Working out how to start a demolition business in Australia comes down to getting four things right before your first job: the licence your state requires, a safety system you can prove on paper, insurance that names demolition as your activity, and contracts that deal with what you find behind the walls. A demolition business plans and carries out the dismantling of structures, or parts of structures, that are load-bearing or tied to a building’s structural integrity.
Most people who want to start a demolition business already know the machinery. What trips them up is the paperwork. The licence application wants safe work method statements from jobs you’ve already done, the insurer wants “demolition” printed on the certificate, and the client contract says nothing about the fibro sheeting nobody mentioned at the quote.
- Demolition licensing is state-based. NSW issues DE1 and DE2 licences, Victoria registers demolishers in three height-based classes, and Queensland licenses through Workplace Health and Safety Queensland, not the QBCC.
- Small jobs can be licence-free in NSW. Structures under 6 metres with no DE1 or DE2 conditions don’t need a demolition licence, which makes them a sensible place to start.
- Asbestos needs its own licence. Removing more than 10 square metres of bonded asbestos needs a Class B licence, and any friable asbestos needs Class A.
- Your licence and the site approval are separate. A licence lets you do demolition work; a DA, CDC or demolition permit approves the job at that address.
- Most disputes start in the quote. Write down your exclusions, how variations get approved, and who obtains permits before you mobilise a single machine.
What counts as demolition work in Australia?
Under the work health and safety laws, demolition work means demolishing or dismantling a structure, or part of one, that is load-bearing or otherwise related to its physical integrity. Pulling down formwork, scaffolding or other temporary supports doesn’t count. Neither does removing power, light or telephone poles.
That definition matters more than it looks. Stripping out non-structural fitouts, ceilings and plasterboard isn’t demolition work in the regulated sense. Plenty of operators start with soft strip-outs and small residential knockdowns, build a job history, then apply for the bigger licence once they have the evidence regulators ask for.
Here’s the catch. Demolition is still classed as high-risk construction work, so even the jobs that need no demolition licence need a site-specific safe work method statement (SWMS).
Do you need a licence to start a demolition business?
Almost certainly, once you move past small structures. Which licence depends on where you work, and the rules aren’t consistent across the country. Get this wrong and your insurance, your contracts and your right to be paid can all fall over at once.
| State | Who licenses demolition | Licence classes | How long it lasts |
|---|---|---|---|
| NSW | SafeWork NSW (apply through Service NSW) | Unrestricted (DE1) and Restricted (DE2) | 5 years |
| VIC | Building and Plumbing Commission (formerly the VBA) | Demolisher low rise (up to 2 storeys), medium rise (up to 5 storeys) and unlimited | Ongoing registration, subject to annual requirements |
| QLD | Workplace Health and Safety Queensland (Form 76) | Demolition licence issued to the business | 2 years |
| WA | WorkSafe WA | Class 1 (10 metres or more) and Class 2 (under 10 metres, affecting structural integrity, not a single storey dwelling) | 3 years |
| SA | Consumer and Business Services contractor licence, with notification to SafeWork SA | Building work contractor licence covering the type of demolition | Per your contractor licence |
| TAS, ACT, NT | Local WHS and building regulators | Rules differ; check before you quote | Varies |
Victoria is the odd one out. Registration sits with the building regulator, and the BPC’s demolisher registration needs a technical reference from a demolisher registered in the same class or higher. If you’ve only ever worked under one boss, ask them early.
Queensland trips up a lot of people too. A QBCC builder licence doesn’t cover demolition work. Workplace Health and Safety Queensland issues the demolition licence to the business itself, and it has to be renewed every two years.
DE1 or DE2: which NSW licence do you actually need?
Start with the height and the method. A Restricted licence (DE2) covers structures between 6 and 15 metres, work that affects load-bearing capacity or structural integrity, and load-shifting machinery on a suspended floor. That covers most residential and small commercial work.
An Unrestricted licence (DE1) is for anything over 15 metres, chemical installations, tower cranes, mobile cranes rated above 100 tonnes, pre-tensioned or post-tensioned components, floor propping and explosives. You can also add individual DE1 types to a DE2 licence rather than jumping straight to the full DE1.
If you’re weighing up the two, go DE2 first. The evidence bar for DE1 is steep, and most new businesses won’t touch a 15-metre structure in their first year anyway.
How to get a demolition licence in NSW
According to Service NSW’s demolition licence page, the licence holder must be 18 or over, operate a business with an ABN or ACN, be its legal representative (a director, for a company) and nominate at least one approved supervisor. You can nominate yourself.
A first-time supervisor needs 11 units of competency from a registered training organisation. For DE2, you’ll also need evidence of at least three relevant jobs from the last five years, each with its SWMS and a signed reference letter. DE1 asks for two jobs for every unrestricted type, completed in the last ten years.
This is where most applications stall. People have the experience but not the paper trail. If you’re still working for someone else, keep copies of the SWMS you work under and ask for reference letters as each job finishes, not three years later.
Once granted, the licence lasts five years. You must display it on site, have your named supervisor present during demolition work, and notify SafeWork NSW at least five working days before work on load-bearing structures 6 metres or taller, work with load-shifting machinery on a suspended floor, or anything involving explosives.
How to start a demolition business on the right legal footing
Company or sole trader?
For demolition, a company is the default for good reason. One collapsed wall or one asbestos exposure claim can run well past your insurance limits, and as a sole trader your house is on the line. Commercial clients and principal contractors also expect to deal with a Pty Ltd.
Don’t over-engineer it, though. Our lawyers regularly talk new operators out of holding-company groups on day one. A single company is enough to start. Revisit the structure when you own serious plant worth protecting from the trading risk. You can register your company online in one sitting.
Registrations you’ll need
- An Australian Business Number (ABN), which your licence application asks for.
- A registered business name if you’ll trade under anything other than the exact company name.
- GST registration once your turnover hits $75,000. Two or three residential knockdowns will get you there, so plan to register from the start.
- PAYG withholding and workers compensation before your first employee starts.
One myth worth clearing up. Registering a business name gives you no exclusive rights to it. If you want to stop a competitor trading under a similar name, you need a registered trade mark, and that’s worth doing before you pay for vehicle wraps and signage.
What insurance does a demolition business need?
Public liability covers injury or damage to third parties: neighbours, passers-by, the house next door. In NSW, your certificate of currency must list your business activity as “demolition” or the licence application goes nowhere. General trades cover won’t do.
Your own workers aren’t covered by public liability. Workers compensation covers them, and it’s compulsory once you employ anyone. Add plant and equipment cover for loss, theft and damage. Check whether your policy excludes asbestos, because many do.
Get a free legal document when you sign up to Lawpath
How do asbestos, notifications and site approvals work?
Asbestos
Assume any building from before 1990 contains it. Removing more than 10 square metres of non-friable (bonded) asbestos, like fibro sheeting, needs a Class B asbestos removal licence. Any amount of friable asbestos needs Class A. Your demolition licence covers neither.
After Class A work, an independent licensed asbestos assessor does the clearance inspection. Independent means not involved in the removal and not part of a business involved in it. Class B clearance also needs an independent competent person.
You have two options: get licensed yourself, or subcontract a licensed removalist. Most new operators subcontract. If you do, your contract must say who coordinates the removal, who holds the clearance certificate and who carries the risk if something is missed.
Your safety system
Every regulated demolition job needs a site-specific SWMS and a documented risk assessment before work begins. Regulators, principal contractors and insurers will all ask to see your safety paperwork, so build it once and reuse it.
A WHS policy sets out who’s responsible for what across the business. A job safety analysis gives you a structured way to assess the risks for each task on a particular site. Neither replaces a SWMS, but both feed into it.
Site approvals and notifications
Most demolitions also need a council development approval, a complying development certificate or a demolition permit, depending on the state and the site. Heritage overlays, working-hours limits and road occupancy permits can all apply on top.
The expensive mistake is leaving it unclear who obtains these. If the client thinks you’re handling the approval and you think they are, you’ll be the one standing idle with an excavator on hire. Put it in writing, every job.
NSW, WA and SA all require notice to the safety regulator at least five days before certain demolition work begins. Service disconnections, dial-before-you-dig checks and a lawful waste disposal plan with tip dockets round out the pre-start list.
Should you buy or hire your plant?
Hire first. An excavator sitting in the yard between jobs still costs you finance repayments, insurance and storage. Hiring keeps your fixed costs low while you learn which machines you actually use every week.
Wet hire (machine plus operator) shifts some operating risk to the owner. Dry hire (machine only) is cheaper but puts it all on you. Either way, read the hire terms for damage liability, minimum hire periods and who pays for downtime. If you’ll hire your own machines and operators out to builders, a wet hire agreement sets out those terms from your side.
Buy once a machine is booked most weeks and you can show the repayments are cheaper than the hire bills. Keep in mind that some plant, like cranes and forklifts, needs operators with a high risk work licence.
What contracts does a demolition business need?
Your client contract
Your quote and terms are your main protection. A services agreement attached to every quote should cover at least these:
- Scope and exclusions, spelled out. “Demolish dwelling” is not a scope. List what stays, what goes, and whether slabs, footings and in-ground services are included.
- Latent conditions. Hidden asbestos, buried tanks and old footings are the norm in demolition, not the exception. Say how they’re priced.
- A written variation process, including written notice when you discover something new on site.
- One clear payment trigger, deposit and progress payment terms, late-payment interest and a right to suspend work if you aren’t paid.
- Who obtains approvals, arranges service disconnections and handles neighbour notifications.
- A cap on your liability, and the insurance each party holds.
On commercial jobs, you’ll be handed the principal contractor’s contract instead. Read the head contract terms that flow down to you before you sign, especially liquidated damages and indemnities. Watch your advertising, too. “Fixed price” in an ad, with conditions buried in the quote, is the kind of claim the Australian Consumer Law treats as misleading.
Subcontractors and staff
Demolition runs on subcontractors: machine operators, truck drivers, asbestos removalists, traffic controllers. A subcontractor agreement should set out their WHS duties, licences, insurance and who supplies the equipment and PPE.
Sham contracting laws target construction heavily. If a “subbie” works only for you, uses your gear and takes your directions every day, the law may treat them as an employee regardless of what the paperwork says. Use non-solicitation clauses rather than non-competes, and give each engagement a fixed term.
Planning to supply your crews to builders on a labour-only basis? In some states, including Victoria and Queensland, that can make you a labour hire provider who needs a separate labour hire licence. Check before you quote it that way.
For employees, decide early whether roles are full time, part time or casual, and put a written employment agreement in place for each. This webinar walks through the main employment types and how each one affects your business.
What we see in Lawpath consultations
Our lawyers speak with a steady stream of trade and construction business owners. These are the patterns that come up again and again for anyone learning how to start a demolition business.
The contractor wears the asbestos risk. When a demolition releases asbestos onto a neighbouring property, the injured party’s best recovery path usually runs against the demolition contractor, not the council that approved the job. Your contract, your insurance exclusions and your removalist’s paperwork all get tested at that moment.
A second company doesn’t fix a conflict. We’ve seen family operations try to separate asbestos clearance work and demolition work into two companies controlled by the same people. Separate entities may not satisfy the independence rules if the same person controls both. Get specialist regulatory advice before you build a structure around it.
No written notice, no variation. Operators who find extra work on site and just get on with it often can’t recover the cost later. A short written notice to the client the day you discover the condition is the paper trail that gets you paid.
Paying a subbie’s super is a red flag. Construction businesses sometimes pay super straight into a subcontractor’s fund to be helpful. That looks like employment. Our lawyers recommend building super and insurance into the subcontractor’s rate and letting them manage their own.
Should you buy an existing demolition business instead?
Buying gets you plant, a client book and a crew on day one. It also gets you whatever liabilities come with them. Check every licence, the regulator’s history with the business, open disputes and the condition of the plant before you commit.
Pay special attention to the nominated supervisor. The licence may sit with the business, but the supervisor is a person, and if they leave after settlement the licence can be left without one. Tie their continued involvement into the deal.
And watch the early paperwork. We regularly see buyers sign “binding” term sheets that lock them in before finance or due diligence is done. Make the term sheet binding on price only, conditional on finance, due diligence and a formal sale agreement, with the deposit refundable if the deal doesn’t proceed.
How do you win your first demolition jobs?
Builders and principal contractors are where the steady work is. Before they give you a job, most will want a prequalification pack: your licence, certificates of currency, WHS policy, a sample SWMS and your subcontractor insurance requirements. Have it ready as a single PDF and you’ll look bigger than you are.
For residential work, a simple website with your licence number on the home page, a Google Business Profile and photos of finished sites will do more than newspaper ads. If your site takes quote requests, add website terms and conditions and a privacy policy.
Word of mouth still matters most. Every builder you work for knows three more. Finish on time, leave the site clean and send the waste dockets without being asked.
Frequently asked questions about starting a demolition business
Do I need a licence to start a demolition business?
Yes, for most structural work. Each state sets its own rules. NSW requires a DE1 or DE2 licence for structures 6 metres or taller or with specific risk conditions, while Victoria requires registration as a demolisher with the Building and Plumbing Commission. Smaller jobs may need no demolition licence, but they still need a SWMS.
What’s the difference between a restricted and unrestricted demolition licence?
In NSW, a restricted licence (DE2) covers structures from 6 to 15 metres, work affecting structural integrity and machinery on suspended floors. An unrestricted licence (DE1) adds structures over 15 metres, explosives, large cranes, floor propping, tensioned components and chemical installations.
How do I get a demolition licence in NSW?
Apply online through Service NSW. You’ll need an ABN or ACN, public liability insurance listing demolition as your activity, and a nominated supervisor with 11 units of competency plus documented job experience. You then visit a Service NSW Centre with photo ID within 30 days of applying.
How much does a demolition licence cost?
Each state regulator sets its own fees, and most index them every year, so check the current fee schedule before you apply. The fee is the smaller cost. Budget more for the training units, insurance and the time it takes to prepare SWMS and evidence of experience.
Can I remove asbestos with a demolition licence?
No. You need a Class B licence to remove more than 10 square metres of bonded asbestos, and a Class A licence for any friable asbestos. Many demolition businesses subcontract this to a licensed removalist and set out responsibilities in writing.
Do I need council approval to demolish a house?
Usually, yes. Depending on the state and site, you’ll need a development approval, a complying development certificate or a demolition permit. Your licence doesn’t replace it. Agree in writing whether you or the client will obtain it.
Should my demolition business be a company or a sole trader?
Most demolition operators trade through a company. Demolition carries a real risk of large injury and property damage claims, and a company keeps your personal assets separate from business debts. Commercial clients also prefer dealing with a Pty Ltd.
Can I use my interstate demolition licence in NSW?
Often, yes. Under the Automatic Mutual Recognition scheme, holders of certain interstate licences can work in NSW, but they must notify the regulator first. Other states run their own versions of the scheme, so check with the regulator where you plan to work.
Your next step
If this feels like a lot, that’s normal. Nobody gets every licence, policy and contract sorted in a week, and you don’t need to. Knowing how to start a demolition business properly mostly means doing things in the right order: structure, licence, insurance, then contracts.
The one document you’ll use on every single job is your client contract. Get it right once, attach it to every quote, and most disputes never start. If a job ever gets complicated, a construction lawyer can review the paperwork before you sign.
Start your Services Agreement today, and quote your first demolition job with confidence.
