7Significant risk statement

7 Significant risk statement

For section 42S(2) of the Act, the exemption in section 6 is necessary due to the significant risk in the ACT to the health and safety of workers or the public, and consumer protection. There is a gradated disciplinary framework for all construction occupations in the Territory, provided for under the Construction Occupations (Licensing) Act 2004. The disciplinary framework includes a demerit point sanction. This demerit point sanction is used uniquely in the Territory as an educational opportunity, as well as a non-compliance penalty. The Mutual Recognition Act 1992 (Cth) provides for a number of circumstances in which a person’s automatic deemed registration is taken to have ended, including where the individual:

is the subject of criminal, civil or disciplinary proceedings in any State, including any preliminary investigations or action that might lead to criminal, civil or disciplinary proceedings, in relation to an occupation that covers the activity; and the individual has been informed or is otherwise aware of those proceedings.

The Mutual Recognition Act 1992 (Cth) further provides that when an individual’s automatic deemed registration ends as a result of, or in anticipation of, criminal, civil or disciplinary proceedings, then any home State substantive registration is affected in the same way. As the issuing of a demerit under the Construction Occupations (Licensing) Act 2004 constitutes disciplinary proceedings, there is a significant risk of individuals relying on automatic deemed registration losing the right to rely on that registration. Additionally, there is a significant risk of their home State substantive registration being affected in the same way for a minor non-compliance issue. This would have significant impacts on consumer protection for individuals and businesses in the Territory who are commencing, or have commenced, construction work, as well as having the potential for creating a disproportionate, two-tier regulatory framework for compliance, based on whether a licensee is registered in the Territory for construction occupations or is registered in another jurisdiction. The ACT is a jurisdiction with a high proportion of interstate workers and the demerit system is used to a substantial degree by the regulator to educate interstate workers on their legislative obligations. This is critical in a sector that has a known issue with workplace safety incidents. A two-year exemption will allow for alternative arrangements to address these risks to be developed and implemented.