THE House of Representatives Standing Committee on Employment, Education, and Training has today presented the report of its inquiry into the perceptions and status of vocational education and training (VET).

Committee Chair, Lisa Chesters MP said, "High-quality VET is crucial to skilling Australians for an increasingly dynamic economy and labour market. Unfortunately, many people do not fully understand the VET sector or the careers to which it leads, and many still consider VET a less valuable or rewarding pathway compared to university.

"Governments at all levels must ensure access to reliable, accurate information on VET and actively promote the sector and the fantastic opportunities that it offers," Ms Chesters said.

"However, information and marketing efforts will not on their own be sufficient to address negative perceptions of VET," she said. "Tangible improvements to the sector must also be made to ensure the quality and relevance of training, and that the sector is subject to robust regulatory, governance, and funding arrangements."

The committee has made 34 recommendations designed to address poor perceptions of the sector and enhance the quality of and access to VET pathways. These include:

• Significantly overhaul the functions of the National Careers Institute.
• Developing a national careers education strategy for secondary schools.
• Improving VET delivered to secondary school students via cooperative partnerships and increased school funding.
• Rationalising the development and implementation of VET qualifications.
• Addressing systemic barriers to women’s participation in VET, with a focus on eliminating gender-based violence and workplace discrimination and challenging gender stereotypes.
• Enhancing apprenticeships, including by piloting a network of industry-led apprenticeship support providers, lifting pay and conditions, and exploring new apprenticeship pathways.
• Creating a robust framework for developing, implementing, and funding micro-credentials.
• Implementing measures to attract and retain a VET workforce with industry expertise and a greater range of pedagogical competencies.
• Defining a clear roadmap to a genuinely integrated tertiary education system.

The committee’s report was informed by other reform processes including the Employment White Paper, the National Skills Agreement, and the Australian Universities Accord. The committee’s recommendations should be considered alongside the findings of these reports.

The report and further information about the inquiry is available on the inquiry website.

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THE Joint Standing Committee on Treaties will hold two public hearings today for its inquiries into the Second Protocol to Amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) (AANZFTA Second Protocol) and the Nairobi International Convention on the Removal of Wrecks (the Nairobi Convention).

The second public hearing to be held by the Committee on the AANZFTA Second Protocol will provide an opportunity for the committee to discuss issues arising from the treaty including the investor-state dispute settlement mechanism, inter-state dispute settlement, the adoption of a negative list approach and cooperation in education.

The committee will hear from Professor Luke Nottage, the Australian Fair Trade and Investment Network and the Australian Council of Trade Unions.

The committee will then hold a public hearing for its inquiry into the Nairobi Convention which aims to give State Parties the legal means to remove or have shipwrecks removed that potentially affect the safety of lives, goods and property at sea, and the marine environment.

The convention provides rules and standards that facilitate prompt and effective removal of shipwrecks which are located in areas beyond the territorial sea. The convention also ensures that registered ship owners are held financially liable for the creation of wrecks and are required to have insurance or other financial security to cover the costs of locating, marking and removing wrecks. 

Committee Chair Josh Wilson MP said, "Australia is dependent on international maritime trade, so it is vital we keep our maritime environment safe.

“Most wreck incidents affecting Australia involve lost shipping containers from foreign flagged vessels in Australia’s exclusive economic zone (EEZ). By acceding to this treaty, Australia would be legally allowed to remove or have removed wrecks in the EEZ that pose a danger, impede navigation or could cause major consequences to the marine environment or Australia’s coastline.”

The committee will hear from officials from the Department of Infrastructure, Transport, Regional Development, Communications, and the Arts and the Department of Foreign Affairs and Trade.

Public hearing details - AANZFTA Second Protocol  

Date:               Monday 25 March 2024
Time:              11am approximately
Location:        Committee Room 2R1

Public hearing details - Nairobi Convention

Date:               Monday 25 March 2024
Time:               11:50am approximately
Location:         Committee Room 2R1

The hearings can be accessed online and the programs for the hearings are available on the Committee website, along with further information about the inquiries. 

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THE House of Representatives Standing Committee on Regional Development, Infrastructure and Transport will examine local government sustainability in a new inquiry launched today.

Chair of the Committee, Luke Gosling OAM, MP, said, "The committee has prioritised a deeper understanding of local government financial sustainability and funding frameworks, alongside the changing infrastructure requirements and service delivery obligations for local governments.

"Local government sustainability is essential to supporting our Australian communities through the provision of vital infrastructure and related services. The committee is seeking to understand the challenges faced by local governments in servicing infrastructure requirements across Australia’s regional, rural, and remote locations."

Mr Gosling further emphasised, "The committee is aware of significant public infrastructure workforce shortages, particularly in local government areas, and the importance of promoting skills development and job security for Australians.

"The committee will examine labour hire and retention trends, including the impacts of labour hire practices, to identify barriers and opportunities to support our local workforce and local government sustainability and service delivery obligations."

The committee welcomes submissions from interested organisations and individuals by May 3, 2024.

Further information on the inquiry, including the terms of reference and how to contribute, is available on the Committee’s website.

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THE Parliamentary Joint Committee on Intelligence and Security today presented its Advisory Report on the National Security Legislation Amendment (Comprehensive Review and Other Measures No. 3) Bill 2023.

The Bill implements 12 recommendations of the 2020 Comprehensive Review of the Legal Framework of the National Intelligence Community conducted by Dennis Richardson AC (Comprehensive Review). The Bill also makes important amendments to the Australian Security Intelligence Organisation Act 1979 to assist Australian Security Intelligence Organisation (ASIO) officers to perform their vital functions safely and effectively.

The measures contained within the Bill will support Australia’s national security agencies by strengthening identity protections for their employees, increasing operational flexibility and information sharing, clarifying some authorities and approvals processes to provide greater certainty, and supporting quicker processing of security clearance suitability assessments. The committee supported these measures and recommended that the Bill be passed, subject to several recommendations.

The committee’s recommendations included that the Federal Government:

• provide further clarification on the use of cover employment arrangements;
• strengthen notification to individuals who are subject to ASIO security assessments, including as part of security clearance processes, about their right to make complaints; and
• enhance transparency about delayed security assessments by including them in ASIO’s annual report.

The committee also recommended the government consider the need to align amendments to secrecy offences in the Bill with the findings, once published, of the review of secrecy offences legislation being conducted by the Independent National Security Legislation Monitor, Jake Blight.

Committee Chair Peter Khalil MP said, “With the passage of this Bill, the government is delivering on its commitment to implementing the recommendations of the Comprehensive Review to ensure that our national security legislation remains fit-for-purpose.

“Modernisation of our security legislation enables our intelligence agencies to conduct their vital work effectively while also ensuring that appropriate oversight and safeguards are in place," Mr Khalil said.

The committee received both public and classified evidence related to the proposed amendments in the Bill and said it was grateful to those submitters for contributing their expertise to the inquiry.

Further information on the inquiry as well as a copy of the report can be obtained from the Committee’s website.

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THE Joint Committee of Public Accounts and Audit (JCPAA) has expanded an existing inquiry examining the previous government’s failed attempts to privatise the visa processing system and deliver new IT systems in Home Affairs, to examine public sector IT projects more widely.

Committee Chair, Julian Hill MP, said, "Lessons must be drawn from both stages of the failed attempt to privatise and procure a new visa processing system for Home Affairs, and it’s already clear that broader scrutiny of other large-scale public sector IT projects is warranted.

“We will get to the bottom of what happened with the visa processing debacle, and how and why nearly $150 million was wasted. There are broader lessons to be drawn however into appropriate practices for new IT projects and expenditure in the public sector, including capability-building, advice to government, probity and ethics, and value for money for the Commonwealth.”

In addition to both stages of the failed visa processing privatisation, including Auditor-General Report No. 34 of 2022-23 - Procurement of the Permissions Capability, the inquiry will now also consider others reports including:

• Auditor-General Report No. 12 of 2023-24 - Administration of the Parliamentary Expense Management System
• Auditor-General Report No. 7 of 2023-24 - Establishment of the Workforce Australia Services Panel, specifically on the implementation of a new digital services platform to support employment services.

Additional areas of focus for the committee will include:

• The Digital Transformation Agency’s role in evaluating public sector IT investment.
• Department of Finance assessments of certain high value procurements.
• The Australian Public Service Digital Profession’s role in building digital capability in the public service.
• Any lessons learnt from previous large-scale IT projects.

Details of the revised inquiry, including the new terms of reference and details on hearings, will be made available on the Committee website.

The committee invites submissions to the inquiry addressing the revised terms of reference to be received by April 12, 2024. The committee is reminding witnesses of interest of its power to summon witnesses should that be required.

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THE Health, Aged Care and Sport Committee will hold a public hearing at Parliament House in Canberra as part of its inquiry into diabetes this Friday, March 22.

The committee will hear from a variety of pharmaceutical companies and manufacturers, including Dexcom/AMSL Diabetes, Eli Lilly Australia, Medtronic and Insulet Australia, who provide life-saving diabetes medications and equipment. The committee will also hear from Novo Nordisk, manufacturer of Ozempic.

Chair of the Committee, Mike Freelander MP, said, "Throughout the inquiry, the committee has heard a lot of evidence about patients’ experiences and challenges accessing and using life-saving medication, devices and equipment to manage their diabetes.

"This public hearing will explore steps that the Australian Government can take to improve access to these management and treatment options," Dr Freelander said.

Deputy Chair of the Committee, Melissa McIntosh MP, said, "The growing impact of diabetes in Australia, including the growing prevalence of the autoimmune disease type 1 diabetes, has been a core focus for this inquiry. At this hearing, we will also hear from Jane McDonald, a person living with type 1 diabetes, about her journey through diagnosis, treatment and management."

Public hearing

Date: Friday, 22 March 2024
Time: 8.45am – 5.30pm AEDT (Canberra time)
Location: Committee Room 1R3, Parliament House, Canberra

A program for the public hearing is available on the inquiry website. A live audio stream of the hearings will also be available on the APH website.

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THE Joint Standing Committee on Treaties has tabled a report recommending the ratification of the two treaty actions related to the Universal Postal Union.

First, Acts of the Universal Postal Union adopted by the 2nd Extraordinary Congress: Tenth Additional Protocol to the Constitution of the Universal Postal Union and Second Additional Protocol to the General Regulations of Universal Postal Union.

Second, Acts of the Universal Postal Union adopted by the 27th Universal Postal Congress: Eleventh Additional Protocol to the Constitution of the Universal Postal Union, Third Additional Protocol to the General Regulations of the Universal Postal Union, the Universal Postal Convention, the Final Protocol to the Universal Postal Convention, the Postal Payment Services Agreement and the Final Protocol to the Postal Payment Services Agreement.

The Universal Postal Union (UPU) aims to promote accessible and efficient universal postal services of value that ensure communication around the world. Participation in the UPU enables Australia to promote and safeguard its interests in the UPU and continue to work to improve the international postal system for the benefit of Australian consumers, businesses, and designated postal operator, Australia Post.

These treaty actions aim to create a more efficient UPU by addressing internal governance arrangements and representation issues. Changes to internal arrangements include clarity around decision-making and the responsibility of adopting procedures, while establishing a system for the electronic submission of procedural documents.

Representation changes will be made by introducing gender equality principles and addressing membership inequalities for Small Island Developing States and Least Developed Countries, such as Australia’s Pacific Island neighbours.

Committee Chair Mr Josh Wilson MP said, "The exchange of international mail between member states is important for commerce and development. These changes create a more efficient and less ambiguous UPU, which aligns with Australia’s trade, national security, biosecurity, and border protection interests.”

“The establishment of permanent Pacific Island seats on the UPU Councils highlights the importance of supporting and promoting Pacific Island interests and aligns with Australia’s engagement with the region.”

The committee supports ratification and recommends that binding treaty action be taken.

The report can be found on the committee website, along with further information on the inquiry.

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THE Compensation Scheme of Last Resort (CSLR) has determined the estimates for the 1st and 2nd levy periods that will fund claims from eligible consumers who have been the victims of financial misconduct.

As outlined in the legislation for the CSLR, the 1st levy period will be funded by the Australian Government and the 2nd levy period by the sub-sectors of the financial services industry that are covered by the CSLR.

This is in addition to the already announced pre-CSLR complaint estimate for the levy that will be paid by the 10 largest banking and insurance groups in the establishment phase of the CSLR.

It is the responsibility of the CSLR to determine estimates that it reasonably believes to be the cost of the compensation scheme in each year. The Australian Securities and Investments Commission (ASIC) will issue the levy for each financial firm and collect the levy payments.

1st Levy Period Estimate

CSLR has provided a 1st levy period estimate of $4.8 million, which falls within the scheme’s annual levy cap of $250 million. As outlined in the legislation, the 1st levy period estimate will be funded by the Australian Government. (See the notifiable instrument.)

This estimate is expected to meet eligible compensation claims and costs from the CSLR’s commencement on 2 April 2024 to 30 June 2024.

While financial firms will not contribute to the 1st levy period,  CSLR notes that the estimate falls within the legislated annual levy cap of $20 million for each subsector, with the estimate for each sub-sector being:

• Financial advice $2.4 million
• Credit provision $0.7 million
• Credit intermediation $0.8 million
• Securities dealing $0.9 million
  
  

2nd Levy Period Estimate

In addition, CSLR has provided a 2nd levy period estimate of $24.1 million, which also falls within the scheme’s annual levy cap of $250 million and within $20 million subsector cap. 

This estimate is expected to meet eligible compensation claims and costs from 1 July 2024 to 30 June 2025. The estimate for each sub-sector is:

• Financial advice $18.5 million
• Credit provision $1.5 million
• Credit intermediation $1.8 million
• Securities dealing $2.3 million.

A summary to assist entities in calculating the leviable amounts per entity can be viewed on the ASIC website.

The 2nd levy period estimate is subject to a 'disallowance' period, with the Federal Parliament having the opportunity to object to the estimate within 15 parliamentary sitting days of the legislative instrument being published on the Federal Register of Legislation.

Once 15 parliamentary sitting days has elapsed, ASIC will issue the levy for each of the financial firms and collect the levy on behalf of the Federal Government.

The estimates for the 1st and 2nd levy periods are based on actuarial principles, as required by legislation.  The CSLR engaged the services of a leading actuarial consultancy, Finity Consulting, to establish a policy for determining the estimates and to conduct detailed modelling and analysis for each estimate. This work was reviewed by a second, independent actuarial consultancy, Taylor Fry. A full copy of the report from Finity is available on the CSLR website.

“These latest estimates are another milestone towards the CSLR being able to meet compensation claims from the victims of financial misconduct,” the CSLR Board said.

“We are committed to a robust and rigorous process that allows us to make the best estimates based on the best information available.”

Background

These latest estimates follow the CSLR announcement in January providing $241 million as the initial funding estimate for the levy that will be paid by the by the 10 largest banking and insurance groups in the establishment phase of the CSLR. The initial levy estimate includes provision for the majority of claims involving Dixon Advisory and Superannuation Services (DASS)

The legislative framework for the CSLR passed the Australian Parliament in June 2023 and the scheme is scheduled to start receiving claims from 2 April 2024.

The main establishment legislation and associated Levy Act 2023, Levy Regulations 2023 and Levy (Collection) Act 2023 set out the levy process for the establishment of the CSLR and for subsequent years.

The funding will pay for compensation claims of up to $150,000 to eligible consumers who have been the victims of financial misconduct relating to personal financial advice, securities dealing for retail clients, the provision of credit or the arranging of credit.

Read more about the CSLR here.

About the CSLR

The Compensation Scheme of Last Resort (CSLR), which is scheduled to begin operations on 2 April 2024, is a scheme designed to make payments to eligible consumers where determinations by the Australian Financial Complaints Authority (AFCA) for compensation remain unpaid in the financial sub-sectors specified in legislation. The CSLR will facilitate the payment of up to $150,000 in compensation to consumers who meet the eligibility criteria.

For more information visit www.cslr.org.au.

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