The Victorian Coalition Government will proceed with its policy to remove the requirement for those involved in large commercial property transactions to hold a licence under the Estate Agents Act 1980 (Act), while maintaining appropriate consumer protections for buyers and sellers of property in Victoria.

The Government is also proposing to expand the current licensing exemption for commercial property transactions between related companies.

The Shopping Centre Council of Australia (SCCA) has welcomed the reforms, calling them a welcome step to reduce the cost of doing business in Victoria.

“This is a welcome announcement, and a reform that we’ve been pursuing for some time,” said Steven Sewell, SCCA chairman and CEO of Federation Centres.

“This reform fell short at the national level a couple of years ago, so it’s pleasing that the Victorian Government has taken this leadership position. Queensland is the only other government to pursue similar reforms, with legislation passed earlier this year,” Sewell said.

“We raised the need for this reform in our submission to the Federal Competition Policy Review, so this announcement is also timely given that the recent Draft Report, led by Professor Ian Harper, noted that (professional) ‘licensing requirements can raise barriers to entry in markets that create more costs than benefits to the community’.

“The Victorian real estate licensing regime is a cost burden on our sector, and teaches our sector nothing about how to own, manage or lease a shopping centre”.

Anyone involved in the sale of commercial property in Victoria will no longer need an estate agent’s licence where:

The price in the contract of sale is at least $15 million; the property has a total floor space of at least 10,000sqm; or each party to the sale owns other real estate with total market value of at least $15 million or total floor space of at least 10,000sqm.

In addition, anyone involved in the leasing of commercial property in Victoria will no longer need an estate agent’s licence where the company owns property with a total market value of at least $15 million or a total floor space of at least 10,000sqm.

The exemptions are strictly limited to large commercial property transactions, including those between related companies.

The proposed reforms will commence on July 1, 2015 and will be considered by executive council on October 29. 2014.