Australia is introducing a national electrical contractors license.
Up until now, an electrical contractor needed to have a separate licence for each state they operated in.
For most electricians this isn’t a big issue, but if you live close to a state border and need to attract business from both sides, you’d end up needing to pay two separate licence fees.
The federal government have announced their plan to implement a national electrical license to replace the state-based schemes.
These changes – if and when they happen – will allow these electrical contractors to save money on licensing fees, along with allowing others to chase interstate work.
How will it work?
The national electrical licensing scheme will be designed and implemented by the National Competition Policy (NCP) framework.
Information beyond that is not currently available, so it’s a case of waiting for further information to be released by the government.
In his press release, Federal treasurer Jim Chalmers points out that electrical contracting is a high-risk occupation and the new licence will require high standards.
Whether this means taking the highest standards from the various state-based licensing requirements, or creating even higher standards, is unknown at this point.
When does nationwide electrical licensing start?
At this point it has only been announced that funding for the new scheme has been committed as part of the 2025-26 budget.
Government tends to move quite slowly, and this is a huge change for the various state bodies to agree to.
Implementation in 2026 seems unlikely, so any electricians looking to renew their state-based licenses soon shouldn’t need to worry about the changes at this stage.
Insurance impacts
The impact to electrical contractors insurance across most states should be minimal.
Most states already require that licensed electrical contractors hold public liability insurance, and this is unlikely to change with the new national license.
An electrician’s business insurance will generally cover them for work throughout Australia, with the only requirement being that a suitable licence is held for any state where work is taking place.
The exception is Queensland, which has its own unique insurance requirement.
Licensed electrical contractors in Queensland require a special type of insurance known as consumer protection cover.
With the government and the union both referencing best practice and taking the highest standards from existing state requirements, it’s possible that the requirement for consumer protection insurance is rolled out to all states.
Will other trades be included?
Whilst the information released so far related only to electrical licensing, related trades have shown interest in being included.
The Australian Refrigeration Council (ARC) have thrown their support behind the initiative, and are pushing to have refrigeration included in the reforms.
“It’s crucial that restricted electrical licences be included in the reform to ensure flexibility and mobility across borders.”
Glenn Evans, CEO of the Australian Refrigeration Council.
Whilst no mention has been made of plumbers at this stage, it seems to make sense that if electricians could benefit from national licensing, then so too could plumbing contractors.
What does the industry think about it?
With such a major change coming for electrical contractors, plenty of industry players have been having their say.
The good news is that everyone is positive about the changes at this stage.
“Moves towards a national licensing scheme for electricians is a no-brainer and a good start towards improving workforce mobility in the building and construction industry.
“Skills shortages present one of the biggest challenges to tackling the housing crisis so measures to improve the movement of trades between states is critical
“The need for licensed trade workers to obtain different accreditations for each state and territory is an excellent example of bureaucratic inefficiency.”
Denita Wawn, CEO, Master Builders Australia
“Australia has some of the best electrical workers and highest electrical standards un the world and a national license must reflect that.
“We will work with government and industry on a licensing scheme that sets the global standard in this high-risk, fast-moving trade.
“All Australians have the right to know that work performed by licensed Australian electricians has been performed safely and skilfully by a professional whose capability has been certified to the highest level.
“The national regime must put safety and quality at the centre of its design, reflecting bets practice from across the country.”
Michael Wright, National Secretary, Electrical Trades Union
“National licensing will enable people in electrical trades to work seamlessly across state and territory borders without reapplying for a separate licence or paying additional fees.
“By removing unnecessary barriers, this scheme will encourage highly skilled electrical workers to go where they are needed most in the industry, like in housing construction and clean energy.
“As this scheme relates to high‑risk occupations, it will address the need for high standards, while cutting red tape, delays and multiple fees for trades people.”
Dr Jim Chalmers, Treasurer of Australia
How to apply for a national electrical licence
No information has been released on how to apply for a national electrical license.
Until we know more, electricians are to continue to operate under their state-based licenses, and deal with the electrical licensing authority in their state.
More information
We’ll keep this page updated as further information is released on the new national electrical licensing scheme for Australia.
Please note that as of 2025, electrical licensing continues to be administered on a state-by-state basis.
Author: Shane Moore. Posted: 22/05/2025.
