What Happens If You Hire an Unlicensed Tradie in Australia? Penalties, Insurance Risks, and Your Rights

A Brisbane homeowner paid a tradesman $20,965 to renovate their property. The work was defective. The tradesman had no QBCC licence. When the homeowner lodged a complaint, the QBCC could not order rectification because the contractor was never in their system. The homeowner ended up in Magistrates Court, where the tradie was fined $15,000, but the homeowner was still left with a botched job and a five-figure hole in their savings.

That case, prosecuted in January 2026 against Nicholas William Parsons in Toowoomba, is not unusual. Regulators prosecute hundreds of unlicensed tradies every year. In 2024-25 alone, the QBCC brought 20 prosecutions resulting in more than $277,000 in fines, costs and compensation.

With over 190,000 verified tradesperson licences on TradieVerify, checking a licence takes less than 30 seconds. This guide explains exactly what goes wrong when that step is skipped.

The Legal Position: Unlicensed Work Is a Criminal Offence

In every Australian state and territory, performing building, plumbing, electrical, or gasfitting work without the required licence is a criminal offence. The penalties are not civil fines. They are prosecuted through the Magistrates Court, and in serious cases, can result in imprisonment.

Specialist trades are always licensed. Electrical, plumbing, and gasfitting work requires a licence regardless of the job value. There is no $5,000 or $20,000 threshold for these trades. A $200 tap replacement still requires a licensed plumber. Reconnecting a light fitting still requires a licensed electrician. Fitting a gas bayonet still requires a licensed gasfitter.

General building work has dollar thresholds. For trades like building, painting, and tiling, each state sets a value above which the contractor must hold a licence. Queensland’s threshold is $3,300. New South Wales and Victoria set it at $5,000. Western Australia’s is $20,000.

Below those thresholds, licensing is not required for general building work. Above them, contracting without a licence is a criminal offence for the tradesperson.

State-by-State Penalties for Unlicensed Work

Penalties vary significantly across jurisdictions. Victoria’s maximum fine for an individual is nearly double Queensland’s. South Australia can impose fines up to $250,000 on corporations. Queensland is the only state that has recently imprisoned an unlicensed tradie.

You can verify any tradesperson’s licence status on TradieVerify before signing a contract.

Real Prosecution Cases: What Courts Have Actually Imposed

Court-ordered fines are public record. These cases show the financial consequences when an unlicensed tradie is caught and prosecuted.

Cameron James Bedford (QLD, December 2025). Convicted in Brisbane Magistrates Court for unlicensed building work in 2021-22. Fined $15,000. Sentenced to 2.5 years imprisonment with immediate parole. Ordered to pay $32,830 in compensation to the affected homeowner. This is the most severe sentence for unlicensed building work in recent Australian history.

Anthony Lee Francis (NSW, September 2019). Fined $70,000 in Parramatta Local Court for seven Home Building Act violations and two Australian Consumer Law violations. Francis had been issued a prior public warning by NSW Fair Trading but continued operating. He accepted payments from homeowners but failed to deliver work.

Gurbuz Oktay (QLD, 2024). Convicted of four offences: unlicensed work, non-compliant contract, excessive deposit, and pretending to hold a QBCC licence. Fined $25,000.

Alexander Sagin (VIC, April 2021). Fined approximately $20,000 in Frankston Magistrates Court for six offences involving unlicensed electrical and plumbing work. One person received an electric shock from exposed live conductors Sagin had installed.

Launceston Magistrates Court (TAS, 2023). A contractor was fined $40,000 for unlicensed building and roof plumbing contracting, the maximum penalty under Tasmanian legislation.

South Australia enforcement (2018-2024). Lynch Meyer Lawyers reported five enforcement cases in SA with fines ranging from $11,840 to $175,000, with company director bans of seven to eight years.

The pattern across all these cases is consistent: regulators are actively prosecuting, fines are substantial, and in Queensland, imprisonment is now on the table.

How Your Insurance Is Voided

Hiring an unlicensed tradie creates two separate insurance problems. Most homeowners only discover them after something has already gone wrong.

Problem 1: Your Home Insurance Claim Gets Rejected

Your home and contents insurance covers events like fire, flood, and storm damage. But most policies contain exclusions for damage caused by non-compliant work.

If unlicensed electrical work causes a house fire, your insurer can deny the claim. The reason is straightforward: a licensed electrician issues a compliance certificate (called a COES in Victoria, CCEW in NSW, or ESC in Queensland) after completing work. That certificate is evidence the work meets Australian Standard AS/NZS 3000. Without it, the insurer has grounds to classify the damage as resulting from work that was never certified as safe.

The same principle applies to plumbing. A Victorian beauty salon owner hired an unlicensed person through an online platform to install a mixer tap. The tap failed, causing $30,000 in flood damage. The insurance claim was rejected because no plumbing compliance certificate existed.

Your obligation. Most home insurance policies require you to notify your insurer before renovation or building work begins. Failure to notify can void coverage even when the tradesperson is properly licensed.

Problem 2: Home Warranty Insurance Does Not Exist

Home warranty insurance (called building indemnity insurance in some states) is a separate policy that protects homeowners if their builder dies, disappears, or becomes insolvent before completing the project or fixing defects.

Home warranty insurance is only available to licensed builders. An unlicensed tradie cannot obtain it, which means you have zero protection if they abandon your project. Licensed builders in Queensland must carry this insurance for all residential work above $3,300. In Victoria, the threshold is $16,000. In NSW and WA, $20,000.

With a licensed builder, you are covered for six years (structural defects) and one to two years (non-structural defects) even if the builder goes bankrupt. With an unlicensed tradie, you get nothing.

What Happens to You as the Homeowner

The penalties above apply to the unlicensed tradie, not the homeowner. In most Australian jurisdictions, knowingly hiring an unlicensed tradie does not carry a specific criminal penalty for you.

But that does not mean you escape consequences.

You cannot enforce defective work through a tribunal. State building tribunals (NCAT in NSW, VCAT in Victoria, QCAT in Queensland) have jurisdiction over disputes involving licensed contractors. If your unlicensed tradie was never in the system, your dispute may fall outside the tribunal’s jurisdiction. Your only option becomes civil court, which is slower, more expensive, and requires a lawyer.

You cannot access regulator-ordered rectification. When a licensed builder does defective work, the state regulator can direct them to fix it. The QBCC, VBA, and Fair Trading all have these powers. But they can only direct licensed operators. With an unregistered operator, the regulator will prosecute them but cannot compel them to fix your property.

Your property may have compliance issues at resale. When you sell, the buyer’s conveyancer will check for building approvals and compliance certificates. Work done without a licence is unlikely to have council approval or a final inspection. Rectifying this before sale can cost thousands, and in some cases, the council can require removal of non-compliant structures.

You may face council enforcement. Local councils enforce building regulations independently of state licensing bodies. If the work was done without a building permit, the council can order you to demolish it, apply retrospectively for approval (which may not be granted), or bring it into compliance at your own cost.

Trades Where Licensing Is Always Mandatory

Some trades require licensing for all work, regardless of dollar value. There is no threshold below which hiring an unlicensed tradie is legal.

Electrical work. All electrical work in Australia must be performed by a licensed electrician. This includes replacing a power point, installing a light fitting, and adding a circuit. DIY electrical work is illegal in every state and territory. Penalties for unlicensed electrical work reach $40,000 or imprisonment nationally because of the fire and electrocution risk. Browse licensed electricians on TradieVerify.

Plumbing and drainage. All plumbing work must be performed by a licensed plumber. This includes tap replacements, toilet installations, hot water system connections, and drainage work. With 7,557 active licensed plumbers on TradieVerify across QLD and ACT, and data expanding to other states, there is no shortage of licensed professionals.

Gasfitting. All gas appliance installation, servicing, and repair must be performed by a licensed gasfitter. Gas leaks can cause explosions and carbon monoxide poisoning. With 5,593 active licensed gasfitters across QLD and ACT on TradieVerify, verification is straightforward.

Roofing work. In Queensland, all roofing work above $3,300 requires a licensed roofer. Working at heights adds safety risks that make licensing particularly important.

How to Report an Unlicensed Tradie

If you have hired or encountered an unlicensed tradesperson, every state has a formal reporting process. Reports can usually be lodged online, and some regulators accept anonymous tip-offs.

For unlicensed electrical work specifically, report to Energy Safe Victoria (VIC), the Electrical Safety Office (QLD), or the Office of the Technical Regulator (SA), as these operate separately from the building regulators.

South Australia runs an annual “Dob in a Tradie Day” every March, encouraging homeowners to report suspected unlicensed operators. The QBCC accepts anonymous reports, though this limits their ability to investigate.

What to Do If You Have Already Hired an Unlicensed Tradie

If you discover your tradie is unlicensed after work has started or been completed, take these steps:

1. Stop all work immediately. Do not allow further work until the licensing situation is resolved.

2. Document everything. Photograph all completed work, save every text message, email, invoice, and receipt. These records are essential for any tribunal claim, insurance dispute, or police report.

3. Get an independent assessment. Engage a licensed tradesperson in the same trade to inspect the completed work and provide a written report on its compliance with Australian Standards and the National Construction Code.

4. Report to the state regulator. Use the reporting contacts above. The regulator will investigate and may prosecute the unlicensed operator, but this process does not fix your property.

5. Seek legal advice. If you have suffered financial loss, a construction lawyer can advise on civil claims, tribunal applications (where jurisdiction exists), or complaints under the Australian Consumer Law.

6. Notify your home insurer. Advise your insurer about the work that was performed. Ask them to confirm in writing whether your coverage is affected.

Your Rights Under Australian Consumer Law

The Australian Consumer Law (ACL) provides automatic guarantees for services, including building and trade work. These guarantees cannot be excluded or waived by contract.

Consumer guarantee: due care and skill. Under section 60 of the ACL, services must be provided with an acceptable level of skill and technical knowledge.

Consumer guarantee: fit for purpose. Under section 61, if you told the tradesperson what you needed the work for, the result must be reasonably fit for that purpose.

Consumer guarantee: reasonable time. Under section 62, if no timeframe was agreed, the work must be completed within a reasonable period.

For a major failure (the work creates an unsafe situation, is substantially unfit for purpose, or would not have been purchased if the defect was known), you can cancel the contract and seek a full or partial refund plus compensation for any consequential loss.

For a minor failure, the tradesperson has the right to choose the remedy, which is usually a free repair within a reasonable time.

The catch with an unlicensed tradie. These ACL rights apply regardless of whether the tradesperson is licensed. But enforcing them against an unlicensed tradie is significantly harder. They may have no ABN, no registered business, no insurance, and no assets to pursue. The regulator cannot compel them to rectify defects. Your practical options are limited to civil court, which requires time and money with no guarantee of recovery.

The simplest protection is prevention. Search for licensed tradies on TradieVerify before any work begins.

How to Verify a Licence Before Hiring

Checking a licence takes 30 seconds and can save you tens of thousands of dollars. Here is the process:

Step 1. Ask the tradesperson for their licence number. Every licensed tradie has one.

Step 2. Search for them on TradieVerify. You can search by name, licence number, or business name across multiple states.

Step 3. Confirm the licence covers the work you need. A painter’s licence does not cover waterproofing. A carpentry licence does not cover structural building work. Check that the licence class matches your project scope.

Step 4. Verify the licence is current, not expired, suspended, or cancelled. TradieVerify shows licence status directly.

Step 5. Check the state regulator’s website for any disciplinary history, complaints, or conditions on the licence. Links to each state regulator are in the table above.

With over 94,000 active builders, 11,000 active painters, 7,500 active plumbers, and 5,100 active electricians already on TradieVerify, there is no reason to risk hiring an unlicensed tradie.

Frequently Asked Questions

Can I be fined for hiring an unlicensed tradie?

In most Australian states, the criminal penalties for unlicensed work apply to the tradesperson, not the homeowner. You will not be fined for hiring them. However, you bear the financial risk of defective work, voided insurance, non-compliant structures, and potential council enforcement action. The costs of rectification often exceed the penalties the tradesperson receives.

Will my home insurance cover damage from unlicensed work?

Generally, no. Home insurers can deny claims for damage caused by work that was not performed by a licensed tradesperson and not supported by a compliance certificate. This applies to fire damage from unlicensed electrical work, flood damage from unlicensed plumbing, and structural damage from unlicensed building work. Check your policy’s exclusion clauses and notify your insurer before any renovation begins.

What is the difference between home insurance and home warranty insurance?

Home insurance covers your property against events like fire, storm, and theft. Home warranty insurance (building indemnity insurance) specifically protects you if your builder dies, disappears, or becomes insolvent. Home warranty insurance is only available to licensed builders and covers defects for up to six years. If your builder is unlicensed, home warranty insurance does not exist for your project.

How do I report an unlicensed tradesperson?

Report to your state’s building regulator: QBCC in Queensland (139 333), VBA in Victoria (1300 067 088), Fair Trading in NSW (13 32 20), DEMIRS in WA (1300 489 099), CBS in South Australia (131 882), Access Canberra in ACT (13 22 81), CBOS in Tasmania (1300 654 499), or NT WorkSafe in the Northern Territory (1800 019 115). For unlicensed electrical work, report to the electrical safety regulator in your state instead.

Can an unlicensed tradie still take me to court for unpaid invoices?

In some states, an unlicensed contractor has no legal entitlement to fees or compensation for work performed without a licence. South Australian courts have ruled that unlicensed builders cannot recover payment. In other states, the position is less clear, but the lack of a licence significantly weakens their claim. Always seek legal advice specific to your jurisdiction before withholding payment.

What happens to unlicensed work when I sell my property?

The buyer’s conveyancer will check for building approvals and compliance certificates during due diligence. Unlicensed work is unlikely to have either. You may need to disclose the work, obtain retrospective council approval (which may not be granted), or arrange for a licensed professional to certify the work before settlement. In some states, the buyer can rescind the contract if non-compliant work is discovered after exchange.

Related Guides

• How to Check a Tradesperson’s Licence — Our licence verification guide
• Home Warranty Insurance — Our home warranty insurance guide
• What to Do When a Tradie Does Poor Work — Our poor work remedies guide

Sources

1. Queensland Building and Construction Commission, “Reporting Unlicensed Building Work,” qbcc.qld.gov.au
2. Victorian Building Authority, “Penalties for Builders and Tradespeople,” vba.vic.gov.au
3. NSW Fair Trading, “Home Building Compliance and Enforcement,” fairtrading.nsw.gov.au
4. Consumer and Business Services SA, “Beware Rogue Tradespeople,” cbs.sa.gov.au
5. Australian Competition and Consumer Commission, “Consumer Guarantees: Services,” accc.gov.au
6. QBCC, “Unlicensed Builder Convicted and Fined for Multiple Offences Across South-East Queensland (Parsons, Jan 2026),” qbcc.qld.gov.au
7. Energy Safe Victoria, “Prosecution Outcomes,” energysafe.vic.gov.au
8. Consumer, Building and Occupational Services Tasmania, “$40,000 Penalty for Unlicensed Building and Roof Plumbing Contracting,” cbos.tas.gov.au