The air conditioning and refrigeration industry is heavily regulated in Australia to ensure the safe and efficient handling of refrigerants. However, many unlicensed operators are undercutting legitimate businesses, potentially exposing customers to safety risks, increased costs, and environmental harm. Understanding the licensing requirements and the importance of insurance is crucial for both business owners and consumers.
Why Licensing Matters
Proper licensing ensures that air conditioning and refrigeration technicians have the necessary training and qualifications to install, repair, and maintain systems safely. This protects not only the end consumer but also the environment. The Australian Refrigeration Council (ARC) is responsible for licensing under the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995.
What Licensing is Required?
Refrigerant Handling Licence (RHL) – Required for every technician who handles refrigerants, including installation, servicing, and decommissioning of air conditioners and refrigeration systems.
Refrigerant Trading Authorisation (RTA) – Required for businesses that buy, sell, or store refrigerant, ensuring compliance with regulations and preventing illegal emissions.
Electrical Contractor Licence:
In Queensland, businesses or individuals performing electrical work for others must hold an electrical contractor licence. To be eligible, applicants need to nominate at least one:
Qualified Technical Person (QTP): Responsible for performing or supervising the electrical work.
Qualified Business Person (QBP): Responsible for the business aspects of the electrical contracting business.
Additionally, the licence holder must maintain a compliant insurance policy that includes public and products liability with a minimum indemnity of $5 million and consumer protection insurance of at least $50,000.
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QBCC Contractor Licence: In Queensland, businesses installing air conditioning and refrigeration systems must hold a licence from the Queensland Building and Construction Commission (QBCC). This ensures that contractors meet the required standards for building and construction work.
Restricted Electrical Licence – Required for technicians performing restricted electrical work.
Electrical Work Licence – Necessary for technicians running new power supplies to air conditioning units and performing general electrical installations.
Environmental Concerns: Managing Refrigerants Safely
Many refrigerants used in air conditioning and refrigeration systems have ozone-depleting properties and contribute to global warming if released into the atmosphere. Proper management, storage, and handling of these substances are critical to minimizing environmental impact. Licensed professionals follow strict guidelines to prevent leaks, recover and recycle refrigerants, and ensure compliance with national and international environmental regulations.
Mandatory Health and Safety Training
In addition to licensing requirements, air conditioning and refrigeration technicians must complete mandatory health and safety training, which includes:
Construction White Card – Required for working on construction sites.
Working at Heights – Training to ensure safety when working on elevated surfaces.
Working in Confined Spaces – Essential for jobs in restricted or enclosed environments such as ceilings.
Elevated Work Platforms (EWP) – Training for safe operation of scissor lifts and boom lifts.
First Aid – Essential knowledge for emergency response situations.
Low Voltage Rescue and CPR Training – Required for handling electrical systems and responding to emergencies.
The Risks of Unlicensed Operators
Unlicensed operators often work outside regulatory requirements, leading to:
Improper installation – Poorly installed units can leak refrigerant, which harms the environment and reduces system efficiency.
Higher running costs – A system with refrigerant leaks consumes more energy, increasing electricity bills.
Voided warranties – Manufacturers typically void warranties if installation is not completed by a licensed technician.
Safety hazards – Unqualified installations can result in electrical faults, refrigerant exposure, and fire risks.
The Role of Insurance
Legitimate businesses carry insurance to protect both themselves and their customers. Essential insurance policies include:
Public Liability Insurance – Covers damage to property or injury caused during installation or servicing.
Professional Indemnity Insurance – Protects against claims of faulty workmanship.
Workers’ Compensation Insurance – Ensures employees are covered in case of work-related injuries.
Unlicensed businesses typically operate without adequate insurance, meaning customers bear the full cost and responsibility of any damage or injury that may occur.
How to Ensure You’re Hiring a Licensed Professional
Ask for the companies Refrigerant Trading Authorisation (RTA) number and the technicians Refrigerant Handling Licence (RHL). Ask for evidence of Electrical Contractors licence, technicians Electrical licence and QBCC licence information.
Ensure the company provides a tax invoice and warranty for the work completed.
Verify their ABN and GST status – You can check their GST registration via the Australian Business Register (ABN Lookup) to ensure they are complying with tax laws as some charge GST without being registered.
Protect Your Investment
A properly installed air conditioning system will operate efficiently, last longer, and reduce your environmental footprint. Don’t be tempted by cheaper, unlicensed installers—what may seem like a bargain can cost you more in the long run in repairs, inefficiencies, and rejected warranty claims.
At Buderim Air, we take pride in our qualified team of licensed technicians who adhere to all legal and environmental requirements. If you need a new installation or servicing, contact us today to ensure your system is handled safely and professionally.