Licensing has been a focus topic in our team lately and for good reason. If you’re a residential builder or a specialist trade in NSW, then no ticket, no play.

While the facts of the decision in Leto v Secretary Department of Customer Service [2026]NSWCATOD 26 (Leto v Secretary) are obviously very specific, an insolvency in an applicant’s trading history is frequently a barrier to licensing and is frequently an inducement to do whatever is necessary to avoid insolvency, so as to retain a licence or the future prospect of one.

Track record of insolvency – implications for licensing

A recent decision of the Tribunal, affirming a licensing decision under the Home Building Act 1989 (HB Act) of the regulator to refuse an application to renew a qualified supervisor certificate, reveals the keen focus of the regulator on using its licensing powers to clean up the industry.

The applicant before the Tribunal was the director, secretary and controlling mind of a company licensed under the HB Act and was its nominated supervisor.