Dris proposal for national licensing of the electrical occupations

65.2Summary 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 value (NPV) over ten years (as at 1 July 2012) are summarised in tables 4.32 to 4.39. Note that costs are represented in brackets.

New South Wales

Table 4.33: Costs and benefits in terms of NPV over ten years

Net present value 10 years ($ million)
Transitional impacts	(6.03)
Time for licensees to understand reforms	(3.67)
Business value-add	(1.22)
National Occupational Licensing Authority – set-up costs	(0.53)
National licensing register – jurisdictional implementation	(0.31)
Government communications	(0.30)
Ongoing impacts	86.61
Labour mobility	81.37
Removal of the need to hold multiple licences – community	5.06
Removal of the need to hold multiple licences – government	(1.35)
Maximum licence period of 5 years	4.40
Removal of personal probity requirement for workers	0.06
Business value-add	0.52
National Occupational Licensing Authority – operational	(3.45)

Victoria

Table 4.33: Costs and benefits in terms of NPV over ten years

Net present value 10 years ($million)
Transitional impacts	(6.11)
Time for licensees to understand reforms	(3.48)
Business value-add	(1.16)
National Occupational Licensing Authority – set-up costs	(0.40)
National licensing register – jurisdictional implementation	(0.76)
Government communications	(0.30)
Ongoing impacts	90.04
Labour mobility	67.76
Removal of the need to hold multiple licences – community	3.74
Removal of the need to hold multiple licences – government	(0.65)
Removal of additional competency units	7.52
Removal of personal probity requirement for workers	0.09
Removal of duplicate testing	10.12
Removal of experience requirements	2.76
Business value-add	4.34
National Occupational Licensing Authority – operational	(2.64)

Queensland

Table 4.34: Costs and benefits in terms of NPV over ten years

Net present value 10 years ($ million)
Transitional impacts	(6.46)
Time for licensees to understand reforms	(3.80)
Business value-add	(1.27)
National Occupational Licensing Authority – set-up costs	(0.33)
National licensing register – jurisdictional implementation	(0.76)
Government communications	(0.30)
Ongoing impacts	107.10
Labour mobility	69.16
Removal of the need to hold multiple licences – community	4.30
Removal of the need to hold multiple licences – government	(0.89)
Maximum licence period of 5 years	6.10
Removal of additional competency units	14.59
Removal of plug and cord restricted electrical licence	1.22
Removal of experience requirements	8.13
Business value-add	6.65
National Occupational Licensing Authority – operational	(2.16)

Western Australia

Table 4.35: Costs and benefits in terms of NPV over ten years

Net present value 10 years ($ million)
Transitional impacts	(4.41)
Time for licensees to understand reforms	(2.38)
Business value-add	(0.79)
National Occupational Licensing Authority – set-up costs	(0.17)
National licensing register – jurisdictional implementation	(0.76)
Government communications	(0.30)
Ongoing impacts	51.34
Labour mobility	39.47
Removal of the need to hold multiple licences – community	0.86
Removal of the need to hold multiple licences – government	(4.75)
Maximum licence period of 5 years	4.03
Removal of additional competency units	8.26
Removal of licensing for apprentices	0.96
Removal of experience requirements	1.08
Business value-add	2.54
National Occupational Licensing Authority – operational	(1.11)

South Australia

Table 4.36: Costs and benefits in terms of NPV over ten years

Net present value 10 years ($ million)
Transitional impacts	(2.43)
Time for licensees to understand reforms	(1.20)
Introduction of nominees	(0.02)
Business value-add	(0.40)
National Occupational Licensing Authority – set-up costs	(0.12)
National licensing register – jurisdictional implementation	(0.53)
Government communications	(0.15)
Ongoing impacts	45.76
Labour mobility	23.52
Removal of the need to hold multiple licences – community	1.30
Removal of the need to hold multiple licences – government	(0.75)
Maximum licence period of 5 years	4.92
Removal of additional competency units	13.39
Removal of the requirement for apprentices to apply for a licence	0.02
Introduction of nominees	(0.01)
Introduction of proof of need for restricted electrical licences	(0.05)
Business value-add	4.22
National Occupational Licensing Authority – operational	(0.81)

Tasmania

Table 4.37: Costs and benefits in terms of NPV over ten years

Net present value 10 years ($ million)
Transitional impacts	(1.24)
Time for licensees to understand reforms	(0.39)
Business value-add	(0.13)
National Occupational Licensing Authority – set-up costs	(0.04)
National licensing register – jurisdictional implementation	(0.53)
Government communications	(0.15)
Ongoing impacts	8.55
Labour mobility	6.41
Removal of the need to hold multiple licences – community	0.66
Removal of the need to hold multiple licences – government	(0.42)
Maximum licence period of 5 years	1.38
Removal of additional competency units	0.52
Removal of personal probity requirement for workers	0.02
Business value-add	0.22
National Occupational Licensing Authority – operational	(0.25)

Australian Capital Territory

Table 4.38: Costs and benefits in terms of NPV over ten years

Net present value 10 years ($ million)
Transitional impacts	(0.91)
Time for licensees to understand reforms	(0.29)
Business value-add	(0.10)
National licensing register – jurisdictional implementation	(0.38)
Government communications	(0.15)
Ongoing impacts	4.74
Labour mobility	4.44
Removal of the need to hold multiple licences – community	0.63
Removal of the need to hold multiple licences – government	(0.82)
Maximum licence period of 5 years	0.45
Business value-add	0.03

Northern Territory

Table 4.39: Costs and benefits in terms of NPV over ten years

Net present value 10 years ($ million)
Transitional impacts	(1.21)
Time for licensees to understand reforms	(0.49)
Business value-add	(0.16)
National Occupational Licensing Authority – set-up costs	(0.02)
National licensing register – jurisdictional implementation	(0.38)
Government communications	(0.15)
Ongoing impacts	8.89
Labour mobility	7.28
Removal of the need to hold multiple licences – community	1.16
Removal of the need to hold multiple licences – government	(0.08)
Maximum licence period of 5 years	0.35
Removal of plug and cord restricted electrical licences	0.02
Removal of experience requirements	0.16
Business value-add	0.11
National Occupational Licensing Authority– operational	(0.11)