“This is the most significant review in 20 years and the profile of the property sector has changed considerably over that period,” the Minister said. “We need modern laws that reflect these changes and improve consumer confidence.”
In welcoming the reforms, REINSW CEO Tim McKibbin said the Institute had been spearheading the fight for reform for more than a decade.
“We’ve been unrelenting in lobbying the government to review and improve education standards for our profession,” he said. “But as we’ve been calling for higher standards, the government has instead removed all barriers to entry in their pursuit of serving the interests of competition.
“Yes, the current training regime has achieved increased competition. However it’s also had the effect of diluting the aggregate skills and competencies of the profession to the detriment of the property consumer.
“These reforms are a giant step forward for our profession. We are in full support and look forward to the reforms coming into effect in 2017.”
Key reforms
Certificate of Registration
- New entrants to the industry will be required to complete seven units of competence (up from the current requirement of four units) from a Certificate IV qualification from the CPP07 Property Services Training Package to obtain their Certificate of Registration.
The activities that Certificate holders are able to undertake will be specified, placing greater emphasis on the responsibility of the Licensee-in-charge to ensure proper supervision. For example, Certificate holders will not be able to enter into contracts on behalf of the agency or authorise trust account transactions.
Licence
- In order to obtain a Licence agents will be required to complete a Certificate IV qualification from the CPP07 Property Services Training Package, along with at least 12 months’ practical experience.
- The activities that licence holders are able to undertake will be specified, placing greater emphasis on the responsibility of the Licensee-in-charge to ensure proper supervision. For example, prohibiting licence holders from authorising trust account transactions (except in certain circumstances).
Licensee-in-charge
- A new licence category will be created – Licensee-in-charge.
- To become a Licensee-in-charge, an agent will need to complete a Diploma level qualification from the CPP07 Property Services Training Package (or a Certificate IV and an equivalent qualification in business management) and at least two years’ experience within a licensed business.
CPD
- Annual CPD for Certificate holders over their first four years will be comprised of six competency units from a Certificate IV qualification from the CPP07 Property Services Training Package until the qualification is completed.
- Annual CPD for Licence holders and Licensees-in-charge will increase from four hours to six hours. The six hours CPD will comprise three hours of compulsory topics and three hours of elective topics.
- Licensees-in-charge will also be required to complete an additional three hours of CPD focused on business skills.
The reform paper also proposes a range of reforms in relation to conduct and accountability, trust audit processes and disciplinary powers.