A piece of red tape that has blocked electricians from working seamlessly across state borders for a century and driven up prices for their customers may finally come to an end. State and federal treasurers are set to meet on Friday to discuss an overhaul of the patchwork of electricians’ occupational licensing. This meeting is seen as the starting point for what proponents hope will be a series of changes allowing key workers to move easily around the nation’s worksites.
Treasurer Jim Chalmers is heading the meeting, which he has stated will focus on federation reform, national competition policy, and the government’s $900 million National Productivity Fund. The fund provides incentive payments for states and territories to undertake policy reforms expected to boost productivity, which has stagnated nationally over the past decade.
Push for National Licensing
State treasurers are expected to agree to incorporate electricians’ licensing into national competition policy. This move would pave the way for payments from the productivity fund to cover the cost of aligning various licensing regulations. Shortly after the election, Chalmers identified occupational licenses—used by states to regulate a wide range of occupations—as a key area needing streamlining. A Productivity Commission report this year found that if states recognized all electricians’ licenses, it would deliver benefits of between $51 million and $62 million annually.
Across all so-called “high-risk” occupations requiring a license, the annual benefit approaches $1 billion. Ahead of Friday’s meeting, the Electrical Trades Union, the National Electrical and Communications Association, and Master Electricians Australia have written to state and territory treasurers urging them to implement a single, national electricians’ license.
Historical Context and Industry Support
At its 1921 national conference, the Electrical Trades Union passed a motion calling on the federal government to create a national licensing system for all electricians. ETU national secretary Michael Wright stated that substantial productivity gains could be unlocked for the economy if electricians and other trades were able to work across the country with a single license.
Wright emphasized that a high-quality national license would enable electricians to seamlessly cross state borders to carry out necessary work. He noted that while there appears to be broad political support for the single license, there is a concern that state bureaucracies may delay the issue.
“There is a risk of it being slow-walked to death,” Wright said. “We’re not trying to change anyone’s mind, but we do want to bump this up to the top of their email to make it a priority.”
According to Wright, this common-sense change will boost productivity, safeguard quality, protect safety, and start unlocking a projected $10 billion in gains for the nation. “It’s about a century overdue,” he added.
Implications for Other Sectors
A single license for electricians is expected to serve as a template for other sectors, starting with the nation’s patchwork of licenses for engineers. Demand for both occupations is growing, with figures released on Thursday showing a significant increase in work on data centers.
The Australian Bureau of Statistics reported that business capital expenditure on information media and technology equipment jumped by 91.5 percent in the three months to September, reaching a record $2.8 billion. The sector is dominated by the rollout of data centers, with capital spending having increased by 147 percent over the past year. The sector is now the third largest for investment, surpassing manufacturing for the first time and trailing only mining and transport.
The large lift in spending helped push up overall capital spending to almost $49 billion, marking the strongest quarterly result in a decade. It is expected to contribute to a positive September quarter GDP result, which will be released next week.
Looking Ahead
The move towards a national licensing system for electricians represents a significant step in addressing long-standing barriers within the industry. As discussions progress, stakeholders remain hopeful that this initiative will lead to broader reforms across other high-demand sectors. The outcome of Friday’s meeting could set a precedent for future policy changes aimed at enhancing workforce mobility and national productivity.
As the nation awaits the outcome, the focus remains on ensuring that these reforms are not only implemented but also effectively managed to deliver the anticipated economic benefits.
