South Australia Steps Back from Engineer Licensing: AAAA Welcomes Constructive Outcome
The Australian Automotive Aftermarket Association (AAAA) has welcomed the South Australian Government’s decision not to proceed with its own stand-alone licensing scheme for professional engineers, instead supporting further national consideration through the Productivity Commission’s inquiry into occupational licensing reform.
AAAA Director of Government Relations & Advocacy, Lesley Yates, said the announcement reflects the value of open, evidence-based dialogue between government and industry.
“This is exactly the type of grown-up conversation we need to have about licensing reform. Too often, licensing is assumed to be synonymous with worker safety or consumer outcomes. The evidence shows that the link is far from automatic,” Ms Yates said.
AAAA made formal submissions to the South Australian Government, cautioning against duplicating the failings of the Victorian licensing model, which has included automotive engineers as part of its program. The Association argued that regulation should only be introduced where there is a clear risk and benefit analysis, and where evidence demonstrates that new rules will meaningfully improve outcomes.
Importantly, AAAA emphasised that the debate must remain anchored in the realities of the automotive sector. The original policy push for engineer licensing arose from concerns in the construction industry about sole operators working without oversight. Extending that model to the automotive and manufacturing sectors, where engineers are typically employed in teams, subject to governance and existing legislation, and accountable within corporate structures, has no clear justification.
“Our manufacturing base is one of Australia’s most important assets. We should be supporting it, not layering on new costs and red tape based on misplaced assumptions. Engineers in automotive manufacturing already operate under strict governance and safety frameworks. Extra licensing in this context is confusing, unnecessary, and risks undermining competitiveness,” Ms Yates said.
AAAA stressed that it is not opposed to minimum standards and supports regulation where it demonstrably improves public safety or consumer outcomes. However, licensing for its own sake adds burden without benefit.
“We have seen the damage broad licensing scopes have done to businesses in Victoria. Any national licensing must not follow in the footsteps of Victoria’s system and double up on already stringent governance and safety systems in place for automotive engineers. Licensing requirements should only be introduced for sectors that have a demonstrated market failure.”
“What we want is a system that sets the right standards at the right level. That means supporting training, supporting innovation, and ensuring regulation is risk proportionate. The South Australian Government’s willingness to engage in this discussion is a welcome step,” Ms Yates concluded.