Commonwealth Numbered Regulations - Explanatory Statements

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TRADESPERSONS' RIGHTS (COST RECOVERY) REGULATIONS (AMENDMENT) 1996 NO.237

Statutory Rules 1996 No. 237

Issued by the Authority of the Minister for Industrial Relations

Tradesmen's Rights Regulation Act 1946

Tradespersons' Rights (Cost Recovery) Regulations (Amendment)

The Tradesmen's Rights Regulation Act 1946 (the Act) provides for the recognition of trade skills through the issue of trade certificates which attest that the holder possesses qualifications equivalent to a completed Australian apprenticeship. Trades Recognition Australia (TRA) is part of the Department of Industrial Relations (DIR) and is responsible for administering the Act. Officers of DIR chair the local and central trades committees established by the Act. In effect, DIR acts as secretariat to the committees and, amongst other things, assists the committees by receiving applications, assessing documents provided by applicants and arranging trade tests where a committee requires that a test be done.

Paragraph 51A(2)(a) of the Act. provides that regulations may be made ('cost recovery regulations') for the purpose of reimbursing DIR for costs incurred in, or in connection with, the doing by officers of DIR of anything to help committees established under the Act perform their functions.

The regulations in force relating to the reimbursement of fees are the Tradespersons' Rights (Cost Recovery) Regulations 1993 (the Regulations).

The Regulations are amended to reflect a new fee policy and structure, as agreed to by the Minister for Industrial Relations.

Regulation 3.2 amends subregulation 3(1) of the Regulations to increase the fee payable to DIR by an applicant for a trade certificate in respect of the making of the application from $100 to $280.

The former Regulation 4 provided that fees could be waived or deferred by the Secretary if he or she was satisfied that not doing so would cause hardship to an applicant. The new fee policy has set the application fee for a trade certificate at a level appropriate to recover full direct running costs. If fee waivers were continued for any category, other users of the service would incur a higher cost as it would be necessary for fees to be set at a higher level to cover the cost of waivers. There would then be an equity issue of whether fee paying clients should subsidise clients whose fees are waived.

Having regard to the fact that it is normal for users of a service to pay for that service and that benefits accrue to individuals using the service in that a trade certificate improves their ability to compete in the labour market, it was decided that Regulation 4 should be repealed. The proposed regulation 4 achieves this.

Where a person is classified by DIR in a trade covered by the Act through an overseas skill assessment as part of the migration process under the Migration Act 1958, and they subsequently attain permanent residence status in Australia, they may seek formal recognition of their trade skills through the granting of a trade certificate under the Act.

Regulation 3.3 adds subregulation 3(3) to the Regulations to provide for a $70 fee for such an application. Such fee is less than the standard application fee because most of the work required to be done to grant such a certificate has already been completed as part of the skill assessment undertaken as part of the migration assessment process. Regulation 3.1 amends subregulation 3(1) to exclude such applications from the standard application fee.

New subregulation 3(3) outlines the type of applicant from whom the $70 fee is payable. Such a person is an applicant who has been granted a permanent visa after being given a points score under section 93 of the Migration Act, on the basis of an assessment by DIR (being the relevant Australian authority prescribed by Migration Regulation 2.26) that the applicant's formal study or training, work experience, or a combination of both is equivalent to the Australian standards for the occupation in relation to which the application for a trade certificate has been made.

From time to time, holders of trade certificates seek a replacement of their certificate due to loss or wear and tear. Regulation 3.3 adds subregulation 3(4) to the Regulations to provide for a $95 fee for issuing a replacement trade certificate. Regulation 3.1 amends subregulation 3(1) to exclude such applications from the standard application fee.

The regulations commenced on 1 November 1996, to coincide with related Migration Regulations which commenced on the same date.