The warning came last week from opposition spokeswoman for Fair Trading Tania Mihailuk, who said the safety and welfare of people would be at risk.

The new laws, which took effect last week, mean people will no longer be required to hold a license for building and general trade work if the value of that work is less than $5000.

Ms Mihailuk, who was joined by local painter Todd Lantry, said contracts for internal paintwork would not require a painter to be licensed at all.

“Health and safety is a major issue here. We fear cowboys with no knowledge of asbestos and lead in buildings may come into the industry,” Ms Mihailuk said.

“Maitland has a lot of older buildings with asbestos and lead and unlicensed painters may not know what these substances look like, or know what to do about them – and they may not even care.

“We believe if a house has not been prepared properly, there could be grave risks to the health and safety to people in that house – and indeed to the painters themselves.”

Ms Mihailuk said the state government had not consulted the Master Painters Association.

Mr Lantry, who has been in the industry for 35 years, said most qualified painters could recognise lead, but an unlicensed painter would have no idea.

A spokeswoman for NSW Fair Trading Minister Matthew Mason-Cox said: “Minor residential work worth under $5000 can now be carried out without a licence to reduce red tape for consumers who want to get minor work done around their properties.

“Consumers continue to be protected by guarantees under the Australian Consumer Law.”

The spokeswoman said stakeholders, including those representing ‘master painters,’ were given a chance to comment on the new measures.

“It is worth noting that no specific concerns were raised by key stakeholders,” she said.