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Escort in the city of Hoogstede - The criminalisation or licensing system imposed on sex industry businesses and the independent provision of sexual services create a separate category of the illegal or unlicensed sector. The proportion working as street-based sex workers or sex workers providing escort services is largely unknown, but has been estimated to be five percent and less than 10 percent, respectively, of all sex workers in New South Wales Donovan et al. These proportions may not be observed in other jurisdictions due to the different legal frameworks around private and brothel work.
Owner-operated brothels and private escort workers are not required to obtain a licence, but must be registered, and escorts from brothels are permitted. If only one or two sex workers run a brothel or escort agency, which does not employ other sex workers, they also do not need a licence, but are required to be registered. However, in all other cases, the operator of a brothel or escort agency must be licensed.
But in the Liberal centre-right opposition announced that it would make prostitution reform part of its campaign for the March State election. The plan would involve a new licensing authority, following revelations that the sex industry had been expanding and operating illegallly as well as in legal premises. The Liberals claimed that organised crime and coercion were part of the NSW brothel scene.