Automatic Mutual Recognition (Tasmania) (Exemptions—Three-Year—Builders) Declaration 2023

Administered by Department of Employment and Workplace Relations

Legislation au F2023L00645 In force Legislative Instrument

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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)

 

 

Overview

The Automatic Mutual Recognition (Tasmania) (Exemptions—Three-Year—Builders) Declaration 2023 was enacted to address significant risks to consumer protection in Tasmania arising from the automatic mutual recognition of occupational registrations for builders. This Declaration, issued under section 42S of the Mutual Recognition Act 1992, excludes certain builder registrations from Automatic Deemed Registration for the period from 1 July 2023 to 30 June 2026. The Treasurer of Tasmania, satisfied by the significant risk posed by the inability to access critical financial information about builders, made this declaration to safeguard consumer protection. The exemption is designed to allow time for the implementation of a mandatory Home Warranty Insurance scheme for residential building work in Tasmania. The consultation process for the declaration involved industry experts and relevant stakeholders, ensuring that affected parties had an opportunity to comment on the proposal.

Scope and Application

The Automatic Mutual Recognition (Tasmania) (Exemptions—Three-Year—Builders) Declaration 2023 applies to certain occupational registrations, specifically those related to builders, and aims to manage significant risks to consumer protection in Tasmania. This Declaration, which operates under section 42S of the Mutual Recognition Act 1992, excludes specified builder registrations from Automatic Deemed Registration (ADR) for a period of three years, from 1 July 2023 to 30 June 2026. During this period, individuals with builder registrations from other states or territories cannot carry on the activities covered by these registrations in Tasmania without first obtaining a local Tasmanian registration. The exclusions are based on a significant risk identified to consumer protection due to the current inability of relevant authorities to access financial information about builders, which could potentially leave consumers vulnerable to financial risks if they engage with unregistered builders. This Declaration is an interim measure while Tasmania works on implementing a mandatory Home Warranty Insurance scheme for residential building work to address these concerns.

Key Provisions

The Automatic Mutual Recognition (Tasmania) (Exemptions—Three-Year—Builders) Declaration 2023 (the Declaration) operates under sections of the Mutual Recognition Act 1992 (MRA). The Declaration, which commences on 1 July 2023, is made under section 42S of the MRA and outlines specific registrations that are exempted from Automatic Deemed Registration (ADR) until 30 June 2026. These exemptions are detailed in Section 6 of the Declaration, which lists the registrations excluded from ADR and the associated risks, specifically relating to consumer protection. The Act defines the terms used and provides a simplified outline of the instrument's purpose and application. The Declaration imposes specific obligations on parties and entities governed by the MRA. It mandates that individuals cannot carry out activities under the exempted registrations in Tasmania without first obtaining the relevant registration from the Local Registration Authority (LRA). This requirement is detailed in Section 6 of the Declaration, which explicitly lists the registrations and the risks associated with not excluding them from ADR. The exclusion is necessary to mitigate significant risks to consumer protection, as the current legislation does not allow for the access of financial information regarding the solvency of builders or the number of projects they are contracted for, potentially posing a financial risk to Tasmanian consumers. The Declaration also outlines the consequences for breaches of its provisions. Although the specific penalties are not detailed in the explanatory statement, breaches of the MRA can lead to both civil and criminal penalties. Civil penalties can include fines, while criminal penalties can include imprisonment, reflecting the seriousness of the risks to consumer protection, the environment, animal welfare, or the health and safety of workers and the public. The maximum penalties for such offences are stipulated within the MRA but are not explicitly mentioned in the Declaration. The Declaration is a legislative instrument made under the authority of the Legislation Act 2003, and it follows appropriate consultation processes as advised by the Department of Justice. The consultation included input from subject matter experts and provided stakeholders in the industry with an opportunity to comment on the proposed content. This ensures that the Declaration is both appropriate and practical for its intended purpose. The Declaration does not require a regulation impact statement or analysis (RIS/RIA) in Tasmania but acknowledges the Economic Impact Assessment of AMR undertaken by PricewaterhouseCoopers Australia, which was finalised in December 2020.

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Area of Law
Mutual Recognition Law
Instrument
Declaration
Concepts
Definitions & Interpretation
Exemptions & Exclusions
Regulatory Standards
Catchwords
Risk to Consumer Protection

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.