Getting Your Contractor Licence

Getting Your Contractor Licence. Take the next step in your trade career with practical, proven advice.

Once you're qualified, a contractor licence is what lets you take on work in your own name, run jobs, and legally subcontract or employ others in a licensed trade. It's the difference between working for a boss and being the boss. But the rules are set state by state, and there's more to it than just holding your trade certificate — you'll usually need to prove experience, sometimes business knowledge, and meet financial and character requirements.

This guide explains what a contractor licence is, who needs one, and the general steps to getting one. Because licensing is run by each state and territory, always confirm the details with your own regulator before you apply.

Contractor licence vs tradesperson licence

In many licensed trades there are two levels of licence, and it's important to know which you're chasing:

A worker or tradesperson licence lets you do the licensed work, usually under someone else's supervision or business.
A contractor licence lets you run the business — take on jobs directly, contract with clients, and be responsible for the work.

You generally have to hold or be eligible for the worker-level licence, and have real on-the-job experience as a qualified tradie, before you can step up to a contractor licence. Finishing your apprenticeship is the starting point — see from apprentice to tradesperson: the path to qualification.

Which trades need one

Not every trade requires a licence to contract, but several do — plumbing, electrical, gas fitting, air conditioning and refrigeration, and building work are common examples. Requirements vary a lot between trades and states.

The complete trade guides explain the licensing path for each trade, including whether contracting requires a separate licence. Have a look at:

It's regulated by your state or territory

There's no single national contractor licence. Each state and territory runs its own system through its building, plumbing or electrical regulator — for example a fair trading or building commission body, a plumbing industry commission, or an electrical safety regulator. That means the exact qualifications, experience periods, fees and application forms differ depending on where you work.

If you plan to work across state lines, check whether mutual recognition lets you carry your licence over, or whether you need to apply separately in each jurisdiction. Always start at your own state regulator's website for the current rules — don't rely on what a mate in another state tells you.

What you'll usually need to prove

While the details differ, most contractor licence applications ask you to demonstrate a similar set of things:

Your trade qualification — your completed apprenticeship or equivalent nationally recognised qualification.
Relevant experience — a period of hands-on work as a qualified tradesperson, often one to a few years.
Business or trade management knowledge — many states require a short business/management qualification so you can run a compliant business.
Financial standing — evidence you can run a solvent business, and sometimes insurance requirements.
Fit and proper person checks — a clean enough record and no disqualifying history.

Because a contractor licence means running a business, the paperwork side matters. Getting comfortable with the basics now — tax, super, insurance — pays off. See starting your own business after your trade.

Build the experience and skills first

Don't rush it. The stronger your experience and reputation before you apply, the smoother the transition to running your own jobs. Stepping into a leading hand or supervisor role first is great preparation — see becoming a leading hand: your first step up.

Adding the right qualifications helps too. A business management course, high-risk work licences or extra trade tickets can be part of the requirement and make you more capable. See upskilling: courses worth doing after you qualify and high-risk work licences explained.

A reputation that people trust makes clients and referrals come easier once you're licensed — see building a reputation that follows you.

The general steps to apply

The exact process depends on your state, but it usually looks like this:

Step 1: Confirm you hold the right trade qualification and enough post-qualification experience.
Step 2: Complete any required business or management training.
Step 3: Gather your evidence — qualifications, experience records, references, financial and insurance details.
Step 4: Lodge your application and pay the fee with your state regulator.
Step 5: Wait for assessment; be ready to supply extra information if asked.
Step 6: Once granted, keep your licence current — most need renewal and ongoing insurance.

Know the money side before you go out on your own

Running your own jobs means you're responsible for tax, GST if you register, superannuation for any workers, and insurance. Get across the basics with tax basics for first-year apprentices (the principles still apply), superannuation for apprentices, and the ATO's business resources. The Wage Calculator can help you sanity-check what to pay any apprentices or workers you take on under the relevant award.

Key takeaways

A contractor licence lets you run jobs and contract in your own name — a step above a worker licence.
Licensing is run by each state and territory, so always check your own regulator's rules.
You'll usually need your trade qualification, real experience, and often business training.
Financial standing, insurance and "fit and proper person" checks are common requirements.
Build experience, reputation and business skills before you apply.
Running your own show means owning the tax, super and insurance side too.