THE Joint Committee of Public Accounts and Audit (JCPAA) has commenced an inquiry into the 2021-22 Commonwealth Financial Statements.

The Commonwealth Financial Statements are audited each year by the Australian National Audit Office (ANAO) to provide the Parliament with an independent examination of the Commonwealth’s accounts. The audit identifies financial statement risks, issues with governance arrangements, and any problems with the internal control frameworks of Commonwealth entities.

The chair of the JCPAA, Julian Hill MP, said the JCPAA inquiry would examine the ANAO’s findings and engage with agencies mentioned in the audit.

"This process is an important accountability and transparency mechanism whereby the Parliament can interrogate in detail issues raised by the Auditor-General regarding the financial statements of all Commonwealth entities," Mr Hill said. "The committee looks forward to hearing about improvements agencies have made in response to the audit."

The inquiry will examine Auditor-General Report No. 8 of 2022-23: Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2022.

The committee is inviting submissions to the inquiry, addressing the terms of reference, to be received by Friday, March 3, 2023. Details of the inquiry – including the terms of reference and public hearings – will be made available on the Committee website.

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NEW BUILDING activity data released by the Australian Bureau of Statistics (ABS) today confirms a bumpy road ahead in meeting housing targets without government focus, according to Master Builders Australia CEO Denita Wawn.

According to the ABS, new housing starts fell 5.2 percent over the September quarter, and a fall of 21.2 percent compared with September 2021. This included a 5.2 percent reduction in the number of new medium/high-density home commencements, a fall of 25 percent from September 2021, and detached house starts fell by 4.9 percent over the quarter.

While the volume of new home starts is dropping, the total number of dwellings under construction are at record highs with over 244,000 home (0.6 percent increase) in September.

“We are starting to see an easing in demand for new homes as cost of living and interest rates increase. However, the industry is facing immense pressure to deliver projects currently in the pipeline," Ms Wawn said.

“There is still a record number of homes under construction, but due to supply bottlenecks such as labour and material shortages, the pace at which new homes can be built has slowed down,” she said.

“Despite strong intention from governments and industry to reach a target of one million homes under the Housing Accord, the data highlights that more needs to be done to tackle labour shortages and other supply constraints to speed up the delivery of new homes.

“Labour shortages can best be addressed over the short and medium term by making it easier for migrants to work in Australia. The bottlenecks in our migration system need to be addressed as a matter of priority,” Ms Wawn said.

"Master Builders forecasts that new home building starts will fall significantly short of 200,000 per year, the volume of output that will be needed to meet demand. Our forecasts indicate this threshold will not be exceeded until 2026.

“Our 2022-26 residential forecasts predict a bumpy road with a downturn over the next few years. Forecasts will trend upwards as inward migration and interest rates stabilise, and pent-up demand shifts the dial.

“Builders continue to face regulatory burdens and prolonged delays in approvals for building applications, occupation certificates and land titles. Additionally, land shortages in the right places, high developer charges and inflexible planning laws are restricting opportunities to meet demand, speed up project timelines, and minimise costs to both builders and their clients.

“The industry remains committed to delivering the housing needs for today and the future and urges local, state, territory and federal governments to tackle these challenges head on,” Ms Wawn said.

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AUSTRALIA's acceptance of an international treaty for the recognition of tertiary education qualifications has been welcomed by the Independent Tertiary Education Council Australia (ITECA), the peak body representing independent skills training, higher education, and international education providers.

“As a nation, we can be proud of the quality offered by independent tertiary education providers.  This new treaty provides a platform for the qualifications awarded by them to be recognised across the globe,” ITECA chief executiveTroy Williams said.

The Australian Government has recognised that the new UNESCO Global Convention on the Recognition of Qualifications concerning Higher Education ensures students who study with Australian education institutions will have their qualifications recognised in a fair, transparent and non-discriminatory manner worldwide.

“Independent skills training and higher education providers offer qualifications in areas as diverse as law, nursing, aviation, mining, IT and communications, through to construction, transport and logistics.  It’s great that these qualifications will empower students in the global marketplace,” Mr Williams said.

With provisions on non-traditional learning modes, the Global Convention also facilitates the recognition of qualifications, prior learning and study periods earned remotely.

“The convention provides a clear framework for recognition of qualifications delivered online and backs Australia’s robust recognition of prior learning framework.  In many respects, the Convention plays to the strengths of Australia’s tertiary education system,” Mr Williams said.

According to ITECA, successive Australian Governments' commitments to continuous improvement of the skills training and higher education systems provide a basis for the global reputation of independent teriary education providers for quality.

“We’ve had a review of the Australian Qualifications Framework, the considerable skills reform agenda and now a further review of higher education.  Each of these has helped create a framework in which independent skills training and higher education providers have established an internationally renowned reputation for excellence,” Mr Williams said.

The new UNESCO Global Convention on the Recognition of Qualifications concerning Higher Education will be considered at the ITEC23 International Education Symposium convened by ITECA on June 8, 2023 at the Sofitel Gold Coast.

Independent Registered Training Organisations (RTOs) support more than 87 percent of the 4.3 million students in skills training, including more than half of all apprentices and trainees.  Independent providers also support around 10 percent of the 1.6 million students in a higher education awards program.

www.iteca.edu.au

Background

Established in 1992, ITECA is the peak body representing independent skills training, higher education, and international education providers.

The new Global Convention on the Recognition of Qualifications concerning Higher Education establishes establishes universal principles for fair, transparent and non-discriminatory recognition of higher education qualifications and qualifications giving access to higher education and offering avenues for further study and employment.

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THE HOUSING Industry Association (HIA) has put its opinion forward on the need for the Federal Government to form a "well-rounded" migration policy.

“It is time for the Federal Government to form a well-rounded and integrated immigration policy, as part of an overall population policy, based on need, instead of being driven by an artificial cap on migration,” HIA deputy managing director for industry and policy, Jocelyn Martin said today.

“A strong building industry is a crucial driver of a strong economy. It creates jobs, trains apprentices, drives wider economic growth and builds communities,” Ms Martin said.

“The building industry employs one in 10 Australians and had helped pull the national economy out of its first recession in nearly 30 years. Today’s building activity figures confirm the market is still strong but will start trending downwards in 2023.

“Over the past two years the industry has had a roller coaster ride along with the rest of the economy. From activity stalling at the start of the pandemic, to the biggest boom on record, building activity is set to contract again during 2023 due to the rapid increase in interest rates," Ms Martin said.

“Australia’s population is ageing, and we have an acute shortage of skilled trades, also the downturn in migration has meant that the population needed to stimulate supply of housing has dropped.

“An ageing population means natural increases in Australia’s population continue to be well below a replacement or growth figure, meaning migration is critical to make up the shortfall.

“A return to stable population growth, with a focus on attracting skilled workers creates economic growth and can facilitate an improvement in productivity and participation across the economy.

“Population growth should not be used to grow the economy just simply to increase activity," Ms Martin said.

“As outlined in our pre-budget submission it is vital that governments of all levels prepare for future economic growth by increasing the supply of land, above the undersupply of the past decade, to accommodate future economic growth.

“We have seen over the past decade a number of ad-hoc cuts to immigration based on the false premise that infrastructure bottlenecks, commuter congestion and stretched education resources are somehow the fault of migration rather than poor planning.

“In its pre-budget submission, the HIA has expressed a willingness to work with all levels of government in 2023 to ensure the nation’s immigration policies deliver benefits, not detrimental impacts, to current and future generations of Australians wanting to buy their own home,” Ms Martin said.

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