The Coalition supports securing Australia's workforce today and into the future. The bill proposes to establish Jobs and Skills Australia (JSA) as the new statutory body within the Department of Employment and Workplace Relations, replacing the existing National Skills Commission. In principle, Coalition Senators support the objectives of the bill.
Coalition Senators note that the proposed functions and role of JSA strongly resemble the functions and role of the existing National Skills Commission, as the Albanese Labor Government is planning to consult on what the final model should look like and how it will operate.
Coalition Senators also note that it has been indicated that JSA will have a broader and more strategic focus than the National Skills Commissioner and will have a wider remit to work in genuine partnership with industry and other key stakeholders, with the consultation requirements embedded in legislation.
The National Skills Commission was set up at the recommendation of the 2019 Joyce review, after broad consultation with businesses, employers, state and territory governments, unions, peak bodies, and other key stakeholders from across the sector in every capital city and an additional five regional locations. Coalition Senators note that the overwhelming view amongst stakeholders was that the new Commission should be independent, enduring, transparent, and authoritative. Coalition Senators note that stakeholders indicated the legislation should be passed sooner rather than later so that consultation with stakeholders and the final remit can be quickly determined.
Coalitions Senators commend the current National Skills Commission, led by Mr Adam Boyton, for its work on shaping Australia's skills and workforce needs. In particular, the National Skills Commission's focus on training quality, efficient pricing for vocational education and training (VET) qualifications, and the rigorous analysis of the outcomes of VET investment to ensure Australia's VET sector is delivering the skills that employers need and setting students up for a valuable career. Coalition Senators note that the National Skills Commission has played a valuable role as part of our skills agenda which has delivered the highest number of trade apprentices in training since records commenced in 1963.
Coalition Senators are concerned that the Albanese Labor Government are moving to scrap the Nationals Skills Commission without having a detailed plan of what the final iteration of JSA will look like. This may lead to the impression of government policy being made on the run in an ad hoc manner.
The Albanese Labor Government have indicated that this interim model will not continue for a period longer than 12 months. Coalition Senators are concerned that if the Albanese Labor Government cannot finalise and legislate the final model of JSA in this timeframe, the nation will be worse off than where we are in terms of independent advice on the future needs of skills training.
Coalition Senators are concerned that the final model may result in more expenditure by the Government given that the current uncertainty means there is no way to know whether the output required for JSA will end up costing more than the National Skills Commission.
Coalition Senators note that stakeholders expressed that a successful JSA would reflect 'a strong industry voice that takes leadership in a conversation nationally and locally'. Part of this would have a focus on strategies and be informed by evidence, which when realised, would elevate the quality and confidence in the training system.
Coalition Senators note that some stakeholders emphasised the need for the new JSA to have strong engagement with states and territories, as they are well placed to know what their local communities need, and the skills gap identified by businesses.
Coalition Senators also note that stakeholders raised expectations and key performance indicators (KPIs) over the short, medium and long-term with which to assess the success of the new JSA, including a five-year national skills plan, a biennially updated workforce development strategy, expedited training programs, and completion rates for university and VET courses.
Coalition Senators look forward to seeing how well the final model of JSA aligns with the expectations of the new agency outlined by stakeholders during the hearing and in their submissions. Once the final remit of the new agency has been legislated, these aspirations will be a gauge with which Coalition Senators can measure the outcomes of JSA and hold the Government to account. Having a range of metrics will ensure success against long term KPIs, for example in apprenticeship and traineeship completion rates.
Recommendation
The Government's rebranding exercise of Jobs and Skills Australia (JSA) must reflect the needs and aspirations of the business community who gave evidence during the hearings in support of the new JSA.
Recommendation
Coalition Senators urge the Albanese Labor Government to provide the sector with certainty by committing to legislate the final model, with measurable outcomes, of Jobs and Skills Australia within the 12-month timeframe they have set. Anything outside this timeframe will put Australia at a competitive disadvantage.
Recommendation
In establishing the new Jobs and Skills Australia, the Government must consult widely and ensure that it preserves the independence of the new statutory authority.
Senator Matt O'Sullivan Senator Kerrynne Liddle
Deputy ChairMember