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
