In NSW you need a contractor licence to carry out, advertise or contract for residential building or trade work valued at more than $5,000 in labour and materials, including GST. Specialist work such as electrical, plumbing, draining, gasfitting and air conditioning and refrigeration needs a licence or certificate whatever the cost, and whether the building is residential, commercial or industrial. Check the work, its GST-inclusive value and the licence class before you quote.[1]
The $5,000 line for residential building and trade work
NSW sets the line at residential building work valued at more than $5,000 in labour and materials, including GST. The rule covers carrying out the work, advertising it and contracting for it. Check licensing before sending a quote or advertising the work.
The same $5,000 line applies to the listed building work and trade work, from kitchen, bathroom and laundry renovation to carpentry, painting, tiling, fencing and waterproofing.
Sources[1]
Which work sits where
The NSW categories page groups work by how the licence trigger works. Use it to place each line item of a quote.
| Type of work | When a licence is needed | Examples on the NSW page |
|---|---|---|
| Residential building work | Valued at more than $5,000 in labour and materials, including GST | General building, kitchen, bathroom and laundry renovation, structural landscaping, swimming pool building |
| Trade work | Same $5,000 line when it is residential building work | Bricklaying, carpentry, painting, wall and floor tiling, roof tiling, fencing, glazing |
| Specialist work | Whatever the cost, and whether residential, commercial or industrial | Electrical, plumbing, draining and gasfitting, air conditioning and refrigeration |
Sources[1]
Company, partnership and larger buildings
NSW points companies and partnerships to separate company and partnership licence information, so confirm which entity will contract and advertise before you quote.
Work on class 2, 3 and 9c buildings has its own pathway: NSW refers to registration as a design and building practitioner.
Sources[1]
Quote preflight checklist you can copy
This checklist is our suggested workflow, not an official form or an application. Complete it before the quote goes out and keep it with the job.
LICENCE PREFLIGHT BEFORE QUOTING Job and site: [address] Work items: [list each item] Residential building work? [yes / no] Labour + materials + GST for the whole job: $[amount] Over $5,000? [yes / no] Any specialist work (electrical, plumbing, draining, gasfitting, air conditioning or refrigeration)? [yes / no] Licence or certificate class that covers each item: [class] Who holds it: [person or company, number] Contracting entity matches the licence holder? [yes / no] Status checked with the regulator on: [DD/MM/YYYY] Class 2, 3 or 9c building? [yes / no, extra registration checked] Cleared to quote: [name, date]
Sources[1]
Common questions
- Who needs a contractor's licence in NSW?
- Anyone who carries out, advertises or contracts for residential building work valued at more than $5,000 in labour and materials, including GST, needs a contractor licence. Anyone doing specialist work such as electrical, plumbing, draining, gasfitting or air conditioning and refrigeration needs a licence or certificate regardless of value.[1]
Official sources
Checked 16 October 2026. Rules can change; use these sources to check the requirements for your job.
Related guides
- How do I serve a NSW security of payment claim?
- Free quote template for Australian tradies
- When does an ACT builder need a licence?
Job workflows for builders.
Put it to work on the next job
Keep the quote, scope notes and GST invoice for each job together on one Leadhand job record, so the work you priced is easy to find later.
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