This report supports the National Competition Policy process by analysing the economic effects of two policy reforms: occupational licensing reform to promote labour mobility and adopting international and overseas standards. These two reforms would promote competition and increase Australia’s GDP.

Key points

• Mandatory standards and occupational licensing are two different ways that governments promote important public policy goals. But these regulations can also impose business costs, restrict trade, and impact competition.
• Aligning mandatory standards in Australia with international and overseas standards could add about $1.1 billion to $3 billion per year to the Australian economy (0.04% to 0.11% of GDP).
• Governments should review mandatory standards to improve alignment with other countries and across Australia, and to update outdated references to voluntary standards.
• Governments should fund free access to standards incorporated in legislation. Placing the law behind a paywall puts small businesses and startups at a competitive disadvantage and risks non-compliance.
• Occupational licensing reform could promote labour mobility and improve productivity, as workers move to places where their skills are most needed and valued.
• Many of the benefits of harmonising licensing requirements between states come from standards being set at the level needed to effectively manage risks while not unnecessarily affecting labour mobility (or productivity).
• Other reforms to promote competition were canvassed in the 2024 National Competition Policy Study and remain potentially important for further consideration.