External Investigators and Private Investigator Licensing: A Cross-Jurisdiction Compliance Check for NSW and WA

When an organisation receives an allegation of reportable conduct, one of the first operational decisions is whether the matter can be investigated internally or whether an external investigator should be appointed. In New South Wales and Western Australia, that decision has an additional compliance layer: private investigator licensing. For safeguarding leads, HR teams and executives, the practical risk is clear. If you appoint an external investigator without checking licensing requirements, you may compromise the lawfulness, defensibility and credibility of the investigation process. The safest approach is to separate three questions early: is the organisation in scope of the relevant Reportable Conduct Scheme, is an external investigator actually needed, and if so, does the proposed investigator require and hold the right licence.

Why licensing matters in reportable conduct investigations

Reportable Conduct Schemes require in-scope organisations to notify the regulator of allegations of reportable conduct and to investigate them. In both NSW and WA, regulators expect investigations to be timely, procedurally fair and carried out by appropriately qualified people. That expectation sits alongside state laws regulating private investigation activity.

The practical distinction is between:

• internal employee investigators, who are usually acting within the scope of their employment; and
• external or commercial investigators, who are engaged from outside the organisation.

That difference matters because internal employees are generally not treated the same way as external investigators for licensing purposes. In contrast, external investigators who provide investigative services commercially will usually need to meet the relevant state licensing requirements.

Licensing is not a substitute for investigative competence. A licensed investigator may still be unsuitable if they lack child-safe practice capability, trauma-informed interviewing experience or familiarity with reportable conduct frameworks. Equally, someone with safeguarding experience may still be unsuitable for external appointment if they do not hold the required licence.

New South Wales: external investigators and the Class 2E licence

In NSW, the Reportable Conduct Scheme operates under the Children's Guardian Act 2019 and is overseen by the Office of the Children's Guardian. For organisations deciding whether to outsource an investigation, the key licensing point is straightforward: external investigators need a Class 2E (Private Investigator) licence under the Security Industry Act 1997 (NSW).

By contrast, internal employees are exempt when acting within the scope of their employment. This is an important operational distinction. If your organisation’s HR manager, employee relations specialist or safeguarding officer conducts the investigation as part of their role, that is not the same as engaging a private external provider.

For NSW organisations, the compliance check should include:

• confirming whether the person is an employee or an external contractor;
• if external, verifying that they hold the required Class 2E licence;
• ensuring the scope of work matches the licensed activity;
• documenting the verification before appointment.

This matters particularly where organisations use panel providers, workplace investigators or consultancy firms. A firm’s reputation or legal background does not remove the need to confirm the relevant investigator licensing position. Procurement teams should not assume that a general investigations, HR or consulting service can lawfully conduct the work without the appropriate licence.

NSW organisations also need to keep the reportable conduct timetable in view. Initial notification to the OCG is due within 7 business days, and the final report is due within 30 calendar days. That means any licence checks and appointment steps must happen quickly. Delayed procurement can undermine compliance with the reporting timeframe.

Western Australia: licensed external investigators and Ombudsman WA expectations

In WA, the Reportable Conduct Scheme commenced on 1 January 2023 under the Parliamentary Commissioner Act 1971 and is overseen by Ombudsman WA. As in NSW, the use of an external investigator creates a separate legal and operational question. External investigators must be licensed under the Security and Related Activities (Control) Act 1996.

The practical effect is similar to NSW: if your organisation appoints a commercial, independent investigator from outside the business, you should confirm that the person is appropriately licensed before they begin work. Internal staff conducting the investigation in the course of their employment are generally treated differently from external providers.

WA organisations should also remember that scheme deadlines are active from the outset. Initial notification is required within 7 working days, and a final report is due on conclusion of the investigation. That makes early triage essential. If external appointment is likely, organisations should move immediately to:

• identify suitable providers;
• verify licensing status;
• confirm availability and capability;
• issue a clear written brief.

In practice, WA organisations should be cautious about informal arrangements, such as appointing a known consultant, a former police officer or a workplace investigator without first checking whether the work falls within regulated investigative activity. Prior investigative experience alone is not enough. Licensing and competence both need to be satisfied.

Internal versus external investigators: the key compliance distinction

For both NSW and WA, the most important operational line is this: internal employee investigators are generally exempt from private investigator licensing requirements when acting within their employment role, while external commercial investigators usually require a state-based licence.

That distinction should drive your triage process. Before you go to market or call a preferred provider, ask:

1. Can this matter be investigated internally with independence and capability?
2. If not, is the proposed investigator external to the organisation?
3. If external, what licence is required in the jurisdiction?
4. Has the licence been verified and recorded?
5. Does the investigator also have the right child-safe investigation capability?

The final point is critical. Regulators expect investigators to be appropriately qualified. A common benchmark is Certificate IV in Government Investigations together with trauma-informed interviewing experience. In child-related matters, organisations should also assess procedural fairness capability, evidence handling, understanding of reportable conduct thresholds, and experience managing parallel processes such as disciplinary action, mandatory reporting or police involvement.

Procurement controls for lawful appointment

A sound procurement process reduces the risk of appointing an investigator who is unavailable, unlicensed or unsuitable. For NSW and WA organisations, procurement controls should include the following minimum steps.

Build a pre-qualified panel
Maintain a panel of external investigators who have already been screened for licensing, qualifications, experience and conflicts of interest. This is especially useful given the short notification timeframes.

Verify licence status before engagement
Do not rely on marketing material or a verbal assurance. Obtain and record evidence of the relevant licence for the individual or provider engaged.

Check jurisdiction-specific suitability
A provider suitable for NSW may not automatically meet WA requirements, and vice versa. Cross-jurisdiction practice should be checked rather than assumed.

Assess child-safe capability
Licensing is only one threshold. Confirm experience in trauma-informed practice, interviewing, procedural fairness and reportable conduct investigations involving children.

Use a written brief and terms of engagement
Set out the allegation scope, reporting lines, confidentiality expectations, evidence handling requirements, regulator timeframes and any interaction rules where police or child protection agencies are involved.

Record the appointment decision
Keep a file note explaining why the matter was handled internally or externally, why the investigator was selected, and what checks were completed. That record can be important if the regulator later asks about process quality.

Monitor progress against scheme deadlines
The appointment process should not delay the organisation’s statutory notifications or reporting obligations. Internal oversight remains with the head of the organisation even where investigation work is outsourced.

Key takeaways

• In NSW, external investigators need a Class 2E (Private Investigator) licence under the Security Industry Act 1997 (NSW).
• In WA, external investigators must be licensed under the Security and Related Activities (Control) Act 1996.
• Internal employee investigators are generally exempt when acting within the scope of their employment.
• Licensing does not replace the need for an appropriately qualified, child-safe and trauma-informed investigator.
• Procurement controls should include licence verification, capability checks, written terms of engagement and records of the appointment decision.
• Licence checks should be built into early triage so they do not delay reportable conduct notifications and reporting.