Dris proposal for national licensing of the electrical occupations

Options considered

The options considered for the licensing of electrical occupations were as follows:

Option 1 – National licensing

Under this option:

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  There would be a single policy approach to licence categories, scopes of regulated work and the eligibility requirements to obtain a licence. This would allow a person to work anywhere in Australia where the relevant work is licensed without having to reapply for a licence or pay any additional fee.
  
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  A national licensing register would be established.
  

Option 2 – Automatic mutual recognition

Under this option:

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  Each jurisdiction would continue to issue licences against existing jurisdictional categories and associated scopes of work but with these licences being recognised by all states and territories without the licensee having to reapply for a licence or pay an additional fee. Recognition would be restricted to those licences where equivalency has been declared.
  
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  Mutual recognition arrangements would be enhanced so that licensees would no longer have to apply for a licence in multiple jurisdictions. Licences would be recognised by every state and territory without the licensee having to reapply for a licence or pay an additional fee.
  
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  There would be opportunity over time to move towards a ‘harmonised set of categories’ or for jurisdictions to deregulate areas identified as unnecessary.
  

Option 3 – Status quo

Under this option, there would be no changes to existing licensing and mutual recognition arrangements. This option has not been costed. The options above are costed relative to the status quo, not the cost of operating the reforms.

National licensing – preferred option

National licensing is the preferred option put forward in this Decision RIS. It represents the highest net benefit to the community, taking all impacts into account, when compared against the other options considered.

Overview of the three options

National licensing option

National licensing would achieve significant benefits through improved labour mobility and reduced red tape for businesses and licensees. While this benefit would be greatest for larger companies working in multiple jurisdictions, it would also be felt by small businesses, which would more readily be able to attract staff from other states and territories and to understand the scope of the licences prospective employees may hold.

Under national licensing, licence requirements would be consistent in all jurisdictions and uniform licence categories would be issued. A national policy framework would apply overseen by NOLA, which would help ensure consistency. National legislation and policy development processes would underpin the system and provide a mechanism for ensuring that the system remained sustainable and that there was a forum in which to resolve jurisdictional differences. Table ES.1 below lists the key features of national licensing for the electrical occupations.

National licensing involves each of the jurisdictions agreeing to a common set of licence categories and eligibility requirements so that there is one system and an agreed set of requirements operating throughout the country.

Table ES.1 below lists the key features of national licensing for the electrical occupations.

Box ES.: Key features of national licensing for the electrical occupations

A licensee would be able to work anywhere in Australia without having to reapply or pay for a licence when they move to another jurisdiction within Australia. A centralised licensing body, NOLA, would be responsible for developing (with Ministerial Council approval) national licence policy for each occupational area and would oversee its consistent application by jurisdictional regulators. National licence policy includes: the licence categories that should apply the regulated work that can be undertaken by the holder of a licence category who can apply for a licence (e.g. individuals and body corporate) skills-based and non-skills-based eligibility requirements (e.g. qualifications, personal and financial probity) other licence characteristics (e.g. exemptions or exclusions). Jurisdictional regulators would administer the system as delegates of NOLA under the National Law. A jurisdiction would not be required to introduce licensing where it does not already do so. However, if licensing is introduced in the future, a national licence would be issued. Current state and territory licensees will be deemed across to the new system at its commencement on the basis of ‘no disadvantage’ in terms of the scope of work a licensee would be able to perform. Licence applicants will be able to choose between one year, three year and five year licence periods. Licence fees would continue to be set by jurisdictions and paid only to the licensee’s primary jurisdiction. A licensee’s primary jurisdiction would be the principal place of residence for individual licence holders, and for bodies corporate it would be the principal place of business. Current requirements for annual mandatory continuing professional development would be removed in the jurisdictions where this applies. There would be no requirement for any retesting at licence renewal time. If the licence is not renewed within three months of its expiry a new licence application would be required and the current qualification requirements met. There would be standard qualification and eligibility requirements across all jurisdictions and there would be no experience requirements for obtaining a licence. There would be a rationalised approach to the licensing of disconnection and reconnection of (fixed) wired equipment (restricted electrical licences). There would be no skill or business qualification requirement for a contractor licence (contractors not holding a licence to undertake the technical work would need a nominee). A range of unnecessary licence conditions would be removed. Personal and financial probity requirements would be made consistent. The process for skilled migrants to obtain licences would be streamlined.

Licensees choosing to work in an additional jurisdiction would still need to comply with any relevant jurisdiction-specific conduct and compliance requirements that apply to work they intend to perform.

Summary of the preferred model

Under national licensing, a set of nationally uniform licence categories for the electrical occupations has been developed. Tables ES.2 – ES.4 below give an summary of the preferred model and proposed licence categories, associated regulated work and the eligibility requirements. Chapter 3 contains the full description of the proposed licensing model for the electrical occupations, which includes the exclusions from the meaning of regulated work, qualification requirements and personal and financial probity requirements for all licence categories, and classes of persons exempt from licensing.

Table ES.2: Overview of the preferred model for the electrical occupations

Category	Regulated work	Qualification level	Personal and financial probity
Electrician	Electrical work means (a) assembling, constructing, installing, testing, commissioning, maintaining, repairing, altering or replacing an electrical installation; or (b) verifying electrical installations.	Certificate III	Personal probity NOLA must have regard to: whether the person has, within the previous 5 years, been convicted of an offence under section 9, 10 or 11^7 of the National Law or a provision of a corresponding prior Act that corresponds to section 9, 10 or 11 of the National Law. Financial probity NOLA must have regard to: whether the person has failed to pay a penalty, fine or other amount required to be paid under the National Law or a prescribed law. .
Electrical fitter	Electrical fitting work means assembling, manufacturing, modifying, repairing, replacing, testing or verifying electrical equipment.	Certificate III	Persona probity NOLA must have regard to: whether the person has, within the previous 5 years, been convicted of an offence under section 9, 10 or 11^8 of the National Law or a provision of a corresponding prior Act that corresponds to section 9, 10 or 11 of the National Law. Financial probity NOLA must have regard to: whether the person has failed to pay a penalty, fine or other amount required to be paid under the National Law or a prescribed law.
Electrical line worker	Electrical linework means assembling, erecting, installing, stringing, inspecting, maintaining, altering, repairing or replacing an electric line or associated equipment.	Certificate III	Personal probity NOLA must have regard to: whether the person has, within the previous 5 years, been convicted of an offence under section 9, 10 or 11^9 of the National Law or a provision of a corresponding prior Act that corresponds to section 9, 10 or 11 of the National Law. Financial probity NOLA must have regard to: whether the person has failed to pay a penalty, fine or other amount required to be paid under the National Law or a prescribed law.
Electrical cable jointer	Electrical cable jointing work means installing, jointing, terminating, testing, servicing, maintaining, altering, repairing or replacing: electrical cables or electrical conductors apparatus or material that is, or is to be, connected to electrical cables or electrical conductors referred to in paragraph (a) including, for example, an air breaker, switch or transformer.	Certificate III	Personal probity NOLA must have regard to: whether the person has, within the previous 5 years, been convicted of an offence under section 9, 10 or 11^10 of the National Law or a provision of a corresponding prior Act that corresponds to section 9, 10 or 11 of the National Law. Financial: NOLA must have regard to: whether the person has failed to pay a penalty, fine or other amount required to be paid under the National Law or a prescribed law.
Electrical contractor	Electrical contract work means entering into contracts to carry out one or more of the following: (a) electrical work (b) electrical fitting work (c) electrical line work. (d) electrical cable jointing work	N/A	For an individual Personal Probity: NOLA must have regard to: The person’s relevant criminal history in relation to: offences relating to dishonesty offences relating to misleading or deceptive conduct offences relating to a person’s obligations under a law relating to occupational health and safety; and the person’s business conduct; and whether the person has, within the previous 5 years, been convicted of an offence under section 9, 10 or 11^11 of this Law or a provision of a corresponding prior Act that corresponds to section 9, 10 or 11 of the National Law. For a person that is a body corporate or a member of a partnership NOLA must have regard to: the relevant criminal history of each relevant person for the body corporate or member in relation to: offences relating to dishonesty offences relating to misleading or deceptive conduct offences relating to a person’s obligations under a law relating to occupational health and safety; and the business conduct of a relevant person for the body corporate or member; and whether a relevant person for the body corporate or member has, within the previous 5 years, been convicted of an offence under section 9, 10 or 11^12 of this Law or a provision of a corresponding prior Act that corresponds to section 9, 10 or 11 of this Law. Financial probity: For an individual and a body corporate NOLA must have regard to: whether the person is bankrupt, insolvent, or has compounded with creditors, enters into a compromise or scheme of arrangement with creditors or otherwise applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or whether the person is has within the last 5 years been a relevant person for another person who, during that 5-year period, was bankrupt, insolvent, compounded with creditors or otherwise applied to take the benefit of any law for the relief of bankruptcy or insolvent debtors; or whether the person has failed to pay a penalty, fine or other amount required to be paid under the National Law or a prescribed law For a person that is a body corporate or a member of a partnership NOLA must have regard to whether a relevant person for the body corporate or member is bankrupt, or insolvent, or has compounded with creditors, entered into a compromise or scheme of arrangement with creditors or otherwise applied to take benefit of any law for the relief of bankrupt or insolvent debtors; or whether a relevant person has failed to pay a penalty, fine or other amount required to be paid under the National Law or a prescribed law.

Table ES.3: Overview of the proposed model for restricted electrical licences

Licence category	Regulated work	Qualification level	Probity
Restricted electrical work with fault finding (refrigeration, air-conditioning)	Restricted electrical work for refrigeration and air-conditioning with fault finding	Two units of competency	NOLA must have regard to the following personal and financial probity requirements which will apply to all restricted electrical licences: Personal probity Whether the person has, within the previous 5 years, been convicted of an offence under section 9, 10 or 11^13 of the National Law or a provision of a corresponding prior Act that corresponds to section 9, 10 or 11 of the National Law. Financial probity Whether the person fails to pay a penalty, fine or other amount required to be paid under the National Law or a prescribed law.
Restricted electrical work with fault finding (electronic and communications)	Restricted electrical work for electronic and communications equipment with fault finding
Restricted electrical work with fault finding (instrumentation)	Restricted electrical work for instrumentation with fault finding
Restricted electrical work without fault finding (non-portable appliances)	Restricted electrical work for appliances (non-portable) without fault finding	One unit of competency
Restricted electrical work without fault finding (industrial/commercial equipment)	Restricted electrical work for industrial or commercial equipment without fault finding

Table ES.4: Overview of the preferred model for provisional electrical licences

Category	Regulated work	Qualification level	Probity
Provisional electrician’s licence	Electrical work carried out under the supervision of a person who is the holder of an electrician’s licence	Offshore Technical Skills Record (OTSR) or Electrical fitter’s licence	NOLA must have regard to the following personal and financial probity requirements which will apply to all provisional licences. Personal probity Whether the person or a relevant person for the person has, within the previous 5 years, been convicted of an offence under section 9, 10 or 11^14 of the National Law or a provision of a corresponding prior Act that corresponds to section 9, 10 or 11 of the National Law. Financial probity Whether the person fails to pay a penalty, fine or other amount required to be paid under the National Law or a prescribed law.
Provisional electrical fitter’s licence	Electrical fitting work carried out under the supervision of a person who is the holder of an electrical fitter’s licence	OTSR to be developed
Provisional electrical line worker	Electrical linework carried out under supervision of a person who is the holder of an electrical line worker’s licence	OTSR
Provisional electrical cable jointer	Electrical cable jointing work carried out under supervision of a person who is the holder of an electrical cable jointer’s licence	OTSR