Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2010-2011-2012
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SKILLS AUSTRALIA AMENDMENT (AUSTRALIAN WORKFORCE AND
PRODUCTIVITY AGENCY) BILL 2012
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Tertiary Education, Skills, Science and
Research)
SKILLS AUSTRALIA AMENDMENT (AUSTRALIAN WORKFORCE AND
PRODUCTIVITY AGENCY) BILL 2012
GENERAL OUTLINE
As part of the 2011-12 Budget's Building Australia's Future Workforce initiatives,
the Australian Government announced the creation of an industry-led national
workforce and productivity agency to replace Skills Australia.
The Building Australia's Future Workforce initiatives provide more than $3 billion in
investment for a new approach to deliver the skilled workers the economy needs and
ensure more Australians have the opportunity to share in the nation's prosperity.
The Skills Australia Amendment (Australian Workforce and Productivity Agency)
Bill 2012 implements a key component of the 2011 reforms, establishing the
Australian Workforce and Productivity Agency from 1 July 2012.
The underlying objective of the agency is to place industry at the centre of the
National Training System, giving industry a stronger voice in the direction of policy
and industry skills funding.
The aim of the agency will be to improve long-term workforce planning and
development to address skills and labour shortages, and contribute to improved
industry and workplace productivity. It will build on the current role and strengths of
Skills Australia, and work to deliver practical industry-led workforce strategies. The
agency will also have a critical role in advising the Australian Government on the
allocation of funding for the new National Workforce Development Fund.
To this end, the Bill makes amendments to the Skills Australia Act 2008 to:
· change the name of the existing Skills Australia body to the Australian Workforce
and Productivity Agency;
· Broaden the object of the Act to include the provision of advice on the allocation
of Commonwealth industry skills and workforce development funding including
the National Workforce Development Fund;
· Broaden the functions of the body to allow for a stronger research, analysis and
advisory role, and to specifically address improvements in Australian workforce
productivity;
· Expand the size of the body from a total of seven to ten members, including an
independent chair; and
· Expand on the current membership criteria to reflect the transition to a union and
industry-led body.
Date of effect: The amendments commence on 1 July 2012.
FINANCIAL IMPACT STATEMENT
The Government will provide $25.0 million over three years to establish the
Australian Workforce and Productivity Agency. This is in addition to the current
Skills Australia budget.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
Skills Australia Amendment (Australian Workforce and Productivity Agency)
Bill 2012
This Bill is compatible with human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011.
Overview of the Bill
The Skills Australia Amendment (Australian Workforce and Productivity Agency)
Bill 2012 (the Bill) will amend the Skills Australia Act 2008 (Skills Australia Act) to
establish the Australian Workforce and Productivity Agency (`the Agency').
The Bill implements the Government's 2011 Budget commitment to establish an
industry-led agency to improve long-term workforce planning and development,
address skills and labour shortages, and contribute to improvements in industry and
workplace productivity. As part of the Government's Building Australia's Future
Workforce initiatives, the agency will give industry a stronger voice and ensure the
Government's investment in training delivers the skills that industry and the economy
need, in the right place at the right time.
Specifically the Bill will change the name of the existing Skills Australia body to the
"Australian Workforce and Productivity Agency". The objects of the Act will be
broadened to enable scope for the provision of expert and independent advice with
respect to the allocation of Commonwealth funding in order to meet certain
objectives.
The Bill will also increase the primary functions of the Agency to enable the Agency
to provide advice to the Minister with respect to improving the productivity of the
Australian workforce and with respect to the allocation of Commonwealth funding.
The Bill will also create additional functions to enable the Agency to assess research
relating to improving the productivity of the Australian workforce and to enable the
Agency to analyse the funding available to address such matters.
The Bill will make amendments to increase the size of the Agency from a total of
seven to ten members, which includes an independent chair, and will expand on the
current membership criteria, in particular to ensure that the Agency has at least one
member with experience in the representation of employees.
The Bill also makes various other consequential amendments throughout the Skills
Australia Act to reflect the change of name to the Agency.
Human rights implications
The Bill engages the following human rights:
Right to Work
Article 6 of the International Covenant on Economic, Social and Cultural Rights
(ICESCR) recognises the right to work. In particular it recognises that persons should
have the opportunity to gain their living by work which they freely choose or accept.
In safeguarding this right, Article 6 provides that steps should be taken to protect the
right such as technical and vocational guidance and training programmes, policies and
techniques to achieve steady economic, social and cultural development and full and
productive employment under conditions safeguarding fundamental political and
economic freedoms to the individual.
The amendments made by the Bill engage Article 6 of the ICESCR. In particular the
Bill amends the object of the Act to provide scope for the provision of expert and
independent advice with respect to the allocation of Commonwealth funding in order
to identify training priorities to respond to Australia's workforce skills needs and
workforce development needs as well as to increase workforce participation, improve
productivity and competitiveness, identify and address skills shortages and promote
the development of a highly skilled workforce. To the extent the right is engaged, it is
engaged positively as this amendment will further facilitate the provision of expert
and industry based advice to be considered by the Government when Commonwealth
funding is being allocated to support improvements in these areas.
In addition, the Bill makes amendments to the primary functions of the Skills
Australia body to enable the Agency to provide advice to the Minister on matters
relating to improving the productivity of the Australian workforce and with respect to
the allocation of Commonwealth funding, including the National Workforce
Development Fund, to address this issue (in addition to the existing functions of
providing advice on Australia's current and emerging and future workforce
development and workforce skills needs). This positively engages the rights protected
by Article 6 of the ICESCR as it will facilitate well informed funding decisions based
on advice from industry representatives, ensuring skills and workforce development
funding is directed to areas of greatest need. In addition, as the Agency's role is
advisory (to government), it is unlikely that the actions or functions of the Agency
will have any direct impact on the rights of individuals.
A further amendment will increase the number of persons to be appointed as members
of the Agency, and in particular will provide that persons with experience in the
representation of employees are represented as part of the Agency. To the extent that
this engages the rights protected under Article 6, it does so positively, as the
Government will have access to the expertise of a member who has experience
representing employees.
Conclusion
The Bill is compatible with human rights because it advances human rights as
outlined above.
SKILLS AUSTRALIA AMENDMENT (AUSTRALIAN WORKFORCE AND
PRODUCTIVITY AGENCY) BILL 2012
NOTES ON CLAUSES
Clause 1 - Short title
This clause provides for the Act to be cited as the Skills Australia Amendment
(Australian Workforce and Productivity Agency) Act 2012.
Clause 2 - Commencement
Clause 2 provides that the Act will commence on 1 July 2012.
Clause 3 - Schedule(s)
Provides that each Act that is specified in a Schedule is amended or repealed as set
out in the applicable items in the Schedule and that any other items in the Schedule
have effect according to its terms.
For ease of description, this Explanatory Memorandum uses the abbreviations:
`Agency' means the Australian Workforce and Productivity Agency
`Skills Australia Act' means the Skills Australia Act 2008.
Schedule 1 - Amendment of the Skills Australia Act 2008
Part 1 - Main Amendments
Item 1 - Title
Item 1 amends the title of the Skills Australia Act to remove reference to Skills
Australia and substitute this reference with the Australian Workforce and Productivity
Agency.
Item 2 - Section 1
Item 2 amends the short title of the Act as described in section 1 of the Skills
Australia Act, so that the Act will be cited as the Australian Workforce and
Productivity Agency Act 2008.
A note explains that if a later amendment of the Skills Australia Act makes reference
to its previous title, then it is to be regarded as an amendment of the Act under its title
as changed by this Bill (i.e. the Australian Workforce and Productivity Agency Act
2008).
Item 3 - Section 3
Item 3 amends section 3 of the Skills Australia Act by inserting a definition of
Australian Workforce and Productivity Agency. The definition makes reference to the
establishment provision in section 5 of the Act under which the Agency is established.
Item 4 - Section 4 (heading)
Item 4 makes a minor amendment to the heading "Objects" to reflect that the Act has
a single object.
Item 5 - Section 4
The object of the Skills Australia Act is set out in section 4 which is to provide for
expert and independent advice in relation to Australia's workforce skills needs and
workforce development needs. Item 5 will include an additional matter as part of the
object of the Act which is to provide for expert and independent advice with respect
to "the allocation of Commonwealth funding".
Item 6 - Section 5
Section 5 of the Skills Australia Act establishes the body Skills Australia. Item 6
repeals and substitutes this section to provide that the body known immediately prior
to the commencement of this section as Skills Australia continues in existence but is
known as the Australian Workforce and Productivity Agency.
Note 1 draws reference to section 25B of the Acts Interpretation Act 1901, which
concerns where an Act changes the name of a body. Note 2 draws reference to
section 2 of this Bill which would provide that the Bill (once enacted) commences on
1 July 2012.
Item 7 - At the end of subsection 6(1)
Subsection 6(1) has the effect of setting out the primary functions of the Agency
which are to provide advice to the Minister on matters relating to: Australia's current,
emerging and future workforce development needs and Australia's current emerging
and future workforce skills needs. Item 7 inserts two additional matters which the
Agency will have responsibility for providing advice to the Minister on. These
matters are: improving the productivity of the Australian workforce and the allocation
of Commonwealth funding(including through the National Workforce Development
Fund) to address the matters mentioned in paragraphs (a),(b) and (c).
Item 8 - After paragraph 6(3)(b)
Subsection 6(3) of the Skills Australia Act sets out additional functions of the
Agency. Paragraph 6(3)(b) refers to the Agency's role in assessing various matters.
Item 8 inserts additional paragraphs into subsection 6(3) to provide that additional
functions of the agency are to assess research relating to improving the productivity of
the Australian workforce and to analyse the funding available to address the matters
mentioned in paragraphs 6(1)(a)(b) and (c).
Item 9 - Paragraph 8(b)
Section 8 sets out the constitution of the Agency. Currently the Agency is comprised
of a Chair and 6 other members, however Item 9 will amend section 8 so that the
Agency is comprised of a Chair and 9 other members.
Item 10 - Subsection 9(2)
Subsection 9(2) of the Skills Australia Act has the effect of providing that, in making
appointments, the Minister must ensure that members have certain specified
experience between them. Item 10 repeals and substitutes subsection 9(2) in order to
include an additional criterion of experience which is to ensure that members of the
Australian Workforce and Productivity Agency have experience in the representation
of employees.
Part 2 - Consequential amendments
Division 1 - Changing the name of Skills Australia
Item 11 - Multiple amendments and Items 12 to 21
Division 1 of Part 2 contains a number of consequential amendments to the Skills
Australia Act to reflect the change of name to the Australian Workforce and
Productivity Agency. Item 11 provides that the specified provisions in the Skills
Australia Act 2008 which are listed in Items 12 to 21 of Division 1 are amended by
omitting "Skills Australia" wherever occurring and substituting "the Australian
Workforce and Productivity Agency".
These amendments will affect the following provisions of the Skills Australia Act:
section 3, subsections 6(3), 7(1), 7(3), 9(2) and 15(3), paragraph 15(5)(a), subsection
15(6), paragraph 18(2)(b), subsections 19(2) and 21(1), paragraph 21(2)(a),
subsections 24(2), 24 (3) and 25(3) and section 26.
Division 2 - Further changes to the name of Skills Australia
Item 22 - Multiple amendments and Items 23 to 25
Division 2 of Part 2 contains a number of consequential amendments to the Skills
Australia Act to reflect the change of name to the Australian Workforce and
Productivity Agency. Item 22 provides that the specified provisions in the Skills
Australia Act 2008 which are listed in Items 23 to 25 of Division 2 are amended by
omitting "Skills Australia" wherever occurring and substituting "The Australian
Workforce and Productivity Agency".
These amendments will affect the following provisions of the Skills Australia Act:
subsection 6(1), 6(2) and 7(4), section 8, subsections 19(1), 23(1), 23(2), 24(4), 25(1),
25(2), 25(6), 27(1) and 27(2).
Division 3 - Other consequential amendments
Items 26 to 41
Division 3 (Items 26 to 41) contains a number of consequential amendments to the
Skills Australia Act to reflect the change of name to the Australian Workforce and
Productivity Agency. These amendments will affect the following provisions of the
Skills Australia Act:
Part 2: section 3(definition of Skills Australia), Part 2 (heading), subsection
6(4), paragraph 6(4)(b), section 7 (heading), and Part 3 (heading).
Part 3: section 15 (heading), subsection 15(1), subsection 15(4), paragraphs
15(4)(a) and 15(4)(b) and Part 4 (heading).
Part 4: subsection 24(1), paragraph 24(1)(b), section 26 (heading) and
subsection 27(1).
Part 3 - Transitional Provisions
Item 42 is a transitional provision which has the effect of terminating the appointment
of current members of Skills Australia upon commencement of this Act.
Item 43 is a transitional provision, the effect of which is to provide that any
committees established under section 25 of the Skills Australia Act and which are in
existence immediately before Item 43 commences (ie 1 July 2012), will cease to exist
after that date.