FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (EMPLOYMENT MEASURES NO. 1) REGULATIONS 2017 (F2017L00557) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (EMPLOYMENT MEASURES NO. 1) REGULATIONS 2017 (F2017L00557)

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment
(Employment Measures No. 1) Regulations 2017

 

The Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) confers on the Commonwealth, in certain circumstances, powers to make arrangements under which money can be spent; or to make grants of financial assistance; and to form, or otherwise be involved in, companies.  The arrangements, grants, programs and companies (or classes of arrangements or grants in relation to which the powers are conferred) are specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations).  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

 

Section 65 of the FF(SP) Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

 

Section 32B of the FF(SP) Act authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Principal Regulations.  Section 32B also authorises the Commonwealth to make, vary and administer arrangements for the purposes of programs specified in the Principal Regulations.  Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs. 

 

The Regulations amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Launch into Work program to improve employment outcomes for specific disadvantaged job seekers by assisting them to become job ready.  The Department of Employment has responsibility for this program.

 

Funding of $10 million was included in the 2016-17 Mid-Year Economic and Fiscal Outlook to establish the Launch into Work pilot.  The pilot program will be implemented in selected employment markets before being reviewed in 2019-20.

 

Details of the Regulations are set out at Attachment A.  A Statement of Compatibility with Human Rights is at Attachment B

 

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003. 

 

The Regulations commence on the day after registration on the Federal Register of Legislation. 

 


 

Consultation

In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Employment.

 

A regulation impact statement is not required as the Regulations only apply to non-corporate Commonwealth entities and do not adversely affect the private sector.

 

 

 

 

 

 

 


Details of the Financial Framework (Supplementary Powers) Amendment (Employment Measures No. 1) Regulations 2017

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Employment Measures No. 1) Regulations 2017.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on the day after registration on the Federal Register of Legislation. 

 

Section 3 - Authority

 

This section provides that the Regulations are 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 Regulations.

 

Schedule 1 - Amendments

 

Item 1 - In the appropriate position in Part 4 of Schedule 1AB (table)

 

This item adds a new table item to Part 4 of Schedule 1AB to establish legislative authority for government spending on an activity that will be administered by the Department of Employment. 

 

New table item 215 establishes legislative authority for the Government to provide funding for the Launch into Work program to improve employment outcomes for specific disadvantaged job seekers by assisting them to become job ready.

 

The Government will provide $10 million over four years from 2016-17 to establish a pilot of the Launch into Work program which will provide training, work experience and mentoring to prepare participants for employment.  The pilot program, which is anticipated to commence in May 2017, will be implemented in selected employment markets before being reviewed in 2019-20.

 

The Launch into Work program is an expansion of the UnitingCare pre-employment and training pilot program, known as Springboard, which has now largely concluded.  Springboard involved a number of projects that focused on supporting women with barriers to employment to gain employment in the care sector. 

 

The Launch into Work program will fund pre-employment projects that provide training, work experience, and mentoring.  This will help job seekers to become work-ready by increasing their skills, experience, and confidence to enable them to overcome individual barriers to training and employment.  This will enable participants to move from welfare into paid work and experience the benefits of paid work, such as an increased standard of living for them and their families, the opportunity to have a career and plan for the future, and increased social engagement through workforce participation. 

 

Projects will be flexible and co-designed with employers, jobactive providers, registered training organisations and other stakeholders such as peak bodies, as appropriate.  Employers will be required to commit to employing suitable project participants who successfully complete the program.  Training will be tailored to the position and/or sector to which the project relates.

 

Although targeted mainly at women, males can also participate.  Targeting the program at women will support Australia's G20 goal to reduce the gender gap in women's workforce participation by 25 per cent by 2025, and will work towards addressing future workforce skills shortages.

 

Employers in all industries (including state governments and local councils but excluding employment service providers) and in any region serviced by a jobactive provider (this includes all metropolitan and regional areas but excludes remote areas serviced by the Community Development Program) will be eligible to apply for funding.  All employers assessed as suitable to receive funding will need to commit to the mandatory requirements for pre-employment projects and ongoing jobs for participants.

 

Target employers include those in industries where demand for labour exceeds supply; those with large scale recruitment activity for entry level positions; those in male dominated industries; those who offer flexible work arrangements; and those who have successfully completed similar projects.  Target industries include, but are not limited to accommodation; tourism; retail; hospitality; transport; construction; and aged and disability care.

 

Project opportunities will be identified through the Department of Employment's employer engagement activities and employer mobilisation work.  The Department will approach employers directly to gauge interest in co-designing projects.  Employers or peak bodies may also approach the Department with project ideas or seek assistance with their members' recruitment needs.

 

During the project, participants will undertake training and work experience and have access to workplace mentoring.  As a general rule, work experience will be limited to eight weeks per project, and be for less than full-time hours per week.  Those who successfully complete the pre-employment project will then be offered employment with the host employer or a partner organisation.  While there is room for innovation regarding the scope and structure of individual projects, all pre-employment projects must include training, mentoring, work experience, and guaranteed employment outcomes.

 

Funding for most projects will likely be between $20,000 - $40,000 depending on the nature and size of the project.  Details of the number and location of projects, and total number of participants will depend on the outcome of the expression of interest process.  It is estimated that there may be up to around 200 projects in a range of geographical areas which could help up to around 3,000 job seekers in total, that is, most projects will be for about 10 to 15 job seekers. 

 

Employers will use the Launch into Work pre-employment projects to recruit for entry level positions with prospects for career growth.  Jobactive providers will identify job seekers who they believe are suitable for the project and for work with the employer.

 

Participation in projects will be limited to job seekers registered with a jobactive, Transition to Work or Disability Employment Services provider.  Employers will apply to the Department of Employment to run a project and the Department will engage relevant employment service providers once proposals have been approved.  Providers will then screen their caseload for potentially suitable and interested job seekers and refer them to an information session run by the employer.

 

The success of the UnitingCare projects was in part due to appropriate screening and selection of participants.  The employer and registered training organisation will be closely involved in job seeker screening activities to further determine suitability.  Apart from confirming that potential participants have the necessary language, literacy and numeracy skills for the role, the emphasis will be on whether job seekers demonstrate values and attributes consistent with the proposed employer, rather than specific skills or experience.  Suitable job seekers will be invited to join a pre-employment project.

 

Jobactive providers will be required to contribute to project costs (expected to be at least $500 on average per job seeker across all projects) from the Employment Fund to ensure project participants are best placed for successful completion.

 

Transition to Work and Disability Employment Services job seekers will be eligible to participate in projects, noting that these providers do not have access to the Employment Fund, but will be required to provide the necessary supports for their job seeker/s to participate in the project, for example, transport assistance and police checks.

 

Funding could be used to pay for training or mentoring for job seekers; training for potential mentors; job seeker work experience supervision fees for employers; project management and coordination; promotional material for employers, job seekers, project participants and jobactive providers; and purposes which directly support job seekers in an approved project into employment such as clothing, tools and work-related licensing. 

 

Funding cannot be used for activities or services which duplicate what is available via jobactive (for example wage subsidies or items that can reasonably be paid for through the Employment Fund, except training); training that can be subsidised by state governments; activities or services which do not help job seekers to become job ready or transition into employment; or purchases not directly related to the project.  If the required training is subsidised by a state government initiative but there is still a cost to undertaking the training, that cost can be paid using Launch into Work funding. 

 

Funding of $10 million was included in the 2016-17 Mid-Year Economic and Fiscal Outlook under the measure 'Launch into Work pilot - establishment' for a period of four years commencing in 2016-17.  Details are set out in the Mid-Year Economic and Fiscal Outlook 2016-17, Appendix A: Policy decisions taken since the 2016 PEFO at page 150.

 

Information regarding the program will be available on the Department of Employment's website at www.employment.gov.au.  This will include information about project requirements, eligibility and selection criteria.  An expression of interest process will apply for the program.  Applications for funding will be accepted on a rolling basis or until the total funding for each financial year is exhausted. 

 

The funding will cover the cost of projects.  Each project will have a lead employer who will have a contract with the Department.  In some cases, the Department may also enter into contractual arrangements with a lead organisation such as a peak body.  Employers may engage other third parties, such as industry associations or not-for-profit organisations, to help deliver projects.  Such third parties, if any, will vary from project to project. 

 

The Department will give consideration on a case-by-case basis to the contractual provisions that may be appropriate in connection with the use by employers of third parties to deliver projects, for example, provisions about whether the third parties are to be subcontractors under the contract. 

 

Officers in the Department will assess expressions of interest, put in place internal processes to help ensure value for money and accountability, and make recommendations to the delegate about which employers are awarded contracts and which third parties may be engaged by the employers in particular cases to deliver the projects.  

 

A delegate of the Secretary of the Department will approve spending in accordance with the Public Governance, Performance and Accountability Act 2013, taking into account recommendations from departmental officers who assess the expressions of interest.  The delegate will consider factors such as project design; the number of full-time and part-time jobs to which the employer can commit; the amount of funding sought; the sector, region or cohort targeted; the availability of flexible work arrangements for parents; and the outcomes of previous projects, if any, delivered by the applicant. 

 

As will be explained on the program page on the Department's website and in the expression of interest documentation, if a person is not satisfied with the above decisions, the person may raise the matter with the Department or the Commonwealth Ombudsman.  The Launch into Work page on the Department of Employment's website is currently under development.  

 

If a complaint is made to the Department, it will be reviewed by the program area and an assessment of the complaint provided to the delegate.  Complainants may also register complaints or provide feedback via the Department's website.  Details are at www.employment.gov.au.

 

Given the existence of this review mechanism, the fact that the program is part of the broader package of employment services, the small size of the projects, and that no organisation or job seeker is compelled to participate in the program, it is not appropriate for the program to be subject to merits review.  Noting that the above decisions are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 is not applicable and for the reasons above this is appropriate.

 

The program will involve procurement and will be designed consistently with the Commonwealth Procurement Rules.  Decisions about the awarding of contracts will be reported on the AusTender website at www.tenders.gov.au

 

Funding for the program will come from Program 1.1: Employment Services, which is part of Outcome 1.  Details are set out in the Portfolio Additional Estimates Statements 2016-17, Employment Portfolio at pages 11 and 13.

 

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 unemployment and sickness benefits powers (section 51(xxiiiA));

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

*         the territories power (section 122).

 

Section 51(xxiiiA) of the Constitution supports laws with respect to the provision of various social welfare benefits and services including unemployment benefits and sickness benefits.  The program will benefit unemployed people, including those who may have an illness, injury or disability, by providing training, work experience and mentoring to increase their skills, experience and confidence, to help them find and keep a job. 

 

The external affairs power in section 51(xxxix) of the Constitution supports laws implementing treaties to which Australia is a party.  The program gives effect to Australia's obligations under the following international conventions:

*         the International Labour Organization's Convention concerning Employment Policy (ILO 122), particularly Articles 1 and 2; and

*         the International Labour Organization's Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO 142), particularly Articles 1, 2 and 5. 

 

Articles 1 and 2 of ILO 122 are concerned with the pursuit of an active policy designed to promote full, productive and freely chosen employment and aimed at ensuring, among other things, that there is work for all who are available for and seeking work and freedom of choice of employment.  Articles 1, 2 and 5 of ILO 142 require the adoption and development of policies and programmes of vocational guidance and training, closely linked with employment and the establishment and development of open, flexible and complementary systems of general, technical and vocational education, educational and vocational guidance and vocational training.  The policies and programmes are to take into account regional and national employment needs, opportunities and problems and be formulated and implemented in co-operation with employers' and workers' organisations. 

 

Under the Launch to Work program, projects will be flexible and co-designed with relevant stakeholders.  Employers or peak employment bodies may approach the Department of Employment with project ideas or to seek assistance with their members' recruitment needs. The program includes training, work experience and mentoring to help participants find and keep a job.

 

The provision of funding for activities in or in relation to a Territory is supported by section 122 of the Constitution.  The program supports people living in the Territories through its delivery in the Territories.

 

 

 


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) Regulations 2017

 

These Regulations are 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 programs specified in the Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs.  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 Regulations amend Schedule 1AB to the FF(SP) Regulations to establish legislative authority for government spending on the Launch into Work program to improve employment outcomes for specific disadvantaged job seekers by assisting them to become job ready.  The Department of Employment will administer this program.

 

Funding of $10 million was included in the 2016-17 Mid-Year Economic and Fiscal Outlook to establish the Launch into Work pilot.  The pilot program will be implemented in selected employment markets before being reviewed in 2019-20.

 

The Minister for Employment has responsibility for the program.

 

Human rights implications

 

The Regulations do not engage any of the applicable rights or freedoms.

 

Conclusion

 

These Regulations are compatible with human rights as they do not raise any human rights issues.

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance

 


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