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Council of Australian Governments (COAG)

The Council of Australian Governments' (COAG) national reform agenda is set to have a significant impact on consumer protection in Australia.

There are 27 deregulation priorities set out in Council of Australian Governments' (COAG) National Partnership Agreement to Deliver a Seamless National Economy (PDF fact sheet), of which the following directly impact consumer protection laws, including:

National Licensing System

Expected implementation date: July 2012

On 30 April 2009, COAG signed an Intergovernmental Agreement (IGA) to develop a national licensing system initially for seven selected occupation groups.  These groups include six occupations currently licensed in the Commerce portfolio: builders, painters, plumbers, real estate agents, settlement agents, and land valuers.

The precise nature of the scheme has not been finalised.  Two optional models are set out in the Regulation Impact Statement (RIS):

  1. a new national licensing body responsible for all aspects of the licensing regime, or
  2. a national licensing body which would delegate the actual administration of licensing to existing agencies. 

The second model has been recommended, while leaving the option open to move to the first model in the future.

Copies of the IGA and the RIS are available from the National Licensing website.

In general terms, the purpose of the reform is to make it easier for people to work in different states, while maintaining licensing standards.

National licensing system for specified occupations - consultation  

The COAG National Licensing Taskforce is currently seeking responses to the Exposure Draft to the national law. Responses close 28 December 2009. Find out more.  

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Trade Measurement

Expected transition date: July 2010

The National Measurement Institute (NMI) will become responsible for administering trade measurement regulation nationally.   The National Measurement Act 1960 has been amended to include trade measurement provisions, and underpinning regulations currently are being prepared. 

The NMI have released a series of three consultation papers on servicing licensing regulation, public weighbridge regulation and trade measurement regulation. Submissions have been summarised and are now available from the NMI website.

More information is available from the National Trade Measurement system section of the NMI’s website

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Wine labelling

Expected implementation date: Completed 2009

Requirements for the labelling of the volume in wine containers have been amended so Australia can become a signatory to the World Wine Trade Group’s Agreement on Wine Labelling.

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Consumer Policy Framework

Expected implementation date: End 2010

This project aims to establish a consistent set of generic consumer laws.  It will align the consumer protection provisions of the Commonwealth Trade Practices Act and all States’ and Territories’ Fair Trading Acts.  The generic consumer law will be known as the Australian Consumer Law.

The Commonwealth intends making these amendments in two stages.  The first will involve unfair contract terms provisions and extended enforcement powers for the Australian Competition and Consumer Commission (ACCC).  Those will come into operation on 1 January 2010.  The Commonwealth introduced these amendments into the Commonwealth Parliament on 24 June 2009. 

The second stage of the amendments will commence on 1 January 2011.  Western Australia proposes to introduce all the relevant amendments in one process, to commence on 1 January 2011.

Enforcement of the Australian Consumer Law will remain a joint responsibility of the ACCC and State/Territory consumer agencies.

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The Australian Consumer Law - consultation on draft regulation impact statements

The Standing Committee of Officials of Consumer Affairs requests the views of stakeholders on draft Regulation Impact Statements for best practice reform and product safety reform proposals, to be considered for inclusion in the Australian Consumer Law. Responses close 27 November 2009. Find out more.

Product Safety Legislation

Expected implementation date: End 2010

Amendments to Product Safety legislation have been integrated with the Consumer Policy Framework project and will be a part of the Australian Consumer Law.  It will allow individual States and Territories to establish temporary bans but only the Commonwealth Minister will be able to impose permanent bans. 

Enforcement of the product safety laws will remain a joint responsibility of the ACCC and State/Territory consumer agencies.

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Credit and Finance Broking

Expected transition date: November 2009

Currently, WA is the only jurisdiction that licenses credit providers and finance brokers. This COAG project will result in the Australian Securities and Investments Commission (ASIC) taking on the responsibility for:

  • regulating consumer credit and the activities of finance brokers, and 
  • a national licensing regime for both credit providers and finance brokers. 

The National Consumer Credit Protection Bill 2009 will replace the existing State-based Uniform Consumer Credit Code.  The Code has essentially been adopted in Schedule 1 of the Bill as the National Credit Code.  The Commonwealth introduced its package of legislation into the Commonwealth Parliament on 25 June 2009.  This legislation has been referred to the Senate’s Economics Committee for report by 7 August 2009.  Copies of all the relevant documents are available from Treasury. 

The commencement date for ASIC to take responsibility for regulation of credit and finance brokers is 1 November 2009.  Under the proposed legislation, all existing credit providers and finance brokers will have to register with ASIC between 1 November and 31 December 2009.  A licensing system will follow.

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Registering business names

Expected transition date: March 2011

Responsibility for registering business names will be transferred to the Commonwealth.  Business names will be recorded in a national register to be administered by the Australian Securities and Investments Commission (ASIC). States and Territories will transfer currently registered business names to the national system. 

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Personal property securities (PPS)

Expected transition date: May 2011

Registration of security interests in personal property (PPS) will be included in a new national system based on an electronic register.  The register will be concerned with personal property in the legal sense: that is, property that is not real estate.

Consumer Protection will transfer the register of encumbered vehicles (REVS), which records if any money is owed on a car, motor cycle, boat and licensed farm implements however the scope of the PPS system will be broader than REVS. 

The purpose of the reform is to make it easier for businesses to raise finance by having one national register allowing a wide range of assets to be booked as collateral, including business assets such as crops and stock in trade, as well as intangible personal property, for example, some statutory licences.

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Standard Chart of Accounts and Fundraising

Expected implementation date: dates to be notified (new initiative).

At its 30 April 2009 meeting, COAG agreed to add to its reform program two matters relating to not-for-profit organisations.  The first matter is the development of a standard chart of accounts for use by not-for-profit organisations.  The second is harmonisation of the regulation of fundraising in Australia.  Both of these initiatives are relevant to Consumer Protection in WA, which regulates incorporated associations and charitable fundraising.

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For further information