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A Step-by-Step Guide to Applying for Trade Licenses in Australia 2024

  • Publish: 2024-11-20
  • 7 min read

Having a trade license in Australia is really important for people who want to run their business legally. If you work as an electrician, plumber, or builder, a trade license helps you follow the rules and do your job well. This makes people trust you more and keeps you from getting into trouble or having to pay fines.

In this simple guide, we will explain how to get a trade license in Australia. We’ll talk about what you need to do in different states, what qualifications you need, and how to fill out the application.

What is a Trade License?

A trade license is a special permission you need to do certain jobs, like building, fixing electrical things, or plumbing. The government gives you this license to make sure you know how to do the job safely and correctly.

Why Do You Need a Trade License?

A trade license is a legal authorization that allows individuals and businesses to perform specific trade-related services, like plumbing, electrical work, or carpentry, under state or territory regulations. Here’s why getting a trade license is essential:

1. Legal Compliance

Having a trade license ensures you comply with the laws of the state or territory you operate in. Without it, you may face hefty fines or legal penalties. In fact, operating without a license can lead to shutdowns, legal actions, and damage to your professional reputation. Each Australian state has its own laws on this, so it's important to follow their specific rules.

To avoid Penalties check out this resource.

2. Business Credibility

A trade license demonstrates that you meet the industry's standards and are qualified to perform specific tasks. Customers are more likely to hire licensed tradespeople because it reassures them of your expertise, credibility, and reliability. Being licensed can also increase client trust and give you a competitive edge in the market.

3. Increased Opportunities

Licensed tradespeople have access to larger projects, including government contracts and commercial projects that require proof of qualifications. Many tenders and business opportunities are only open to those with valid trade licenses, giving you the chance to expand your business and take on more complex jobs.

Qualifications You Need for a Trade License

The specific qualifications needed to apply for a trade license depend on the trade you work in and the state or territory you operate within. However, there are a few general requirements:

1. Vocational Training

To be eligible for most trade licenses, you’ll need to complete formal training, such as a Certificate III or IV in your specific trade. These qualifications ensure you have the necessary technical skills and knowledge to work safely and effectively. For instance, plumbers typically need a Certificate III in Plumbing, and electricians often require a Certificate III in Electrotechnology.

2. Work Experience

Many states and trade boards also require a certain amount of practical, hands-on experience. This often comes in the form of apprenticeships or supervised work under a qualified professional. For example, some licenses require you to complete a specified number of hours or years of supervised trade work.

3. State-Specific Requirements

Each state and territory in Australia has its own licensing bodies, which may impose additional requirements beyond vocational qualifications and work experience. For instance, some states may require additional courses or certifications in safety practices or business management. It’s essential to research the specific requirements for your state, as they can vary significantly.

You can find more details for your state here:

Step-by-Step Guide to Applying for a Trade License

Applying for a trade license in Australia has several steps to make sure you are ready and allowed to do your job. Here’s a simple guide to help you understand each part of the process.

1. Determine Your Trade License Requirements

Every job, like plumbing, fixing electrical stuff, or building, needs a different license. The kind of license you need depends on what job you do and where you live.

You should first visit your state's government licensing website to identify the right license for your trade. Each website provides an overview of licensing requirements, the types of licenses available, and the legal guidelines.

2. Check Your Qualifications

Before you apply for a trade license, make sure you have everything you need. Usually, you will need:

  1. A Certificate III or IV in your trade. For example, this could be a Certificate III in Carpentry if you want to be a carpenter or a Certificate III in Electrotechnology if you want to work with electricity.

  2. Some work experience. This usually comes from an apprenticeship, where you learn by working with someone who is already skilled at the job. Different places might require different amounts of experience.

  3. You should also check if there are any special rules or requirements in your state. This could mean you need extra certificates or have to pass some tests.

3. Complete Necessary Training

To get most trade licenses, you need to finish special training. Depending on what job you want to do, you might need:

  1. A Certificate III or IV in your trade. For example, if you want to be a plumber, you need a Certificate III in Plumbing. If you want to work with electricity, you need a Certificate III in Electrotechnology. If you want to be a carpenter, you need Certificate III in Carpentry.

  2. Some extra short classes or safety training. Some places ask you to learn about safety rules to help you work safely.

You can get these qualifications by going to a Registered Training Organisation (RTO) in Australia, like TAFE or other approved schools.  

4. Apply for a National Police Check

Most licensing boards need you to get a National Police Check. This is to make sure you don’t have any criminal records that could stop you from getting a trade license. This step helps keep everyone safe and makes sure that workers are trustworthy.

You can apply for a police check through the Australian Federal Police or other approved places. Many states let you apply for this check online, which makes the process faster.

5. Submit Your Application

Once your training is complete, and you have the required qualifications, it’s time to submit your application. You can typically do this online through your state’s licensing authority website.

When submitting, ensure that you:

  • Fill out all the necessary forms accurately.

  • Provide supporting documents, such as:

    • Your qualifications and certificates.

    • Work experience or apprenticeship records.

    • Proof of identity (e.g., passport, driver's license).

Be careful to review all the documents required for your specific license to avoid delays.

6. Pay the Application Fee

  • The cost to apply for a trade license can be different depending on where you live and what type of job you want to do. These fees help pay for processing your application and checking your qualifications. For example, in New South Wales (NSW), the fees start at about $200, but they can be more for special licenses.

  • Make sure to check your state’s licensing website to find out how much it costs. It’s important to pay the fee quickly so your application can be processed without any delays.

7. Wait for Approval

Once you've submitted your application and paid the fee, the licensing board will review your application. This process can take a few weeks, depending on the trade and state. Some licenses may also require a site visit or interview, particularly for higher-risk trades like plumbing or electrical work.

8. Renew and Maintain Your License

Once you get your trade license, you have to make sure it stays current. Most states want you to renew your license every 1 to 3 years. Some jobs also need you to keep learning new things to keep your skills sharp, which is called continuing professional development (CPD). This helps you stay qualified for your job!

To maintain your license:

  • Check the renewal period specific to your state and trade.

  • Keep up with any ongoing training requirements to ensure your skills remain current.

  • Notify the licensing board if your personal details change or if you move to another state, as some states require reapplication.

Difference Between Licenses and Registrations

Understanding the distinction between licenses and registrations is crucial:

  • Trade License: This permits you to perform specific trade work (e.g., plumbing, electrical work).

  • Business Registration: This registers your business with the government, which could include registering for an ABN, GST, and PAYG taxes.

Some businesses may require both. For example, if you’re running a plumbing business, you’ll need a plumbing license to perform the work and a business registration to operate legally.

For more information on business registrations, visit:

Types of Trade Licenses in Australia

Australia offers a range of trade licenses depending on the industry. Some of the common types include:

  • Electrical: For electricians working on residential or commercial wiring.

  • Plumbing: For all plumbing-related work in residential or commercial settings.

  • Carpentry: For professionals involved in building and construction.

  • Gasfitting: For those working on gas installations and services.

Each type has its own specific qualifications and work experience requirements, depending on the state.

Insurance Requirements for Licensed Tradespeople

1. Public Liability Insurance

This insurance covers you if someone gets hurt or their property gets damaged because of your work. For example, if you're a plumber and accidentally flood a client’s house, public liability insurance helps cover the costs. Many states require this insurance before issuing your trade license to ensure you're financially protected in case something goes wrong.

2. Professional Indemnity Insurance

This insurance is more about protecting you from mistakes in your professional advice or work. Let’s say you're an electrician, and due to an error, your work causes ongoing issues. Professional indemnity insurance helps cover legal costs or compensation if you're held responsible for negligence. It's especially important in trades where the quality of your work impacts safety or major systems.

3. Workers' Compensation

If you employ staff, most states require you to have workers' compensation insurance. This protects your workers by covering medical costs or lost wages if they get injured on the job.

4. State-Specific Insurance Requirements

The insurance needed can vary depending on the state. For example, in New South Wales, public liability insurance is a must for almost all trades. It’s important to check your state’s specific requirements when applying for a trade license.

How to Replace or Update a Trade License

  1. Login to Your State’s Licensing Portal: Each state in Australia has an online portal for licensing. Log in to your account and look for the section where you can request a replacement or update your details.

  2. Submit the Required Forms: Depending on what you’re updating (like your address), you may need to fill out a form online. Be sure to double-check that all the information you provide is correct.

  3. Provide Proof of Insurance: Before issuing or renewing your license, most states require you to have valid insurance (e.g., public liability insurance). This protects you and your clients in case something goes wrong during your work.

  4. Pay Any Fees: There might be a small fee for updating your license or getting a replacement, so make sure you process any required payments.

  5. Receive Your Updated License: Once everything is submitted and approved, you’ll receive your updated license. This might be sent to you electronically or by mail.

Why It's Important to Keep Your License Updated

Keeping your license information up to date is critical. If your information (like your address or business name) is incorrect, you could face fines or even lose your license. Additionally, if your insurance lapses, you may not be able to renew your license.

Ready to Become a Licensed Professional?

Getting your trade license is a critical step in building a successful career in Australia’s trade industry. Not only does it keep you compliant with local laws, but it also helps grow your business and customer trust.

Ready to get your trade license but don’t know what steps to take first?

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FAQ

How long is the trade course in Australia?

Answer: Vocational courses in Australia are shorter than university degrees. In Australia, completing a vocational course might take between one and two years. 

How do I receive a trade certificate?

Answer: If you have career competency but have not completed an apprenticeship or received a formal certification in Australia, you must contact a licensed training department and participate in a skills training program. The Commissioner for Vocational Training will then consider your application.

How much does a construction permit in Australia cost?

Answer: Building licenses in Australia can range in price from a few hundred dollars for a state government fee to a few thousand dollars for a residential expansion permit. 

What's the distinction between a builder and a building practitioner?

Answer: Even if you have a valid NSW building license under the Home Building Act 1989, you must register as a building practitioner to supervise building work on a class 2, certain class 3, or 9c building. 

Can I operate two enterprises as a single trader in Australia?

Answer: You can operate many businesses/activities under the same ABN as long as they all follow the same company structure. If your second or subsequent firm has a different structure, you must apply for separate ABNs for each new structure.

Can I open my own trading business?

Answer: People who want to get involved in the stock market have a few different ways to do it. They can trade by themselves, like working on their own. They can also apply for trader status, which gives them some special rules for taxes. Another option is to set up a business, like an LLC (Limited Liability Company), to trade stocks. This way, they can protect their personal money while trading through the company.