Occupational Licensing Legislation

The Hon. J.M. GAZZOLA (15:16): I seek leave to make a brief explanation before asking the Minister for Business Services and Consumers a question about recent changes to occupational licensing legislation.

Leave granted.

The Hon. J.M. GAZZOLA: The Statutes Amendment (Occupational Licensing) Act 2013 passed by the parliament last year provides for reforms to various occupational licensing legislation. I understand that the majority of the reforms provided for in this act have recently commenced. Will the minister update the chamber about the occupational licensing reforms, including which reforms recently commenced, and the estimated savings to the community as a result of these reforms?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (15:17): I thank the honourable member for his most important question. The Statutes Amendment (Occupational Licensing) Act 2013, also known as the occupational licensing reforms, passed by both houses of parliament, was assented to last year on 21 November.

I am pleased to advise members that these reforms, developed with industry, aim to reduce regulatory costs for businesses by removing red tape and improve effectiveness for Consumer and Business Services (CBS). The majority of these reforms commenced operation at the beginning of this month on 1 November, with the remaining reforms commencing once further changes to regulation have been made. The changes that commenced on 1 November include:

increasing flexibility for businesses without reducing consumer protection by allowing nominated building work supervisors to be engaged on a contract basis rather than as an employee or director;

increasing the commissioner's authority to take action more quickly and efficiently in relation to cancelling, suspending or imposing conditions on a licence or registration when a person is no longer eligible;

significantly increasing penalties for operating without a licence;

introducing the fit and proper person eligibility criteria for registration as a building works supervisor, plumber, gasfitter or electrician, allowing the commissioner to address instances where a person has sufficient qualifications and experience but has a history of not fulfilling their responsibilities or of performing unacceptable work;

providing the District Court the ability to impose conditions on a conveyancer's registration, land agent's registration or second-hand vehicle dealer's licence through disciplinary action;

requiring a trader to seek approval of the commissioner if they wish to teleconference at a compulsory conciliation conference, rather than attend in person;

reducing certain exclusion periods for discharged bankrupts and people who have been directors of insolvent companies; and

the removal of the prohibition of bankrupts obtaining a licence as a building work contractor or plumbing, gasfitting or electrical contractor who will be restricted to work as subcontractors, allowing people to continue to work in their trade where this poses no risk to consumers.

The remaining reforms that we continue to work on are minor changes to trust account and audit requirements, removing unnecessary requirements such as sales representatives in the real estate industry notifying the commissioner of changes in employment under certain conditions, and requirements to ensure charging clauses in domestic building work contractors and contracts for plumbing, gas fitting and electrical work done on domestic properties are more transparent.

In terms of the savings to the community, it is estimated these changes and the few remaining will save the community over $18 million per annum on red tape costs and greatly improve CBS's ability to protect the public through its compliance activities. This builds on previous red tape reduction work by CBS that has also delivered significant savings.

The occupational licensing reforms stemmed from an initial roundtable discussion that the former minister and CBS held with peak industry groups, and subsequently led to a process improvement review by CBS on existing processes and practices. I would certainly like to thank those members who supported the occupational licensing reforms in the house.

These reforms demonstrate the government's willingness to listen to industry and make changes to cut red tape for business, create greater flexibility and fairness in the marketplace, reduce administrative burdens and create efficiencies for government, and finally, to ensure adequate protections are in place for consumers.