Decision ris proposal for national licensing of the property occupations

2.Summary of the costs and benefits of national licensing by jurisdiction

The costs and benefits of national licensing for each jurisdiction in terms of net present values (NPVs) over ten years as at 1 July 2012 are summarised in tables 4.33 to 4.37. Note that costs are represented in brackets.

New South Wales

Table 4.33: Costs and benefits of national licensing in New South Wales, NPV over ten years

NPV 10 years ($ million)
Transition impacts	(4.74)
Time for licensees to understand reforms	(2.82)
Business value-add	(0.94)
Licensing authority – set-up costs	(0.42)
National licensing register – jurisdictional implementation	(0.26)
Government communications	(0.30)
Ongoing impacts	276.38
Removing continuing professional development	166.28
Auctioneers – qualification changes	1.24
Consistent licence period (1, 3 or 5 years)	19.66
Reducing personal probity requirements	0.07
Removing the need to hold multiple licences	4.80
Removing the need to hold multiple licences – government	(1.60)
Licensing authority – operational	(2.76)
Labour mobility	51.38
Business value-add	37.31

Victoria

Table 4.34: Costs and benefits of national licensing in Victoria, NPV over ten years

NPV 10 years ($ million)
Transition impacts	(2.75)
Time for licensees to understand reforms	(1.10)
Business value-add	(0.37)
Licensing authority – set-up costs	(0.32)
National licensing register – jurisdictional implementation	(0.65)
Government communications	(0.30)
Ongoing impacts	38.73
Licensees doing both real estate and business work – qualification changes	(0.11)
Agent’s representatives – qualification changes	(5.55)
Auctioneers – qualification changes	0.57
Consistent licence period (1, 3 or 5 years)	15.68
Increasing the frequency of processing representatives in Victoria	(0.06)
Reducing personal probity requirements	0.02
Removing experience requirements	2.97
Removing the need to hold multiple licences	2.51
Removing the need to hold multiple licences – government	(0.62)
Licensing authority – operational	(2.12)
Labour mobility	23.45
Business value-add	1.98

Queensland

Table 4.35: Costs and benefits of national licensing in Queensland, NVP over ten years

NPV 10 years ($ million)
Transition impacts	(4.28)
Time for licensees to understand reforms	(2.29)
Business value-add	(0.76)
Licensing authority – set-up costs	(0.26)
National licensing register – jurisdictional implementation	(0.65)
Government communications	(0.30)
Ongoing impacts	93.16
Real estate agents – qualification changes	(2.77)
Licensees doing both real estate and business work – qualification changes	(0.25)
Agent’s representatives – qualification changes	28.10
Auctioneers – qualification changes	0.15
Consistent licence period (1, 3 or 5 years)	10.70
Reducing personal probity requirements	0.05
Removing the need to hold multiple licences	3.19
Removing the need to hold multiple licences – government	(1.76)
Licensing authority – operational	(1.72)
Labour mobility	48.73
Business value-add	8.74

Western Australia

Table 4.36: Costs and benefits of national licensing in Western Australia, NVP over ten years

NPV 10 years ($ million)
Transition impacts	(2.63)
Time for licensees to understand reforms	(1.10)
Business value-add	(0.3)
Licensing authority – set-up costs	(0.14)
National licensing register – jurisdictional implementation	(0.70)
Government communications	(0.33)
Ongoing impacts	139.98
Removing continuing professional development	66.84
Real estate agents – qualification changes	6.22
Agent’s representatives – qualification changes	19.56
Auctioneers – qualification changes	(0.18)
Consistent licence period (1, 3 or 5 years)	3.15
Removing advertising requirement	0.09
Reducing personal probity requirements	0.02
Removing experience requirements	1.24
Removing the need to hold multiple licences	1.34
Removing the need to hold multiple licences – government	(0.06)
Licensing authority – operational	(0.89)
Labour mobility	16.91
Business value-add	16.91

South Australia

Table 4.37: Costs and benefits of national licensing in South Australia, NVP over ten years

NPV 10 years ($ million)
Transition impacts	(1.18)
Time for licensees to understand reforms	(0.35)
Business value-add	(0.12)
Licensing authority – set-up costs	(0.10)
National licensing register – jurisdictional implementation	(0.46)
Government communications	(0.15)
Ongoing impacts	52.43
Real estate agents – qualification changes	5.47
Licensees doing both real estate and business work – qualification changes	(0.04)
Agent’s representatives – qualification changes	29.82
Auctioneers – qualification changes	0.48
Consistent licence period (1, 3 or 5 years)	0.40
Reducing personal probity requirements	0.01
Removing the need to hold multiple licences	0.97
Removing the need to hold multiple licences – government	(0.66)
Licensing authority – operational	(0.65)
Labour mobility	6.50
Business value-add	10.13

Tasmania

Table 4.38: Costs and benefits of national licensing in Tasmania, NVP over ten years

NPV 10 years ($ million)
Transition impacts	(0.68)
Time for licensees to understand reforms	(0.03)
Business value-add	(0.009)
Licensing authority – set-up costs	(0.03)
National licensing register – jurisdictional implementation	(0.46)
Government communications	(0.15)
Ongoing impacts	3.73
Removing continuing professional development	1.75
Real estate agents – qualification changes	0.59
Licensees doing both real estate and business work – qualification changes	(0.01)
Auctioneers – qualification changes	0.030
Consistent licence period (1, 3 or 5 years)	(0.07)
Removing advertising requirement	0.02
Reducing personal probity requirements	0.001
Removing experience requirements	0.12
Removing the need to hold multiple licences	0.47
Removing the need to hold multiple licences – government	(0.01)
Licensing authority – operational	(0.20)
Labour mobility	0.45
Business value-add	0.57

Australian Capital Territory

Table 4.39: Costs and benefits of national licensing in the Australian Capital Territory, NVP over ten years

NPV 10 years ($ million)
Transition impacts	(0.60)
Time for licensees to understand reforms	(0.09)
Business value-add	(0.03)
National licensing register – jurisdictional implementation	(0.33)
Government communications	(0.15)
Ongoing impacts	10.50
Removing continuing professional development	5.66
Real estate agents – qualification changes	(0.29)
Agent’s representatives – qualification changes	0.39
Strata managers – qualification changes	(0.19)
Auctioneers – qualification changes	0.04
Consistent licence period (3 years)	1.60
Removing advertising requirement	0.02
Reducing personal probity requirements	0.002
Removing experience requirements	0.28
Removing the need to hold multiple licences	0.76
Removing the need to hold multiple licences – government	(1.13)
Labour mobility	2.00
Business value-add	1.37

Northern Territory

Table 4.40: Costs and benefits of national licensing in the Northern Territory, NVP over ten years

NPV 10 years ($ million)
Transition impacts	(0.62)
Time for licensees to understand reforms	(0.10)
Business value-add	(0.03)
Licensing authority – set-up costs	(0.01)
National licensing register – jurisdictional implementation	(0.33)
Government communications	(0.15)
Ongoing impacts	13.85
Real estate agents – qualification changes	0.96
Agent’s representatives – qualification changes	7.45
Strata managers – qualification changes	0.02
Auctioneers – qualification changes	(0.02)
Consistent licence period (3 years)	0.91
Removing advertising requirement	0.01
Reducing personal probity requirements	0.002
Removing the need to hold multiple licences	0.72
Removing the need to hold multiple licences – government	(0.13)
Licensing authority – operational	(0.09)
Labour mobility	1.38
Business value-add	2.64