National Licensing for Property Occupations Consultation Regulation Impact Statement
Attachment C – Overview of the property industry sector
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- Attachment D – National licensing policy development process
Attachment C – Overview of the property industry sectorThe property industry in Australia includes a large number of property occupations, such as real estate agents, business agents, strata managers, property managers and auctioneers.55 In 2011-12, the industry generated revenue of $9 billion, the majority of which was derived from residential sales (56.4 per cent); residential property management and non-residential property sales were the next largest contributors.56 In the residential market, operators mostly comprise localised firms with a smaller number of national franchises that mainly operate in the non-residential and rural markets. Figure C.1 illustrates this product and service segmentation. Figure C.1: Product and services segmentation, 2011 
Source: IBISWorld 2011, Industry Report: Real estate agents in Australia, February. Based on information provided by jurisdictional regulators, there are over 126,000 property licensees across Australia. Approximately 75 per cent of licences are issued in New South Wales, Victoria and Queensland. The majority of real estate establishments (approximately 83 per cent) are located in New South Wales, Victoria and Queensland.57 There has been significant growth in demand for both residential and non-residential real estate in Western Australia, which has resulted in more real estate agents in that state than population alone would suggest (see Figure C.2). Figure C.2: Business locations 
Source: IBISWorld 2011, Industry Report: Real estate agents in Australia, February. Attachment D – National licensing policy development processMembership of the Property Occupations Interim Advisory Committee, Property Occupations Regulator Working Group and the Council of Australian Governments National Licensing Steering Committee is provided below. The Interim Advisory Committee and the Regulator Working Group met throughout 2010 and early 2011 to assist with the development of the following elements of licensing policy for the national licensing system: licence categories, licence types and prescribed scopes of work eligibility requirements (skilled and non-skilled) other licence characteristics (exemptions, conditions, restrictions and endorsements) transitional arrangements. The objectives used in developing the licensing policy are taken from section 3 of the Occupational Licensing National Law Act 2010, as set out below: The objectives of the national licensing system are as follows – (a) to ensure that licences issued by the Licensing Authority allow licensees to operate in all participating jurisdictions; (b) to ensure that licensing arrangements are effective and proportionate to ensure consumer protection and worker and public health and safety while ensuring economic efficiency and equity of access; (c) to facilitate a consistent skill and knowledge base for licensed occupations; (d) to ensure effective coordination exists between the Licensing Authority and jurisdictional regulators (e) to promote national consistency in— (i) licensing structures and policy across comparable occupations; and (ii) regulation affecting the requirements relating to the conduct of licensees; and (iii) the approach to disciplinary arrangements for licensees; (f) to provide flexibility to deal with issues specific to particular jurisdictions or occupations; (g) to provide the public with access to information about licensees. The policy development process, in addition to complying with COAG’s Principles of best practice regulation, followed the principles set out in the Intergovernmental Agreement for a National Licensing System for Specified Occupations, which forms the basis for establishing national licensing: The system operates in a transparent, accountable, efficient, effective and fair manner. Regulatory intervention in the form of licensing is only contemplated where risks arising from market failure or risks to public health and safety warrant corrective action and, of all feasible options, licensing provides the greatest net public benefit. Licensing arrangements do not duplicate legislative protections contained under other laws, in particular, competition law, consumer protection law or occupational health and safety law. Licensing arrangements only include requirements needed to address identified consumer protection risks arising from market failure and/or worker and public health and safety risks without imposing unnecessary costs on consumers and business or substantially lessening competition. Licensing eligibility requirements are expressed in objective not subjective terms. The system will not require the extension of licensing to sub-groups of a broad occupational group that are not currently licensed in particular jurisdictions. Licensing arrangements are subject to an initial review five years after commencement and subsequently at a frequency no less than every 10 years. As part of the National Occupational Licensing Authority’s communication strategy, following each meeting, communiqués outlining the progress of work were made available on the national licensing website (www.nola.gov.au). Table D.1: Membership of the Property Occupations Interim Advisory Committee
Table D.2: Membership of the Property Occupations Regulator Working Group
Table D.3: Membership of the Council of Australian Governments National Licensing Steering Committee
Table D.4: Membership of the National Occupational Licensing Authority Board
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