National electrician licensing a welcome productivity-boosting move: CEDA

 CEDA Head of Research Andrew Barker said:

“The Albanese Government’s plan to introduce national licensing for electrical tradespeople is an important development in standardising occupational licensing requirements and a much-needed step towards boosting Australia’s weak productivity growth.   

“CEDA has long argued for reform of Australia’s rigid occupational licensing scheme, particularly given evidence that declining labour mobility and workforce shortages are holding back investment and productivity in sectors such as housing construction and energy.  

“CEDA has previously recommended that governments take immediate action to update and harmonise relevant occupational licenses to reduce barriers to worker mobility where this will not jeopardise safety. 

“Starting with electrical trades is prudent, noting the importance of this occupation for building homes and for the energy transition, requiring a more dynamic system and greater mobility to deliver new skills where they are needed. 

“While we welcome the current focus on electricians, other important occupational licenses also need to be addressed. 

“CEDA has estimated that Australia could gain up to $5 billion annually from reforming occupational licensing; the Productivity Commission found last year that the gains could be even larger, between $5 billion and $10 billion each year.  

“The proposed scheme includes incentives for states and territories, acknowledging the revenue loss from current licencing arrangements, which has been a barrier to reform. 

“CEDA is pleased to see the National Productivity Fund used to encourage these reforms and prioritise national efficiency. 

“The fund is an important mechanism to address differing fiscal costs and benefits that accrue across jurisdictions and reduce barriers to timely reform action by states and territories. There was previous success with this model under the National Competition Policy in the 1990s. 

“While this is a good first step, we continue to hear from CEDA members that more needs to be done to reduce cost and regulatory burdens in Australia if we are to see the lift in investment and innovation needed to drive long-term productivity growth.”  

Media contact:  
Justine Parker, Media Manager and Content Specialist 
Mobile: 0436 379 688 | Email: justine.parker@ceda.com.au