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Investigations NSW, WA

Using External Investigators Lawfully: Licensing Rules and Procurement Traps in NSW and Western Australia

September 25, 2026 6 min read
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When a reportable conduct matter is referred for external investigation, legal compliance does not end with scope, timing and procedural fairness. In New South Wales and Western Australia, organisations also need to consider whether the person or firm they engage must hold a private investigator licence. This is a frequent procurement blind spot: a provider may appear experienced in workplace or safeguarding investigations, but still be unable to lawfully undertake the work if the relevant licensing position has not been checked. For safeguarding leads, HR and procurement teams, the safest approach is to treat licensing as a threshold due diligence issue before engagement, not an administrative detail to sort out later.

Why licensing matters in reportable conduct investigations

Under reportable conduct frameworks, regulators expect organisations to investigate allegations properly and use appropriately qualified investigators. That expectation is not only about skill and child-safe practice. It also extends to whether the investigator is permitted to perform the work under the applicable state licensing regime.

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. If an organisation engages an external provider without checking the licensing position, it creates avoidable legal and governance risk.

That risk is practical as well as technical. If the investigator was not lawfully authorised, the organisation may face scrutiny about the integrity of the investigation process, its procurement controls and whether it exercised reasonable diligence when responding to a child safety allegation. This is especially important in reportable conduct matters, where decisions may affect employment, volunteer engagement, regulator reporting and future child safety risk management.

Licensing should therefore be considered alongside capability questions such as trauma-informed interviewing, understanding of procedural fairness, and experience with allegations involving children.

NSW: external licence requirement and the internal employee exemption

In NSW, the position is clear: external investigators require a Class 2E (Private Investigator) licence. That requirement is highly relevant where an organisation wants to appoint a consultant, panel provider, law firm investigator or specialist workplace investigator from outside the organisation.

The important contrast is the internal employee exemption. Internal employees are exempt when acting within the scope of their employment. In practice, this means an organisation can often use its own staff to undertake an investigation without requiring them to hold a private investigator licence, provided they are genuinely internal employees and are performing the work as part of their employment duties.

This distinction matters because some organisations assume that any person with investigation experience can be treated as an “internal” resource if they are closely embedded in the organisation’s operations. That assumption can be unsafe. Procurement and legal teams should look at the actual status of the individual:

  • Are they an employee of the organisation?
  • Are they acting within the scope of their employment?
  • Or are they an external contractor, consultant or separate business?

If they are external, the exemption should not be assumed to apply. That is the point at which the Class 2E licensing question becomes critical.

For reportable conduct matters in NSW, organisations should also remember the scheme’s reporting timetable: initial notification to the Office of the Children’s Guardian within 7 business days, and a final report within 30 calendar days. If an external investigator is needed, licensing checks should be completed early so they do not delay compliance with those statutory timeframes.

WA: similar risk, different statute

Western Australia presents a similar operational issue, although under different legislation. External investigators must be licensed under the Security and Related Activities (Control) Act 1996. For organisations handling reportable conduct matters in WA, this means external appointment decisions should include an explicit licensing verification step.

WA’s reportable conduct scheme is overseen by Ombudsman WA. Initial notification is due within 7 working days, with the final report provided on conclusion. Although that gives some flexibility for the completion stage, it should not encourage a casual approach to investigator appointment. If an organisation decides an external investigator is required, it should verify legal authority to perform the work before the engagement starts.

As in NSW, organisations should be careful not to blur the line between internal and external resources. If the investigator is being brought in from outside the organisation on a commercial basis, licensing is not a secondary issue. It is part of determining whether the provider can be engaged lawfully at all.

Procurement traps: what to verify before you appoint

Many licensing problems arise because procurement processes focus on price, availability and CVs, while overlooking role classification and regulatory fit. A robust procurement workflow for reportable conduct investigations in NSW and WA should verify at least the following.

First, confirm whether the proposed investigator is internal or external. This sounds obvious, but it is where many errors begin. A contractor, consultant, sole trader or external firm should not be treated as an internal employee simply because they have worked with the organisation before.

Second, verify the applicable licence before engagement. In NSW, check for the required Class 2E (Private Investigator) licence. In WA, check that the provider is properly licensed under the relevant WA legislation. This should be recorded in the procurement file, not left as a verbal assurance.

Third, confirm that the individual actually conducting the investigation is covered. A firm may market investigation services, but procurement teams need to know who will perform the work and whether the licensing position applies to that person or arrangement.

Fourth, assess competence separately from licensing. A licence does not by itself establish suitability for child-related investigations. Regulators expect appropriately qualified investigators. A common benchmark is Certificate IV in Government Investigations together with trauma-informed interviewing experience. For reportable conduct matters, organisations should also look for experience in procedural fairness, evidence assessment on the balance of probabilities, and handling allegations involving children and vulnerable people.

Fifth, make sure the engagement terms align with reportable conduct requirements. The investigator should understand the reporting deadlines, the need for confidentiality, and the organisation’s obligations to provide updates and final findings to the relevant regulator.

A practical decision rule for safeguarding and procurement teams

A useful working rule is this: if the investigation will be conducted by someone outside your organisation, assume licensing must be checked before appointment. Do not rely on broad descriptions such as “workplace investigator”, “independent reviewer” or “consultant” as proof that the person can lawfully perform private investigation work in the jurisdiction.

If you are using an internal employee, confirm that the person is genuinely employed by the organisation and acting within the scope of that employment. Even where no licence is required, the organisation must still consider whether the person has the capability, independence and child-safe practice skills needed for the matter.

This disciplined approach helps avoid two common failures: engaging an external provider who is not lawfully authorised, and overestimating the protection offered by the internal employee exemption. In reportable conduct matters, both errors can undermine confidence in the process and expose the organisation to unnecessary regulator concern.

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 employees are generally exempt from private investigator licensing when acting within the scope of their employment.
  • Procurement teams should verify whether the investigator is truly internal or external before relying on any exemption.
  • Licensing checks should be completed before engagement and documented in the procurement file.
  • Licensing is only one part of due diligence; organisations should also assess qualifications, trauma-informed interviewing capability and reportable conduct experience.