In a big win for both employees and employers, occupational licensed workers will now be allowed to operate across jurisdictions, without having to apply, pay for and wait for a further licence to perform the same type of work in another state.

It follows the passage of the Government’s Mutual Recognition Amendment Bill 2021 through the Senate. The bill passed the Senate on 12 May with a number of technical amendments and will return to the House of Representatives to enable commencement from 1 July 2021, subject to further supporting legislation by the States and Territories.

“Automatic mutual recognition of occupational licences will make it easier and faster for skilled workers to take up jobs across borders, including to assist with natural disaster recovery, and enable businesses to more seamlessly provide services across jurisdictions,” Treasurer Josh Frydenberg and Assistant Minister to the Prime Minister and Cabinet Ben Morton said in a joint statement.

“This reform is expected to directly benefit over 168,000 workers each year and add more than $2.4 billion to the economy over the next ten years, by cutting red tape, while also improving services for consumers. It will support more jobs and ensure our economy continues to rebound faster and stronger on the back of real jobs growth.”

The scheme provides a national framework and contains safeguards to maintain standards and protect consumers, workers and others.

The states and territories will continue to have responsibility for licensing skilled occupations and ensuring interstate workers comply with local laws. A state Minister can exclude an occupational licence from the scheme if satisfied that there are significant risks.

The Government has also committed $11 million in the 2021-22 Budget to support the implementation of the scheme to provide up to date information to workers and consumers about AMR, its benefits and safeguards, and to improve information exchange between jurisdictions.

The Australian Small Business and Family Enterprise Ombudsman Bruce Billson says small business tradespeople will be able to meet the demand for their skills wherever they are in Australia under new laws passed by the Senate.

“This is a red tape buster that will help small business tradespeople who want to meet the demand for their skills across Australia,” Mr Billson said.

“This reform offers small business employers the opportunity to secure skilled workers from interstate. It also means small business professionals such as architects and engineers can work more seamlessly across state borders.”

Key workplace reform builds on deregulation package

The scheme is part of Government providing $11 million over three years for its 2021-22 Deregulation Budget Package, to support the widespread implementation of AMR of occupational registrations. AMR will enable licensed workers to operate across jurisdictions, without having to apply, pay for and wait for a further licence to perform the same activities. This will make it easier and faster for skilled workers to take up jobs across borders, including to assist with natural disaster recovery. The funding commitment will assist states and territories to implement AMR, helping to realise the benefits of this reform.

• $2.3 million will be provided for national initiatives, in collaboration with states and territories, to inform consumers, licensees and businesses about the changes in the mutual recognition arrangements, their benefits and also consumer and other safeguards built into this scheme. This will include information products tailored to different industries and licensed occupations.
• $7.5 million will be provided over three years under the Business Research and Innovation Initiative (BRII) to pilot new digital information exchange solutions, in partnership with states and territories.   This will assist regulators to provide up to date information to workers, businesses and consumers about how the scheme operates and to quickly share information with regulators in other jurisdictions, including when they take disciplinary action against licensed workers.

Under BRII, Australian start-ups and small and medium businesses will be able to submit proposals for ideas that will support the implementation and adoption of AMR, in partnership with key government departments and regulatory agencies. Successful applicants will receive grants of up to $100,000 to develop their ideas and test feasibility over three months. The most successful of these ideas may be eligible for a grant of up to $1 million to develop a prototype or proof of concept. Innovative Australian businesses will be encouraged to apply when the process is formally underway later in the year. To find out more information about BRII, visit www.business.gov.au/BRII.

AREEA welcomes important streamlining for resources and energy industry

This is a welcome move by the Senate to support practical and long overdue reforms to streamline licensing of workers.

Removing barriers, red tape and bureaucracy is crucial to Australia’s recovery from the COVID-19 pandemic and this is an important step to enabling flexibility for the sector’s highly skilled and mobile workforce.

Employers in Australia’s resources and energy industry will benefit greatly from mutual recognition through the easier utilisation of skills, making it easier to do business and secure a highly-skilled workforce.

Allowing licensed tradespeople and others to perform work across regions without the red tape and cost of obtaining additional licences will further strengthen the sector as it leads Australia’s COVID-recovery.

For further information on this reform, or any other skills and workforce-related areas, please contact [email protected].