Traders (Licensing) Bill 2016 (ACT): New Licensing Framework

The Australian Capital Territory government has introduced the              Traders (Licensing) Bill 2016 into Parliament on 8 June 2016. The Bill sets out with the purpose of red tape reduction across the ACT government. To this extent, the Bill establishes a Single Licensing Framework for fair trading laws. The Bill will provide an effective and efficient administration for the licensing of traders whilst ensuring such licensing supports regulatory actions in the public interest.

Single Licensing Framework

The introduced Single Licensing Framework is a streamlined effort to consolidate the core licensing provisions from the ACT’s current four pieces of fair trading legislation. Essentially, the Bill will consolidate existing government systems relating to fair trading to make it easier for individuals and businesses to apply for and renew their licences. These changes predominantly affect businesses in the motor vehicle dealer and repairer, second-hand dealer and pawnbroker industries.

Standardisation of Industry Licensing

The Bill will standardise and consolidate the licensing procedures for the aforementioned industries by providing that:

• an individual or entity may be licensed as one or more types of trader;
• extend the maximum term for new licences to five years;
• modifying suitability and eligibility requirements to be less onerous while preserving the integrity of public interest;
• allowing for early licence renewals;
• simplifying the licensing renewal process;
• allowing licences to be renewed one year after expiry without beginning a new application; and
• in the event that a licensee dies, allow for the issue of a temporary licence.

Consumer Protection

As well as streamlining the process of businesses, the new system will ensure that public interest and consumer protection is greatly safeguarded. The Bill will introduce a public interest test in deciding certain elements of a licensing application. The Bill will also make a class of corporation not be eligible to hold a licence if a stated number or percentages of individuals hold individual licences to ensure the licensing of corporations continues to remain in the public interest. The Bill will also provide for general licensing related offences including carrying out a licensed activity without a licence, false and misleading representation as well as failure to meet a condition of a licence. 

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Traders (Licensing) Bill 2016, Bill and Explanatory Statement as published on LawOne