This gets asked constantly and answered badly, so here it is plainly. Nothing below is legal advice, and NSW Fair Trading is the authority if your situation is unusual.
The $5,000 threshold
Under the Home Building Act 1989, residential building and trade work valued over $5,000 in labour and materials including GST must be carried out by a licensed contractor. At or below that figure, general trade work does not require a contractor licence.
The figure is the whole job, not a per-day or per-visit rate, and splitting one job into several invoices to stay under it does not make it compliant.
The trades where the threshold never applies
Some work always requires a licence regardless of value:
- electrical wiring
- plumbing, drainage and gasfitting
- air conditioning and refrigeration
Asbestos removal separately requires a SafeWork NSW licence.
There is no small version of these. Replacing a light fitting, moving a tap or adding a power point all require the relevant licensed trade. Anyone offering to do them cheaply as a favour is offering you an uninsured job and a problem at sale time.
Roof work is two different trades
This one catches people out. Roof tiling — clay, concrete and metal tiles, ridge capping, repointing — is general building work and sits under the threshold. Roof plumbing — metal roofing, guttering, downpipes and flashings — always needs a plumbing and drainage licence.
So "roofer" covers two different licensing situations, and it is worth asking which one your job is.
What to ask before work starts
- Is this job over or under $5,000 all up?
- Does the work involve electrical, plumbing, drainage, gas or air conditioning?
- If a licence is required, what is the licence number?
You can check any NSW licence yourself through Fair Trading's public register. A contractor who is comfortable with these questions is generally one worth hiring.
Where we sit
We take on repair and maintenance work — roofs, tiling, painting, handyman jobs and property upkeep — and we are upfront about where that stops. When a job needs a specialist licensed trade, we say so and point you in the right direction rather than taking it on.
Want a hand with this at your place? Get a free quote or call 0450 959 936.