National Occupational Licensing System NOLS National Occupational Licensing Proposals – WA Consultation Property Occupations

September/October 2012 Gary Newcombe Director Strategic Policy and Development Consumer Protection Division Department of Commerce

Purpose of today

’

s session

• • Inform you about the proposed National Occupational Licensing System; and Encourage you to make submission to the Commonwealth Taskforce on the proposals outlined in relevant Regulation Impact Statements and draft legislation.

• • • Will provide: Overview of the National Occupational Licensing System and what it involves.

An explanation of the detail of the proposed system and its impact in WA.

Advice on how to have your say and where to from here.

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Overview NOLS: what is it

?

• • • • • COAG proposal intended to improve labour mobility in a range of occupations.

Will introduce standard licence categories for occupations within its scope.

Licensees will apply for, and pay for, a single licence and, without more, will be able to move and work under that licence anywhere in Australia.

Unlike existing mutual recognition arrangements, will not need to make application in a new jurisdiction or pay a fee.

Regulation Impact Statements raise option of automatic mutual recognition but concerns about explanation.

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Overview

NOLS: what is it?

Table ES.7: Comparison of high-level impacts of national licensing and automatic mutual recognition Reform objective

Facilitate a consistent skills base (Intergovernmental Agreement 4.3)

National licensing

Yes

Comparison of options Automatic mutual recognition

No Ensure effective coordination exists (Intergovernmental Agreement 4.3) Promote national consistency in licensing structures, policy and disciplinary arrangements (Intergovernmental Agreement 4.3).

Increased labour mobility Ability to reduce regulatory burden Cost of regulatory model Durability of reform Yes Yes Yes Yes National licensing proposes reductions in the regulatory burden.

Medium Higher regulatory costs in the short term (from national authority and national register), with possible flow-on impacts for licence fees where jurisdictional regulators are self-funded. All jurisdictions accrue a benefit in the long term.

High Jurisdictions would need comprehensive legislative change to exit from national licensing system.

Uniform scopes of work and qualifications would be provided for in national legislation.

No No Yes Partial Subject to jurisdictional agreement and/or competitive federalism.

Unquantifiable – expected to be low to medium Up-front costs to establish limited national register, but no additional ongoing costs.

Any future work on further harmonisation would incur costs.

Low There would be no mechanism to ensure durability of AMR arrangements.

Jurisdictions would need legislative change to remove agreed automatic mutual recognition arrangements.

Jurisdictions could change specific licensing requirements 4

Overview NOLS: what occupations are involved?

• • • • Occupations to be rolled into NOLS in two waves.

Wave 1 covers: property occupations, air-conditioning and refrigeration mechanics, electricians, gasfitters, and plumbers.

Property occupations includes: real estate agents, sales representatives, business agents, business agents’ representatives, real estate auctioneers and strata managers.

Wave 2 covers: building and building related trades, land valuers and settlement agents.

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Overview NOLS: what is the timeline

?

• • • • • • Original timeline was July 2012 for first wave occupations and July 2013 for second wave occupations.

Current timeline is late 2013 for first wave occupations and 2014 for second wave occupations.

2013 already in serious doubt.

Current consultation closes 12 October 2012.

Final policy position to be settled late 2012/early 2013.

Victoria to enact amended law in early 2013, other jurisdictions by mid-2013.

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Overview NOLS: how will it be implemented

?

• • • • • • Based on Victorian model legislation and national regulations to be applied in all other States/Territories, except WA and the ACT.

WA will implement by way of its own, identical legislation. The ACT is not a participant yet.

Victorian Act is Occupational Licensing National Law (Vic) 2010.

All participating States/Territories, other than WA, have passed laws to apply the Victorian Act.

Before scheme can come into operation, amendments and regulations required – subject to current consultation.

WA still needs to pass legislation.

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Overview NOLS: how will it be administered

?

• • • • • New National Occupational Licensing Authority (NOLA) to administer scheme but delegate day to day licensing functions to existing State/Territory regulators.

NOLA based in Sydney. Board appointed. Staffing underway. CEO yet to be appointed.

NOLA’s main functions will be setting licensing policy to be applied by delegates and maintaining national register.

NOLA has not been involved in policy development for first wave occupations but will be responsible for policy development for second wave occupations.

NOLA to be overseen by committee of all Commonwealth, State and Territory Treasurers.

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Overview NOLS: how will it be administered

?

NOLA Board membership

         Chair – Elizabeth Crouch, NSW Deputy Chancellor Macquarie University Graham Anderson – former HIA National President.

Tony Arnel – former Victorian Building and Plumbing Commissioner; Miranda Douglas-Crane – employment and training background; Albert Koenig – former Director of EnergySafety WA; Wendy Machin – former NSW Minister for Consumer Affairs; John Sutton – Union background; David Ford – Commissioner for Fair Trading Queensland Vacancy - Deputy Commissioner, Consumer and Business Affairs, South Australia 9

Overview NOLS: how will it be administered

?

• • • • • Occupational Licence Advisory Committees (OLAC) will be established for each licensed occupation.

OLACs will advise NOLA on licensing policy and matters referred to them.

OLAC members to be appointed by NOLA Board.

NOLA Board must invite nominees from relevant national peak bodies.

Each OLAC must have balance of expertise on regulation, union, employer rep, OHS, consumer advocacy, training, insurance (if relevant).

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NOLS Administration

Standing Council Federal Financial Relations National Occupational Licensing Authority Board Chief Executive Occupational Licence Advisory Committees Jurisdictional Regulators EG Department of Commerce WA Staff 11 Staff

Overview NOLS: key elements

.

• • • • • Only covers obtaining, issuing and keeping a licence – does not cover day to day conduct rules. These will remain State/Territory specific and be administered by existing regulators.

New licensees will pay one fee but the fee will be set by individual States/Territories and will vary.

New licensees will need to apply in the State/Territory that is place of residence or principal place of business.

States/Territories don’t have to introduce a NOLS occupational licence if they do not currently license that occupation (eg strata managers in WA).

National licences will have nationally standard scope of work and entry requirements.

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Overview NOLS: key elements

.

• • • • • All existing licensees will be automatically transferred into the new system to the closest national licence category – may involve some conditions being imposed to restrict new licence.

Principle for transferring existing licensees will be – no disadvantage, after transfer will be able to do everything could do before transfer. Will be a national register of all licensed entities – eg individuals, individuals in partnership or companies.

Entities will be numbered in new system, not licences.

Existing licensees will be able to keep current licence numbers for a period but ultimately will have to transfer to new entity number.

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Overview NOLS: State position

.

• • • • State has signed up to COAG proposal but yet to implement it.

WA Government is waiting on local stakeholder feedback before deciding on how to implement NOLS in WA.

WA Government agreed to release of Regulation Impact Statements for consultation but has not endorsed content.

Implementation of NOLS in WA will require separate State legislation to be introduced into Parliament after next election.

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Overview NOLS: Where to from here

?

• • • • WA Government wants to know your views on the proposals.

If you have concerns, important that you state them now as WA Government will need to make a decision on its participation in NOLS.

We will advise the Government of views expressed at these sessions but important to make submission to the Commonwealth Taskforce.

Will help us if you send us a copy of any submission.

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NOLS Property Occupations

What would NOLS mean for property agents in WA?

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• • • • • •

Property Occupations Scope

Real estate agents Business agents Real estate sales representatives Business agents’ representatives Real estate auctioneers Strata managers Second wave is to include: • • Settlement agents Land valuers 17

Property Occupations Scope

Will be separate NOLS licence categories for: • Real estate agents • Business agents • Agents’ representatives • Real estate auctioneers • Strata managers Auctioneers and strata managers subject to separate processes in WA.

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• • • •

Property Occupations Existing licensees

Existing licensees will transfer into NOLS with current licence term and no need to re-apply.

Real estate and business agents will get two licences.

Sales representatives and business agents’ representatives will get an agent’s representative licence.

Property managers will get agent’s representative’s licence.

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• • • • • •

Property Occupations Auctioneers

Will need a NOLS real estate auctioneer’s licence to auction real estate in WA.

WA licenses all auctioneers under Auction Sales Act.

If nothing done, auctioneers would need two licences: one for real estate and one for chattels.

Consumer Protection will be consulting separately on best way to deal with issue.

Suggested approach is to deem anyone with NOLS real estate auctioneer’s licence to be licensed under Auction Sales Act.

Persons only wanting to auction chattels could just get licensed under Auction Sales Act.

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Property Occupations Strata Managers

• • • • • • • Strata managers not currently licensed in WA.

No obligation under NOLS to introduce strata manager licensing in WA.

Government separately consulting on licensing strata managers.

Report to Government due by end of 2012.

If Government introduces strata manager licensing and NOLS, strata manager licensing must follow NOLS model.

Strata manager licensing could be introduced without NOLS.

If licensing introduced, will need new conduct laws for strata managers.

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• • • • • • • • • •

Property Occupations NOLS changes

Regulator – NOLA.

Licensing policy – set by NOLA not WA Government.

Fees – uncertain impact.

Number of licences – may need more.

Licence and triennial certificate – replaced by licence.

Representatives – only one category & licensed not registered.

Fit and proper person test – replaced.

Knowledge of Act – not specifically required.

Sufficient resources test – removed.

Entry qualifications – reduced.

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Property Occupations NOLS changes cont

• • • • • • • Formal age limit – removed.

Commercial property work – licence not required.

CPD – not applicable.

Nominee – replaces obligations for directors/partners to be licensed.

Registration of branch offices – not required.

Licence number – will move to new, national entity number over 5 years.

Advertising intention to apply for licence – not applicable.

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Property Occupations Regulator, policy and fees

• • • • • NOLA will be the regulator.

Commissioner for Consumer Protection will be delegate of NOLA and will be bound by directions.

Licensing policy will be set by NOLA, not WA Government.

Changes to OLNL and Regulations nationally to be agreed by SCFFR but changes to law will need to be made separately in WA and Regulations able to be disallowed in WA.

Fees changes will depend on two things – extent fees pay for full cost of NOLS and extent fees charged for additional licences.

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Property Occupations Number of licences

• • • • • • Will need separate NOLA licence where relevant to work undertaken.

Currently one licence covers real estate and business agents – will be two.

Proposal is multiple licences may be issued on one document.

Existing licensees will be deemed into all relevant licences, on renewal can choose whether to keep all.

Action being taken to avoid extra auctioning licences.

May be new licence requirement for strata managers.

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Property Occupations Fit and proper person

• • • • • Has been integral to licensing for years. Despite rules, tends to be subjective.

General test to be replaced with two specific tests – personal probity and financial probity.

Personal probity will cover history in relation to Corporations Law provisions, licensing laws and offences relating to dishonesty and misleading and deceptive conduct – not general criminal history.

Financial probity for agents will cover issues of insolvency/bankruptcy and failure to pay licensing law fines/penalties.

Financial probity for reps limited to failure to pay licensing law fines/penalties.

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Property Occupations Entry qualifications

• • • • • • NOLS introduces new entry requirements prescribed in Regulations. Lower level than existing in WA.

New entry requirements will only apply to people newly licensed under NOLS – current licensees deemed over to NOLS will never need to meet new qualifications unless their licence lapses or is cancelled.

Cert IV in Property Services (Real Estate) for RE Agent.

Cert IV in Property Services (Business Broking) for Business Agent.

Cert IV in Property Services (Operations) for Strata Manager.

5 units from Property Services Training Package for Agents’ Rep and 3 units for Real Estate Auctioneer.

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Property Occupations Commercial property

• • • OLNL defines “real estate agency work” to be limited to dealing with “residential real property”.

Result of definition is that a licensed real estate agent would not be required for transactions involving commercial/industrial real property.

This would remove existing requirement in WA to use real estate agent for commercial/industrial real property sales.

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• • • • •

Property Occupations CPD

Compulsory Professional Development requires licensees in WA to undertake annual training.

No requirement for CPD under NOLS.

NOLA will be able to require licensees to undertake training on a needs basis.

Abolition of CPD provides the bulk of savings attributed to NOLS.

CPD obligations for WA licensees will continue, and continue to be enforced, until NOLS implemented in WA.

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Property Occupations Nominees

• • • • • A business licence will be available for real estate agents, business agents (and strata managers).

A body corporate, partnership or individual will be able to have a business licence but to do so must have a licence holder who is either a director, partner or employee who is the “nominee”.

Only one nominee required for the licensee, regardless of size.

Only individuals will be able to have an agents’ representative licence, so no nominee required.

The obligations of nominees will be covered by State conduct laws, not by the OLNL.

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How to make a submission

Online information can be found at: www.nola.gov.au

Email submissions to: [email protected]

Written submissions to: COAG national Licensing Taskforce Department of Industry, Innovation, Science, Research and Tertiary Education GPO Box 9839 16 Mort Street Canberra City ACT 2601 31

Copy us in

Email submissions to: [email protected]

Written submissions to: Gary Newcombe Department of Commerce Locked bag 14 Cloisters Square Perth WA 6850 Copies of presentations at www.commerce.wa.gov.au/consultations 32

Appendix 1 Claimed net $ impacts of NOLS

NSW

34.13

Vic

0.75

Qld

5.79

WA

29.49

SA

4.92

Tas

0.51

Total ongoing Direct impacts on licensees Removing commercial agent licensing Removing requirement for continuous professional development Real estate agents – qualification changes Licensees undertaking both real estate and business agency work – qualification changes Agent representatives – qualification changes Strata managers – qualification changes Auctioneers – qualification changes

0.91

25.57

(1.66) 0.62

(0.02) (1.71) (0.75) 0.66

(0.04) 2.88

0.03

16.80

2.97

2.14

0.06

0.84

(0.01) 2.75

0.0001

0.27

0.09

(0.001) 0.19

0.09

0.02

0.20

0.07

0.005

Consistent licence period (1 or 3 years) Agent representatives in Vic – Increasing frequency of processing Removing the need to hold multiple licences Government impacts Removing the need to hold multiple licences – government NOLA – operational Labour mobility

2.34

0.75

(0.25) (0.37) 1.41

1.87

(0.19) 0.39

(0.10) (0.28) 0.64

0.50

(0.27) (0.23) 1.34

0.20

(0.02) (0.12) 0.76

0.05

0.15

(0.10) (0.09) 0.18

(0.02) 0.07

(0.001) (0.03) 0.01

ACT

1.34

0.08

0.87

(0.04) 0.01

0.19

0.12

(0.17) 0.05

NT

1.81

0.002

0.11

1.04

0.03

(0.003) 0.10

0.11

(0.02) 33 (0.01) 0.03

Total

78.73

2.37

43.52

3.97

(0.06) 5.44

(0.73) 0.59

4.53

(0.19) 2.30

(0.93) (1.12) 4.43