The Perrottet government has opened the door for interstate plumbers, gasfitters, architects and surveyors to ply their trades in New South Wales, with another tranche of occupations added to the Automatic Mutual Recognition scheme.
Treasurer Matt Kean said the latest additions would aid NSW’s flood recovery efforts by cutting red tape and making it cheaper and easier for construction practitioners to start work.
“The NSW and Commonwealth governments committed more than $3.5 billion to rebuild homes, businesses and infrastructure in flood-affected regions. And we’re also making it cheaper for local tradies wanting to work in these communities,” Kean said.
Under the national AMR scheme, practitioners of licensed occupations only need to register with the regulator, rather than applying and paying to have their interstate certifications recognised.
Further expansions to the scheme are planned, with a July 1, 2023 tranche to include real estate agents, conveyancers, and auctioneers.
Small business and fair trading inister Victor Dominello said that both consumers and industry would benefit from the latest tranche.
“Recognising interstate registrations will boost skills and provide greater competition, which can deliver more choice, lower prices and improved service quality for consumers.
“For tradies—many of whom are small business owners—it will reduce the administration costs of running and growing their businesses and will allow them to move to where the work is.”
About 20 per cent of Australia’s workforce is covered by an occupational licensing scheme of some kind.
Improved labour mobility through the AMR scheme is projected to result in a $2.4 billion economic impact over 10 years.
In a recent report, independent thinktank CEDA estimated that reducing the coverage and stringency of occupational licensing would deliver $5 billion annually in productivity benefits.
The most restrictive schemes, in NSW and Queensland, are comparable to the most stringent European states, according to CEDA.
The Mutual Recognition Act 1992 already permits practitioners holding an Australian or New Zealand building work certification to apply to have it recognised in another jurisdiction.
Automatic recognition was introduced in NSW on July 1, 2021, with all states except Queensland now participating.
