Mutual Recognition Agreement
The Commonwealth, States and Territories were jointly responsible for implementing the mutual recognition principle in the law of Australia, following the realisation that the existence of multiple regulatory environments across the States and Territories was impeding freedom of trade, and compromising the ability of the nation to compete in the international economy.
The Prime Minister, Premiers and Chief Ministers signed the Intergovernmental Agreement on Mutual Recognition at their meeting on 11 May 1992. The States and Territories chose to implement the mutual recognition scheme through legislation, either referring their power to enact mutual recognition legislation to the Commonwealth Government, or adopting the Commonwealth legislation. All jurisdictions chose to implement mutual recognition legislation.
The aim of the mutual recognition legislation was to create a national market for goods and services, establishing a regulatory environment which would encourage enterprise, enable business and industry to maximise their efficiency, and promote international competitiveness.
The experience of the States and Territories was that there was already a high degree of public confidence in the existence of a satisfactory minimum standard of regulation of goods and services in Australia.
An administratively simple strategy for achieving a national market in goods and services in Australia was required, resulting in mutual recognition of regulatory standards of the States and Territories relating to goods and occupations.
The effect of mutual recognition legislation is that goods which are legally saleable in one jurisdiction are satisfactory for sale throughout the country, and people who work in a registered occupation in one jurisdiction can freely enter an equivalent occupation in other jurisdictions.
- Mutual Recognition Agreement - PDF 375KB
See also: Trans-Tasman Mutual Recognition Arrangement