Better occupational entry regulations: Policy implications of new research

About the paper

Occupational entry regulations (OER) are widespread in Australia. In 2011, around 1 in 5 workers were subject to OER, such as licensing or qualification requirements.

While OER can support safety and quality outcomes, relatively little is known about their costs.

This paper is designed to accompany recent research by NSW Treasury and the Reserve Bank of Australia that addresses that evidence gap. This new research estimates the stringency of Australian OER across a range of occupations and investigates a range of economic costs that come with regulating occupational entry.

This paper highlights the importance of regulators periodically reviewing OER settings and evaluating the costs and benefits to ensure they are effective and proportional.

Key findings

Policymakers can take steps to strike the right balance by:

• periodically reviewing OER and, when necessary, revising them to ensure they are effective and proportional
• improving the recognition of interstate and international licences to let qualified workers more easily move locations
• assessing whether regulators have the right risk tolerance and give appropriate weight to the costs and benefits of OER.