Hiring Security Guards:
Costs, Licensing & Choosing a Legitimate Security Provider
Z Protection Services
Security is a non-negotiable element for businesses, residential complexes, and events in Victoria. However, understanding how security guard pricing works, what licenses are required, and the risks of hiring underpriced providers is essential to ensuring compliance and safety.
This guide will walk you through:
✔️ The legal costs of hiring security guards in Victoria
✔️ The licensing requirements for security companies
✔️ How to identify underpaying or illegal security firms
✔️ What to consider when selecting a reputable security provider
Security Guard Pricing in Victoria – How Costs Work
Introduction
In Victoria, security guard wages are regulated by the Security Services Industry Award 2020, ensuring fair pay and legal employment conditions.
The total cost of hiring a security guard is influenced by several key factors:
🔹 Base Wage Rate – Determined by the Award and increases for night shifts, weekends, and public holidays.
🔹 Casual vs. Permanent Guards – Casual employees receive 25% loading, increasing their hourly rate.
🔹 Superannuation (11%) – Employers must pay super contributions based on employees' earnings.
🔹 WorkCover Insurance (3.767%) – Covers workplace injuries and liabilities.
🔹 Portable Long Service Leave (1.8%) – Required for security workers in Victoria.
Security Guard Rates & Minimum Legal Pay Rates for Security Guards in Victoria (2023-24)
A reputable security company charges higher rates because they operate legally and professionally. Costs include paying guards above the legal minimum, covering superannuation, WorkCover, long service leave, and insurance.
Additionally, they invest in a 24/7 operations team, backup staff, and an incident response unit to ensure reliable protection. To remain operational and provide high-quality security, they must also generate profit while maintaining compliance and service excellence. Cheap security often means cut corners, unlicensed guards, or underpaid staff—leading to serious risks.
Security guards in Victoria are classified into five levels, with experience, responsibilities, and pay increasing at each stage.
Higher levels mean better-trained guards and increased pay. If a company offers unusually cheap security, they are likely hiring only Level 1 guards—or using unlicensed personnel.
The minimum obligations for permanent Level 1 Security Guards start from $36 on weekdays daytime and can go up to $80 on public holidays.
The minimum obligations for casual Level 1 Security guards start from $40 on weekdays daytime and can go up to $87 on public holidays.
💡 Important: These figures are minimum legal obligations. If a security company charges significantly less, they are likely underpaying their workers or operating illegally.
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Why Some Security Companies Charge Less – And Why It’s a Red Flag
Some security providers offer rates far below the market average. While this might seem like a great deal, it often signals serious legal and operational risks, including:
❌ Unlicensed Guards – Operating without a security license is illegal and poses safety risks.
❌ Underpaid Workers – Some companies pay less than the legal minimum, leading to worker exploitation.
❌ No Insurance Coverage – Without proper WorkCover and liability insurance, you could be financially liable if something goes wrong.
❌ High Staff Turnover – Underpaid guards often leave quickly, leading to inconsistent security service.
❌ Poor Training & Compliance – Illegally cheap companies cut costs on training, increasing security risks.
⚠️ Warning: If a company’s pricing seems too good to be true, it usually is. The Labour Hire Authority (LHA) actively investigates firms that operate below legal pay rates, which could lead to license suspension or cancellation.
Licensing Requirements for Security Companies in Victoria
Before hiring a security firm, verify that they hold the correct licenses and registrations. All security providers in Victoria must comply with the following regulations:
Essential Licenses & Certifications
✅ Private Security Business License – Required to operate a security company in Victoria (issued by Victoria Police).
✅ Individual Security Guard Licenses – Every security guard must have a valid private security license.
✅ Labour Hire License – If the company provides guards to other businesses, they must hold a Labour Hire License from the LHA.
✅ Firearms & Defensive Equipment Permits – Required for armed security officers.
✅ WorkCover Insurance & Public Liability Insurance – Protects businesses from liability.
💡 Pro Tip: Ask security providers for proof of licensing and insurance before hiring them. You can verify their license on the Victoria Police Private Security Register and the Labour Hire Authority website.
How to Choose a Reputable Security Provider in Victoria
When selecting a security provider, prioritize compliance, experience, and professionalism over price.
✅ 1. Verify Licensing & Legal Compliance
✔️ Check for a valid security business license and Labour Hire License.
✔️ Ensure all guards hold individual security licenses.
✔️ Ask for proof of WorkCover and public liability insurance.
✅ 2. Experience & Industry Reputation
✔️ How long has the company been in business?
✔️ Do they specialize in your industry (corporate, retail, event security)?
✅ 3. Guard Training & Professionalism
✔️ Are guards trained in conflict resolution, emergency response, and de-escalation?
✔️ Do they undergo regular training and background checks?
✅ 4. Transparent Pricing & Legal Pay Rates
✔️ Does the provider follow minimum legal pay rates for guards?
✔️ Do they provide clear, itemized pricing for security services?
Defining “Stranger” and Understanding Safe vs. Unsafe Strangers
A “stranger” is typically defined as an unfamiliar person, but not all strangers are dangerous. Teaching children how to differentiate between safe strangers and potential threats is crucial.
Safe Strangers: Police officers, firefighters, and emergency responders. Teachers, security personnel, and store staff. Parents with children in supervised areas.
Unsafe Strangers:
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Individuals who attempt to lure children with gifts, pets, or promises of fun activities.
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Adults who request help from children (e.g., asking for directions or assistance finding a lost pet).
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Strangers lingering near schools, playgrounds, or public restrooms without a valid reason.
Key Lesson for Children: “Not all strangers are bad, but we must be cautious and follow safety rules.”
The Real Cost of Choosing a Cheap Security Provider
Opting for the lowest-priced security service often leads to higher risks and potential liabilities.
The Risks of Underpriced Security Services
🚨 Legal Risks – Hiring a company that underpays or employs unlicensed guards could make you liable for non-compliance fines.
🚨 Increased Security Threats – Untrained or underpaid guards are more likely to fail in high-risk situations.
🚨 Reputation Damage – Security issues can harm your business’s reputation and customer trust.
🚨 Frequent Staff Turnover – Low wages mean guards quit frequently, leading to inconsistent security service.
💡 Remember: The true cost of security isn’t just about the hourly rate—it’s about ensuring safety, reliability, and compliance.
Supporting Small Businesses vs. Ensuring Reliable Security – Why It Matters
Supporting small businesses is important, but when it comes to security, having a fully operational team, backup resources, and proper infrastructure is crucial. A one-man security company or a very small provider often lacks:
🚨 24/7 Operational Support – No control room or backup team to handle emergencies.
🚨 Reliable Coverage – If the guard is sick or unavailable, there’s no replacement, leaving your site unprotected.
🚨 Emergency Response – No ability to call in reinforcements or coordinate large-scale incidents.
🚨 Compliance & Insurance – Small providers may cut corners on licensing, WorkCover, or liability insurance, exposing you to legal risks.
🚨 Scalability & Consistency – As your security needs grow, a one-man operation struggles to keep up.
A professional security firm ensures trained personnel, real-time monitoring, emergency backup, and full compliance—giving you peace of mind that your security is in safe hands. Security isn’t just about having a guard; it’s about having a system that works.
The Hidden Risks of Untrained & Underpaid Security Guards
Hiring untrained or underpaid security guards isn’t just a cost-cutting mistake—it’s a serious risk to your business, customers, and reputation.
🚨 Increased Security Threats – Untrained guards may fail to handle theft, violence, or emergencies, putting people in danger.
🚨 Legal & Financial Liability – If an underqualified guard mishandles a situation, your business could face lawsuits, fines, or compliance penalties.
🚨 Customer & Staff Safety Risks – Poorly trained guards can escalate conflicts instead of de-escalating them, increasing the chance of harm.
🚨 Reputational Damage – Security failures can destroy customer trust and tarnish your brand’s image.
🚨 High Staff Turnover & Inconsistent Service – Underpaid guards leave frequently, resulting in unreliable and inconsistent security coverage.
Long-Term Consequences of Hiring Cheap Security
🔴 Business Vulnerability – A weak security presence invites criminal activity and repeat security breaches.
🔴 Regulatory Issues – Non-compliance with labour laws and licensing regulations can lead to fines, investigations, or shutdowns.
🔴 Loss of Clients & Revenue – If customers feel unsafe, they won’t return, and businesses with security issues risk losing contracts.
💡 Bottom Line: Cutting costs on security can cost you much more in the long run. Investing in properly trained, licensed, and fairly paid security professionals ensures safety, compliance, and long-term business success.
Why Choose Z Protection Services?
At Z Protection Services, we prioritize compliance, professionalism, and reliability—ensuring our clients receive legally compliant, high-quality security solutions in Victoria.
✅ Fully Licensed & Compliant – We adhere to all Victorian security regulations, Labour Hire Licensing, and WorkCover requirements, guaranteeing lawful and ethical security services.
✅ Highly Trained Security Professionals – Our guards undergo rigorous training in risk management, de-escalation, emergency response, and legal compliance to provide top-tier protection.
✅ 24/7 Operational Support & Backup – We have a dedicated control center and standby security staff, ensuring continuous service without gaps.
✅ Fair Wages & Ethical Employment – Unlike budget security firms, we pay industry-standard wages, attracting experienced professionals who are motivated and reliable.
✅ Advanced Security Standards – We integrate strict vetting, ongoing training, and compliance audits to maintain the highest security standards.
With Z Protection Services, you are guaranteed professionalism, accountability, and security solutions that meet and exceed industry standards. Don't compromise on safety—choose a provider you can trust.