If you subcontract in NSW residential building work, you need your own contractor licence — and your own CPD. The builder above you cannot cover your licence obligations. Here is what actually applies to you.
Complete Your 12 CPD Points Online — From $169
All 8 learning areas. Instant certificate. Accepted by NSW Fair Trading.
Start Your CPD Today
The subcontracting question comes up constantly. A builder hires you for framing, concreting, tiling — does that make you an employee covered by their licence, or a subcontractor who needs your own? The answer matters. Getting it wrong is an offence under the Home Building Act 1989 and can cost you your right to work.
The Core Rule — When You Need Your Own Licence
In NSW, any person who contracts directly with a homeowner to carry out residential building work valued over $5,000 must hold a contractor licence. This includes subcontractors who contract directly with homeowners — but more importantly, it includes subcontractors who contract with a builder to carry out specialist work that itself requires a licence.
The key question is not who is paying you — it is what work you are doing and whether that work category requires a licence under the Home Building Act 1989. Electrical, plumbing, gas fitting, and other specialist trades each have their own licence requirements. For general residential building work carried out as a subcontractor under a head builder, a contractor licence is still required if you are in business for yourself.
You need your own contractor licence if:
- You are self-employed and take on residential building jobs over $5,000
- You subcontract to builders but run your own business (ABN, own tools, set your own hours)
- You carry out work in a specialist category that requires its own licence (e.g. structural landscaping, swimming pool building)
- You quote and invoice directly — even if a builder is the principal contractor
5 Common Myths About Subcontractor Licensing in NSW
Myth 1: “The head builder’s licence covers my work”
False. The head contractor’s licence covers their contractual obligations to the homeowner. It does not extend to cover unlicensed subcontractors carrying out work that requires a licence. If you are unlicensed and Fair Trading audits the job, you are exposed — not the builder above you.
Myth 2: “I only work for builders, not homeowners, so I don’t need a licence”
False. Licence requirements under the Home Building Act relate to the nature of the work and your business structure — not who your client is. Self-employed tradespeople carrying out residential building work need a licence regardless of whether they bill homeowners or head contractors.
Myth 3: “I’m a sole trader with an ABN — that’s different to a contractor”
False. Operating as a sole trader with an ABN is being a contractor. If your work falls under the Home Building Act, your business structure does not exempt you from licensing requirements.
Myth 4: “My licence has lapsed but I’m just subcontracting small jobs under $5k”
Partly true — but risky. Work under $5,000 in total contract value does not require a contractor licence. But if a single job or the combined value of work at one property exceeds $5,000, licensing applies. Do not rely on keeping jobs under the threshold as a strategy.
Myth 5: “I don’t need CPD because I’m a subcontractor, not a head contractor”
False. CPD is required by every NSW contractor licence holder at renewal — whether you are a head contractor, subcontractor, or sole trader. The requirement ties to the licence, not the type of work arrangement you have.
Licence holder? CPD is required at renewal — from $169.
40 online courses. All 8 learning areas. Complete from any device.
Complete CPD Now
What CPD Applies to Subcontractors With a Contractor Licence
If you hold an NSW contractor licence — whether as a subcontractor or head contractor — CPD requirements are identical. Twelve points per year across all 8 NSW Fair Trading learning areas. The points must come from a Registered Training Organisation. Your renewal will not be processed without a valid CPD certificate.
Builders CPD Online (RTO 91528) covers all 8 learning areas across 40 self-paced online courses. Most subcontractors complete the full 12 points in a single day. See also NSW builder CPD requirements explained and which CPD learning areas to do first.
Why NSW subcontractors with a contractor licence choose Builders CPD Online:
- 12 CPD points for $169 — full annual requirement in one enrolment
- 100% online and self-paced — complete between jobs, on weekends, from your phone
- All 8 Fair Trading learning areas included — nothing extra to source
- Instant certificate on completion — RTO 91528, accepted by Fair Trading
- Over 20 years delivering CPD to NSW licence holders — since 2004
Frequently Asked Questions
Do I need a contractor licence if I subcontract in NSW?
Yes, if you are self-employed and carry out residential building work over $5,000. Being a subcontractor rather than a head contractor does not change the licensing requirement. The head builder’s licence does not cover your work if you are an independent business operator.
Does a subcontractor need to do CPD in NSW?
Yes. Any NSW contractor licence holder must complete 12 CPD points per year from an RTO to renew their licence. The requirement applies regardless of whether you operate as a head contractor or subcontractor. CPD is tied to the licence, not the job arrangement.
What happens if I do unlicensed building work as a subcontractor?
Carrying out unlicensed residential building work over $5,000 in NSW is an offence under the Home Building Act 1989. Penalties can exceed $110,000 for corporations. You also lose the right to sue for payment on unlicensed work, and homeowners can seek compensation through NCAT.
Can I do small jobs under $5,000 without a licence?
Work under $5,000 total contract value does not require a contractor licence under the Home Building Act. However, this threshold applies per contract, not per visit. Splitting a larger job into smaller invoices to avoid the threshold can constitute an offence.
How do I check if my work category requires a licence?
The NSW Fair Trading website lists all licence categories and the work they cover. You can also search the Fair Trading licence check to see what licence class applies. If in doubt, contact NSW Fair Trading directly on 13 32 20.
I have a contractor licence as a subcontractor — where do I complete CPD?
Builders CPD Online (RTO 91528) delivers all 12 CPD points across all 8 NSW Fair Trading learning areas online. Self-paced, instant certificate, from $169. Register at builderscpdonline.com.au/registration/ and get instant access.
Licence Holder? Your CPD Is Due — Complete It Online From $169
40 Fair Trading-compliant courses. All 8 learning areas. Instant certificate on completion.
Call 1300 730 752 or register online.