Dris proposal for national licensing of the plumbing and gasfitting occupations
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- Proposal for national licensing of the plumbing and gasfitting occupations
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Copyright Notice © Commonwealth of Australia 2013 ISBN: ISBN 978 1 921916 10 6 (print) ISBN 978 1 921916 11 3 (PDF) This work is licensed under a Creative Commons Attribution 3.0 Australia licence.  The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3 AU licence.
Table of contentsDecision Regulation Impact Statement i Decision Regulation Impact Statement i Proposal for national licensing of the plumbing and gasfitting occupations i Proposal for national licensing of the plumbing and gasfitting occupations i
Summary of options considered in this Decision Regulation Impact Statement xi Summary of options considered in this Decision Regulation Impact Statement xi Quantified impacts for the national licensing options xii Executive summary xiii Executive summary xiii Purpose of the Decision Regulation Impact Statement xiii Purpose of the Decision Regulation Impact Statement xiii The problem xiii The problem xiii Government objectives for reform xiv Government objectives for reform xiv Options considered xv Options considered xv Preferred option xv Preferred option xv Overview of alternative options to national licensing xvi Overview of alternative options to national licensing xvi Automatic Mutual Recognition xvi Status quo xvii Factors in determining preferred national licensing option xvii Factors in determining preferred national licensing option xvii the licence categories that should apply xix the regulated work that can be undertaken by the holder of a licence category xix who can apply for a licence (e.g. individual or body corporate) xix skilled and non-skilled eligibility requirements (e.g. qualifications, personal and financial probity) xix other licence characteristics (e.g. exemptions or exclusions) xix National licensing – costs and benefits xxi National licensing – costs and benefits xxi Impacts for licensees xxiv Impacts for business and consumers xxiv Safety and consumer outcomes xxv Impacts for government xxv Additional wider economic impacts xxvi Consultation process and outcomes xxvi Consultation process and outcomes xxvi Other features of national licensing xxviii Other features of national licensing xxviii Fees xxviii Licence period xxviii Responsibilities of the national authority and jurisdictional regulators xxx Conclusion/Recommendation xxxi Conclusion/Recommendation xxxi General policy context 1 General policy context 1 1.1 The Occupational Licensing National Law Act 2010 2 Options for reform 4 Options for reform 4 1.2 Options considered 4 1.3 Preferred option - requirements 5 1.4 ‘Preferred’ national licensing option – Three tier sub-option 2 5 Consultation feedback 8 1.5 Automatic mutual recognition 9 Existing Mutual Recognition Arrangements 9 Automatic mutual recognition – unharmonised approach 9 Consultation 11 Conclusion 11
Proposed categories of regulated work 12 The proposed national licensing categories across the jurisdictions 13 Proposed regulated work 15 Endorsements 17 Nominees 18 Exemptions 18 Limited exemptions 19 Non-skills-based eligibility requirements 19 Relevant person 19 Proposed personal probity eligibility requirements 20 Proposed financial probity requirements 22 Qualification-based eligibility requirements 24
Experience requirements 28 Additional testing 29 Skills maintenance (continuing professional development) 29 Licence period 29
Proposed categories of regulated work 29 Proposed regulated work 41 Endorsements 45 Nominees 49 Exemptions 51 Limited exemptions 52 Non-skills-based eligibility requirements 53 Qualification-based eligibility requirements 55 Qualification requirements for preferred option 55 Experience requirements 62 Additional testing 63 Skills maintenance (continuing professional development) 64 Licence period 65 1.8 Transitional arrangements 66 Deeming of current licence holders 66 Administrative transactions that were initiated before national licensing begins 66 Disciplinary and court processes and actions 67 Transitioning suspended licensees 67 3.3.5 Transitioning disqualified licensees and cancelled licences 67 Eligibility for those who initiated training before national licensing begins 67 Eligibility for those who completed training before national licensing begins 67 Lapsed licences 68 Current trainees for a restricted licence 68 Consultation 68
Cost to plumbing and gasfitting licensees 69 Cost to business and consumers 70 Costs to government 70 1.10 Direct costs and benefits of national licensing 74 Labour mobility 74 Removal of multiple licences held across jurisdictions 77 Flexible licence periods 79 Licence tiers and qualification requirements 80 Reducing the costs of regulatory requirements 88 Costs imposed by new requirements 91 Business value-add 93 National Occupational Licensing Authority – ongoing operational costs 94 Potential changes in government revenue 95 Potential benefits to governments from simplified administrative arrangements 95 Other impacts that have not been quantified 98 1.11 Impact on consumer outcomes 103 Potential safety impacts 103 Consumer protection impacts 105
The shock to the model – the scenario modelled for this Regulatory Impact Statement 109 Key results 109
Alternative licence period 113 Net present value assumptions 114 Cost and benefits of the automatic mutual recognition option 116 Summary of the costs and benefits of national licensing by jurisdiction 121
Licence categories 136 Scope of regulated work 136 Endorsements 139 Nominees 139 Exemptions 139 Non-skill-based eligibility requirements 140 Qualification-based eligibility requirements 142 OR 142 Plumbing and services – Operations stream elective 143 Common compulsory units: 143 Plumbing and services – Operation stream core 143 OR 143 Common compulsory units: 143 Plumbing and services – Operations stream electives: 143 PLUS 144 Completion of the unit of competency CPCPGS4023A Install, commission and service Type B gas appliances 144 Common compulsory units: 144 OR 146 Experience requirements 146 Additional testing 146 Licence period 146 Implementation 147 Implementation 147 1.22 Implementation of national licensing 147 1.23 Key steps in implementation 148 Notification of national licence(s) 148 Issuing of new national licence documentation 148
Overview of the plumbing and gasfitting sector 151 Overview of the plumbing and gasfitting sector 151 Regulatory framework 153 Regulatory framework 153 Overview of existing licensing requirements 154 Overview of existing licensing requirements 154 Plumbing work 154 Water (supply) plumbing work 155 Sanitary plumbing 155 Drainage work 156 Fire protection 156 Mechanical services 156 Gasfitting 156 Gasfitting Type B 157
Sub-option 2 – How proposed Certificate IV units address risks 191 Sub-option 2 – How proposed Certificate IV units address risks 191
New South Wales 197 New South Wales 197 Victoria 203 Victoria 203 Queensland 210 Queensland 210 Western Australia 218 Western Australia 218 South Australia 224 South Australia 224 Tasmania 231 Tasmania 231 Australian Capital Territory 237 Australian Capital Territory 237 Northern Territory 243 Northern Territory 243 Comparison of Certificate IV – current and three tier approach 249 Comparison of Certificate IV – current and three tier approach 249 Plumber 249 Drainer 252 Fire protection 254 General gasfitter 254 Gasfitter Type B 257 Mechanical services 257
Approach to the impact analysis – calculations and method 265 Approach to the impact analysis – calculations and method 265 Calculations used in the cost–benefit analysis 265 Calculations used in the cost–benefit analysis 265 The status quo 265 Calculating the present value of yearly impacts 266 Method underlying the computable general equilibrium modelling 277 Method underlying the computable general equilibrium modelling 277 Overview of the modelling 277 Limitations of the modelling 279 The shock to the model 280 Calculating an increase in efficiency of labour in plumbing and gasfitting services 281 Calculating an increase in capital efficiency 281 Calculating a decrease in government fees 281 Calculating changes to government expenditure 281 Inputs and assumptions underlying the analysis 282 Assumptions in the cost–benefit analysis 282 Assumptions in the cost–benefit analysis 282 Real discount rate 282 Evaluation period 282 Wage rate 283 Industry growth rates (employment) 285 Licence fees 286 Number of licensees 291 Frequency of renewal of licence 294 Time cost of applying for a licence 296 Time cost of renewing a licence 297 Transition costs for industry 298 Government communication costs 299 National licensing register costs 299 Government operating costs associated with the licensing authority 301 Mutual recognition 304 Removal of requirement to hold multiple licences across jurisdictions 306 Experience requirements 307 Business value-add (capital efficiency) 308 Improved labour mobility 308 Changes to Certificate IV units 309 Duplicate testing in Victoria 313 Cost of introducing financial probity requirements 314 Removal of personal probity requirements for non-contractor licences 315 Removal of the requirement for apprentices to apply for a licence 319 Introducing worker licences in Queensland 319 Introducing contractor licences under national licensing 319 Providing evidence of skills maintenance 320
Reports and presentations 321 Reports and presentations 321 Legislation 323 Legislation 323
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