Portfolio Budget Statements 2014 15

Portfolio Budget Statements 2014–15

Budget related paper No. 1.6

Employment Portfolio

budget initiatives and explanations of

appropriations specified by outcomes

and Programmes by agency

ISSN 2203-5583 (Print)

ISSN 2203-5591 (Online)

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Abbreviations and conventions

The following notation may be used:

NEC/necnot elsewhere classified

nil

..not zero, but rounded to zero

nanot applicable (unless otherwise specified)

nfpnot for publication

$m$ million

$b$ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

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Should you have any enquiries regarding this publication please contact JustinePotter, Chief Finance Officer, Department of Employment on 13 33 97.

A copy of this document can be located on the Australian Government Budget website at

User Guide

to the

Portfolio Budget Statements

User Guide

The purpose of the 2014–15 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2014–15 (or Appropriation Bill [Parliamentary Departments] No. 1 2014–15 for the parliamentary departments). In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

As required under section 12 of the Charter of Budget Honesty Act 1998, nongeneral government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and accordingly, these entities are not reported in the PB Statements.

Contents

Portfolio Overview...... 9

Employment Portfolio Overview...... 11

Agency Resources and Planned Performance...... 17

Department of Employment ...... 19

Asbestos Safety and Eradication Agency...... 69

Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority 91

Fair Work Commission...... 131

Office of the Fair Work Building Industry Inspectorate...... 157

Office of the Fair Work Ombudsman...... 181

Safe Work Australia...... 209

Workplace Gender Equality Agency...... 233

Glossary...... 259

Portfolio Overview

Portfolio Overview

Employment Portfolio Overview

Ministers and Portfolio Responsibilities

The Employment portfolio assists the Australian Government to achieve its objectives for employment. Senator the Hon. Eric Abetz is the Minister for Employment and the Hon. Luke Hartsuyker MP is the Assistant Minister for Employment.

The Employment portfolio provides a variety of advice, support, programmes and services to the Australian Government and wider community. The portfolio works with other Australian Government agencies, state and territory governments and a range of service providers to deliver a broad range of services to the community to connect people with jobs, workplaces with safety and business with productivity.

The Department of Employment’srole is to provide national policies and programmes that help Australians find and keep employment, work in safe, fair and productive workplaces and improve the employment-related performance of enterprises in Australia.

The Asbestos Safety and Eradication Agencyis dedicated to working with jurisdictions and stakeholders to facilitate a national approach to the eradication, handling and awareness of asbestos.

Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers’ Safety, Rehabilitation and Compensation Authoritycontribute to a secure, safer, fairer and more productive Australia.Comcare partners with workers, their employers and unions to keep workers healthy and safe, and reduce the incidence and cost of workplace injury and disease.

The Fair Work Commission is Australia’s national workplace relations tribunal. It is responsible for administering provisions of the Fair Work Act 2009as well as a range of other functions.

The Office of the Fair Work Building Industry Inspectorate is responsible for ensuring fair and productive Australian building and construction workplaces and delivering impartial and comprehensive adviceto the building and construction industry.

The Office of the Fair Work Ombudsman promotes harmonious, productive and cooperative workplace relations and ensures compliance with Commonwealth workplace laws.

Safe Work Australia is leading the development of policy to improve work health and safety and workers’ compensation arrangements across Australia.

The Workplace Gender Equality Agencyis responsible for promoting and improving gender equality in Australian workplaces and administering the Workplace Gender Equality Act 2012.

The Employment portfolio structure and outcomes can be found at Figure 1.

Figure 1: EmploymentPortfolio Structure and Outcomes

Minister for EmploymentSenator the Hon. Eric Abetz
Assistant Minister for Employmentthe Hon. Luke Hartsuyker MP
Department of Employment
Secretary: Renée Leon PSM
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.
Outcome 2: Facilitate jobs growth through policies that promote fair, productive and safe workplaces.
Asbestos Safety and Eradication Agency
Chief Executive Officer: Peter Tighe
Outcome: Assist in the prevention of exposure to asbestos fibres and the elimination of asbestos-related disease in Australia through implementing the National Strategic Plan for Asbestos Awareness and Management in Australia.
Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers’ Safety, Rehabilitation and Compensation Authority
Chief Executive Officer: Paul O’Connor
Outcome 1: The protection of the health, safety and welfare at work of workers covered by the Comcare scheme through education, assurance and enforcement.
Outcome 2: An early and safe return to work and access to compensation for injured workers covered by the Comcare scheme through working in partnership with employers to create best practice in rehabilitation and quick and accurate management of workers’ compensation claims.
Outcome 3: Access to compensation for people with asbestos-related diseases where the Commonwealth has a liability, through management of claims.
Fair Work Commission
General Manager: Bernadette O’Neil
Outcome: Simple, fair and flexible workplace relations for employees and employers through the exercise of powers to set and vary minimum wages and modern staff awards, facilitate collective bargaining, approve agreements and deal with disputes.
Office of the Fair Work Building Industry Inspectorate
Director: Nigel Hadgkiss
Outcome:Enforce workplace relations laws in the building and construction industry and ensure compliance with those laws by all participants in the building and construction industry through the provision of education, assistance and advice.
Office of the Fair Work Ombudsman
Ombudsman: Natalie James
Outcome: Compliance with workplace relations legislation by employees and employers through advice, education and, where necessary, enforcement.
Safe Work Australia
Acting Chief Executive Officer: Michelle Baxter
Outcome: Healthier, safer and more productive workplaces through improvements to Australian work health and safety and workers’ compensation arrangements.
Workplace Gender Equality Agency
Director: Helen Conway
Outcome: Promote and improve gender equality in Australian workplaces including the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.

Portfolio resources

Table 1 shows the total new resources provided to the portfolio in the2014–15 budget year by agency.

Table 1: Portfolio Resources2014–15

Table 1: Portfolio Resources 2014–15 (continued)

Portfolio Overview

Agency Resources and
Planned Performance

Department of Employment...... 19

Asbestos Safety and Eradication Agency...... 69

Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority 91

Fair Work Commission...... 131

Office of the Fair Work Building Industry Inspectorate...... 157

Office of the Fair Work Ombudsman...... 181

Safe Work Australia...... 209

Workplace Gender Equality Agency...... 233

Portfolio Overview

Department of Employment

Agency Resources and Planned Performance

Portfolio Overview

Department of Employment

Section 1: Agency Overview and Resources...... 23

1.1Strategic Direction Statement...... 23

1.2Agency Resource Statement...... 25

1.3Budget Measures...... 28

Section 2: Outcomes and PlannedPerformance...... 31

2.1Outcomes and Performance Information...... 31

Section 3: Explanatory Tables and Budgeted Financial Statements...... 51

3.1Explanatory Tables...... 51

3.2Budgeted Financial Statements...... 52

Department of Employment Budget Statements 2014–15

Department of Employment

Section 1: Agency Overview and Resources

1.1Strategic Direction Statement

The role of the Department of Employment (the department) is to provide policy, support and programmes to deliver the Australian Government’s agenda to create more jobs and increase productivity.

The department has two outcomes:

To 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.
Tofacilitate jobs growth through policies that promote fair, productive and safe workplaces.

To achieve these outcomesthe major priorities for the department in 2014–15are:

delivering efficient and effective employment services to all eligible Australians
providing assistance to long-term unemployed people to gain employment with targeted wage subsidies, support and assistance to move locations to take up employment
providing advice and preparing for the implementation ofthe new employment services model
formulating policy advice, data and analysis for the government on areas such as the labour market, employment services and workplace relations policies
identifying and implementing opportunities to fulfil the government’s deregulation agenda byreducingthe unnecessary compliance burden and drivingcultural change
continuing to work productively with statutory agencies, including portfolio agencies, to promote a harmonious, productive and fair workplace relations system
providing legal and policy advice to the government to ensure effective implementation and operation of the Fair Work Act 2009 and related frameworks
delivering the government’s election commitments including the Job Commitment Bonus, the Tasmanian Jobs Programme and re-establishing the Australian Building and Construction Commission, establishing the RegisteredOrganisation Commission and amendingworkplace relationsand work health and safety acts
supporting an examination of the model work health and safety laws to reduce regulatory burden and to make it easier for businesses and workers to comply with work health and safety obligations.

Budget measures for 2014–15 for the department are set out in Table 1.2.

1.2Agency resource statement

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: Department of EmploymentResource Statement—BudgetEstimates for 2014–15 as at Budget May 2014

Table 1.1: Department of EmploymentResource Statement—BudgetEstimates for 2014–15 as at Budget May 2014(continued)

1 Appropriation Bill (No.1) 2014-15

2 Estimated adjusted balance carried forward from previous year

3 Includes an amount of $27.2m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 forfurther details). For accounting purposes this amount has been designated as 'contributions by owners'.

4 s31 Relevant agency receipts - estimate

5 Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts like

Other Trust Monies accounts (OTM), Services for other government and Non-agency Bodies

accounts (SOG), or Services for Other Entities and Trust Moneys Special accounts (SOETM)).

For further information on special accounts see Table 3.1.2.

Reader note: All figures are GST exclusive.

Table 1.1: Department of EmploymentResource Statement—Budget Estimates for 2014–15 as at Budget May 2014 (continued)

Third party payments from and on behalf of other agencies

1.3Budget measures

Budget measures in Part 1 relating to the Department of Employment are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Agency 2014–15 Budget measures

Part 1: Measures announced since the 2013–14 MYEFO

Part 1: Measures announced since the 2013–14 MYEFO (continued)

1 The lead agency for the measure is the Department of Industry.

2 The lead agency for the measure is the Department of Immigration and Border Protection.

3 The lead agency for the measure is the Department of Social Services.

4 This measure includes saving of $2.0 million in 2013-14. Provision for this measure was included in the 2013-14 Mid-Year Economic and Fiscal Outlook.

Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Department of Employmentin achieving government outcomes.

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.

Outcome 1 Strategy

Through this outcome,the department assists the Australian Government to create an environment of opportunity for more Australians to gain paid employment, delivering benefits for individuals and the community.Strategies for achieving this outcome during 2014–15 include:

delivering job services that support job seekers and employers so that every Australian capable of working has access to services that help them find employment or attain the skills and experience needed to move from welfare to work as quickly as possible
providing advice and preparing for the implementation of job services beyond 30 June 2015 when current contracts expire
continuing to reduce red tape for employment services including simplifying and streamlining processes, making more efficient use of technology and increasingcollaboration and use of data across government agencies
monitoring labour market conditions in Australia and providing policy advice to the government to enable employment services to reflect the needs of the community
working collaboratively with other agencies and a range of external stakeholders to bolster Australia’s productive capacity and ensure a consistent approach to government delivery of employment services
maintaining collaborative relationships with relevant international organisations including the OECD, APEC and the G20
providing secretariat services and co-chairing meetings of the G20 Task Force on Employment. The Task Force is coordinating the development of country-specific employment plans which will be submitted to G20 Leaders at the Brisbane Summit in November2014.

Outcome Expense Statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.

Table 2.1: Budgeted Expenses for Outcome 1

1The 2013–14 estimated actual expenses reflect the part year of operations since the department was established by the Administrative Arrangements Order of 18September2013.

2Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue from independent sources (s31)".

3Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense and Audit Fees.

Contributions to Outcome 1

Programme 1.1: Employment Services

Programme Objective

This programme contributes to achieving the objectives of the outcome by delivering the Australian Government’s employment services and election commitments.Priority areas for employment services in 2014–15 include:

continuing the development of new arrangements for job services, the national service designed to get unemployed people off welfare and into work
delivering wage subsidies for employers that support job seekers to retain employment and move off income support
structural adjustment packages to support workers who are made redundant from eligible companies in the Tasmanian forestry industry, the automotive manufacturing industry, the textile, clothing and footwear industry and companies affected by restructuring at BlueScope Steel. Eligible workers receive a higher level of support through job services
providing incentives and support through the Helping Young Parents and Supporting Jobless Families trials to encourage people to participate in study, become job ready or move into paid employment. The measures aim to break the cycle of disadvantage for families and increase workforce participation and the wellbeing of participants’ children and families, particularly through better linkages to local services.The overall impacts and cost effectiveness of these, compared to similar programmes, will be evaluated.

The major election commitments overseen by the department are: