Australian Resources and Energy Group AREEA welcomes yesterday’s announcement by Treasurer Josh Frydenberg of plans to legislate Automatic Mutual Recognition of licences.

The new agreement will see Council on Federal Financial Relations (CFFR) develop a framework for occupational licences to be automatically recognised across jurisdictions, assisting tradies to do business more easily across state and territory borders.

“Under red-tape reduction reforms agreed to by Commonwealth, state and territory treasurers, automatic recognition will allow individuals who hold an occupational licence in one Australian jurisdiction to undertake equivalent work in another jurisdiction under that licence,” Mr Frydenberg said.

CFFR will prioritise implementation of a uniform scheme to support widespread occupational mobility via automatic recognition, with ambition to take effect from 1 January 2021, subject to the passage of legislation in individual jurisdictions.

“The current mutual recognition regime for licensed occupations across Australia is complex, costly, and imposes an excessive regulatory burden on businesses that operate across jurisdictions,” Mr Frydenberg said.

“Currently, there are over 800 different licences in manual trades alone, with around 20 per cent of workers in the economy required to be licensed.

“Automatic recognition will help to address impediments to labour mobility across jurisdictions by allowing a person who is licensed or registered in one jurisdiction to be already considered registered in another in an equivalent occupation.”

Mr Frydenberg said a uniform scheme will make it easier and less expensive for businesses, professionals and workers to move or operate within jurisdictions and across Australia, a move he says  would create jobs, increase output, competition and innovation, resulting in lower prices for consumers and businesses.

AREEA Director Operations Tara Diamond welcomed the Treasurer’s move to streamline licensing.

“Employers need as much flexibility as possible in accessing skilled labour, especially during the challenges of COVID-19,” she said.

“The Treasurer’s plan will be vital for the country’s economic recovery from this global health pandemic and will assist with necessary flexibility for workers to take up new roles.

“Addressing clear areas of red tape is most welcome news for businesses.”

CFFR will report back to National Cabinet in October 2020 on the progress in delivering a uniform scheme for automatic recognition of licensed occupations to take effect on 1 January 2021.