Do you have the right licence and supervision in place?

Why licensing and supervision matter

Before signing up an apprentice or trainee in NSW, make sure your business is properly licensed and meets supervision requirements. 

Failing to comply with State and Commonwealth legislation can result in penalties, fines, and may affect your eligibility to employ apprentices or trainees. 

What employers need to check 

Your licensing obligations depend on: 

• Your business structure (sole trader, company, partnership) 
• Your industry and trade 
• The type of work you undertake 
• Whether you employ staff 
• Your business location 

A common misunderstanding 

Many employers believe that holding an individual trade licence is enough. In many cases, it isn’t. 

An individual licence covers the person, not the business.

Licence requirements by business structure

Sole Traders 

Your individual contractor or supervisor licence may be sufficient, provided it covers the work being undertaken. 

Companies and Partnerships (e.g. Pty Ltd) 

Your business must hold a contractor licence for regulated trades, even if a director or employee holds an individual trade licence. 

When a contractor licence is required

If you operate as a company or partnership in NSW, you must hold a contractor licence before contracting, subcontracting or advertising to do: 

• Residential building work over $5,000 (including GST) 
• All electrical wiring work 
• All plumbing, drainage and gasfitting work 
• All air-conditioning and refrigeration work (excluding plug-in appliances) 

This applies even if the work is carried out by employees, including apprentices and trainees. 

Company and partnership requirements 

If operating as a Pty Ltd or partnership: 

• The business must hold a contractor licence 
• A nominated supervisor must: 
  • Hold an individual contractor licence or qualified supervisor certificate 
  • Be a director, partner or full-time employee 
  • Not be a casual employee, temporary employee or subcontractor 

The nominated supervisor must be genuinely employed and meet all employee requirements, including asx, workers compensation coverage and award entitlements. 

Important industry updates: Supervision requirements

Electrical (NSW) 

The Supervision Practice Standard for Apprentices in the Electrical Industry has been a mandatory condition of an electrician’s licence since 1 September 2024. Find out more. 

Plumbing (NSW) 

New supervision standards for plumbing apprentices take effect from 1 February 2026. 

These changes clarify what supervision means, who must provide it and how it applies at different stages of an apprenticeship. The update comes from the NSW Building Commission. Find out more. 

Before you sign up an apprentice 

• Confirm whether your business structure requires a contractor licence 
• Ensure your nominated supervisor holds the correct licence 
• Check licences are current and verifiable through NSW Fair Trading 

Getting this right protects your business, your apprentices and your eligibility under the NSW Apprenticeship system.

Need help?

If you are unsure, Apprenticeship Support Australia can help you check your licensing and supervision requirements before sign-up.