Details of the Financial Framework (Supplementary Powers) Amendment (Employment Measures No. 1) Regulation 2015

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Employment Measures No. 1) Regulation 2015.

 

Section 2 - Commencement

 

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislative Instruments. 

 

Section 3 - Authority

 

This section provides that the Regulation is made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 - Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedules to the Regulation.

 

Schedule 1 - Amendments

 

Item 1 - Part 4 of Schedule 1AB (table item 34, column headed "Objective(s)")

 

Item 1 makes a consequential amendment to existing table item 34 which provides legislative authority for the provision of benefits to unemployed persons under the Work for the Dole programme.  The existing table item refers to Job Services Australia which has been replaced by the jobactive programme (refer to Item 2 below). 

 

The amendment replaces the reference to "Job Services Australia" with "jobactive" as a consequence of the replacement of Job Services Australia by the jobactive programme. 

 

Work for the Dole is a longstanding programme under which job seekers may be required to undertake certain work in order to remain qualified for certain income support payments such as Newstart Allowance.  Work for the Dole Coordinators are responsible for sourcing suitable Work for the Dole activities in not-for-profit and government organisations to help prepare job seekers for the work environment.  The Work for the Dole programme is administered by the Department of Employment.

 

Item 2 - Part 4 of Schedule 1AB (table)

 

This item adds 13 new table items to Part 4 of Schedule 1AB to establish legislative authority for government spending for activities administered by the Department of Employment.

 

 

New table item 123 establishes legislative authority for government spending on the jobactive programme.

 

Replacing Job Services Australia on 1 July 2015, jobactive is a programme that promotes workforce participation and helps job seekers move from welfare to work.  To achieve these objectives, job seekers are provided with employment services which assist them to find and keep a job with suitable employers. 

 

Job seekers may also be provided with Work for the Dole activities in not-for-profit and government organisations to help prepare them for the work environment.  Eligible job seekers may be given small business training and mentoring and assistance to help them start a financially viable business and to become self-employed business owners through the New Enterprise Incentive Scheme.  Job seekers may also be given assistance to participate in the horticultural industry through the Harvest Labour Services and the National Harvest Labour Information Service. 

 

The jobactive programme is substantially the same as the former Job Services Australia programme in that it remains a programme whereby third parties are paid to provide employment services to job seekers to help them find and retain suitable employment.

 

The programme was announced by the former Prime Minister, the Hon Tony Abbott MP, the former Minister for Employment, Senator the Hon Eric Abetz, and the former Assistant Minister for Employment, the Hon Luke Hartsuyker MP, on 31 March 2015.

 

The Government has allocated $6.8 billion over four years from 1 July 2015 to jobactive. 

 

Payments to organisations providing jobactive services will be made by the Department of Employment in accordance with the jobactive Deed 2015-2020, the jobactive Deed 2015-2020 Work for the Dole Coordinator, and programme guidelines which are available publicly on the Department's website (www.employment.gov.au).  The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers. 

 

The spending decisions made by jobactive providers, also in accordance with the jobactive Deed 2015-2020 and guidelines, will generally not be published as they usually involve the personal information of individual job seekers.

 

Jobactive providers were selected through a competitive tender process in accordance with the Commonwealth Procurement Rules (CPRs).  Providers are subject to contractual arrangements with the Department of Employment which govern the way in which they are required to conduct their services.  In accordance with the CPRs, tenderers were provided with general feedback as to why they were unsuccessful against the selection criteria and, as part of the tender process, alerted to the Department of Employment's complaints handling processes.

 

If a job seeker is not satisfied with a provider's decision under jobactive, the job seeker may request review of the decision by the provider, or raise the matter with the Department of Employment or the Commonwealth Ombudsman.

 

To the extent that persons engaged by jobactive providers make decisions under the social security law, as opposed to a decision relating to other aspects of the jobactive programme, a job seeker who is dissatisfied with such a decision would generally have the ability to seek review of the decision, including by the Department of Human Services (DHS) and the Administrative Appeals Tribunal (AAT), and, on questions of law, by courts provided the person had first sought review by DHS and the AAT.

 

Given the existence of these review mechanisms and the fact that jobactive is part of the broader package of employment services, it is not appropriate for this programme to be subject to merits review.  Noting that decisions are not made under an enactment, except as indicated above, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information about jobactive can be found at the Department's jobactive website (www.employment.gov.au/jobactive).

 

The jobactive programme is being delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.6, Employment Portfolio at pages 28 to 33.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

• the communications power (section 51(v));
• the social welfare power (section 51(xxiiiA));
• the external affairs power (section 51(xxix));
• the race power (section 51(xxvi));
• the immigration power (section 51(xxvii));
• the aliens power (section 51(xix)); and
• the territories power (section 122).

 

New table item 124 establishes legislative authority for the Government to provide funding for the Labour Market Support Stream which has been established to provide additional services to retrenched workers and to job seekers to help them find and keep employment.

 

The Labour Market Support Stream will only be accessed in exceptional circumstances after careful assessment on a case-by-case basis.  As such, there will not be calls for public grant funding rounds.  Instead, issues requiring an additional labour market response will be identified by the Department of Employment and suitable value-for-money responses will be developed in consultation with stakeholders.

 

Projects will fund labour market support initiatives that cannot be delivered under business as usual arrangements or through existing policy.  Additional activities to support job seekers and jobs growth in certain labour markets may also be funded.

 

The funding will be administered by the Department of Employment and guiding principles will set the governance and administrative framework for the use of the funding.  The funding will be distributed through ad hoc or one-off grants, procurement exercises or the establishment of structural adjustment programmes that respond to large scale redundancies. 

 

Applicable grants and procurement publishing rules will be followed.  It is intended that structural adjustment programme activities would be announced by the Prime Minister and Minister for Employment as they arise.  The funding will be targeted and non-competitive in nature and as such there will be no merits review arrangements.  The Labour Market Support Stream will be referenced on the jobactive website (www.education.gov.au/jobactive).

 

A person dissatisfied with a decision in relation to the programme may raise the matter with the Department of Employment or the Commonwealth Ombudsman.  Given the existence of these review mechanisms and the fact that jobactive is part of the broader package of employment services, it is not appropriate for this programme to be subject to merits review.  Noting that decisions are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

The funding for additional services for job seekers is being delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.6, Employment Portfolio at pages 28 to 33.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

New table item 125 establishes legislative authority for the Government to provide funding for the National Wage Subsidy Pool.

 

The National Wage Subsidy Pool provides funds for wage subsidies to be paid to employers who employ unemployed persons, including mature age and young job seekers, long term unemployed persons, Indigenous job seekers, and parents seeking to re-join the workforce.  The subsidy pool consolidates four existing programmes: the Long Term Unemployed and Indigenous Wage Subsidy, the Youth Subsidy, the Restart Subsidy and the Tasmanian Jobs Programme.  The wage subsidies will help with the upfront costs of hiring and training staff.

 

From 1 November 2015, eligible employers will receive a subsidy of up to $6,500 if they employ a job seeker under the age of 30, an Indigenous job seeker, a parent returning to the workforce or a long term unemployed job seeker.  Eligible employers who hire job seekers aged 50 or older will also receive up to $10,000.  Employers who hire an eligible job seeker will be able to receive a wage subsidy from the time the job seekers start in the job and will be paid progressively, as negotiated between the employer and provider.

 

 

The National Wage Subsidy Pool was announced by the former Minister for Employment, Senator the Hon Eric Abetz, and the former Assistant Minister for Employment, the Hon Luke Hartsuyker MP, on 12 May 2015 as a part of the Government's Growing Jobs and Small Business package.

 

The Government has allocated $1.2 billion to fund the National Wage Subsidy Pool for four years from 1 July 2015.

 

Spending decisions in relation to the National Wage Subsidy Pool will be made by jobactive providers in accordance with the jobactive Deed 2015-2020, the Disability Employment Services Deed and programme guidelines which will be publicly available on the Department of Employment's website (www.employment.gov.au).  The wage subsidy agreements and other related spending decisions made by jobactive providers will generally not be published as they usually involve the personal information of individual job seekers.  The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers.

 

Jobactive providers were selected through a competitive tender process in accordance with the CPRs.  Providers are subject to contractual arrangements with the Department of Employment which govern the way in which they are required to conduct their services.  In accordance with the CPRs, tenderers were provided with general feedback as to why they were unsuccessful against the selection criteria and as part of the tender process, alerted to the Department of Employment's complaints handling processes.

 

If a job seeker or employer is not satisfied with a provider's decision in relation to wage subsidies, they may seek internal review of the decision by the provider, or external review through the Department of Employment and the Commonwealth Ombudsman.

 

To the extent that persons engaged by jobactive providers make decisions under the social security law, as opposed to a decision relating to other aspects of the jobactive programme, a job seeker who is dissatisfied with such a decision would generally have the ability to seek a review of the decision, including by DHS and the AAT, and, on questions of law, by courts provided the person had first sought review by DHS and the AAT.

 

Given the existence of these review mechanisms and the fact that the National Wage Subsidy Pool is part of the broader package of employment services, it is not appropriate for this programme to be subject to other merits review.  Noting that decisions are not made under an enactment, except as indicated above, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information about the National Wage Subsidy Pool can be found at the Department's Wage Subsidy website (www.employment.gov.au/wage-subsidies).

 

The National Wage Subsidy Pool is being delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.6, Employment Portfolio at pages 28 to 33.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

New table item 126 establishes legislative authority for the Government to provide funding for the National Work Experience Programme, including Employer Engagement.

 

The National Work Experience Programme aims to provide job seekers, particularly young people, with the chance to develop practical skills, gain workplace experience, and better connect them with real jobs.  Since 1 October 2015, eligible job seekers have been able to volunteer to undertake work experience in businesses for up to 25 hours per week for up to four weeks where there is the likelihood of employment as a result.

 

The programme is for job seekers aged 18 years and over and is on a voluntary basis. Participants will continue to receive their income support payment and a supplement to assist with the costs of participation.  The National Work Experience Programme will operate in tandem with new wage subsidy arrangements for employers.

 

The Employer Engagement element of the National Work Experience Programme will support the employment of job seekers by:

•        connecting employers with jobactive providers who will screen and shortlist suitable candidates; and

•        working with employers to leverage the wide range of government support and programmes that will encourage them to create employment opportunities for job seekers or provide skills development and experience opportunities to job seekers who wouldn't otherwise have this opportunity.

 

Employer engagement and working collaboratively with industry, regions and government stakeholders to identify employment opportunities will inform the provision and targeting of employment services to job seekers.

 

The National Work Experience Programme was announced by the former Minister for Employment, Senator the Hon Eric Abetz, and the former Assistant Minister for Employment, the Hon Luke Hartsuyker MP, on 12 May 2015 as part of the Government's Growing Jobs and Small Business package.

 

The Government has allocated $18.2 million to this programme for five years from 2014-15. 

 

Spending decisions in relation to the National Work Experience Programme placements are made by jobactive providers in accordance with the jobactive Deed 2015-2020 and programme guidelines which are publicly available on the Department of Employment's website (www.employment.gov.au).  The spending decisions made by jobactive providers in relation to the programme will generally not be published as they usually involve the personal information of individual job seekers.  The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers. 

 

Jobactive providers were selected through a competitive tender process in accordance with the CPRs.  Providers are subject to contractual arrangements with the Department of Employment which strictly govern the way in which they are required to conduct their services.  In accordance with the CPRs, tenderers were provided with general feedback as to why they were unsuccessful against the selection criteria and as part of the tender process, alerted to the Department of Employment's complaints handling processes.

 

If a job seeker is not satisfied with a provider's decision, they may seek internal review of the decision by the provider, or external review through the Department of Employment and the Commonwealth Ombudsman.

 

To the extent that persons engaged by jobactive providers make decisions under the social security law, as opposed to a decision relating to other aspects of the jobactive programme, a job seeker who is dissatisfied with such a decision would generally have the ability to seek a review of the decision, including by DHS and the AAT, and, on questions of law, by courts provided the person had first sought review by DHS and the AAT.

 

Given the existence of these review mechanisms and the fact that the National Work Experience Programme is part of the broader package of employment services, it is not appropriate for this programme to be subject to merits review.  Noting that decisions are not made under an enactment, except as indicated above, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information about the programme can be found at pages 85 to 86 of the Budget 2015-16, Budget Measures, Budget Paper No. 2 2015-16.

 

The National Work Experience Programme, including Employer Engagement, is being delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.6, Employment Portfolio at pages 28 to 33.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

New table item 127 establishes legislative authority for government spending on the New Enterprise Incentive Scheme (NEIS).

 

NEIS is a programme delivered by a network of 21 providers who provide individualised help for job seekers to become self-employed business owners.  Under the programme, job seekers are provided with accredited small business training and business mentoring.  Job seekers receive personalised mentoring and support from a NEIS provider in the first year of the new business. 

 

Funding for NEIS is part of the overall jobactive budget allocation.

 

Spending decisions for NEIS will be made by NEIS providers in accordance with the jobactive Deed 2015-2020 and programme guidelines which will be publicly available on the Department of Employment's website (www.employment.gov.au).  The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers.  The spending decisions made by NEIS providers will generally not be published as they usually involve the personal information of individual job seekers.

 

NEIS providers were selected through a competitive tender process in accordance with the CPRs.  Providers are subject to contractual arrangements with the Department of Employment which govern the way in which they are required to conduct their services.  In accordance with the CPRs, tenderers were provided with general feedback as to why they were unsuccessful against the selection criteria and as part of the tender process, alerted to the Department of Employment's complaints handling processes.

 

If a job seeker is not satisfied with a NEIS provider's decision under NEIS, the job seeker may request a review of the decision by the NEIS provider, or raise the matter with the Department of Employment or the Commonwealth Ombudsman.

 

To the extent that persons engaged by jobactive providers make decisions under the social security law, as opposed to a decision relating to other aspects of the jobactive programme, a job seeker who is dissatisfied with such a decision would generally have the ability to seek review of the decision, including by DHS and the AAT, and, on questions of law, by courts provided the person had first sought review by DHS and the AAT.

 

Given the existence of the above review mechanisms and the fact that NEIS is part of the broader package of employment services, it is not appropriate for this programme to be subject to merits review.  Noting that decisions are not made under an enactment except as indicated above, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information about NEIS can be found at the Department's NEIS website (www.employment.gov.au/NEIS).

 

The NEIS programme is being delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.6, Employment Portfolio at pages 28 to 33.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

 

New table item 128 establishes legislative authority for the Government to provide funding for the Harvest Labour Services and the National Harvest Labour Information Service.

 

The Harvest Labour Services aim to provide unemployed and other persons eligible to work in Australia with opportunities to undertake work that supports the requirements of growers in the horticultural industry during peak harvest times.  In particular, the programme will help growers to supplement local labour with out-of-area workers and to market harvest work opportunities to a broad job seeker audience.

 

The National Harvest Labour Information Service provides national coordination and dissemination of information regarding harvest-related work opportunities across Australia, including those areas not serviced by the Harvest Labour Services.  Such services include producing and distributing an electronic National Harvest Guide - a comprehensive Harvest Trail information booklet maintaining information on harvest job opportunities around the country which is available on the Harvest Trail website at www.harvesttrail.org.au. 

 

The continuation of the Harvest Labour Services and the National Harvest Labour Information Services under jobactive was announced by the former Prime Minister, the Hon Tony Abbott MP, the former Minister for Employment, Senator the Hon Eric Abetz, and the former Assistant Minister for Employment, the Hon Luke Hartsuyker MP, on 31 March 2015.

 

The funding for the Harvest Labour Services and the National Harvest Labour Information Service is part of the overall jobactive budget allocation.  The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers.  

 

Spending decisions in relation to the Harvest Labour Services will be made by Harvest Labour Services providers in accordance with the jobactive Deed 2015-2020 and programme guidelines which will be publicly available on the Department of Employment's website (www.employment.gov.au).  Spending decisions in relation to the National Harvest Labour Information Service will be made by a provider in accordance with the jobactive Deed 2015-2020.  The spending decisions made by the providers in relation to Harvest Labour Services and the National Harvest Labour Information Service will generally not be published as they often involve the personal information of job seekers.

 

Providers of the Harvest Labour Services and the National Harvest Information Service were selected through a competitive tender process in accordance with the CPRs.  Providers are subject to contractual arrangements with the Department of Employment which strictly govern the way in which they are required to conduct their services.  In accordance with the CPRs, tenderers were provided with general feedback as to why they were unsuccessful against the selection criteria and as part of the tender process, alerted to the Department of Employment's complaints handling processes.

 

If a job seeker or employer is not satisfied with a provider's decision, they may request review of the decision by the provider, or raise the matter with the Department of Employment or the Commonwealth Ombudsman.

 

 

To the extent that persons engaged by jobactive providers make decisions under the social security law, as opposed to a decision relating to other aspects of the jobactive programme, a job seeker who is dissatisfied with such a decision would generally have the ability to seek a review of the decision, including by DHS and the AAT, and, on questions of law, by courts provided the person had first sought review by DHS and the AAT.

 

Given the existence of the above review mechanisms and the fact that the Harvest Labour Services and the National Harvest Labour Information Service are part of the broader package of employment services, it is not appropriate for this programme to be subject to merits review.  Noting that decisions are not made under an enactment, except as indicated above, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information about the programmes can be found on the Department's Harvest Labour Services' website (www.employment.gov.au/harvest-labour-services).

 

Harvest Labour Services and the National Harvest Labour Information Service are being delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.6, Employment Portfolio at pages 28 to 33.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

New table item 129 establishes legislative authority for the Government to provide funding for the Corporate Champions Programme.

 

The Corporate Champions Programme supports large employers who commit to moving towards best practice in the recruitment and retention of mature-age staff aged 45 years and over.  Eligible employers receive tailored support and assistance valued up to $20,000 provided by an industry expert.

 

Employers participating in the programme can receive support including assessments of workforce strategies, recruitment and retention practices, practical help developing action plans using the Investing in Experience Tool Kit, support to access financial assistance including Restart or other wage subsidies and advice on positive age management, superannuation, occupational health and safety, career planning, training and age discrimination.

 

Funding of $7.04 million over four years was allocated from 1 July 2012 to the Corporate Champions Programme which was announced by the former Minister for Employment Participation and Child Care, the Hon Kate Ellis MP, on 30 March 2011.

 

 

Spending decisions in relation to the Corporate Champions Programme are made by the Department of Employment.  An assessment of services delivered by contracted providers for each endorsed Corporate Champions employer is undertaken, prior to any spending decisions being made, to ensure satisfactory services as required under the Corporate Champions Contract 2013-2016 have been provided.  The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers. 

 

Corporate Champion providers were selected through a competitive tender process in accordance with the CPRs.  Providers are subject to contractual arrangements with the Department of Employment which strictly govern the way in which they are required to conduct their services.  In accordance with the CPRs, tenderers were provided with general feedback as to why they were unsuccessful against the selection criteria and as part of the tender process, alerted to the Department of Employment's complaints handling processes.

 

Merits review arrangements in relation to decisions made by providers, such as internal review by the provider or external review by the Department of the Commonwealth Ombudsman, are not applicable to the Corporate Champions Programme because participation by employers is voluntary and the programme does not involve direct monetary payments to employers.  Noting that decisions are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information about the programme can be found at the Department's Corporate Champions' website (www.employment.gov.au/corporate-champions).

 

The Corporate Champions Programme is being delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.6, Employment Portfolio at page 31.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

New table item 130 establishes legislative authority for the Government to provide funding for the Engaging Early School Leavers Programme.

 

The Engaging Early School Leavers Programme aims to improve the educational outcomes and employment prospects for those who have not completed high school, by ensuring they are either studying or looking for work.  To achieve this objective, the activities test for Youth Allowance will be strengthened to encourage early school leavers to actively seek employment if they are not participating in full-time education or to participate in a combination of education, part-time work and other approved activities.  Early school leavers will also be required to meet their activity requirements of 25 hours per week until they turn 22 years of age or have achieved a Year 12 or Certificate III qualification. 

 

To support the new arrangements, education outcome payments to jobactive providers will be extended to include Certificate III qualifications and cover all early school leavers less than 22 years of age.  Otherwise, the changes to the Youth Allowance activity test rules will not result in any government spending, apart from minor administrative and implementation costs.

 

The Engaging Early School Leavers Programme was announced by the former Minister for Employment, Senator the Hon Eric Abetz, and the former Assistant Minister for Employment, the Hon Luke Hartsuyker MP, on 12 May 2015 as part of the Government's Youth Employment Strategy in the Growing Jobs and Small Business package.

 

The Government has allocated $13.5 million over four years from 2015-16 to fund this programme which will commence from 1 January 2016. 

 

Spending decisions in relation to the Engaging Early School Leavers programme will be made by jobactive providers in accordance with the jobactive Deed 2015-2020, and relevant programme guidelines including the Vacancies and Outcomes Guideline which will be publicly available on the Department of Employment's website (www.employment.gov.au).  The spending decisions made by jobactive providers in relation to early school leavers will generally not be published as they usually involve the personal information of individual job seekers.  The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers. 

 

Jobactive providers were selected to deliver jobactive services through a competitive tender process in accordance with the CPRs.  Providers are subject to contractual arrangements with the Department of Employment which strictly govern the way in which they are required to conduct their services.  In accordance with the CPRs, tenderers were provided with general feedback as to why they were unsuccessful against the selection criteria and as part of the tender process, alerted to the Department of Employment's complaints handling processes.

 

If an early school leaver is not satisfied with a provider's decision, they may request internal review of the decision by the provider, or raise the matter with the Department of Employment or the Commonwealth Ombudsman.

 

To the extent that persons engaged by jobactive providers make decisions under the social security law, as opposed to a decision relating to other aspects of the jobactive programme, a job seeker who is dissatisfied with such a decision would generally have the ability to seek a review of the decision, including by DHS and the AAT, and, on questions of law, by courts provided the person had first sought review by DHS and the AAT.

 

Given the existence of these review mechanisms and the fact that the Engaging Early School Leavers Programme is part of the broader package of employment services, it is not appropriate for this programme to be subject to merits review.  Noting that decisions are not made under an enactment, except as indicated above, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information about the programme can be found at pages 82 to 83 of the Budget 2015-16, Budget Measures, Budget Paper No. 2 2015-16.

 

The Engaging Early School Leavers Programme is being delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.6, Employment Portfolio at pages 28 to 33.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

New table item 131 establishes legislative authority for the Government to provide funding for the Transition to Work Programme.

 

The objective of this programme is to assist young people aged 15 to 21 years who are not in employment or education.  The programme will provide intensive, pre-employment support to improve the work readiness of young people and to help them into work or education.  The programme has a strong focus on helping young people to understand what is expected in the workplace and develop the skills and behaviours required by employers.

 

The Transition to Work Programme is part of the Jobs and Small Business package announced in the 2015-16 Budget.  The release of the Exposure Draft for a Request for Proposal for Transition to Work was announced on 8 September 2015.

 

Payments for Transition to Work services will be made to providers in accordance with the Transition to Work Deed 2016−2020 and the guidelines which will be publicly available on the Department of Employment's website (www.employment.gov.au).  The payment structure includes both an upfront payment and additional outcome payments to drive high performance.  The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers. 

 

Transition to Work providers will be selected through a competitive procurement process in accordance with the CPRs.  Providers will be subject to contractual arrangements with the Department of Employment which strictly govern the way in which they are required to conduct their services.  In accordance with the CPRs, respondents will receive a verbal debriefing following the announcement of the procurement process and as part of the process, be alerted to the Department of Employment's complaints handling processes.

 

If a participant is not satisfied with a provider's decision, the participant may request review of the decision by the provider or raise the matter with the Department of Employment or the Commonwealth Ombudsman.  Given the existence of these review mechanisms it is not appropriate for this programme to be subject to merits review.  Noting that decisions are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information about this programme can be found at the Department's website (www.employment.gov.au).

 

The Transition to Work Programme is being delivered under Programme 1.1: Employment Services which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015−16, Budget Related Paper No. 1.6, Employment Portfolio at page 23.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

New table item 132 establishes legislative authority for the Government to provide funding for the Empowering YOUth Initiatives Programme.

 

The objective of the programme is to help vulnerable young job seekers in areas of entrenched youth disadvantage.  This trial initiative will identify youth with multiple barriers and, where possible, work in connection with jobactive providers to engage young people early in their transition to work.

 

The programme is part of the Youth Employment Strategy component of the Jobs and Small Business package announced in the 2015-16 Budget.  Funding of $55.2 million has been allocated to this programme over five years from 2015-16. 

 

Funding arrangements for providers will adhere to the Commonwealth Grants Rules and Guidelines.  Further details are available on the Department of Employment's website at www.employment.gov.au.   The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers. 

 

If a participant is not satisfied with a provider's decision, the participant may request review of the decision by the provider or raise the matter with the Department of Employment or the Commonwealth Ombudsman.  Given the existence of these review mechanisms, it is not appropriate for this programme to be subject to merits review.  Noting that decisions are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information is set out in the Youth Employment Strategy which is available at:

http://budget.gov.au/2015-16/content/glossy/sml_bus/html/sml_bus-14.htm.

 

The programme is being delivered under Programme 1.1: Employment Services which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015−16, Budget Related Paper No. 1.6, Employment Portfolio at pages 28 to 33.

 

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

• the social welfare power (section 51(xxiiiA));
• the external affairs power (section 51(xxix)); and
• the territories power (section 122).

 

New table item 133 establishes legislative authority for government spending on the Automotive Industry Structural Adjustment Programme.

 

The objective of this programme is to provide retrenched workers from the specified industries with intensive employment support through the national employment service, jobactive (previously Job Services Australia).  The programme assists employees in areas where future employment opportunities are low or where large scale closures may impact on the local labour market. 

 

Funding of $66.9 million has been allocated to the Automotive Industry Structural Adjustment Programme from 2008-09 to 2017-18.

 

The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers. 

 

Programme guidelines on the jobactive provider portal outline the retrenched workers' eligibility for participation, with specific reference to particular industry sectors.  For example, retrenched workers from eligible passenger motor vehicle manufacturers and component manufacturers and suppliers are in scope. 

 

Eligible companies are determined on a case-by-case basis and in consultation with relevant stakeholders, including information from local state offices and contacts, other federal and state government departments and publicly available company information.  Eligibility for company inclusion in the programme is usually very clear with supply-chain links that can be clearly identified and verified.  Should a company be initially deemed to be out of scope, the matter may be reviewed by a panel consisting of industry analysts and labour market experts.

 

Workers in scope (as specified in the programme guidelines) must register with jobactive within six months after their exit date for the programme.  Should a retrenched worker miss the deadline and request to participate, they can explain the reason for missing the deadline to the Department which will consider the worker's request.  

 

In some cases, an individual may otherwise be eligible, however their employing company is not eligible (for example, a contractor, employed by a labour hire company, contracted to an eligible company).  In these cases, the person may request to participate and the Department will consider their request. 

 

Given the existence of these review mechanisms it is not appropriate for this programme to be subject to merits review.  Noting that decisions are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information on the programme can be found on the Department's website at www.employment.gov.au/help-workers-who-have-recently-lost-their-job.

 

The programme is delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Details are set out in the Portfolio Budget Statements 2014-15, Budget Related Paper No. 1.12, Industry Portfolio, and the Portfolio Additional Estimates Statements 2011-12, Agriculture, Fisheries and Forestry Portfolio.

 

The most recent extension of the Automotive Industry Structural Adjustment Programme was announced on 30 April 2014 in a joint statement by the former Prime Minister, the Hon Tony Abbott MP, and the former Minister for Industry, the Hon Ian Macfarlane MP.  The programme is also referred to in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.6, Employment Portfolio at page 30.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

New table item 134 establishes legislative authority for government spending on the Forestry Industry in Tasmania Structural Adjustment Programme.

 

The objective of this programme is to provide retrenched workers from the specified industries with intensive employment support through the national employment service, jobactive (previously Job Services Australia).  The programme assists employees in areas where future employment opportunities are low or where large scale closures may impact on the local labour market.

 

Funding of $25 million has been allocated to the Forestry Industry in Tasmania Structural Adjustment Programme from August 2011 to 30 June 2016.

 

The usual practice is that officials in the Department of Employment at varying levels of seniority decide what payments are to be made to individual providers. 

 

Programme guidelines on the jobactive provider portal outline the retrenched workers' eligibility for participation with specific reference to particular industry sectors.  For example, workers made redundant from eligible companies affected by restructuring in the native forestry industry in Tasmania would be in scope.

 

Eligible companies are determined on a case-by-case basis and in consultation with relevant stakeholders, including information from local state offices and contacts, other federal and state government departments and publicly available company information.  Eligibility for company inclusion in the programmes is usually very clear with supply-chain links that can be clearly identified and verified.  Should a company be initially deemed to be out of scope, the matter may be reviewed by a panel consisting of industry analysts and labour market experts.

 

 

Workers in scope (as specified in the programme guidelines) must register with jobactive within six months after their exit date for the programme.  Should a retrenched worker miss the deadline and request to participate, they can explain the reason for missing the deadline to the Department which will consider the worker's request.  

 

In some cases, an individual may otherwise be eligible, however their employing company is not eligible (for example, a contractor, employed by a labour hire company, contracted to an eligible company).  In these cases, the person may request to participate and the Department will consider their request. 

 

Given the existence of these review mechanisms it is not appropriate for this programme to be subject to merits review.  Noting that decisions are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Further information on the programme can be found on the Department's website at www.employment.gov.au/help-workers-who-have-recently-lost-their-job.

 

The programme is delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Details are set out in the Portfolio Budget Statements 2014-15, Budget Related Paper No. 1.12, Industry Portfolio, and the Portfolio Additional Estimates Statements 2011-12, Agriculture, Fisheries and Forestry Portfolio.

 

The programme was announced on 8 December 2011 by the former Minister for Tertiary Education, Skills, Jobs and Workplace Relations, Senator the Hon Chris Evans, and is also referred to in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.6, Employment Portfolio at page 30.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

New table item 135 establishes legislative authority for the Government to provide funding to the Beacon Foundation to enable it to extend its Real Futures Generation Programme.

 

The Beacon Foundation's Real Futures Generation Programme supports young people (many of whom are at risk of long-term welfare dependency) to develop the career skills necessary to transition from school to employment through partnerships with business and schools across Australia.

 

Funding of $950,000 was included in the 2015-16 Budget to enable the Beacon Foundation to extend its Real Futures Generation Programme until January 2016.  This grant follows previous funding of $1 million for Phase 1 of the Real Futures Generation Programme (from September 2011 to June 2013) and $1 million for Phase 2 (from July 2013 to January 2015).

 

The Minister for Employment extended and decided funding for the Real Futures Generation Programme after the Department of Employment assessed a proposal for further funding received from the Beacon Foundation.  Extending the funding for the Beacon Foundation's Real Futures Generation Programme was deemed an appropriate action to achieve the Government's policy outcomes and target youth who are at risk of long-term welfare dependency, particularly given the Beacon Foundation's track record of success.

 

While the Commonwealth Grants Rules and Guidelines do not require grant guidelines for a one-off or ad hoc grant to be made publicly available, the spending decision was published on the grants page of the Department of Employment's website.  The decision to award the grant followed the key principles for grants administration set out in the Commonwealth Grants Rules and Guidelines. 

 

As the grant made to the Beacon Foundation is ad hoc and specifically for its Real Futures Generation Programme, it is not appropriate for this grant to be subject to merits review.  Noting that decisions are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

 

Details of the funding were included in the 2015-16 Budget, Budget Measures, Budget Paper No. 2 at page 81.  Information about the Real Futures Generation Programme can be found at the Beacon Foundation's website (https://beaconfoundation.com.au).

 

The extension of funding for the Real Futures Generation Programme is being delivered under Programme 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Further details are set out in the Portfolio Budget Statements 2015−16, Budget Related Paper No. 1.6, Employment Portfolio at pages 28 to 33.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the external affairs power (section 51(xxix)); and

*         the territories power (section 122).

 

 

 

 

 

 

 

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Financial Framework (Supplementary Powers) Amendment (Employment Measures No. 1) Regulation 2015

 

This Regulation is compatible with the 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 Legislative Instrument

 

Section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) and to make, vary and administer arrangements and grants for the purposes of programmes specified in the Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programmes. 

 

The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013. 

 

The Regulation amends Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on a range of employment programmes administered by the Department of Employment.  The programmes are:

*         jobactive which has replaced Job Services Australia to promote workforce participation and help job seekers move from welfare to work, with job seekers being provided with employment services which assist them to find and keep a job with suitable employers;

*         the Labour Market Support Stream which provides additional services to retrenched workers and job seekers to help them find and keep employment;

*         the National Wage Subsidy Pool which provides wage subsidies to employers who employ unemployed persons, including mature age and young job seekers, long term unemployed persons, Indigenous job seekers, and parents seeking to re-join the workforce;

*         the National Work Experience Programme which aims to provide job seekers, particularly young people, with the chance to develop practical skills, gain workplace experience, and better connect them with real jobs while undertaking voluntary work experience;

*         the New Enterprise Incentive Scheme which provides individualised help for job seekers to become self-employed business owners;

*         the Harvest Labour Services and the National Harvest Labour Information Service which provides unemployed and other persons eligible to work in Australia with opportunities to undertake work that supports the requirements of growers in the horticultural industry during peak harvest times and the national coordination and dissemination of information regarding harvest-related work opportunities across Australia;

*         the Corporate Champions Programme which supports large employers who commit to moving towards best practice in the recruitment and retention of mature-age staff aged 45 years and over;

*         the Engaging Early School Leavers Programme which aims to improve the educational outcomes and employment prospects for those who have not completed high school, by ensuring they are either studying or looking for work;

*         the Transition to Work Programme which provides intensive, pre-employment support to improve the work readiness of young people and to help them into work or education;

*         the Empowering YOUth Initiatives Programme which will provide assistance for vulnerable young job seekers in areas of entrenched youth disadvantage;

*         the Automotive Industry Structural Adjustment Programme and the Forestry Industry in Tasmania Structural Adjustment Programme which provide retrenched workers from the specified industries with intensive employment support; and

*         funding to the Beacon Foundation to extend its Real Futures Generation Programme which supports young people to develop the career skills necessary to transition from school to employment through partnerships with business and schools.

 

The Regulation also makes a consequential amendment to ensure that the existing item in Schedule 1AB for the Work for the Dole programme refers to the new jobactive programme.

 

The items specified in Schedule 1AB are the responsibility of the relevant Minister who has portfolio responsibility for the matters.

 

Human rights implications

 

The Regulation does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This Regulation is compatible with human rights as it does not raise any human rights issues.

 

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance