Dris proposal for national licensing of the plumbing and gasfitting occupations

Existing Certificate IV units – common

Table G.38: Number of existing common Certificate IV units

Assumptions	Unit	Value	Source
Number of existing common units to obtain a water, sanitary and drainage licence
NSW	number of units	1	Based on information provided by the National Licensing Taskforce – ‘Comparison of Certificate IV units currently required by jurisdictions with national licensing three tier options’.
VIC	number of units	2
QLD	number of units	2
WA	number of units	2
SA	number of units	2
TAS	number of units	4
ACT	number of units	2
NT	number of units	2

The table below shows a more detailed breakdown of the four units and the assumptions made about which units are currently required in each jurisdiction. Given that each licensee would hold different licence categories, these units have been based on the units required for most categories. For example, in the Australian Capital Territory CPCCBC4012A Read and interpret plans and specifications is required for a water and sanitary licence, but not for any other category, and only one unit is required in the Australian Capital Territory for gasfitters. To accommodate this variation between licensees, only two units have been assumed in this jurisdiction. Similar judgments have been made in relation to the other jurisdictions where appropriate.

Table G.39: Certificate IV units common across categories no longer required under the two tier option

Common units	NSW	VIC	QLD	WA	SA	TAS	ACT	NT
CPCCBC4012A Read and interpret plans and specifications		×	×	×	×		×	×
CPCPCM4001A Carry out work-based risk control processes	×							
CPCPCM4002A Estimate and cost work	×							
BSBOHS403B Identify hazards and assess occupational health and safety risks	×	×	×	×	×		×	×
Number of units currently required	1	2	2	2	2	4	2	2

Existing Certificate IV units – specific

Table G.40: Number of existing category-specific Certificate IV units (electives)

Assumptions	Unit	Value	Source
Number of category-specific units to obtain a water, sanitary and drainage licence
NSW	number of units	5	Based on information provided by the National Licensing Taskforce – ‘Comparison of Certificate IV units currently required by jurisdictions with national licensing three tier options’.
VIC	number of units	5
QLD	number of units	5
WA	number of units	5
SA	number of units	7
TAS	number of units	5
ACT	number of units	4
NT	number of units	5

For the 80 per cent of licensees that are assumed to hold a licence covering water, sanitary and drainage, the table below shows a breakdown of the units currently required in each of the jurisdictions. Note that when considering electives, the two units that are subject to endorsements have not been included in the analysis.

Table G.41: Certificate IV units specific to a licence category

Units specific to water, sanitary and drainage	NSW	VIC	QLD	WA	SA	TAS	ACT	NT
BSBSBM402A/BSBSMB402Undertake financial planning/Plan small business finances , OR BSBSBM406A/BSBSMB406A Manage finances/Manage small business finances	×	×	×	×		×	×	×
BCGBC4009A/CPCCBC4009A Apply legal requirements to building and construction projects, OR BSBSBM401A/BSBSMB401A Establish business and legal requirements/Establish legal and risk management requirements of small business	×					×	×	
CPCPSN4011A Design and size sanitary plumbing systems							×	×
CPCPDR4011A Design and size sanitary drainage systems			×					
CPCPDR4012A Design and size stormwater drainage systems				×				
CPCPDR4013A Design and size domestic treatment plant disposal systems								
CPCPWT4011A Design and size heated and cold water services and systems		×						
Number of units currently required	5	5	5	5	7	5	4	5

Proposed number of Certificate IV units

Table G.42: Proposed number of common Certificate IV units

Assumptions	Unit	Value	Source
Proposed number of common Certificate IV units to obtain a water, sanitary and drainage licence
Two tier	number of units	0	Based on advice from the National Licensing Taskforce.
Three tier option with four common Certificate IV units	number of units	4	Based on information provided by the National Licensing Taskforce – ‘Comparison of Certificate IV units currently required by jurisdictions with national licensing three tier options’.
Three tier option with two common Certificate IV units	number of units	2	Based on information provided by the National Licensing Taskforce – ‘Comparison of Certificate IV units currently required by jurisdictions with national licensing three tier options’.

Table G.43: Proposed number of category specific Certificate IV units (electives)

Assumptions	Unit	Value	Source
Proposed number of category specific Certificate IV units to obtain a water, sanitary and drainage licence
Two tier	number of units	0	Based on advice from the National Licensing Taskforce.
Three tier option with four common Certificate IV units	number of units	4	Based on information provided by the National Licensing Taskforce – ‘Comparison of Certificate IV units currently required by jurisdictions with national licensing three tier options’. Note that units that are subject to endorsements have not been included in this analysis.
Three tier option with two common Certificate IV units	number of units	4	Based on information provided by the National Licensing Taskforce – ‘Comparison of Certificate IV units currently required by jurisdictions with national licensing three tier options’. Note that units that are subject to endorsements have not been included in this analysis.

Cost of Certificate IV units

The cost of undertaking a Certificate IV unit includes the direct cost incurred by the individual (the fee charged by the training provider) and the indirect cost associated with undertaking the unit (the time that each individual spends completing each unit). The time spent (in hours) is multiplied by the average hourly wage rate to estimate a time cost.

Table G.44: Fees associated with Certificate IV units

Assumptions	Unit	Value	Source
Fees associated with Certificate IV units
NSW	Fee per unit	$500		These estimates were provided by New South Wales in its policy document ‘Examination of additional units of competency for various NOLS plumbing and gasfitting licences’. It is based on the cost to complete seven additional units (CPCCBC4012A, CPCPWT4001A, CPCPDR4001A, CPCPDR4002A, CPCPDR4003A, CPCPSN4001A, CPCPGS4001A) in New South Wales. Based on $3,500 for seven units = $500 per unit
VIC	Fee per unit	$104.25		Based on information sourced from the Victoria University and the Northern Melbourne Institute of TAFE regarding the Certificate IV units being removed BSBSMB401A Establish legal and risk management requirements of small business and CPCPSN4011A Design and size sanitary plumbing systems Victoria University fee per hour is $2.17, BSBSMB401A (60 hours) fee is $130.20 and CPCPSN4011A (40 hours) fee is $86.80. Northern Melbourne Institute of TAFE fee per hour is $2.00, BSBSMB401A (60 hours) fee is $120 and CPCPSN4011A (40 hours) fee is $80.
QLD	Fee per unit	$355.13		Gold Coast TAFE, Course details and fees Total fee of $5,327 divided by the number of ‘topics’ covered. It is assumed that each of these topics represents a unit.
WA	Fee per unit	$332.81		Average fees of other jurisdictions used as no data was available.
SA	Fee per unit	$332.81		Average fees of other jurisdictions used as no data was available.
TAS	Fee per unit	$332.81		Average fees of other jurisdictions used as no data was available.
ACT	Fee per unit	$371.86		Average of five units listed by Canberra Institute of Technology, Course details and fees
NT	Fee per unit	$332.81		Average fees of other jurisdictions used as no data was available.

Table G.45: Classroom delivery hours for each Certificate IV unit

Assumptions	Unit	Value	Source
Classroom delivery hours for each Certificate IV unit
NSW	Hours per unit	39	These estimates were provided by New South Wales in its policy document ‘Examination of additional units of competency for various NOLS plumbing and gasfitting licences’. It is based on the time (276 hours) to complete seven additional units (CPCCBC4012A, CPCPWT4001A, CPCPDR4001A, CPCPDR4002A, CPCPDR4003A, CPCPSN4001A, CPCPGS4001A) in New South Wales.
VIC	Hours per unit	36	Average hours of other jurisdictions used as no data was available.
QLD	Hours per unit	21	Gold Coast TAFE, Course details and fees 2011
WA	Hours per unit	36	Average hours of other jurisdictions used as no data was available.
SA	Hours per unit	36	Average hours of other jurisdictions used as no data was available.
TAS	Hours per unit	36	Average hours of other jurisdictions used as no data was available.
ACT	Hours per unit	36	Average hours of other jurisdictions used as no data was available.
NT	Hours per unit	48	Charles Darwin University, Course details and fees 2011

Assumed percentage of licensees requiring difference Certificate IV units

Table G.46: Assumed percentage of elective units

Assumptions	Unit	Value	Source
Assumed percentage of licensees and the elective units
Percentage of licensees impacted by changes in the unit levels outlined above	%	80%	Based on consultation with regulators, it is assumed that 80% of licensees have a licence covering water, sanitary and drainage
Number of units no longer required for remaining 20% of licensees – two tier option	Units per licensee	1	Given data constraints, to simplify the analysis, it is assumed that the remaining 20% of licensees would have to do at least one category-specific unit (elective)
Number of units no longer required for remaining 20% of licensees – three tier options	Units per licensee	0	Given data constraints, to simplify the analysis, it is assumed that for the remaining 20% of licensees there is no change in unit requirements

Duplicate testing in Victoria

Based on advice from the Victorian Plumbing Industry Commission, it is assumed that all applicants must complete one assessment. The commission advised that licensees generally only undertake either the registration or licence exam. For the purpose of this analysis it has been assumed that each applicant will sit a three-hour test (based on the time to complete the licence exam as no information on the time to complete a registration exam was found on Plumbing Industry Commission’s website) and an average fee across the two common tests has been applied.

Table G.47: Removal of duplicate testing requirements in Victoria

Assumptions	Unit	Value	Source
Time cost for all new licensees
Time to sit test	Hours per licensee	3 hours	Plumbing Industry Commission, Licence (theory) test Note that no time information was provided on the commission’s website for the registration exam, so the time to sit the licence exam has been used
Fees payable for all new licensees
Fee for test	$ per licence	$97.68	Average of the fee payable for the licence exam and registration exam Licence exam – $143.15: Plumbing Industry Commission, Licence (theory) test Registration exam – $52.20: Plumbing Industry Commission, Licensing and registration fees

Cost of introducing financial probity requirements

Under national licensing, financial probity requirements would apply for all licence types. Given that not all jurisdictions currently impose financial probity requirements for all licences, this will lead to additional costs for licence holders in certain jurisdictions.

The financial probity requirements under national licensing would involve the disclosure of certain acts, such as a failure to pay fines. This would impose a time cost for all new licence applicants, who would need to spend time identifying whether they have anything to disclose and then, if necessary, writing out their disclosure.

Table G.48 Cost of introducing financial probity requirements for contractors

Assumptions	Unit	Value	Source
Financial probity requirements
WA	Hours per licensee	0.166 (ten mins)	Assumption based on a PricewaterhouseCoopers study (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29) It is estimated that disclosing information will take ten minutes on average. It is expected that some individuals will take less than ten minutes (i.e. if they do not have anything to disclose), and some may take longer (i.e. if they have many items to disclose). This variation is accounted for by using an average figure.
ACT	Hours per licensee	0.166 (ten mins)	Assumption based on a PricewaterhouseCoopers study (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29). It is estimated that disclosing information will take ten minutes on average. It is expected that some individuals will take less than ten minutes (i.e. if they do not have anything to disclose), and some may take longer (i.e. if they have many items to disclose). This variation is accounted for by using an average figure.

Table G.49: Cost of introducing financial probity requirements for (full) licence holders

Assumptions	Unit	Value	Source
Financial probity requirements
VIC	Hours per licensee	0.166 (ten mins)	Assumption based on a PricewaterhouseCoopers study (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29). It is estimated that disclosing information will take ten minutes on average. It is expected that some individuals will take less than ten minutes (i.e. if they do not have anything to disclose), and some may take longer (i.e. if they have many items to disclose). This variation is accounted for by using an average figure
QLD	Hours per licensee	0.166 (ten mins)
SA	Hours per licensee	0.166 (ten mins)
TAS	Hours per licensee	0.166 (ten mins)
ACT	Hours per licensee	0.166 (ten mins)
NT	Hours per licensee	0.166 (ten mins)

Table G.50: Cost of introducing financial probity requirements for tradesperson registrations

Assumptions	Unit	Value	Source
Financial probity requirements
VIC	Hours per licensee	0.166 (ten mins)	Assumption based on a PricewaterhouseCoopers study (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29). It is estimated that disclosing information will take ten minutes on average. It is expected that some individuals will take less than ten minutes (i.e. if they do not have anything to disclose), and some may take longer (i.e. if they have many items to disclose). This variation is accounted for by using an average figure
QLD	Hours per licensee	0.166 (ten mins)
SA	Hours per licensee	0.166 (ten mins)
TAS	Hours per licensee	0.166 (ten mins)
ACT	Hours per licensee	0.166 (ten mins)
NT	Hours per licensee	0.166 (ten mins)

Removal of personal probity requirements for non-contractor licences

Under national licensing, the majority of personal probity requirements would be removed for all non-contractor licences (this includes (full) licence holders and tradesperson registrations). In jurisdictions that currently impose personal probity checks for non-contractor licence applicants, a benefit would be gained by avoiding the cost of probity checks. In jurisdictions that impose this requirement, one or more of the following personal probity costs are incurred by licence applicants:

• 
  the time to obtain two references
  
• 
  fees for obtaining a police check
  

Table G.51: Removal of personal probity for (full) licence holders

Assumptions	Unit	Value	Source
Personal probity requirements
NSW	Hours per licensee	0.33 hours (20 minutes)	Assumption based on the requirement to be a ‘fit and proper person’. It is assumed that this requirement would be met by providing two references or spending an equivalent time on making a declaration. Based on a PricewaterhouseCoopers study (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29), it is estimated that 30 minutes is required for an applicant to obtain a passport photo and two written references. In the absence of any other information, it has been assumed that two-thirds of this cost is attributable to obtaining two written references (i.e. 20 minutes).
VIC	Hours per licensee	0.166 hours (ten minutes)	Victoria requires the disclosure of charges or disqualifications. Based on the mapping exercise undertaken by the COAG National Licensing Taskforce, which identified the differences between state and territory licensing requirements and the requirements proposed under national licensing. Based on a PricewaterhouseCoopers study, it is estimated that 30 minutes is required for an applicant to obtain a passport photo and two written references (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29). In the absence of any other information, it has been assumed that two-thirds of this cost is attributable to obtaining two written references (i.e. 20 minutes).
WA	Hours per licensee	0.5 hours (30 minutes)	Based on the following requirements: details of any charges and disqualifications from holding an occupational licence – it is estimated that disclosing information will take ten minutes on average. It is expected that some individuals will take less than ten minutes (i.e. if they do not have anything to disclose), and some may take longer (i.e. if they have many items to disclose). This variation is accounted for by using an average figure. details of two referees – it is assumed that 30 minutes will be required for an applicant to obtain a passport photo and two written references (PricewaterhouseCoopers, ‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29). It has been assumed that two-thirds of this cost is attributable to obtaining two written references (i.e. 20 minutes). Plumbers Licensing Board, Tradesperson’s licence application
	$ per licensee	$53.70	Western Australia Police, National Police Certificates
TAS	Hours per licensee	0.33 hours (20 minutes)	Assumption based on the requirement to be a ‘fit and proper person’. It is assumed that this requirement would be met by providing two references. Based on a PricewaterhouseCoopers study (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29), it is estimated that 30 minutes is required for an applicant to obtain a passport photo and two written references. In the absence of any other information, it has been assumed that two-thirds of this cost is attributable to obtaining two written references (i.e. 20 minutes). Workplace Standards Tasmania, Fit and proper
ACT	Hours per licensee	0.166 hours (ten minutes)	The Australian Capital Territory requires the disclosure of charges or disqualifications. Based on the mapping exercise undertaken by the COAG National Licensing Taskforce, which identified the differences between state and territory licensing requirements and the requirements proposed under national licensing. Based on a PricewaterhouseCoopers study (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29), it is estimated that 30 minutes is required for an applicant to obtain a passport photo and two written references. In the absence of any other information, it has been assumed that two-thirds of this cost is attributable to obtaining two written references (i.e. 20 minutes).
NT	Hours per licensee	0.33 hours (20 minutes)	Assumption based on the requirement to provide ‘character references’. It is assumed that this requirement would be met by providing two references. Based on a PricewaterhouseCoopers study (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29), it is estimated that 30 minutes is required for an applicant to obtain a passport photo and two written references. In the absence of any other information, it has been assumed that two-thirds of this cost is attributable to obtaining two written references (i.e. 20 minutes). NT Plumbers and Drainers Licensing Board  Application forms

Table G.52: Removal of personal probity for tradesperson registrations

Assumptions	Unit	Value	Source
Personal probity requirements
NSW	Hours per licensee	0.33 hours (20 minutes)	Assumption based on the requirement to be a ‘fit and proper person’. It is assumed that this requirement would be met by providing two references or spending an equivalent time on making a declaration. Fair Trading NSW, Business Licensing Information Service Based on a PricewaterhouseCoopers study, it is estimated that 30 minutes is required for an applicant to obtain a passport photo and two written references (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29). In the absence of any other information, it has been assumed that two-thirds of this cost is attributable to obtaining two written references (i.e. 20 minutes).
WA	Hours per licensee	0.166 hours (ten minutes)	Western Australia requires the disclosure of charges or disqualifications. Based on the mapping exercise undertaken by the National Licensing Taskforce, which identified the differences between state and territory licensing requirements and the requirements proposed under national licensing. Based on a PricewaterhouseCoopers study, it is estimated that 30 minutes is required for an applicant to obtain a passport photo and two written references (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29). In the absence of any other information, it has been assumed that two-thirds of this cost is attributable to obtaining two written references (i.e. 20 minutes).
NT	Hours per licensee	0.33 hours (20 minutes)	The Northern Territory requires two written references. Based on the mapping exercise undertaken by the National Licensing Taskforce, which identified the differences between state and territory licensing requirements and the requirements proposed under national licensing. Based on a PricewaterhouseCoopers study, it is estimated that 30 minutes is required for an applicant to obtain a passport photo and two written references (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29). In the absence of any other information, it has been assumed that two-thirds of this cost is attributable to obtaining two written references (i.e. 20 minutes).

Removal of the requirement for apprentices to apply for a licence

Table G.53: Number of current apprentices in the industry

Assumptions	Unit	Value	Source
Number of apprentice licence applications per annum
WA	number of apprentice licensees	616	Plumbers Licensing Board, Licensed plumbers numbers
SA	number of apprentice licensees	526	Unpublished data provided by the National Licensing Taskforce, received May 2011 based on advice from regulators

Table G.54: Fee for apprentice licence

Assumptions	Unit	Value	Source
Apprentice licence fee
WA	$ per licence	$70	Government of Western Australia, Department of Commerce, Energy Safety, Application for a ‘Class G’ gasfitting permit for apprentices and pre-apprentices restricted to work under supervision
SA	$ per licence	$0	There is currently no fee for apprentice licences in South Australia

Introducing worker licences in Queensland

The number of expected worker licensees is only approximate, as data on the actual number is unknown.

Table G.55: Number of workers required to be licensed in Queensland under national licensing

Assumptions	Unit	Value	Source
Number of worker licensees in Queensland
Mechanical services	number of licensees	4,000	Unpublished estimate provided by Queensland on 31 May 2012
Gasfitting Type B	number of licensees	500	Unpublished estimate provided by Queensland on 31 May 2012

Introducing contractor licences under national licensing

The number of expected business contractor licensees is only approximate, as data on the actual number is unknown. The licence fees and terms used in calculating the impact on these licensees are based on licence fees payable as at June 2012, or where applicable as at the date specified.

Table G.56: Number of business contractor licensees under national licensing

Assumptions	Unit	Value	Source
Number of business contractor licensees expected under national licensing
VIC	number of licensees	2,915	Prorated from the number of (full) licence holders in Victoria, based on the proportion of contractor licensees that are businesses in New South Wales
NT	number of licensees	239	Prorated from the number of (full) licence holders in the Northern Territory, based on the proportion of contractor licensees that are businesses in New South Wales

Providing evidence of skills maintenance

All applications for a licence in plumbing, draining or gasfitting classes in New South Wales and the Northern Territory must be accompanied by supporting statements from the applicant’s supervisor verifying the applicant’s experience in carrying out the work in accordance with relevant standards and codes. It is assumed that disclosing this information to the appropriate regulator takes ten minutes per licensee.

Table G.57: Time to generate proof/letter showing experience maintaining skills

Assumptions	Unit	Value	Source
Time to meet requirements
NT	Hours per licensee	0.166 hours (ten minutes)	Based on a PricewaterhouseCoopers study, it is estimated that 30 minutes is required for an applicant to obtain a passport photo and two written references (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005, page 29). In the absence of any other information, it has been assumed that one-third of this cost is attributable to obtaining one written reference (i.e. ten minutes). Plumbers and Drainers Licensing Board, Evidencing skills maintenance for plumbers and drainers