Entered agreement with Unions NSW in 2017 for minimum standards but maintained independent contractor model

**Key Difference from RateRight:** Airtasker handles payment (takes commission from payment flow). RateRight has a flat fee model with no payment intermediation.

### Hipages

**Business Model:**
- Connects homeowners with licensed tradies
- Charges tradies for leads (job connections)
- Does NOT employ tradies
- Does NOT pay tradies
- Tradies quote and are paid directly by homeowners

**Labour Hire Position:**
- Operates as a lead generation/matching platform
- No labour hire licence required (confirmed by operating without one)
- Terms make clear tradies are independent contractors

**Similar to RateRight:** Both charge flat fees/lead fees, neither pays workers.

### ServiceSeeking

**Business Model:**
- Similar to Hipages — connects customers with service providers
- Lead-based revenue model
- No employment relationship with providers

**Labour Hire Position:**
- Lead generation platform, not labour hire

### Key Takeaway

None of these platforms hold labour hire licences. All position themselves as marketplaces/lead generators connecting independent contractors with customers. RateRight's model is consistent with this approach.

---

## Recommendations for RateRight

### 1. ✅ Strengthen Terms & Conditions

Ensure your platform terms clearly state:

```
INDEPENDENT CONTRACTOR RELATIONSHIP

RateRight is a platform that facilitates connections between contractors 
and workers. RateRight does not:
- Employ any workers available on this platform
- Pay workers for work performed
- Supply workers to contractors
- Direct or control the work performed
- Act as a labour hire provider

Workers listed on RateRight are independent contractors who set their own 
rates and are engaged directly by the contractor. The contractor, not 
RateRight, is responsible for:
- Paying the worker directly
- Ensuring appropriate work arrangements
- Complying with all applicable employment, WHS, and taxation laws

RateRight's role is limited to facilitating the initial connection for a 
flat matching fee.
```

### 2. ⚠️ Consider Seeking Formal Rulings

**Option A: Request Informal Guidance**
- Contact the Queensland Labour Hire Licensing Compliance Unit (1300 576 088)
- Contact the Victorian Labour Hire Authority
- Explain the business model and request confirmation that licensing is not required

**Pros:** Free, relatively quick, creates a record of good faith inquiry
**Cons:** Informal guidance is not legally binding

**Option B: Obtain Legal Opinion**
- Engage employment/regulatory lawyers to provide a formal opinion
- Document the analysis for compliance records

**Pros:** Defensible, thorough, can be relied upon
**Cons:** Cost ($3,000-$10,000 for a proper opinion)

**Recommendation:** Start with Option A (informal guidance) and escalate to Option B if planning significant growth or if regulators indicate any concern.

### 3. 🛡️ Maintain Clear Documentation

Keep records demonstrating that RateRight:
- Never pays workers
- Never directs work
- Only facilitates matching
- Has no employment relationship with workers

### 4. 📊 Monitor Regulatory Developments

Track:
- National Labour Hire Licensing Scheme progress
- SA reforms expanding covered industries
- Any guidance on digital platforms/gig economy

Set calendar reminders to check regulator websites quarterly.

### 5. ❓ Consider Voluntary Licensing (Optional)

**Arguments For:**
- Demonstrates legitimacy and compliance culture
- May provide marketing advantage ("Licensed Labour Hire Provider")
- Proactively positions for any future regulatory changes

**Arguments Against:**
- Unnecessary cost (fees range from $600-$6,000/year per state)
- Creates compliance obligations (reporting, record-keeping)
- May inadvertently imply RateRight IS a labour hire provider (creating confusion)
- If you get a licence, you're subject to licence conditions

**Recommendation:** Do NOT obtain a labour hire licence. It would be inappropriate for the business model and could create more issues than it solves.

---

## Summary Table: State Requirements

| State | Licence Required? | Key Requirement | RateRight Meets? | Risk Level |
|-------|-------------------|-----------------|------------------|------------|
| **QLD** | No | Must pay workers | ❌ No | 🟢 Low |
| **VIC** | No | Must pay workers | ❌ No | 🟢 Low |
| **SA** | No | Must pay workers + construction not covered | ❌ No | 🟢 Low |
| **ACT** | No | Must employ workers | ❌ No | 🟢 Low |
| **NSW** | N/A | No scheme exists | N/A | 🟢 None |
| **WA** | N/A | No scheme exists | N/A | 🟢 None |
| **NT** | N/A | No scheme exists | N/A | 🟢 None |
| **TAS** | N/A | No scheme exists | N/A | 🟢 None |

---

## Action Items

| Priority | Action | Owner | Due |
|----------|--------|-------|-----|
| **High** | Update platform T&Cs with clear independent contractor language | Legal/Founders | Within 30 days |
| **Medium** | Draft email to QLD LHLU requesting informal guidance | Founders | Within 60 days |
| **Medium** | Draft email to VIC LHA requesting informal guidance | Founders | Within 60 days |
| **Low** | Set up monitoring for national scheme developments | Founders | Quarterly review |
| **Low** | Consider obtaining formal legal opinion if expanding significantly | Founders | As needed |

---

## References & Sources

### Legislation
- Labour Hire Licensing Act 2017 (Qld)
- Labour Hire Licensing Act 2018 (Vic)
- Labour Hire Licensing Act 2017 (SA)
- Labour Hire Licensing Act 2020 (ACT)

### Regulatory Guidance
- QLD Labour Hire Licensing: https://www.labourhire.qld.gov.au/
- VIC Labour Hire Authority: https://www.labourhireauthority.vic.gov.au/
- SA Consumer and Business Services: https://www.cbs.sa.gov.au/
- ACT WorkSafe: https://www.worksafe.act.gov.au/

### Legal Commentary
- Prosper Law: "Labour Hire Licences in Australia" (August 2025)
- LegalVision: "Labour Hire Licensing Laws in Australia" (November 2022)
- Corrs Chambers Westgarth: "What do Queensland's new labour hire licensing laws mean for you?"

---

**Prepared by:** Rivet (AI Research Assistant)  
**Review status:** Requires founder review and consideration of formal legal advice for business-critical decisions.

*This research memo is for internal planning purposes only and does not constitute legal advice. For binding legal guidance, consult qualified legal counsel.*