Key Takeaways
- The QBCC prosecuted 52 unlicensed and non-compliant building operators in 2025-26, resulting in 37 convictions and more than $380,000 in fines
- Compensation orders totalling more than $157,000 were issued to affected homeowners, including a single $70,000 order in one matter
- Unlicensed building work is an offence under section 42 of the QBCC Act carrying up to 100 penalty units ($14,375 from 1 July 2026) per offence
- Homeowners who engage unlicensed contractors are generally not covered by the Queensland Home Warranty Scheme
- If your builder was unlicensed, you may have rights to compensation through QBCC enforcement, civil proceedings, or breach of contract claims, but you need to act quickly
If you discover that a builder or contractor you engaged for Queensland building work was not licensed by the Queensland Building and Construction Commission (QBCC), your legal position is serious, but you have options. The QBCC’s 2025-26 enforcement data confirms that unlicensed building work is prosecuted actively: 52 prosecutions, 37 convictions, and more than $380,000 in fines and $157,000 in compensation orders in a single financial year. This article explains what the law requires, what your rights are, and what you should do if you have been affected.
What the QBCC’s 2025-26 Enforcement Results Mean for Queensland Homeowners
The QBCC publishes annual enforcement data covering its prosecution activity across the financial year. For 2025-26, the Commission reported:
- 52 prosecutions of individuals and companies for building offences
- 37 convictions for offences including carrying out building work without a licence, taking excessive deposits from consumers, and failing to have compliant contracts in place before commencing work
- $380,000+ in court-imposed fines
- $157,000+ in compensation orders to affected homeowners
- $70,000 the largest single compensation order in a single matter
- 1,412 individuals checked at 545 building sites, with 17 found to be undertaking unlicensed building work
QBCC CEO and Commissioner Angelo Lambrinos stated that these prosecutions send a clear message: “unlicensed and non-compliant building work will not be tolerated.” The enforcement data confirms that the QBCC is willing to pursue both prosecution and compensation for affected homeowners, making it an important enforcement avenue when a contractor has behaved illegally.
What the Law Requires: Licensing in Queensland
Under section 42 of the Queensland Building and Construction Commission Act 1991 (Qld) (QBCC Act), it is an offence to carry out regulated building work without holding an appropriate QBCC licence. The maximum penalty is 100 penalty units, which equals $14,375 per offence from 1 July 2026 for an individual. Companies face higher penalties.
“Regulated building work” covers a wide range of residential and commercial construction, including new residential builds (houses, units, townhouses), renovations, extensions and additions above minor thresholds, swimming pool construction, structural work, and licensed trade work such as electrical, plumbing, and gas installations.
Critically, a contractor’s obligation to hold a licence applies regardless of the contract value. There is no “small job” exemption to Queensland’s licensing requirement for regulated building work. If the work falls within the regulated category, a licence is required.
The legal responsibility rests with the contractor, but the consequences land on you. The obligation to hold a licence sits entirely with the contractor or tradesperson. When an unlicensed operator carries out work on your property, you bear the practical consequences: defective work that cannot be warranty-claimed, insurance that may not respond, and recovery that can only be pursued through enforcement or litigation.
The Real Risks for Homeowners: What You Lose Without a Licensed Contractor
1. No Queensland Home Warranty Scheme Protection
The QBCC Home Warranty Scheme provides a critical safety net for homeowners when a licensed contractor becomes insolvent, abandons work, or produces defective work that the builder refuses to fix. It is mandatory insurance that licensed residential builders must hold under regulated domestic building contracts.
If your contractor was unlicensed, the Home Warranty Scheme generally does not apply. The insurance is tied to the contractor’s licence: no licence, no cover. This eliminates the primary consumer protection mechanism in Queensland residential construction, leaving you exposed to the full financial risk of defective or incomplete work.
2. No QBCC Defect Rectification Leverage
The QBCC’s dispute resolution process for defective residential work operates through its licensed contractor framework. The Commission can compel a licensed contractor to remedy defective work or face consequences under the licence regime, including demerit points, conditions, suspension, or cancellation. That leverage does not exist against an unlicensed operator. While QBCC can prosecute unlicensed contractors, a criminal prosecution and a compensation order do not automatically remediate your property or restore the financial loss you have suffered.
3. Excessive Deposit Exposure
QBCC enforcement data for 2025-26 included convictions for taking excessive deposits. Queensland law limits the deposit a residential building contractor can take before commencing work to 10% of the contract price for contracts over $20,000. Taking more than this is an offence under the QBCC Act.
If you paid an excessive deposit and the contractor has disappeared or failed to commence work, your recovery options include a QBCC enforcement complaint, civil proceedings for breach of contract or money had and received, and in serious cases, a referral to Queensland Police for criminal fraud investigation.
4. Liability Under Contracts for Unlicensed Work
A contract with an unlicensed contractor for regulated building work may be unenforceable or voidable in certain circumstances. Under Queensland law, a contract that requires unlicensed work may be void as contrary to statute. Courts have in some cases refused to enforce payment obligations under contracts for unlicensed work. This cuts both ways: the contractor cannot sue you for the contract price, but it also means you may face arguments about the scope of your own remedy depending on how payments were structured. Legal advice is essential before taking steps to avoid or unwind such a contract.
Your Legal Rights If Your Contractor Was Unlicensed
If you have discovered that your contractor held no licence or had their licence cancelled before completing your work, you have several legal avenues available:
QBCC Enforcement Complaint
The QBCC accepts complaints about unlicensed building work and has the power to investigate, issue infringement notices, and initiate prosecution proceedings in the Magistrates Court. Compensation orders can be sought in those proceedings, as the 2025-26 enforcement data confirms. A QBCC complaint is not a substitute for your own civil claim, but it can result in an enforcement outcome that supplements your private recovery.
Civil Proceedings for Breach of Contract
A contractor who represented themselves as licensed and carried out regulated building work without a licence may have breached the contract, enabling you to claim damages. The measure of damages in a breach of contract claim is the loss you have suffered as a result of the breach, which may include the cost of remediation, the reduction in value of the work, and consequential losses such as alternative accommodation costs.
Misleading and Deceptive Conduct Under the Australian Consumer Law
Under section 18 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010 (Cth)), a person must not engage in conduct that is misleading or deceptive in trade or commerce. A contractor who represents to you that they hold a valid QBCC licence when they do not is likely engaging in misleading conduct. This gives rise to a right to claim damages under section 236 of the ACL. Importantly, there is no requirement to prove fault, only that the conduct was misleading and that you suffered loss as a result.
Restitution and Recovery of Payments
Where a contract is tainted by illegality because the contractor held no licence, courts may be willing to set it aside or award restitution of payments made for work that was not lawfully permitted. Whether restitution is available depends on the circumstances, including who has the greater moral culpability and whether you were aware of the unlicensed status. Legal advice is essential before relying on illegality as a basis for recovery.
Lessons and Action Points for Queensland Homeowners
1. Check the licence before you sign, every time. The QBCC licence register is publicly searchable at qbcc.qld.gov.au. A two-minute check before signing a building contract can save months of dispute and tens of thousands of dollars in recovery costs. Verify the licence category covers the type of work being done, not just that a licence exists.
2. If you discover your contractor was unlicensed, document everything immediately. Preserve your contract or any written agreement, all payment receipts and bank records, all communications by text, email, and voicemail, photographs of the work at every stage, and any representations the contractor made about their qualifications or licence status.
3. Lodge a complaint with QBCC, but do not rely on it alone. QBCC enforcement can result in prosecution and compensation orders, as the 2025-26 data confirms. However, QBCC enforcement is not the same as your own civil claim. You may need to pursue separate legal proceedings to recover your losses in full, particularly if the compensation order does not cover your actual damage.
4. Get legal advice before signing anything, especially any informal settlement. Unlicensed contractors often attempt to resolve complaints informally, sometimes offering partial refunds in exchange for a deed of release. Any informal settlement you sign may limit your later legal rights. Obtain advice before agreeing to anything.
5. Act quickly: limitation periods are unforgiving. Civil claims arising from building disputes in Queensland are generally subject to a six-year limitation period from the date the cause of action accrues, or three years from the date of discoverability under the Limitation of Actions Act 1974 (Qld). Do not assume you can deal with it later. The QBCC’s ability to prosecute also has time limits. The sooner you obtain advice, the more options remain available.
How Boss Lawyers Can Help
Boss Lawyers regularly acts for homeowners, developers, and property owners who have been left with defective or incomplete work after a contractor failed, abandoned a project, or was unlicensed from the outset. Whether your matter involves a QBCC enforcement complaint, civil proceedings for breach of contract or misleading conduct, recovery of excessive deposits, or urgent injunctive relief to prevent further unauthorised work, Boss Lawyers provides commercial, practical advice focused on recovery and results.
For strategic legal advice on building disputes and contractor enforcement in Queensland, contact Mark Harley on 1300 267 711 or via bosslawyers.com.au/service/building-construction-lawyers-brisbane/.
Frequently Asked Questions
What happens if I have already paid a builder who turns out to be unlicensed?
You have several potential options: a complaint to the QBCC (which can result in prosecution and compensation orders), civil proceedings for breach of contract or misleading conduct under the Australian Consumer Law, and in some cases restitution claims to recover money paid. Obtain legal advice as soon as possible, as limitation periods are running from when you discover the problem.
Can I get a refund if my builder took an excessive deposit and then abandoned the job?
Potentially yes. Excessive deposits are an offence under Queensland law and a breach of your building contract. QBCC can investigate and seek compensation orders. You may also have civil claims for breach of contract or money had and received. The QBCC secured more than $157,000 in compensation orders in 2025-26, confirming this is a real enforcement outcome.
Does QBCC Home Warranty Insurance cover me if my builder was unlicensed?
Generally no. The Queensland Home Warranty Scheme applies to work done by licensed contractors under regulated domestic building contracts. If your contractor was unlicensed, the scheme typically does not apply. This is one of the most significant financial consequences of engaging an unlicensed operator for residential work.
How do I check if my builder was licensed by the QBCC?
The QBCC maintains a public licence register at qbcc.qld.gov.au. You can search by licence number, individual name, or company name. The register shows the current licence status, the categories of work the licence covers, and any conditions or suspension orders. If a licence was cancelled or suspended at the time the work was done, that is relevant to your legal position and you should obtain advice.
Can I sue an unlicensed builder in the QCAT?
QCAT has jurisdiction over certain residential building disputes. However, disputes arising from unlicensed building work may not fall within QCAT’s standard residential tenancies and building disputes jurisdiction if the usual licensing framework is absent. Depending on the value and nature of your claim, you may need to pursue recovery through the Magistrates Court, District Court, or Supreme Court of Queensland. Legal advice will identify the correct forum and the most effective route to recovery for your specific circumstances.
If a dispute arises from an unlicensed builder’s defective work or an abandoned project, commercial litigation may be the fastest path to recovery. Boss Lawyers acts for homeowners, developers and principal contractors in Queensland building and construction disputes.
If you are a homeowner, developer, or subcontractor dealing with an unlicensed or insolvent builder, Boss Lawyers’ insolvency lawyers can advise on your recovery options, including QBCC claims, civil proceedings, and liquidation proofs of debt.
This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.
Mark Harley is the Principal Solicitor of Boss Lawyers Pty Ltd (ACN 143 136 645), Brisbane CBD, 32 Turbot Street, Brisbane QLD 4000. Phone 1300 267 711.
