The Labour Hire Legislation Amendment (Licensing) Act 2025 was passed by Parliament on 9 December 2025. This Act strengthens the powers of the Labour Hire Authority (LHA) in line with recommendations 3 – 6 of the Formal Review into the Victorian Government Bodies’ Engagement with Construction Companies and Construction Unions (Wilson review) by providing for:
- a wider ‘fit and proper person’ test (recommendation 3)
- clarification of the general definition ‘provides labour hire services’ (recommendation 4)
- extended notice to produce powers (recommendation 5)
- expanded powers for the LHA to publish information about its activities (recommendation 6).
The changes are being implemented in stages, commencing in late 2025 and continuing in 2026.
Changes that are operating
On 24 December 2025, the first amendments commenced. Broadly, these amendments implement recommendations 5 and 6 of the Wilson Review by:
- strengthening LHA’s information-gathering powers to better equip LHA to obtain documents from third parties in support of investigating, monitoring and enforcing the Act and Regulations
- increasing LHA’s ability to publish information about its work, including contextual information about licensing actions – such as the reasons for a licence cancellation – to promote compliance and educate hosts and providers about their duties, rights and obligations under the labour hire scheme
- enabling the LHA Commissioner to share information relating to the labour hire industry with other government agencies and the responsible Minister, where it is in the public interest.
On 1 June 2026, the second tranche of amendments relating to suitability requirements commenced. These amendments, amongst other things, implement recommendation 3 of the Wilson Review.
A stronger fit and proper person test
People who wish to be involved in running a labour hire company – as a nominated officer or relevant person – need to pass a more rigorous ‘fit and proper person test’.
LHA can consider new factors to determine whether a person is fit and proper, including:
- if the person is under the control or influence of another person who is not fit and proper
- the person’s character, including their honesty, integrity and professionalism.
Overall compliance is more important
LHA has more scope to assess compliance with relevant laws to make licensing decisions – including to refuse an application or cancel a licence – by considering:
- previous, current and ongoing compliance with relevant laws
- a wider range of relevant laws, in addition to the existing labour hire and workplace laws, including laws relating to bankruptcy, consumer protection, fair trading and corporate regulation.
Businesses must be financially viable
To apply for or renew a licence, a labour hire business needs to declare that they are financially viable, and LHA must be satisfied that a business is financially viable.
Changes coming later in 2026
In the latter half of 2026, the final legislative amendments will commence. These changes broadly implement the intent of recommendation 4 of the Wilson Review by amending the definition of ‘provides labour hire services’. These changes will provide clarity about who is labour hire provider making it easier for businesses to understand their obligations.
Further amendments to the labour hire regulations in line with recommendation 4 will be considered following the preparation of the requisite regulatory impact statement.
For further information go to Labour hire law changes 2026.
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