National Licensing for Property Occupations Consultation Regulation Impact Statement

Stakeholder feedback

The cost–benefit analysis indicates that those licensees that operate across multiple jurisdictions could enjoy considerable benefits following the implementation of national licensing and to a lesser extent automatic mutual recognition.

The modelling analysis is provided to guide stakeholders in the nature of the potential impacts and to give estimates of possible flow-through benefits and costs.

A number of assumptions were made to quantify the benefits of national licensing and automatic mutual recognition. This analysis will be improved by a more detailed consideration of these modelling results, and by consideration of specific case studies and feedback from stakeholders on how the current and prospective licensing of property occupations affects business and consumers.

Specific questions on aspects of the proposals are included in this Consultation RIS, and a list of the questions is provided below. However, stakeholder feedback is also sought in general terms on the merits of and preference for national licensing or automatic mutual recognition.

In providing feedback, stakeholders are invited to consider:

the expected costs and benefits from an industry, licensee and community perspective

the most appropriate administrative arrangement for coordinating future reform of the property occupational licensing regime

the scope, scale and durability of the proposed changes

the assumptions used in the cost–benefit analysis and whether there are views on more appropriate assumptions and inputs.

Please see Attachment A for information on how to make a submission.

Questions

Question	Page reference
Preferred Model
In view of the key features outlined in the Boxes ES.4 and ES.5 in the RIS, which is your preferred model for licensing reform: National licensing Automatic Mutual Recognition (AMR) Status quo Other	xix
National Licensing – only respond if this is your preferred model
Which features of the national licensing model do you consider most important? Increased labour mobility Harmonisation of licence categories, scope of work and qualifications Establishment of a national licensing authority Jurisdictional mobility of businesses that hold a contractor licence Only paying for a licence category once Relative ease to administer (for regulators) Ease of understanding (for employers) Ease of understanding (for licensees) Other (please specify)	xxx
What are the features of Automatic Mutual Recognition that caused you not to support it? The absence of a national licensing authority Non-harmonisation of licence categories, scope of work and qualifications Relative complexity to administer (for regulators) Other (please specify)	xxx
Automatic Mutual Recognition– only respond if this is your preferred model
Which features of automatic mutual recognition do you consider to be the most important? Increased labour mobility Maintaining existing licence categories, scopes of work and qualifications Lower establishment costs for Government Lower anticipated fees than under national licensing Only targeting licensees who want to work in multiple jurisdictions Only paying for a licence category once Ease of understanding (for employers) Ease of understanding (for licensees) Other (please specify)	xxx
What are the features of the national licensing model that caused you not to support it? Higher anticipated establishment and ongoing costs for Government Higher anticipated transition costs for licensees Increased licence fees for some jurisdictions Increased regulatory requirements for some licence classes Changes to licence categories, scopes of work and qualifications Other (please specify)	xxx
Status Quo– only respond if this is your preferred model
What are the features of the national licensing model that caused you not to support it? Higher anticipated establishment and ongoing costs for Government Higher anticipated transition costs for licensees Increased licence fees for some jurisdictions Increased regulatory requirements for some licence classes Changes to licence categories, scopes of work and qualifications Other (please specify)	xxxi
What are the featured of Automatic Mutual Recognition that caused you not to support it? The absence of a national licensing authority Non-harmonisation of licence categories, scope of work and qualifications Relative complexity to administer (for regulators) Other (please specify)	xxxi
Licence Categories and Scopes of Work
Do you agree that national licensing should include the following licence categories: Real estate agent business agent Strata managing agent Auctioneer Agent’s representative If no to any of the above please specify	17
Are there any additional licence categories that should be considered?	17
Do you consider that the national licensing proposals for strata mangers are preferable to a registration scheme (such as that in Victoria) for this occupation? Note: Under the Victorian registration scheme, strata managers register with the regulator and there are no skills based eligibility requirements.	22
Do you consider that the registration scheme for agent’s representatives proposed under national licensing is preferable to a registration scheme such as that in Victoria)? Note: Under the Victorian registration scheme, the representative’s employer is responsible for their employee’s registration and ensuring that the representative has satisfied the skills based eligibility requirements.	25
Do the proposed scopes of regulated work correspond to the actual work of licensees in each of the proposed licence categories? real estate agent business agent strata managing agent agent’s representative auctioneer	26
Under national licensing, the scope of regulated work for a real estate agent includes work relating to rural property. Do you agree with this proposal?	20
Under national licensing, it is proposed that work relating to non-residential real property, meaning property that is primarily for the purpose of industry, commerce or primary production, will not be licensed. Do you agree with this proposal?	28
Under national licensing, it is proposed that the scope of work for a real estate agent excludes work primarily for the purpose of “industry, commerce or primary production”. However, these terms have not been defined. Should a definition for each of these terms be included in the national legislation?	20
Under national licensing, it is proposed that the purchasing, selling or auctioning of livestock will not be included in the scope of regulated work of an auctioneer or real estate agent and that these activities will not be licensed at the national level. Do you agree with this proposal?	29
Do you agree with the proposal that an exemption from holding a jurisdictional licence for auctioning of livestock should be considered by the relevant jurisdiction if the applicant holds a national auctioneer licence?	30
Under national licensing, the licence categories of auctioneer and agent’s representative will only be available to individuals (not body corporate). Do you agree with this proposal?	26
Do you agree the requirements proposed under national licensing for body corporate holding a real estate, strata managing or business agent licence to appoint a nominee are appropriate?	31
Do you agree the exemption regime proposed under national licensing is appropriate?	32
Personal and financial probity
Do you agree the personal probity, including ‘relevant person’ requirements, proposed under national licensing adequately address issues of consumer risk?	34
Do you agree the financial probity eligibility requirements proposed under national licensing adequately address issues of consumer risk? real estate agent business agent strata managing agent auctioneer agent’s representative	35
Eligibility and Qualifications
Are the proposed entry level qualifications as outlined in the RIS sufficient and appropriate for the proposed property occupations licence categories, scopes of regulated work and consumer risk outcomes? real estate agent business agent strata managing agent auctioneer agent’s representative	38
Do you agree that the units of competency proposed as requirements for a real estate agent to qualify as a business agent are appropriate?	39
Do you agree that the units of competency proposed as requirements for a business agent to qualify as a real estate agent are appropriate?	39
Transition Costs
The RIS assumes that it will take 45 minutes for licence holders to understand any new obligations, changes to licence requirements or scopes of work under national licensing. Do you agree with this assumption?	45
Beyond the time and transition costs incurred by licensees, businesses and households, and the one-off establishment costs incurred by governments, are there any other transition costs that should be considered in moving to national licensing?	49
Testing the Assumptions
Are there any other forms of testing currently required by state and territory governments that should be included in the calculations?	57
Licence Periods
What should the non-business (non-agency) licence period be under national licensing?	74
What should the business (agency) licence period be under national licensing?	74
Transitional Arrangements
In transitioning to national licensing, some qualifications that currently qualify applicants for a jurisdictional licence will not qualify an applicant for the equivalent national licence. Do you agree that these qualifications, if started before the commencement of national licensing, should be deemed to satisfy the skills based eligibility requirements for the equivalent national licence (as proposed under national licensing)? Note: these transitional arrangements only apply to existing jurisdictional licences that have an equivalent licence.	140
Further to the question above, it is proposed that an individual who completes such a qualification immediately before the commencement of national licensing will have three years to apply for a national licence. After this three year period, measured from the commencement of national licensing, these ‘superseded’ qualifications will no longer be deemed to satisfy the skills based eligibility requirements for a national licence. Do you agree with this proposal? Note: these transitional arrangements only apply to existing jurisdictional licences that have an equivalent licence.	140
If your licence lapsed before the commencement of national licensing (meaning you would not have been transitioned to a national licence), the proposed grace period for applying for an equivalent national licence will be the same as the current restoration arrangements in the jurisdiction that issued your licence (if any). Do you agree with this proposal? Note: After the commencement of national licensing, the proposed grace period to restore a lapsed licence is three months. A licensee can only restore their licence if the restoration period has not expired.	141
Certain restricted licence categories will be discontinued under national licensing. Do you agree that a grace period of 12 months should be provided in which an individual that qualified for a discontinued licence will be deemed eligible for an equivalent national licence (with limitations on the scope of work)? Note: The grace period will be measured from completion of the outdated restricted licence qualification. The qualification must have been commenced before the start of national licensing.	141
Are there any other issues that should be considered in developing a national licensing system?	143