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ARTICLE · 05 MAY 2026

Residential Focus: Insolvency And Licensing Refusal

Holding Redlich
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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...

AustraliaInsolvency/Bankruptcy/Re-Structuring
Christine Jones
Christine Jones
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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. 

This decision can be seen as instructive on a number of levels, firstly on the statutory construction point around whether a condition can be relevant to exercising the discretion and as a temperature check on the Tribunal’s views on the discretionary factors of:

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