Yes—for specialist work: in NSW, a licence or certificate is required to carry out, advertise or contract for it regardless of cost and whether the work is residential, commercial or industrial. The NSW Government lists electrical work; plumbing, draining and gasfitting; air conditioning and refrigeration; and medical gas and mechanical services as specialist work. General residential building work follows a different threshold: the NSW Government says a contractor licence is required when labour and materials, including GST, total more than $5000 (figures checked 1 October 2026).
Does the $5000 threshold apply to specialist work?
No. The cost threshold for general residential building work must not be applied to specialist work.
| Work category | NSW licensing requirement | When it applies |
|---|---|---|
| Specialist work | A licence or certificate | Regardless of cost and whether the work is residential, commercial or industrial |
| Residential building work, including general trade work | A contractor licence | More than $5000 in labour and materials, including GST |
| Other residential building work | A contractor licence | More than $5000 in labour and materials, including GST |
For specialist work, the requirement covers carrying out, advertising and contracting for the work—not merely working on a particular site.
Which jobs count as specialist work?
The NSW Government identifies the following as specialist work:
- Air conditioning and refrigeration
- Electrical work
- Disconnection and reconnection of fixed electrical equipment
- Medical gas and mechanical services
- Plumbing, draining and gasfitting
This also includes associated electrical wiring that would otherwise be done by an electrician. The price of the job does not remove the licensing requirement, and the project setting does not change it.
What counts as general residential work?
General residential work sits under the value-based contractor licensing rules rather than the cost-free specialist-work test.
Other residential building work includes:
- Prefabricated metal-framed home additions and structures
- Kitchen, bathroom and laundry renovation
- Structural landscaping
- Swimming pool building
Residential trade work includes bricklaying, carpentry, decorating, dry plastering, excavating, fencing, general concreting, glazing, joinery, metal fabrication, minor maintenance and cleaning, painting, roof plumbing, roof slating, roof tiling, stonemasonry, swimming pool repairs and servicing, underpinning and piering, wall and floor tiling, waterproofing and wet plastering.
The NSW Government says a general builder can perform any work that is residential building work. That residential scope should not, however, be used to bypass the requirement for a task classified as specialist work: the applicable licence or certificate requirement still applies.
What should builders check before advertising or contracting?
- Classify the work first. Determine whether it is specialist work, residential building work or other residential building work.
- Check specialist authorisation. If the task falls into a specialist category, confirm the applicable licence or certificate before carrying out, advertising or contracting for the work.
- Check the residential value. For residential building work, assess whether labour and materials, including GST, exceed $5000.
- Check the regulator page. Confirm the current category and licensing requirement rather than relying on the job description alone.
- Check the policy PDS separately. Licensing does not by itself establish that a particular insurance policy responds to the work.
This is general information, not financial or legal advice. Check the regulator page and your policy’s PDS for the current requirements.
Is holding a licence the same as having insurance?
No. Licensing and insurance answer different questions. A licence or certificate addresses whether the contractor is authorised to carry out the relevant work; the policy’s PDS determines what the insurance product covers and under what conditions. The licensing rules described here do not establish insurance cover.
Sources
FAQ
Does a low-cost specialist job still need a licence or certificate in NSW?
Yes. If the work is specialist work, a licence or certificate is required regardless of its cost.
Does the specialist-work rule differ on commercial or industrial sites?
No. The requirement applies regardless of whether specialist work is residential, commercial or industrial.
Can a general builder use the $5000 residential threshold for specialist work?
No. The threshold applies to the relevant residential building work categories. Specialist work remains subject to the licence or certificate requirement regardless of cost.
Does the residential threshold include GST?
Yes. The contractor licensing threshold is more than $5000 in labour and materials, including GST.
Can specialist work be advertised or contracted without the required authorisation?
No. The NSW requirement covers carrying out, advertising and contracting for specialist work.