Up to 300 New South Wales security guards a month are getting their licence by apparently exploiting a loophole which fails to check an applicant's citizenship or ability to speak English.

Key points: Legal loophole lets would-be security guards to qualify in Queensland, then transfer to stricter NSW or Victoria jurisdictions

Legal loophole lets would-be security guards to qualify in Queensland, then transfer to stricter NSW or Victoria jurisdictions Queensland allows people on holiday visas, without citizenship to become security guards

Queensland allows people on holiday visas, without citizenship to become security guards Broker in NSW selling answers to Queensland security test

7.30 has found evidence suggesting one NSW security licence broker sold accreditation tests, with answers, to people who had not undergone any study or training.

The legal loophole, known as "licence shopping", exploits shortcomings in Queensland's industry regulations, which allow students to qualify for their security licence then transfer to stricter jurisdictions, such as NSW or Victoria.

NSW police say 90 per cent of the 300 security guards a month are coming from south-west Sydney alone.

7.30's investigation has shown just 48 per cent of the state's security guard applicants are receiving the proper training and scrutiny.

Emails show other NSW licence brokers openly flouting regulations:

"Quick before government close down Queensland training companies" "Hurry and inform friends (sic) from Beirut to go online (sic) to get security licence..." "...use my Lakemba address .... only need to have Lebanese passport." "...not speak English. No problemn (sic)..."

Do you know more about this story? Email 7.30syd@your.abc.net.au

NSW broker selling the answers to tests

James is a security guard with years of experience working in the UK.

But as he is only in Australia on a working holiday maker visa, NSW police will not allow him to work in the state. In Queensland, it's a different matter.

"Through some research I did online I found out another way to get [a licence]," he told 7.30.

"Hopefully if I can get one from Queensland, I can then transfer it over the New South Wales Police Department."

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The NSW broker he visited in Auburn in Sydney's south-west was Merc Security, run by Mohamed Miski and Michael Azzi, who have provided security to Auburn's colourful deputy mayor, Salim Mehajer.

When Sydney's Lindt Cafe reopened to the public last year after the Sydney siege, Mr Miski was managing the crowd.

7.30 understands Mr Azzi also initially obtained a security licence through Queensland.

NSW police have already refused Mr Azzi's application for a security trainer licence on the grounds he falsified his industry experience — a decision Mr Azzi is challenging.

James was sold the Queensland security test with the answers pre-filled in by Merc Security. The book's cover showed the logo of Gold Coast-based training organisation Peacekeepers.

Peacekeepers dominate the training for NSW residents obtaining Queensland licences, NSW Police said.

The federal training regulator, the Australian Skills Quality Authority Agency (ASQA), raided Peacekeeper's Gold Coast offices on Wednesday, seeking evidence it was selling accreditations with little or no training.

The answers included critical information about first aid, positional asphyxia and when to strike someone.

"So, question 13, describe a situation when striking would be an acceptable choice of physical contact — and it just gives you the answer," James said.

"To me it seems perfectly legitimate. From what [Merc Security management] said it doesn't look like there is anything illegal about it."

NSW training 'undermined' by Queensland

Duncan McGufficke, the managing director of Secta Training Academy, has been training security guards in NSW for 20 years.

"They are trying to clean up the security industry in NSW and they are doing a very good job but they are being undermined by Queensland," Mr McGufficke said.

He explained how strict security licence training requirements and accreditation are in NSW, the state with biggest security workforce.

"The 1AC security licence entitles you to do mobile patrol, aviation security, retail loss prevention, concierge, crowd control, looking after concerts, pubs, clubs, sporting venues as well as alarm monitoring," he said.

"They have to sit a literacy test with an RTO [registered training organisation] that is police approved.

"They have to do an 11-day course."

NSW applicants must also be either an Australian citizen or hold a full working visa and submit to criminal background checks and fingerprint scans.

In Queensland, the rules are very different.

"Queensland will allow anyone, it doesn't matter if it's a tourist, if they are on holiday or on an overseas passport," Mr McGufficke said.

"They don't even have to speak English and they can obtain their security licence in Queensland and then through mutual recognition, the NSW police can't knock them back."

'When can you use a firearm?' 'If there is a fire'

Mr McGufficke said the Queensland-qualified guards, who tend to have poor English and are from migrant backgrounds, were being exploited to do $10 an hour cash-in-hand "subbie" work because their training was not taken seriously.

"There seems to be a third world underclass that is appearing out there. Mostly those people are coming from Queensland, and they are not getting jobs," he said.

"They are usually taxi drivers, they might be cooks or cleaners and every now and then they get called up and they might only get a 10-hour shift."

He called it "another-7-Eleven" after the convenience store chain was caught allegedly underpaying migrant workers.

Mr McGufficke showed 7.30 test answers he has gathered from Queensland-qualified guards who cannot get work and come to him for assessment.

"Now this is a question we've asked a Queensland-qualified guard - 'When can you use a firearm?' His answer is... 'If there is a fire'," he said.

"They are not getting guards, they are getting men in uniform."

Merc Security did not respond to 7.30's request for interview.