Your builder says they are licensed. But what does that actually mean? Is a Class C licence good enough for your two-storey extension? Does a Queensland Open licence cover the same work as a Victorian Unlimited registration? And what financial checks has your builder actually passed to hold that licence?
Builder licensing in Australia is not a single national system. Each state and territory runs its own regime, with different regulators, different licence classes, different financial thresholds, and different insurance requirements. With over 94,000 active licensed builders across Australia on TradieVerify, understanding how builder licensing works is the first step to protecting yourself on any building project.
This guide breaks down builder licensing Australia-wide, state by state, so you know exactly what to look for before you sign a contract.
Why Builder Licensing Matters to You
Builder licensing exists to protect homeowners, not builders. Every state requires builders to meet minimum standards before they can legally contract for building work. Those standards typically include:
Formal qualifications. Most states require a Diploma of Building and Construction (CPC50220) or equivalent. Some licence classes accept Certificate IV (CPC40120) for limited scope work.
Proven experience. Two to four years of supervised building experience, verified through employer references and project documentation.
Financial viability. Licensed builders must demonstrate they can pay their debts. In Queensland, this means meeting Minimum Financial Requirements with audited accounts.
Insurance coverage. Licensed builders carry public liability insurance ($5 million to $20 million) and, above state thresholds, home warranty insurance that protects you if the builder becomes insolvent.
Accountability. A licensed builder is registered with a state regulator. If something goes wrong, you have a formal complaints pathway. With an unlicensed operator, your only option is court.
You can verify any builder’s licence instantly on TradieVerify’s search page.
State-by-State Builder Licensing Guide
Builder licensing is not uniform across Australia. Each state defines its own licence categories, and a licence in one state does not automatically cover the same scope in another. Always confirm the builder’s licence class covers your project. A builder licensed for single-storey residential work cannot legally take on your three-storey townhouse.
Queensland (QBCC)
Regulator: Queensland Building and Construction Commission (QBCC) Licensing threshold: $3,300 (lowest in Australia) Active builders on TradieVerify: 35,393
Queensland has the most prescriptive builder licensing system in Australia.
Licence classes:
| Licence | Scope | Typical Projects |
|---|---|---|
| Builder (Open) | All building work, unlimited scope | Any residential or commercial project |
| Builder (Medium Rise) | Residential and limited commercial, up to 3 storeys | Townhouses, low-rise apartments |
| Builder (Low Rise) | Residential only, up to 3 storeys | Houses, duplexes, granny flats |
| Builder (Restricted) | Specific categories only | Kitchen/bathroom renovation, shopfitting, structural landscaping |
Financial requirements: Nine financial categories (SC1 through Category 7) based on annual revenue. Builders under $800,000 turnover no longer need to lodge annual MFR reports (as of 2025). Larger builders must maintain Net Tangible Assets proportional to their category and submit audited financials annually.
Insurance: QBCC manages home warranty insurance directly for all residential work above $3,300. Coverage: six years for structural defects, one year for non-structural.
Key detail: The $3,300 threshold is the lowest in Australia. Even a minor bathroom refresh can trigger the licensing requirement.
Victoria (VBA / BPC)
Regulator: Victorian Building Authority (VBA), transitioning to the Building and Plumbing Commission (BPC) from 1 July 2025 Licensing threshold: $16,000 for domestic building insurance Active builders on TradieVerify: 41,570
Victoria has the largest number of registered builders in the TradieVerify database and uses a detailed registration system with over 30 defined classes of domestic building work.
Key registration categories:
| Registration | Scope | Typical Projects |
|---|---|---|
| Domestic Builder (Unlimited) | All domestic building work | Houses, extensions, renovations of any scale |
| Domestic Builder (Limited) | Specific trade categories (carpentry, bathroom renovation, external fixtures) | Trade-specific projects within residential |
| Commercial Builder (Unlimited) | Non-residential and commercial construction | Offices, retail, industrial |
| Commercial Builder (Limited) | Defined commercial categories | Specific commercial work |
Financial requirements: Under the 2025 Buyer Protections Bill, builders will be required to meet prescribed minimum financial requirements (details to be set by regulation). Currently, builders must demonstrate eligibility to purchase domestic building insurance through a Letter of Eligibility (LOE).
Insurance: Domestic building insurance is required for work above $16,000. Under 2025 reforms, this becomes insurance of “first resort,” letting homeowners claim directly without first proving the builder cannot rectify the issue. Developers must lodge a 3% bond on total build cost.
Key detail: Victoria’s shift to first-resort insurance gives homeowners stronger protection than any other state.
New South Wales (Fair Trading / Building Commission)
Regulator: NSW Fair Trading and Building Commission NSW Licensing threshold: $5,000 (labour and materials including GST) Active builders on TradieVerify: Coming soon
NSW uses a contractor licence and supervisor certificate system rather than letter-based classes.
Licence structure:
| Licence Type | Scope |
|---|---|
| Contractor Licence (General Building Work) | Full scope residential and commercial building |
| Contractor Licence (Specialist) | Specific categories: pools, demolition, waterproofing |
| Qualified Supervisor Certificate | Allows individuals to supervise on behalf of a licensed contractor |
Qualifications: Certificate IV in Building and Construction (CPC40120) minimum, with two to four years of verified experience.
Insurance: Home building compensation insurance (managed by icare) required for residential work above $20,000. Penalties for unlicensed work: $22,000 for individuals, $110,000 for companies.
Key detail: NSW has two separate thresholds: $5,000 for requiring a licensed builder, and $20,000 for requiring home warranty insurance. Work between $5,000 and $20,000 needs a licensed builder but does not trigger mandatory insurance.
Western Australia (DEMIRS / Building Services Board)
Regulator: Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) and the Building Services Board Licensing threshold: $20,000 for building contractor registration Active builders on TradieVerify: 12,413
WA uses a registration system managed by the Building Services Board, with support from Building and Energy.
Registration categories:
| Registration | Scope |
|---|---|
| Building Contractor (Registered) | Contract for building work above $20,000 |
| Building Practitioner | Supervise and manage building work |
| Owner-Builder Approval | Owner undertakes their own building project |
Financial requirements: Applicants must demonstrate the capacity to meet debts as they fall due. Trusts must apply through their trustee.
Insurance: Home indemnity insurance required for residential work above $20,000.
Key detail: WA’s $20,000 threshold is the highest in mainland Australia. Smaller renovations do not require a registered builder or home indemnity insurance.
South Australia (CBS)
Regulator: Consumer and Business Services (CBS) Licensing threshold: $12,000 Active builders on TradieVerify: Coming soon
SA uses a building work contractor licence system. Applicants must hold a minimum of $10,000 in net assets and carry public liability insurance. Home indemnity insurance is required for work above $12,000.
Key detail: SA’s $10,000 net asset requirement is the most clearly defined financial threshold of any state.
ACT (Access Canberra)
Regulator: Access Canberra (Construction Occupations Registrar) Licensing threshold: $12,000 Active builders on TradieVerify: 4,751
The ACT is the only jurisdiction where builder licensing uses the A/B/C/D class system.
Licence classes:
| Class | Scope | Exam Required |
|---|---|---|
| Class A | Unlimited height, any building classification | Yes (written) |
| Class B | Up to 3 storeys, any use | Yes (written) |
| Class C | Up to 2 storeys, residential buildings (Class 1, 2, 10a) | Yes (written) |
| Class D | Ancillary structures only (sheds, carports, fences) | No |
Qualifications: Class A requires a Diploma of Building and Construction. Classes A, B, and C require passing a written exam before the licence is issued.
Insurance: Home warranty insurance required for residential work above $12,000.
Key detail: For a standard house, your builder needs minimum Class C. For anything above two storeys or non-residential, you need Class B or A. Class D covers only sheds, carports, and fences.
Tasmania (CBOS)
Regulator: Consumer, Building and Occupational Services (CBOS) Licensing threshold: No set minimum threshold Active builders on TradieVerify: Coming soon
Tasmania requires a licensed builder for building work but does not set a specific dollar threshold. The licensing requirement applies to all building work that requires a building permit.
Insurance: Tasmania is the only state with no mandatory home warranty insurance scheme. Public liability insurance of $5 million is required for licensed builders, but there is no government-backed last-resort insurance for homeowners.
Key detail: No home warranty insurance means you carry more risk. If your builder becomes insolvent mid-project, you have no insurance safety net. Use staged payments and independent inspections to protect yourself.
Northern Territory (NT BAS / BPB)
Regulator: Building Practitioners Board (BPB) and NT Building Advisory Services Licensing threshold: $8,000 Active builders on TradieVerify: Coming soon
The NT requires builder registration for building work above $8,000.
Insurance: Home warranty insurance is required for residential work above $12,000, provided through approved private insurers.
Key detail: Work between $8,000 and $12,000 requires a registered builder but does not trigger mandatory insurance.
State-by-State Comparison Table
| State | Regulator | Licensing Threshold | Insurance Threshold | Licence System | Active on TradieVerify | Verify |
|---|---|---|---|---|---|---|
| QLD | QBCC | $3,300 | $3,300 | Open/Medium/Low/Restricted | 35,393 | Browse |
| VIC | VBA (BPC from July 2025) | $5,000 | $16,000 | Unlimited/Limited (30+ classes) | 41,570 | Browse |
| NSW | Fair Trading / Building Commission | $5,000 | $20,000 | Contractor/Supervisor | Coming soon | Browse |
| WA | DEMIRS / Building Services Board | $20,000 | $20,000 | Contractor/Practitioner | 12,413 | Browse |
| SA | Consumer and Business Services | $12,000 | $12,000 | Contractor licence | Coming soon | Browse |
| ACT | Access Canberra | $12,000 | $12,000 | Class A/B/C/D | 4,751 | Browse |
| TAS | CBOS | No minimum | No mandatory scheme | Builder licence | Coming soon | Browse |
| NT | BPB / NT BAS | $8,000 | $12,000 | Builder registration | Coming soon | Browse |
Home Warranty Insurance Explained
Home warranty insurance (also called domestic building insurance or home indemnity insurance) is a last-resort policy that protects you if your builder cannot complete work or fix defects due to insolvency, death, disappearance, or licence cancellation. It is separate from public liability insurance.
Coverage: Structural defects for six years and non-structural defects for two years from practical completion. It does not cover disputes about workmanship while the builder is still operating, or defects reported outside the warranty period.
Your rights: The builder must provide a certificate of insurance before accepting any payment, including the deposit. Your name, address, and project details must appear on the certificate. In Victoria (from 2025), you can claim directly from the insurer as first resort.
Every state except Tasmania requires home warranty insurance above a certain threshold (see the comparison table above). For more on builder insurance and contracts, see our guide on how to hire a licensed builder in Australia.
Financial Requirements at a Glance
Financial requirements exist so builders cannot take on projects they cannot afford to complete. Queensland’s QBCC system is the most detailed, with nine categories requiring audited financials and adequate Net Tangible Assets. Victoria assesses financial viability through the domestic building insurance eligibility process. SA requires a clear $10,000 minimum in net assets. WA and NSW assess capacity to meet debts, with bankrupt individuals barred from holding a contractor licence in NSW.
What this means for you: Ask your builder which financial category they hold (QLD) or whether they have a current Letter of Eligibility (VIC). A financially stressed builder is more likely to cut corners or become insolvent mid-build.
How to Verify a Builder’s Licence
Verifying a builder’s licence takes less than two minutes and should be done before you sign any contract or pay any deposit.
Step 1: Ask for the licence number. Any legitimate licensed builder will provide this without hesitation. If someone refuses or makes excuses, walk away.
Step 2: Search on TradieVerify. Visit TradieVerify’s search page to search across multiple state registers in one place. You can browse builders by state: QLD, VIC, WA, or ACT.
Step 3: Check the details. Confirm the licence is current and active, covers your project type and scale, matches the business name on the quote, and has no conditions or past enforcement actions.
Step 4: Verify with the state regulator directly. QBCC (QLD), VBA (VIC), Fair Trading (NSW), DEMIRS (WA), Access Canberra (ACT).
What Happens If You Use an Unlicensed Builder
Using a builder without proper builder licensing creates legal consequences for the builder (fines up to $71,610 for individuals in QLD, $110,000 for companies in NSW) and practical consequences for you:
- No access to home warranty insurance or state dispute resolution
- No statutory warranty protection (six years structural, two years non-structural)
- Potential issues with council sign-off, occupancy certificates, and property title
- Your home insurance may not cover defects from unlicensed work
Frequently Asked Questions
Is a builder’s licence the same in every Australian state?
No. Each state runs its own licensing system with different regulators, licence classes, and thresholds. A QBCC licence in Queensland is not the same as VBA registration in Victoria. Always check the builder’s licence in the state where the work will be performed.
What is the difference between Class A, B, C, and D builder licences?
The A/B/C/D system is specific to the ACT. Class A covers unlimited building work of any height and classification. Class B covers buildings up to three storeys. Class C covers residential buildings up to two storeys (this is what most house builders hold). Class D covers ancillary structures only, such as sheds, carports, and fences. Other states use different naming systems: Queensland uses Open, Medium Rise, Low Rise, and Restricted; Victoria uses Unlimited and Limited categories.
Do I need a licensed builder for a small renovation?
It depends on the project value and your state. Queensland requires a licensed builder for work above $3,300, while Western Australia only requires registration for work above $20,000. Even below these thresholds, hiring a licensed builder gives you access to warranty protections and a formal complaints process. For any work that requires a building permit or involves structural changes, a licensed builder should always be engaged regardless of value.
What financial checks has my builder passed to get their licence?
This varies by state. Queensland’s QBCC assesses builders against nine financial categories requiring adequate Net Tangible Assets. SA requires $10,000 minimum net assets. Victoria requires domestic building insurance eligibility. WA assesses capacity to meet debts as they fall due. Ask your builder about their financial category or insurance eligibility status.
What should I do if I discover my builder is unlicensed?
Stop work immediately and do not make further payments. Report the builder to your state’s licensing authority (QBCC, Fair Trading, VBA, DEMIRS, or Access Canberra). Document all payments and work completed. Consult a building lawyer about recovering costs.
Can a builder licensed in one state work in another state?
Not automatically. Each state requires separate licensing. Mutual recognition arrangements allow builders to apply for equivalent licensing in other states without repeating all qualifications, but the builder must still be approved by the destination state’s regulator before starting work.
Key Takeaways
- Builder licensing is state-based. There is no single national licence. Each state has its own regulator, classes, and thresholds.
- Verify before you sign. Search for your builder on TradieVerify or the relevant state register before signing any contract or paying any deposit.
- Check the licence class. Confirm the builder holds the right class for your project’s scope and scale. A Class D (ACT) or Restricted (QLD) builder cannot build your house.
- Understand your insurance rights. Home warranty insurance is mandatory in every state except Tasmania. Your builder must provide the certificate before accepting any payment.
- Financial viability matters. Licensed builders have passed financial checks, but the rigour varies by state. Queensland’s QBCC system is the most detailed.
- Unlicensed work has consequences. No warranty, no regulator support, potential title and insurance issues for your property.
With over 94,000 licensed builders listed across Victoria, Queensland, Western Australia, and the ACT, finding a qualified builder starts with a simple licence check. Search for a licensed builder in your area on TradieVerify and verify their credentials before your next building project.
Related Guides
- How to Hire a Licensed Builder — Our builder hiring guide
- How to Check a Tradesperson’s Licence — Our licence verification guide
- Owner Builder Permits — Our owner builder permits guide
Sources
- Queensland Building and Construction Commission: Builder Licensing and Financial Requirements, https://www.qbcc.qld.gov.au/
- Victorian Building Authority: Building Practitioner Registration, https://www.vba.vic.gov.au/
- NSW Fair Trading: General Building Work Licences, https://www.fairtrading.nsw.gov.au/trades-and-businesses/licensing-and-qualifications/general-building-work-licences
- DEMIRS WA: Builder Registration, https://www.commerce.wa.gov.au/building-and-energy/licensing-and-registration-and-owner-builder-approval
- Access Canberra: ACT Construction Licences (Classes A-D), https://www.planning.act.gov.au/
- icare NSW: Home Building Compensation Fund, https://www.icare.nsw.gov.au/
- Consumer Affairs Victoria: Domestic Building Insurance, https://www.consumer.vic.gov.au/
- Housing Industry Association: Builder’s Licence Requirements, https://hia.com.au/careers-and-learning/how-to-get-your-builders-licence