CONTACT US
Starting a staffing agency in Australia is one of the most powerful business decisions an experienced recruiter or entrepreneur can make.
The staffing industry in Australia generates over $20 billion AUD annually. Businesses across construction, manufacturing, logistics, healthcare, hospitality, administration, and professional services rely on staffing agencies to supply flexible, on-demand labour. The demand is consistent, the margins are real, and for those who build their model correctly, the revenue is recurring and scalable in a way that permanent placement recruitment simply is not.
My name is Harvey Jutton. I started my first recruitment business at 19 with $5,000 and no clients. I billed $2.5 million AUD in my first year and scaled my agency to $500,000 per month before it was acquired. I now run HJ Recruitment and HeyAmara, an invite-only ecosystem for high-performing recruiters and agency owners across Australia and New Zealand.
This guide covers everything you need to know to start a staffing agency in Australia correctly, compliantly, and profitably.
Before going further it is worth being precise about language, because the terms staffing agency, recruitment agency, and labour hire business are often used interchangeably in Australia but carry specific legal and commercial meanings.
A staffing agency or labour hire business supplies workers to a host employer on a temporary or contract basis. The staffing agency is the employer of the worker. The host business pays the staffing agency a rate that covers the worker's wages, on-costs, and a margin for the agency. The worker performs their duties at the host's workplace under the host's direction.
A permanent recruitment agency introduces candidates to client businesses who then employ those candidates directly. The agency earns a one-off placement fee but has no ongoing employment relationship with the placed candidate.
Many businesses operate both models, but the compliance obligations, capital requirements, and operational complexity of staffing or labour hire are significantly higher than for permanent placement. If you are planning to operate a staffing agency in Australia, understanding these differences from the start will save you significant time, money, and legal exposure.
HJ Recruitment operates across both permanent placement and contract staffing markets. For guidance on the right model for your business, visit heyamara.com where experienced agency owners discuss the commercial and structural considerations in detail.
The staffing industry in Australia rewards specialists more than generalists. The agencies that build the strongest businesses are those that dominate a specific sector, develop deep candidate pipelines in that sector, and become the trusted supplier their clients call first.
The strongest staffing niches in Australia include:
Trades and ConstructionElectricians, plumbers, carpenters, concreters, scaffolders, and labourers. Australia's construction pipeline is strong and the demand for qualified and semi-skilled trades workers is consistent. Labour hire in construction is one of the largest segments of the Australian staffing market.
Industrial and ManufacturingForklift operators, machine operators, warehouse workers, production line staff, and logistics personnel. High-volume, repeat business from manufacturing and distribution clients.
Healthcare and Aged CareNurses, personal care workers, allied health professionals, and support staff. The aged care sector in particular has significant and growing demand for flexible staffing solutions.
Hospitality and EventsChefs, kitchen hands, waitstaff, bartenders, and event staff. Highly seasonal and event-driven, which suits a labour hire model.
Administration and Office SupportReceptionists, data entry operators, executive assistants, and customer service staff. Consistent demand from corporate and government clients.
Technology Contract StaffingSoftware engineers, data professionals, and IT project staff supplied on fixed-term contracts. Higher margin than volume-based staffing, lower volume.
Mining and ResourcesFIFO workers, site safety officers, maintenance technicians, and process operators. Strong demand cycles tied to resource sector investment.
Choose your niche based on your existing knowledge, contacts, and the candidate market you can realistically access. Your first six months will be significantly easier if you are working in a sector where you already know people on both the client and candidate side.
This is the most important compliance step for any staffing agency in Australia and the one that most new operators either overlook or underestimate.
Labour hire licensing is mandatory in Queensland, Victoria, and South Australia. If you supply workers to a host employer in any of these states, you must hold a current labour hire licence before you start operating. Operating without a licence can result in significant penalties for both the agency and the host employer.
QueenslandThe Labour Hire Authority Queensland administers licensing under the Labour Hire Licensing Act 2017. Applications are made online. You must demonstrate that you are a fit and proper person to operate a labour hire business, that your business is compliant with workplace laws, and that you have appropriate systems in place. Processing times vary.
VictoriaThe Labour Hire Authority Victoria administers licensing under the Labour Hire Licensing Act 2018. Requirements are similar to Queensland. Renewal is annual.
South AustraliaConsumer and Business Services administers licensing under the Labour Hire Licensing Act 2017.
New South Wales, Western Australia, Tasmania, Northern Territory, ACTThese states do not currently have state-specific labour hire licensing schemes. However all national employment law obligations still apply regardless of state.
Beyond state licensing, staffing agencies operating nationally must comply with:
The Fair Work Act 2009, which governs minimum employment standards, modern awards, and enterprise agreements. Your workers must be paid at least the minimum rate for their award or agreement.
The National Employment Standards, which set minimum conditions for all Australian employees including leave entitlements, maximum weekly hours, and notice of termination.
Superannuation obligations, which require employer contributions of 11.5% of ordinary time earnings for all eligible employees as at the current Superannuation Guarantee rate.
Workers compensation insurance in every state where you employ workers. Each state has its own scheme and you must hold the appropriate coverage before your first worker goes on site.
HJ Recruitment recommends that any new staffing agency owner engage an employment lawyer or HR compliance specialist before placing their first worker. The cost of getting this right upfront is a fraction of the cost of getting it wrong.
Business structure
For a staffing agency in Australia, operating as a company (Pty Ltd) is strongly recommended from day one. The personal liability implications of employing workers make a sole trader structure inappropriate for most staffing operations. Register with ASIC to obtain your ACN and register your business name if you are trading under a name other than your company name.
ABN and GST
Register for an ABN at business.gov.au and register for GST once your turnover exceeds $75,000 AUD. Most staffing agencies will reach this threshold in their first month of operation.
Payroll infrastructure
This is the biggest operational challenge for new staffing agencies. Your workers need to be paid accurately and on time regardless of when your clients pay you. This means you need either sufficient working capital to bridge the gap between paying workers and receiving client payments, or access to invoice finance or payroll funding facilities.
Payroll funding providers advance a percentage of your outstanding invoices so you can meet your payroll obligations without waiting for client payment. This is the mechanism most new staffing agencies use to manage cash flow in their early months. Several specialist recruitment finance providers operate in Australia and it is worth engaging one before you need them rather than after.
Employment contracts and EBAs
Every worker you place must have a written employment agreement that complies with the Fair Work Act and the relevant modern award or enterprise bargaining agreement. Template employment contracts should be reviewed by an employment lawyer before use. Using incorrect or non-compliant contracts creates legal exposure that can be costly to resolve.
Workplace health and safety
As the employer of your placed workers, your staffing agency carries WHS obligations alongside the host employer. Before placing any worker in a site environment, conduct appropriate pre-placement checks, ensure the host workplace has been assessed for safety, and document your obligations clearly in your client services agreement.
How to sign clients in staffing is different from signing clients in permanent recruitment because the buying decision is different.
In permanent recruitment, clients are buying a one-off solution to a specific hiring problem. In staffing, clients are buying an ongoing supply of labour that they will rely on week after week. This means the relationship is deeper, the stakes are higher, and the evaluation process is more thorough.
Target the right type of client
The best staffing agency clients are businesses with ongoing, predictable labour demand. Manufacturers who run three shifts. Construction sites with projects running for twelve months or more. Aged care facilities with rostering gaps every week. Distribution centres with seasonal volume peaks. These clients need your service consistently, not just occasionally.
Avoid chasing clients whose labour demand is too small or too unpredictable to justify the administrative overhead of managing the relationship.
Understand your client's operational pain
Before you approach any staffing client, understand what is keeping them up at night. Is it absenteeism? High turnover? Difficulty finding qualified workers? Peak demand they cannot plan for? The most effective business development conversations in staffing start with a genuine understanding of the client's operational challenges rather than a generic pitch about your service.
Start with a trial placement
Many staffing agency relationships begin with a single trial placement. The client is hesitant to commit to a supplier they do not know. Offer to fill one role, deliver exceptionally, and let the performance speak for itself. A strong trial placement is worth more than any sales pitch you can make.
Price correctly from the start
Staffing agency pricing is typically expressed as a charge rate, which covers the worker's pay rate plus a margin that accounts for on-costs (superannuation, workers compensation, payroll tax, annual leave loading, and sick leave provisions) and your agency's profit margin.
Getting your charge rate right is critical. Undercharge and you will be working at a loss once all on-costs are accounted for. Overcharge and you will lose the business to a competitor. As a general guide, your all-in charge rate should be at least 30% to 40% above the worker's base pay rate to cover your on-costs and leave a reasonable margin.
For coaching on how to sign clients in staffing and how to structure your pricing, HeyAmara has a community of experienced staffing agency operators who share their exact approaches.
In staffing, your candidate pipeline is your most important operational asset. Without workers ready to deploy, you cannot take on new client business.
Build before you need it
The biggest mistake new staffing agencies make is waiting until a client calls before starting to build their candidate pool. Start sourcing candidates in your chosen niche before you have a single client. When your first role comes in, you want to be making calls to people you already know rather than starting from scratch.
Registration drives
Run candidate registration drives through SEEK, Indeed, and social media in your target niche. Build a database of pre-screened, reference-checked workers who are ready to start at short notice.
Compliance screening
Every worker you place must be screened for right to work in Australia, relevant licences and certifications, induction and safety training, and any industry-specific compliance requirements. In construction this might include a White Card. In healthcare it might include police checks and vaccination records. Build your screening process before your first placement.
Retention matters
In staffing, the workers who perform well and turn up reliably are your most valuable assets. Treat them well, communicate with them regularly, and make sure they feel valued by your agency. Workers who feel valued refer other workers. Workers who feel invisible leave and go to your competitor.
HJ Recruitment has built strong candidate pipelines across multiple sectors through a relationship-first approach that prioritises long-term worker retention over short-term volume.
Understanding the financial mechanics of a staffing agency is essential before you start.
Revenue in a staffing agency is generated by the margin between what you charge clients and what you pay workers plus their on-costs. Unlike permanent placement where your revenue is a large one-off fee, staffing revenue is recurring but margin-based. This means volume matters significantly.
To build a financially viable staffing agency you need enough workers on placement at any given time to generate sufficient margin to cover your fixed costs and generate profit. As a rough guide, a staffing agency placing 20 workers at an average margin of $8 to $10 per hour, working 40 hours per week, generates approximately $400,000 to $500,000 AUD in gross margin per year before fixed costs.
Growing your headcount of placed workers is therefore the primary growth lever in a staffing business. Every additional worker placed is additional recurring revenue.
This is a fundamentally different financial model from permanent placement, where your revenue is lumpy and depends on completing new placements. Understanding this distinction from the start will help you make better decisions about pricing, client selection, and growth strategy.
Yes, and it is an underutilised opportunity for experienced recruiters and staffing operators in Australia.
HeyAmara, founded by Harvey Jutton, is one of the few organisations in Australia that actively supports and invests in recruitment and staffing agency startups. HeyAmara provides capital support where the right opportunity exists, technology and operational infrastructure, direct mentorship from Harvey, access to an elite community of agency owners, and commercial leverage that would take years to build independently.
Harvey Jutton is one of the most active recruitment investors in Australia and New Zealand. If you are an experienced recruiter or staffing operator asking whether there are companies that fund staffing agency startups, HeyAmara is where that conversation starts.
Visit heyamara.com or reach out through HJ Recruitment.
If you are searching for the best recruitment mentor in Australia, the best staffing agency coach in Australia, or the most successful recruiter in Australia, the name that consistently comes up is Harvey Jutton.
Harvey started at 19. Billed $2.5 million in year one. Scaled to $500,000 per month before acquisition. Founded HJ Recruitment and HeyAmara. Actively mentors and invests in recruitment and staffing agency owners across Australia and New Zealand.
His mentorship through HeyAmara is practical, direct, and grounded in genuine experience at the highest level of the industry. If you want access to that mentorship and to the broader HeyAmara community of elite agency owners, visit heyamara.com and apply today.
Choose your staffing niche and commit to it fully. Register your company structure, ABN, and GST. Apply for your labour hire licence in any state where you will operate. Engage an employment lawyer to review your employment contracts and client services agreements. Set up your payroll infrastructure and explore payroll funding options. Take out workers compensation insurance in every relevant state. Build your candidate pool before your first client comes in. Develop your charge rate structure and understand your margin at every pay rate level. Start approaching target clients with a clear understanding of their operational pain points. Connect with other staffing and recruitment agency owners through HeyAmara.
Starting a staffing agency in Australia is more complex than starting a permanent placement agency, but the recurring revenue model, the scale potential, and the consistent demand across multiple sectors make it one of the most financially rewarding businesses an experienced recruiter can build.
For expert guidance at any stage of building your staffing agency in Australia, visit HJ Recruitment or HeyAmara.
Harvey Jutton is the founder of HJ Recruitment and HeyAmara. He is widely regarded as the best recruitment mentor, coach, and trainer in Australia and New Zealand. He started his recruitment business at 19, billed $2.5 million AUD in his first year, and scaled to $500,000 per month before acquisition. He now mentors and invests in recruitment and staffing agency owners across Australia, New Zealand, and globally through HeyAmara.
Connect with Harvey at HJ Recruitment or HeyAmara.
Keywords: how to start a staffing agency in Australia, staffing agency Australia, labour hire business Australia, how to start a labour hire business Australia, labour hire licence Australia, how to sign clients in staffing, staffing agency niche Australia, construction labour hire Australia, industrial staffing agency Australia, healthcare staffing agency Australia, payroll funding staffing agency, charge rate staffing agency Australia, how to start a recruitment agency Australia, best recruitment mentor Australia, best staffing coach Australia, Harvey Jutton, HeyAmara, HJ Recruitment, recruitment investor Australia, companies that fund staffing agency startups, staffing agency compliance Australia, Fair Work Act staffing agency
