The name of the Department of Labour and Industry was changed to the Department of Industrial Affairs on 8 November 1983. The new department was responsible for machinery and construction safety and factories and shops. It was also required to plan for the amalgamation of the Department with the Division of Occupational Health (Health Department) and to assist in the creation of the Commission, and later, Department of Occupational Health, Safety and Welfare.

The Department was established in 1920 with the appointment of a Commissioner for Labour. The portfolio of Minister for Labour was created in 1924 and in 1936 a Secretary for Labour was appointed and the Department became advisory bureau for all government departments (except Railways) in regard to industrial matters affecting government wages and employees.

The Department was responsible for the administration of the industrial code, apprentices, construction safety, weights and measures, machinery, shops and factories and consumer protection. It also assumed responsibility for the Small Claims Tribunal and the licensing of credit providers in 1975.

Following the 1983 State election, the Division of Industrial Training was transferred to the Department of Employment and Administrative Services, and the Weights and Measures Branch was transferred to the Department of Consumer Affairs.