Changed business structure - is it licensed?
October 07, 2019
If you want to operate a business in the home building industry one of the first things you need to apply for, and then maintain, is a contractor licence that authorises your business to undertake the works which it has contracted to perform.
Ensure the business entity has a licence
Where you operate your business as a sole trader, usually that person will hold an individual contractor licence in the category of work the person is qualified to perform.
If you operate your business as a partnership or company structure, it is a requirement that both the business holds a contractor licence, that reflects the business structure, and an individual within the business (nominated supervisor) holds a contractor licence or supervisor certificate. For example: if the building business is a company, there should be a contractor licence in the company’s name, and there should be an individual, like a director or employee, who is the nominated supervisor holding an authority (contractor licence or qualified supervisor certificate) in the same category of work as the business.
Apart from applying for a licence for the new business entity, you would also need to apply for eligibility for home building compensation insurance (home warranty) for this new entity. You cannot for example use insurance in your name as a sole trader if you are now operating as a company as they are two separate legal entities.
If you do change your business structure please also contact HIA to update your membership details, including the licence details for the business.
For more information please contact your workplace advisor on 1300 650 620.