NSW Building Licence: What You Need to Know about the $5K Rule
The $5,000 rule
In NSW you need a contractor licence to carry out, advertise or contract for building or trade work valued at more than $5,000 in labour and materials, including GST. That includes subcontract work that's part of a bigger job over $5,000. Some specialist trades, like electrical and plumbing, need a licence at any value.
Licence Types
NSW splits roles by what you want to do: contract for the work, supervise it, do it, or a mix. In practice that means:
Individual contractor licence (can be endorsed with a Q, making it equivalent to a qualified supervisor certificate)
Company or partnership contractor licence
Qualified supervisor certificate
Tradesperson certificate
A qualified supervisor certificate lets you supervise and work, but not contract or advertise.
Terms: 1, 3 or 5 Years
Big Change for 2026
From 23 June 2026, new applications for individual contractor licences, qualified supervisor certificates and tradesperson certificates require a National Police Certificate.
Penalties
Unlicensed work can attract fines of $22,000 for individuals and $110,000 for companies.
Qualification
For general building, expect a qualification plus around two years of relevant experience. Trade classes have their own qualification lists on the NSW Government site.
Moving from another state?
Interstate licences may qualify for mutual recognition, but the rules differ by category. We can check yours.
Not sure which licence class/type you need?
Check your eligibility with Licensing PA and we'll map your work to the right licence.