How to check a trade licence

Many kinds of work around the home must, by law, be done by someone who holds the right licence. The rules exist because mistakes in building, electrical, plumbing and gas work can be dangerous, expensive and hard to see until it's too late. Checking a licence is quick, free in most places and one of the most useful things you can do before you hire.

This guide explains what licences are, which jobs commonly need them and how to check one. Licensing is run by the states and territories, and the details vary, so we use NSW as a worked example and suggest you check the rules where you live.

What a licence tells you

A trade or building licence shows that a person or business has met the requirements set by the state to do certain kinds of work. Depending on the trade, those requirements might include qualifications, experience, insurance and passing checks about the applicant's history.

A licence doesn't guarantee good workmanship, but it does mean:

• the person has met a minimum standard for that type of work;
• they are accountable to a regulator that can take action if they break the rules;
• in some cases, you may have access to protections, such as warranty insurance schemes, that only apply when licensed people do the work.

Which jobs commonly need a licence

The exact list differs by state, but these kinds of work commonly require one:

• residential building work above a certain value, and specialist building trades;
• electrical wiring and installation;
• plumbing, drainage and gas fitting;
• air conditioning and refrigeration work;
• some pest control, pool building and security installation work.

Small handyman jobs may not need a licence in some places, but the line between "handyman" and licensed trade work is not always obvious. If you're unsure, ask your state's licensing body before work begins.

How to check a licence in NSW

The NSW Government provides an online licence check, known as Verify NSW, which is also linked from Service NSW's "check a builder or tradesperson licence" page. You can search by the person's or business's name, or by licence number.

When you look at the result, check that:

1. The licence is current. Look at the status and the expiry date.
2. It belongs to the right person or business. The name should match the one on your quote or contract.
3. It covers your work. Licences list the classes or categories of work the holder can do. A licence for one trade doesn't cover another.
4. There are no conditions that affect your job. Some licences carry conditions or restrictions.
5. There are no warnings or disciplinary records that concern you. Some registers show this information.

Other states and territories have similar public registers, usually run by the consumer affairs, fair trading or building agency. Search for "check a builder licence" plus your state's name to find the official tool, and make sure it's a government site.

Matching the licence to the quote

A common gap is a quote that shows one name and a licence that belongs to someone else. This can be legitimate, for example a company that employs a licensed supervisor, but you should understand the arrangement. Ask:

• Which person or business holds the licence?
• Who will supervise and carry out the work?
• Which entity will you be contracting with?

The contract should name the licence holder and show the licence number.

Licences and warranty insurance

For larger home building jobs, some states require the builder to take out insurance that protects the owner if the builder can't finish the job or fix defects, for example because they have died, disappeared or become insolvent. In NSW this is home building compensation cover, and the government says it is required for residential building work over $20,000. The NSW Government advises not to pay any money until you have received the certificate of cover. Rules and names differ in other states.

Our guide to contracts and deposits explains how this fits with deposits and payment schedules.

Subcontractors

Larger jobs often involve subcontractors, such as an electrician or plumber working under a builder. Ask your main contractor how they make sure subcontractors are properly licensed. For trades such as electrical and gas work, you may receive a compliance certificate or similar document once the work is done. Keep it with your records.

What to do if something doesn't check out

• No record found. Ask for the exact licence number and the name it's held under, then search again. Typos are common.
• Expired or suspended licence. Don't let the work go ahead until it's sorted out.
• Wrong class of work. Ask who will do the parts of the job the licence doesn't cover.
• Pressure not to check. Treat it as a serious warning sign.

If you can't resolve the issue, contact the licensing body in your state.

Unlicensed work: why it matters

Using an unlicensed person for work that requires a licence can leave you without important protections. Depending on your state, you may not have access to warranty insurance or the regulator's dispute services, and the work may not be certified, which could affect insurance or a future sale. It can also be dangerous, particularly for electrical and gas work.

A two-minute routine

Before you sign anything for licensed work:

1. Ask for the licence number and the name it's held under.
2. Look it up on the official register in your state.
3. Check it's current, matches the quote and covers the work.
4. Note the result alongside the quote. Our quote checker has a box for this.
5. Check the ABN too, with the free ABN Lookup tool (see checking an ABN).

Licences for professionals

It isn't only trades. Many professions also have registration or licensing requirements, such as real estate agents, conveyancers, health practitioners and some financial advisers. The registers for these are run by different bodies, often national ones for health practitioners and financial services. The principle is the same: ask for the registration number, look it up on the official register and check the details match.

Licence numbers on advertising

In some states, licensed tradespeople are expected to show their licence number on advertising, vehicles or quotes. Whether or not it's required where you live, a business that shows its licence number openly is making your check easy. Make a note of the number, look it up and keep the result with the quote.

Check again for long jobs

A licence that is current when you sign may lapse before a long job ends. For projects that run for months, it's sensible to check the register again partway through and before the final payment. It only takes a minute, and it confirms nothing has changed. Do the same if a new business or subcontractor joins the job.

Key points

• Building, electrical, plumbing and gas work commonly require a licence; rules vary by state.
• In NSW, use the government's online licence check.
• Check the licence is current, matches the business on the quote and covers your work.
• For NSW home building work over $20,000, get the certificate of home building compensation cover before you pay.
• An ABN is not a licence. Check both.