EXPLANATORY STATEMENT
Mutual Recognition Act 1992
Automatic Mutual Recognition (Tasmania) (Exemptions—Three-Year—Builders) Declaration 2023
This explanatory statement provides notes on the operation of the Automatic Mutual Recognition (Tasmania) (Exemptions—Three-Year—Builders) Declaration 2023 (the Declaration). The specific provisions in the Declaration are outlined in Attachment A. The information in the explanatory statement is an aid to understanding the Declaration and should not be substituted for the Declaration.
Context and purpose
Part 3A of the Mutual Recognition Act 1992 of the Commonwealth (the MRA) provides for the automatic mutual recognition of occupational registrations (AMR). AMR allows an individual to carry on an activity in a second State, under the registration covering the activity in their home State through Automatic Deemed Registration (ADR).
Part 3A of the MRA provides for the making of declarations that exclude certain registrations from ADR where a minister of a state is satisfied that the declaration is necessary because of a significant risk arising from circumstances or conditions in the declaration state, to consumer protection, the environment, animal welfare or the health or safety of workers or the public. The Legislation Act 2003 of the Commonwealth provides for the making of legislative instruments.
Summary
Through this Declaration, the Treasurer (Tasmania) has excluded a number of registrations from ADR for the period 1 July 2023 to 30 June 2026. By virtue of the making of the Declaration, the Treasurer is satisfied that the exclusions are necessary because of a significant risk to consumer protection. The Declaration provides an explanation of the specific risks arising from the registrations in the context of the circumstances and conditions in Tasmania.
Consultation
In making this Declaration, the Treasurer (Tasmania) was advised by the Department of Justice on appropriate longer-term exemption arrangements in relation to builders, which included details of consultation undertaken with stakeholders in the industry.
The Treasurer (Tasmania) is satisfied that the consultation undertaken is appropriate and practical for the purposes of making the Declaration. The consultation drew on the knowledge of relevant subject matter experts and ensured that persons likely to be affected by the proposed Declaration had an adequate opportunity to comment on its proposed content.
A regulation impact statement or analysis (RIS/RIA) is not required in Tasmania for this legislative instrument. To note, the Commonwealth engaged PricewaterhouseCoopers Australia to undertake an Economic Impact Assessment of AMR, which was finalised in December 2020.
Attachment A
Details of the Mutual Recognition (Tasmania) (Exemptions—Three-Year—Builders) Declaration 2023
Part 1 – Preliminary
Section 1 – Name
This section provides that this Declaration is to be cited as the Automatic Mutual Recognition (Tasmania) (Exemptions—Three-Year—Builders) Declaration 2023 (the Declaration).
Section 2 – Commencement
This section provides the date on which the Declaration comes into operation. The Declaration comes into operation on 1 July 2023.
Section 3 – Authority
This section outlines the authority through which the Declaration is made. The Declaration is made under section 42S of the Mutual Recognition Act 1992 (Commonwealth).
Section 4 – Simplified outline of the instrument
This section explains that the purpose of this instrument is to exempt specified registrations from the ADR provisions of the MRA, the application of the exclusion and the period of the exclusion.
Section 5 – Definitions
This section provides, for the purposes of this Declaration, self-explanatory definitions of the following terms:
- The Act is defined in this section as meaning the Mutual Recognition Act 1992
Section 6 – Exemptions
This section list the specific paragraph of the MRA relied on to make the Declaration, the specific registrations excluded from ADR, the explanation of the risk(s) and the self-repeal date for the exemption.
The Declaration is made in accordance with paragraph 42S(1)(a) of the MRA. The specific registrations listed in column 1 are excluded from ADR. This means that an individual cannot carry on the activities authorised under this registration in Tasmania without first obtaining that registration. An individual may obtain the registration listed in column 1 from the Local Registration Authority (LRA) through Part 3 of the MRA.
The minister making the Declaration is satisfied that there is a significant risk of not excluding the registrations in column 1. In accordance with subsection 42S(2) of the MRA, column 2 in the table provides the statement of the risk to consumer protection, the environment, animal welfare, or the health and safety of workers and the public for each of the registrations listed in column 1.
A significant risk would arise in relation to consumer protection if the specified builder registrations were not exempted from ADR. This risk arises as a result of the current legislation not enabling Consumer, Building and Occupational Services and building insurers to access financial information regarding the solvency of builders, or the number of projects for which they are contracted. This, in turn would pose a financial risk to Tasmanian consumers who enter into contracts with these builders.
The Tasmanian Government is currently working to introduce a mandatory scheme of Home Warranty Insurance for residential building work. Implementing this scheme will enable appropriate arrangements to be put in place for all Builders – General Construction, to address the risk identified.
A three‑year exemption is the most appropriate way to manage this risk, as it should provide sufficient time for the relevant legislation to be passed and the scheme to be fully set up.
Subsection 4 provides a self-repeal date for section 6 of 30 June 2026.
Michael Ferguson
Treasurer (Tasmania)