SA's $5,000 On-the-Spot Fine for Unlicensed Plumbing and Gas Work: What Changed on 15 January 2026?

Since 15 January 2026, unlicensed plumbing or gas work, work outside licence conditions and advertising for work a person is not licensed to perform can attract a $5,000 expiation fee in South Australia, according to Consumer and Business Services (CBS). CBS’s current summary says repeat offences can attract increases of up to $150,000 for individuals and $550,000 for companies (figures checked 1 October 2026). For interstate workers, CBS’s Automatic Mutual Recognition (AMR) guidance says the scheme commenced for certain occupations on 1 February 2022 and allows eligible individuals to use their current licence in SA after notifying CBS before starting work.

This is general information, not legal or financial advice. Check the current CBS regulator page and your policy’s PDS before acting.

What changed on 15 January 2026?

The Statutes Amendment (Building and Construction Industry Review—Penalties) Act 2025 introduced reforms following a review of the building and construction industry. The changes strengthen consumer protections, create new offences, expand enforcement options and increase penalties.

The reforms affect these laws:

• Building Work Contractors Act 1995
• Fair Trading Act 1987
• Magistrates Court Act 1991
• Plumbers, Gas Fitters and Electricians Act 1995

CBS publishes the following key expiation fees:

These are published examples rather than a single fee for every breach. CBS’s Table of Amended Penalties, available through its building and construction changes page, lists increased expiations and new offences.

Is the $5,000 expiation fee the only possible consequence?

CBS calls the $5,000 amount an expiation fee. Its material also describes expiation notices, infringement notices and court penalties, so the enforcement process does not necessarily involve an immediate payment in every case.

Other published enforcement details include:

Some offences may be dealt with through an infringement notice for faster enforcement. These fees, court penalties and prosecution periods are separate parts of the enforcement framework and should not be treated as a combined amount.

In June 2026, CBS announced the establishment of a dedicated Building Industry Response Team targeting:

• Unlicensed building work
• Misleading or improper advertising
• Failure to obtain building indemnity insurance
• Improper demands for payment

CBS says industry participants can expect increased compliance activity and enforcement, including expiation notices where breaches are identified.

What do the new licensing and advertising offences mean in practice?

The changes introduce offences involving:

• Unlicensed work
• Hiring unlicensed subcontractors to undertake licensed work
• Using another contractor’s licence number
• Falsely claiming to be licensed or registered

Higher penalties also apply to false or misleading information supplied to regulators or consumers, contract breaches and advertising violations. The CBS campaign summary does not attach one dollar amount to every new offence.

Before quoting, advertising for or accepting work, tradies should:

• Check that the licence held covers the specific work and remains within its conditions.
• Make sure advertisements do not claim work the person is not licensed to perform.
• Never display another contractor’s licence number.
• Verify every subcontractor through the CBS Licensing Public Register.
• Review contracts for compliance with the Building Work Contractors Act 1995.
• Ensure payment demands are genuinely owed.

CBS advises people hiring subcontractors to confirm licensing through its public register. Questions for CBS can be directed to 131 882.

When does building indemnity insurance matter?

Building indemnity insurance is abbreviated BII. CBS states that carrying out building work without BII, when BII is required, attracts a $20,000 expiation fee.

The campaign summary does not identify which particular plumbing or gas-fitting jobs require BII. That issue should be confirmed with CBS for the work involved. BII also does not replace a trade licence: complying with one requirement does not remove the need to meet the other.

How does Automatic Mutual Recognition work for interstate plumbers and gas fitters?

Automatic Mutual Recognition, also called JobPass, applies to individuals rather than companies. Plumbers, gas fitters and electricians are among the CBS-regulated occupations covered.

An interstate worker should:

• Hold a current licence or registration in their home state or territory that covers the work they intend to do in SA.
• Confirm they are not disqualified or suspended from the occupation, or have had a licence refused.
• Notify CBS using the AMR online notification form before commencing any work in SA.
• Use the current home-state licence without applying for or paying for a new SA licence, subject to the notification requirements.
• Comply with the same conduct and technical requirements that apply to SA licensees.

CBS says workers who notify it will receive a factsheet setting out key responsibilities and occupation-specific requirements. Plumbers and gas fitters have separate factsheets.

All active AMR licensees appear on the CBS Licensing Public Register. Search using the holder’s name under the relevant licence type.

AMR commencement dates differ between states and territories. CBS says the scheme has commenced for certain occupations in the Australian Capital Territory, New South Wales, Northern Territory, Tasmania and Victoria.

Taking temporary work in SA while remaining based in another state is different from moving there permanently. A person who moves their home state must apply through the existing mutual recognition arrangements to obtain a new substantive licence or registration in that state.

The CBS page does not state how long notification processing takes. The clear timing requirement is that notification must be submitted before any SA work begins.

Does insurance cover an expiation fee or court penalty?

The regulator’s material does not determine whether an expiation fee, Magistrates Court penalty or other loss is insured. Do not assume that regulatory costs or contract-related losses are covered merely because the worker holds a licence or has notified CBS under AMR.

Check the policy’s PDS for its scope, definitions, exclusions and any notification requirements, then ask your insurer or broker about the specific circumstances. Licensing recognition and insurance cover are separate questions, and insurance cannot cure an unlicensed-work or advertising breach.

Sources

• South Australia’s building and construction industry changes | Consumer and Business Services
• Automatic recognition of licences | Consumer and Business Services

FAQ

Is the $5,000 expiation fee automatic for every unlicensed plumbing job?

No. CBS publishes $5,000 for specified licensing and advertising breaches, including unlicensed work, work outside licence conditions and advertising for work the person is not licensed to perform. The applicable category and enforcement route depend on the circumstances.

Must an interstate plumber notify CBS before starting work in SA?

Yes. An eligible AMR worker must submit the online notification form before commencing any work in SA. The worker must also hold a home-state licence or registration covering that work.

Does AMR allow a plumber to work beyond their home-state licence scope?

No. The home-state licence or registration must cover the work intended in SA. AMR licensees must also meet the same conduct and technical requirements as SA licensees.

Does AMR cover plumbing companies?

No. AMR applies to individuals, not companies. A company cannot rely on an individual worker’s AMR status as a substitute for the relevant business requirements.

Will insurance reimburse a $5,000 expiation fee?

That depends on the policy terms. The CBS material does not address insurance coverage, so check the PDS and obtain advice from your insurer or broker rather than assuming the expense is covered.