Avoid the risk of compliance action: Accurately declare business turnover to LHA each year

1 August 2024
Avoid the risk of compliance action: Accurately declare business turnover to LHA each year

It is important that labour hire providers accurately declare their business turnover to the Labour Hire Authority (LHA), to ensure the correct fees are paid and to avoid potential compliance action.

Licensed providers must accurately declare their turnover and pay the annual licence fee on time to LHA each year, as a condition of their licence. Businesses applying for a licence, or renewing, must also pay an application fee.

These fees are calculated based on the annual turnover a business reports to LHA when the fee becomes payable. Annual turnover determines a provider’s business tier, and the fee amounts.

Any business that does not declare their turnover accurately risks significant penalties. Knowingly providing false or misleading information to LHA is a criminal offence under the Labour Hire Licensing Act 2018 (Vic), carrying a maximum penalty of almost $150,000 for a body corporate.

Licensed providers must supply their turnover for the previous four quarters and provide Business Activity Statements (BAS) or Activity Statements (AS) to LHA. This information can be provided when paying their annual licence fee or licence renewal fee in the Labour Hire Licensing Online portal. 

The appropriate business tier will automatically update based on the turnover provided.

Fees are indexed on 1 July every year. For more information about fee indexation, please visit the Department of Treasury and Finance website.

Definition of turnover

Turnover means the total ordinary income that is derived in the course of running a business, as defined in clause 3 of the Labour Hire Licensing Regulations 2018 (Vic). This amount does not include GST.

The turnover must include:

  • all areas of the business, not just the labour hire aspect
  • all jurisdictions, not just the Victorian component.

To verify a business's total ordinary income, the following is usually required to be provided:

  • the turnover for the business in the four quarters before the fee is due (for an existing business)
  • the projected turnover of the business for the next four quarters (for a new business).

If you believe there are particular circumstances meaning your BAS or AS do not accurately show your business's total ordinary income (e.g. your BAS is for a consolidated tax group, or includes capital transactions), email the LHA Enquiries team at enquiries@labourhireauthority.vic.gov.au.

Once your circumstances have been reviewed, you will be contacted regarding next steps. In the case of consolidated tax groups, we may ask you to provide additional information verifying your business's total ordinary income.

Licence obligations

Penalties of over $150,000 for a business and $35,000 for an individual can apply for non-compliance with licence conditions such as failure to pay the annual licence fee.

Non-compliance with licence obligations may also result in licensing action such as conditions being imposed, or licence suspension or cancellation.

A number of labour hire providers have had their licences cancelled due to failure to pay annual licence fees. Providers are at risk of prosecution for providing labour hire services following cancellation of their licence.

More information

Visit the LHA website for more information on: