Western Australia modernised its payment laws in 2021 and keeps a two-tier licensing system: registration for builders on bigger work, licensing for the safety trades at any value. Here is the 2026 picture.
Registration and licensing
Building work over $20,000 requires a registered building contractor with a registered building practitioner behind it, administered through Building and Energy. Painting has its own registration above a low threshold (historically $1,000, so confirm the current figure). Electrical work requires licensed electricians and electrical contractor status through Building and Energy, plumbing runs through the Plumbers Licensing Board, and gasfitting has its own permits. As everywhere in Australia, the safety trades are licensed regardless of job value.
Home indemnity insurance
Residential building work over $20,000 requires home indemnity insurance protecting the owner against non-completion and defects if the builder dies, disappears or becomes insolvent. Cover must be in place before taking money, and the certificate travels with the contract paperwork. Capacity in the WA indemnity market has historically been tight, so build lead time into contract programs.
The SOP Act 2021: WA joins the east coast model
WA's Security of Payment Act 2021 replaced the old Construction Contracts Act system for new contracts: payment claims, payment schedules, rapid adjudication and unfair contract term protections, phased in by contract date. It also introduced a retention trust scheme, rolling out by contract value, that requires retention money to be held in trust accounts. If your standard terms still assume the old CCA regime, they are overdue for a rewrite.
WorkCover WA and GST
Workers comp through WorkCover WA is mandatory for employers, with contractor and deemed-worker rules to check on labour-only arrangements. GST is 10%. Mining and resources clients layer their own inductions, standards and payment portals on top of the statutory rules, so factor administration time into rates when quoting that sector.
- Builder registration: Required for building work over $20,000 (Building Services Board)
- Painters: Registration required over $1,000; confirm current threshold
- Always licensed: Electricians (Building and Energy), plumbers (Plumbers Licensing Board), gas
- Home indemnity: Insurance required for residential work over $20,000
- Security of payment: SOP Act 2021: claims, adjudication, retention trust scheme phasing in
- Workers comp: WorkCover WA
- GST: 10%
FAQs for Western Australia trade businesses
When does builder registration apply in WA?
Building work over $20,000 needs a registered building contractor, and home indemnity insurance applies to residential work over the same figure. Electrical, plumbing and gas work is licensed at any value through their own boards.
Does WA have adjudication for payment disputes?
Yes. The Security of Payment Act 2021 brought WA into line with the east coast: payment claims, payment schedules and rapid adjudication, plus a retention trust scheme that has been phasing in by contract value. It replaced the old Construction Contracts Act process for new contracts.
Do painters really need registration?
WA registers painters for work above a low threshold (historically $1,000), which surprises interstate arrivals. Confirm the current figure with Building and Energy before quoting.
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SKEDS for Australian tradesFree invoice templateFree quote templateThis guide is general information, not legal advice. Licensing thresholds, payment statutes, insurance and tax rules change; always confirm current requirements with the regulator, a lawyer or your accountant before relying on them.