Dris proposal for national licensing of the electrical occupations
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- Savings for the construction industry more broadly
Benefit to industryThis benefit only accrues to new licence holders because competency requirements must be met upon first obtaining a licence. The number of new licensees is based on the number of new applicants in the industry as a percentage of existing licensees. The equation for calculating the yearly benefit is shown in Figure H.13. As each jurisdiction requires a differing number of units and the fees and time commitment required for each unit varies, the calculation for the time and fee cost is slightly different for each jurisdiction. Note that the benefit to industry from no longer paying fees for additional business and technical competency units represents a transfer from the training sector. Figure H.13: How to calculate the benefit of removing competency units 
Each competency unit required in Queensland has the same time commitment of 40 hours. Hence, the time cost of undertaking a competency unit is 40 hours multiplied by the wage rate of $49.26 multiplied by the number of units required – two. Based on information provided by Term Training and Construction Skills Queensland, the fees payable by licensees after receiving the subsidy for the two units total $345. It is assumed that as completing these competency units is ancillary to employment, the cost of time is the wage rate that can be earned in the industry (i.e. hourly cash earnings). Where publically available, government subsidies received by licensees who complete these competency units have been identified in the analysis (as referenced in Table H.40). Savings for the construction industry more broadlyIn certain jurisdictions, subsidies are provided by industry bodies to pay in part for the competency units that are required for a contractor licence. The industry bodies that provide these subsidies fund them through industry training levies applied to building and construction projects. These subsidies have been removed from the fee that is ‘saved’ in the benefit to licensees (as the licensees themselves do not incur that proportion of the fee), and is instead reflected as a cost saving to the industry more broadly (which would no longer need to fund a proportion of the training that is provided). Note that the subsidies can be found in Table 40. The equation used to estimate the yearly impact on the industry is shown in Figure H.14. Figure H.14: How to calculate the savings to industry from removing competency units and therefore subsidies 
Cost of introducing nominees for company or business licensees South Australia is the only jurisdiction affected by this impact, as all other jurisdictions already require some form of nominees under their current licensing system. It is assumed that the cost of meeting the nominee requirements is only incurred when first applying for a licence. Upon renewal, it is assumed that no further costs would be incurred in relation to the nominee as they have already been identified and registered. An ongoing cost would be incurred if a change to the nominee is required due to staff turnover or other reason and the regulator needs to be informed. This cost has not been factored into this analysis as it would depend heavily on individual business circumstances and is hard to predict. It is not expected that this would be a material impact; however, further consideration could be given to this point if data was available. While the cost of introducing nominees in South Australia is only incurred upon first applying for a licence, all existing licensees would need to meet the requirements of having a nominee upon the introduction of national licensing. In this analysis, this is accounted for in the first year of operation, meaning the calculation is slightly different in the first year. The equation for calculating the yearly impact in South Australia is shown in Figure H.15. In this calculation, the time cost to meet the nominee requirements is calculated as 30 minutes multiplied by a wage rate of $45.64 per hour. Note that the transition cost is calculated by including the ‘year 1 only’ factors in the brackets. The on-going costs are calculated by removing the ‘year 1 only’ factors from the brackets. Figure H.15: How to calculate the cost of introducing nominees ![[number of existing company licenses times new applications as a % of existing licenses times time cost to meet nominee requirements plus number of existing company licenses (year 1 only) times the time cost to meet nominee requirement (year 1 only)] times industry growth factor equals cost of introducing nominees. south australia example, 2013-14: [855 times 7.67% times $22.82 plus 855 times $22.82] times 0.0191 equals $0.02 million](80958_html_63724c19.gif)
Removing the requirement to hold a licence for plug and cord work When a particular scope of work is no longer licensed, there will be an impact on both new licensees (as they will no longer need to gain a licence) and existing licensees (as they will no longer need to renew their existing licence). This is reflected in the equation for calculating the yearly impact, shown in Figure H.16. In relation to this calculation, there are two additional steps to consider: The time cost of applying for a licence is estimated at 30 minutes multiplied by the wage rate in the relevant jurisdiction. The proportion of licensees renewing each year is equal to one divided by the licence term, as it is assumed that licence renewals are distributed evenly over time across the industry. Given that licence terms and fees differ between contractors and workers, this impact is calculated separately for contractors versus workers. Figure H.16: How to calculate the impact of removing the licensing of plug and cord work 
The following calculation provides an example for the benefit from removing the restricted electrical licence for plug and cord work for contractors. Figure H.17: Example of how to calculate the impact of removing the licensing of plug and cord work ![queensland example: benefit from removing licensing of plug and cord for contractors in 2013-14: [$16,871 plus $106,746] times 1.0191 equals $0.13 million. this complex diagram also shows calculations for the impact on new and existing licensees in queensland.](80958_html_ce410b0.gif)
Savings from removing the personal probity requirement This impact only applies to new licence holders, as probity requirements are placed on licensees upon first applying for a licence. The equation used to calculate the yearly impact is shown in Figure H.18. The number of non-contractor licensees is calculated as the difference between the number of total licensees and the number of contractor licensees.
Benefit of removal of state- and territory-based testing (duplicate testing) This impact only applies to new licence holders, as the additional tests must be taken by licensees when they first apply for a licence. The equation used to calculate the yearly impact is shown in Figure H.19. This impact is only applicable in Victoria. The time cost used in the equation is calculated as 5.67 hours (5 hours and 40 minutes) multiplied by the wage rate in the relevant jurisdiction – $48.15 in Victoria.
Cost of introducing the requirement to prove that a restricted electrical licence is ancillary South Australia is the only jurisdiction affected by this impact, as all other jurisdictions currently require applicants to demonstrate that a restricted electrical licence is ancillary under their current licensing legislation. l. The equation used to calculate the yearly impact is shown Figure H.20.
Benefit from removing the licensing of apprentices Apprentice licences are generally provided for the term of an apprenticeship. Therefore, this impact is only incurred upon first applying for an apprentice licence (i.e. it is assumed that there are no renewals). The impact of removing this licence includes the time and fee saved from no longer having to apply for the licence, as well as avoided costs from no longer having to complete any additional tests placed on apprentices as part of the licensing process (applicable in Western Australia only). The equation to calculate the yearly impact is shown in Figure H.21. The time cost assumptions in this equation are calculated as 30 minutes multiplied by the wage rate in the relevant jurisdiction.
Labour mobility The equation for calculating the estimated impact of labour mobility is shown in Figure H.22.
Removing experience requirements This impact applies to contractors only. The equation used to calculate the yearly impact is shown in Figure H23.
Business value-add The impact on business value-add is calculated as one-third of the efficiency impact on labour. The ongoing net efficiency impact on labour includes the time component (not including fees) of the following impacts:
The one-off efficiency cost to labour includes the time component (not including fees) of the following impacts:
Method underlying the computable general equilibrium modelling Overview of CGE modelling As part of this regulatory impact statement, PricewaterhouseCoopers has undertaken CGE modelling to quantify potential economy-wide effects of an efficiency change that may result from the proposed policy change. This type of modelling is useful when a direct impact, at either the specific industry or regional level, is expected to have economy-wide implications or significant flow-on effects. It should be noted that the CGE modelling was not updated from the Consultation RIS. The differences in the structure of the proposed model and changes to assumptions underlying the model between the Consultation RIS and Decision RIS would impact these results. Accordingly, the CGE modelling results are only indicative of the type and scale of the overall long-term impacts on the economy if national licensing is adopted Yüklə 2,49 Mb. Dostları ilə paylaş:
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![total number of existing licenees times new applications as a % of existing licensees times [time cost to sit tests (except review) plus fees payable to sit tests (except review) plus fees payable fo review times percentage of licensees subject to review] times industry growth factor equals benefits of removing probity. victoria example, 2013-14: 51,016 times 4.07% times [$272.88 plus $410 plus $125 times 15%] times 1.0191 equals $1.49 million.](80958_html_m55cc8971.gif)
![number of apprentice licence applications p.a times [time cost of applying for a licence plus fee for apprentice licence plus time cost to complete apprentice licence test] times industry growth factor equals benefit of removing licensing of apprentices. wa example, 2013-14: 1,489 times [$27.07 plus $39 plus $27.07] times 1.0191 equals $0.14 million.](80958_html_6a5ae845.gif)
