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NSW Labor has pledged to introduce a bill for an economy-wide labour-hire licensing scheme within the first 100 days of government if re-elected. The proposal is not yet law, and that timetable is conditional on the election result. The announcement followed public calls for licensing from a parliamentary committee and unions, as well as concerns linked by the government to an independent investigation of the Western Sydney Airport Metro project.
What NSW Labor has promised
On 2 October 2026, the Minns Labor Government said it would release a bill within its first 100 days if re-elected. The proposed scheme would cover labour-hire providers across all industries and sectors in NSW. Providers would need a licence, and host employers would have to use registered providers. The government says it will consult stakeholders and review interstate schemes while developing the model. NSW Government announcement, 2 October 2026
A promised bill is not the same as a licensing system in operation. Whether a scheme is enacted, when it commences and what detailed conditions it imposes would depend on legislation and subsequent design.
Why the government says it is acting
The government linked its pledge to an independent probity investigation into the Western Sydney Airport Metro project, after which a major contractor was terminated. In its account of the Kimber Report, the government said several labour-supply companies were incorporated within days of one another at the same residential address, shared a director and secretary, and used encrypted messaging apps to send invoices and supporting material. NSW Government release summarising the investigation, 2 October 2026
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The government also said the report identified suspected worker underpayment, insurance fraud, tax fraud and more than $10 million in unaccounted invoices. These are allegations or investigation findings as described by the government, not convictions or proof of criminal liability. The release did not provide an estimate of how many workers are affected across NSW or a measured prevalence rate for labour-hire abuse.
What the proposed scheme could require
- Provider licensing: Labour-hire providers across NSW industries would need to be licensed.
- Host-employer checks: Businesses using labour hire would be required to use a registered provider.
- National alignment: The government says it intends to align the scheme with national labour-hire licensing principles.
- Education and enforcement: The proposal is expected to include business education and penalties for non-compliance.
- Consultation and design: The government plans to examine interstate models and consult unions, industry and workers.
The announcement does not settle the proposed licensing tests, regulator, penalties, review or appeal arrangements, or the exact duties of host employers. Those details would need to be set out through the bill and scheme design.
What pressure preceded the pledge
Public pressure is documented, although the precise internal Labor pressure described in the headline cannot be established from the accessible reporting and government material.
- 6 August 2026: The NSW Government welcomed a report by the NSW Modern Slavery Committee, which called for labour-hire licensing after examining risks faced by temporary migrant workers in rural and regional NSW. The government said it was considering a NSW scheme but preferred nationally harmonised principles. NSW Government response, 6 August 2026
- 6 August 2026: Unions NSW publicly called for urgent licensing, citing the committee’s recommendations and concerns about exploitation in horticulture, including alleged exploitation in Coffs Harbour and the Nambucca Valley. This is the union’s advocacy and account of the concerns, not a finding of liability. Unions NSW statement, 6 August 2026
- 2 October 2026: The government announced its conditional commitment to introduce a bill during the first 100 days after re-election. NSW Government announcement, 2 October 2026
The Sydney Morning Herald headline and a limited indexed synopsis refer to internal pressure, but the full article was not accessible. The available material does not establish which Labor insiders applied pressure, when they did so, or how that pressure affected the policy decision. Sydney Morning Herald, 2 October 2026
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Other measures the government says it is pursuing
The government described work alongside the proposed licensing scheme, including data sharing between SafeWork NSW and federal bodies such as the ATO, Australian Border Force and Australian Federal Police; an information-sharing and referral arrangement with the NSW Anti-slavery Commissioner; a Labour Hire Code of Practice; a Supply Chain Compliance Program; and a Migrant Workers’ Centre. These are separate measures the government says it is undertaking, not evidence that the proposed licensing scheme is already in force. NSW Government announcement, 2 October 2026
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What workers and businesses should take from this
- For workers, licensing is a proposed future safeguard; the pledge does not itself change current legal requirements.
- For host employers, the planned obligation to use registered providers is part of the proposal, not a current requirement under this announcement.
- For labour-hire providers, the government has not yet published the detailed eligibility rules or compliance process in the announcement.
- For anyone tracking the policy, the key next steps are the election outcome, publication of bill text, and the legislation’s passage and commencement provisions.
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