Frequently asked questions – National Occupational Licensing Reform
These questions and answers are about national licensing, which is the preferred option.
Many elements of the national licensing option are still to be informed by the stakeholder consultation, and it’s possible that details of the scheme may change.
Download the Consultation Regulation Impact Statements
1. Why is a national occupational licensing system being considered?
2. Who will be responsible for a national system of licensing?
3. What would a national Licensing Authority do?
4. What will happen to the current regulators?
5. When would national licensing commence?
6. What would it mean for me as a licensee?
7. What advice will I get about my new national licence and when?
8. Doesn’t my current licence allow me to work anywhere in Australia?
9. I don’t work across the border, so is there a restricted licence available that is cheaper?
11. Will I have to pay a fee to be transitioned into the new system?
12. Where can I find information about licence fees?
1. Why is a national occupational licensing system being considered?
The purpose of the national occupational licensing system is to improve productivity by increasing business opportunities and efficiency and the mobility of labour.
Under existing mutual recognition arrangements you need to apply for and pay for a licence in every jurisdiction you work in. Sometimes this means satisfying different qualifications and eligibility requirements or sitting additional tests. This is a cost for licensees who choose to take advantage of mutual recognition arrangements and discourages licensees from working in a different State or Territory.
Under the proposed national system a licensee will be able to work anywhere in the country without the need to make a further licence application when moving to any other state or territory. Once national licensing commences, licences will be issued by the National Occupational Licensing Authority in all States and Territories according to the same eligibility requirements set out in the Occupational Licensing National Law Act 2010 (the National Law). Existing licensing bodies in the States and Territories will act as ‘delegates’ of the NOLA, meaning they will carry out a number of functions such as issuing licences, undertaking compliance activities and initiating disciplinary action on NOLA’s behalf. The functions of the Licensing Authority, including those that can be delegated to jurisdictions will be set out in the National Law.
2. Who will be responsible for a national system of licensing?
The National Occupational Licensing Authority (the Licensing Authority) will be the body responsible for administering the new system for occupations included in the national occupational licensing scheme under the National Law. Currently these occupations are property, electrical, plumbing and gasfitting and refrigeration and air-conditioning mechanics.
The Licensing Authority is governed by a Board comprised of nine members including a Chair and two regulators. The Board was appointed by the Standing Council on Federal Financial Relations in December 2011. In making appointments, the Standing Council, as required by the Law, ensured the Board had a balance of people with appropriate skills or experience in unions, representing employers, consumer advocacy or training.
There will be a single head office for the Licensing Authority, based in Sydney. However, you will be able to apply for national licences through your usual licensing body who will act as a delegate of the Licensing Authority under the National Law to issue licences, undertake compliance activities and initiate disciplinary action.
3. What would a national Licensing Authority do?
The Licensing Authority is being established under the National Law to administer the national occupational licensing system. To do this, its key responsibilities will include:
- Issuing licences, undertaking compliance and enforcement activities under the National Law, commencing and taking disciplinary action. These day-to-day functions will be delegated to the existing occupational jurisdictional regulators in each State and Territory;
- Developing national licensing policy for the specified occupations;
- Establishing Occupational Licensing Advisory Committees to provide advice on the development, maintenance and performance of licensing policy for each of the specified occupations;
- Developing, establishing and maintaining a National Public Register of licensees; and
- Establishing effective working relationships with the existing jurisdictional regulators – that will act as delegates of the Licensing Authority in issuing licences, undertaking compliance activities and initiating disciplinary action.
4. What will happen to the current regulators?
Existing State and Territory licensing regulators (jurisdictional regulators) will be delegated functions of the Licensing Authority under the National Law in their jurisdiction, including considering licence applications, renewing licences, commencing or taking disciplinary action against licensees, and monitoring and enforcing the National Law. When undertaking compliance activities and initiating disciplinary action, they will also be undertaking these activities on behalf the Licensing Authority and will be bound by the National Law.
However, State and Territory legislation relating to conduct matters such as insurance requirements and codes of conduct and practice will continue to apply.
The jurisdictional regulators will continue to enforce these conduct requirements under State and Territory legislation, so national licensees carrying out their occupation in a State or Territory should familiarise themselves with the relevant conduct requirements before commencing work in another State or Territory.
5. When would national licensing commence?
There will be a staggered roll out of the new system from 2013 for the following occupations:
- Property-related (excluding conveyancers and valuers),
- Electrical,
- Plumbing and gasfitting,
- Refrigeration and air-conditioning.
No other occupations are affected at this time. You will receive a letter next year to let you know how your existing licence will transition to a national licence and the date on which national licensing will commence for your occupation.
In the meantime, please check the Licensing Authority website at www.nola.gov.au for regular updates.
6. What would it mean for me as a licensee?
The majority of licensees who don’t have any restrictions or conditions on their current licence will simply be transitioned to an equivalent national licence. The draft regulations include a table for each jurisdiction showing those current licences that are expected to be directly transitioned across.
Conditions or restrictions on existing licences will be transitioned to the equivalent national licence.
In working out the equivalent national licence for individual licence holders the jurisdictional regulators are working on a “no disadvantage” principle. This means that if you are licensed to perform a particular scope of work, your new national licence/s will entitle you to carry out this work anywhere in Australia without needing to satisfy any further licence eligibility or training requirements. You will be notified in early 2013 of how the changes to licensing arrangements will affect you when the new system commences. You do not need to do anything for this to happen.
7. What advice will I get about my new national licence and when?
You will receive a letter next year to let you know how your existing licence will transition to a national licence and the date on which national licensing will commence for your occupation.
In the meantime, please check the Licensing Authority website at www.nola.gov.au for regular updates.
8. Doesn’t my current licence allow me to work anywhere in Australia?
No. Your current licence only allows you to work within the borders of the state or territory from which it was obtained. If you currently want to work in multiple locations across the country, you might need to apply for a licence, pay another licence fee and meet different eligibility requirements in each state or territory.
Mutual Recognition legislation currently exists to allow current licensees to apply for an identical licence in another state or territory of Australia or New Zealand; however fees apply in relation to applying for each licence and the renewal of each licence.
9. I don’t work across the border, so is there a restricted licence available that is cheaper?
No. The purpose of national licensing is to allow licensees to work across borders anywhere in Australia so there will not be a state restricted licence.
10. Will the course or apprenticeship that I am currently studying meet the course requirement for the issue of a national licence?
If the completion of the course or apprenticeship was required in your State or Territory before the commencement of national licensing to obtain a licence, in transitioning to the national licensing scheme your apprenticeship or course will be accepted as a valid qualification for an equivalent national licence under the National Law.
11. Will I have to pay a fee to be transitioned into the new system?
You won’t have to pay a fee to have your existing licence transitioned to the new national licensing arrangements.
You will be notified about which national licence your current licence will be transitioned to. You will not have to do anything to make this happen.
12. Where can I find information about licence fees? When will the information be available?
All licence fees will be set by the States and Territories. These may be different depending on where your principal place of residence or principal place of business is and will be paid to your usual licensing body. There are penalties for not paying your fee in your principal place of residence or principal place of business.