2.1
Standing Order 25(20)(b) provides for the committee to consider selected annual reports in more detail. The following reports under the Education, Skills and Employment section of the portfolio are discussed in this chapter:
Department of Education, Skills and Employment;
Australian Curriculum, Assessment and Reporting Authority; and
Australian Research Council.
2.2
Following that, these reports under the Industrial Relations section of the portfolio are discussed:
Attorney-General's Department (Outcome 2 only);
Australian Building and Construction Commission; and
Seafarers Safety, Rehabilitation and Compensation Authority.
Education, Skills and Employment portfolio
Department of Education, Skills and Employment
2.3
The 2020–21 Annual Report for the Department of Education, Skills and Employment (DESE) was tabled in the Senate on 19 October 2021.
2.4
In the Secretary's review, Dr Michele Bruniges commented on the impact and disruption that the COVID-19 pandemic had on DESE's operations during the reporting period. For example, schools experienced disruptions due to shutdowns, resulting in the pausing of the National Assessment Program – Literacy and Numeracy (NAPLAN) in 2020, with it recommencing in 2021. Mutual obligation requirements for job seekers were also suspended with the rise in unemployment, which peaked at 1.52 million in September 2020 because of COVID-19.
2.5
During the period under review, DESE revised its Corporate Plan and, in doing so, amended its purpose statement. The current DESE purpose statement is:
We contribute to Australia's economic prosperity and social wellbeing by creating opportunities and driving better outcomes for people through education, skills and employment pathways.
Performance reporting
2.6
In line with the Corporate Plan, DESE reported against four outcomes:
Outcome 1 – Improved early learning, schooling, student educational outcomes and transitions to and from school through access to quality child care, support, parent engagement, quality teaching and learning environments;
Outcome 2 – Promote growth in economic productivity and social wellbeing through access to quality higher education, international education, and international quality research;
Outcome 3 – Promote growth in economic productivity and social wellbeing through access to quality skills and training;
Outcome 4 – Foster a productive and competitive labour market through policies and programs that assist job seekers into work and meet employer needs.
2.7
Regarding all four outcomes, DESE's overall performance was positive as it achieved, or is on track to achieve, 44 out of 53 targets measured. This is higher by 10 targets than the previous reporting period. Data was not available for three measures within Outcome 4 due to unanticipated external factors which altered the methodology of comparison to previous years and the suspension of the Work for the Dole program due to COVID-19 which resulted in no post-program survey being conducted.
2.8
The annual report noted that one measure under Outcome 1 was unable to be assessed and 'identified that the methodologies that underpin measurement and reporting for this measure should change for future reporting periods'. There were nine measures where targets were reported as not achieved. Five of the nine measures not achieved were under Outcome 4.
2.9
The results for all five measures not achieved in Outcome 4 were linked to the impact of COVID-19 and the aftermath of the Australian bushfires. DESE noted that, in response to the pandemic, many services were affected by periods of lockdown and the labour market decline from March 2020 onwards affected the ability of job seekers to find and sustain employment. Results reflecting provider appointments attended by activity-tested job seekers were also impacted by state lockdowns and social restrictions.
2.10
Income support policy changes in 2020–21 and the suspension of mutual obligation requirements resulted in a larger number of New Enterprise Incentive Scheme (NEIS) participants remaining on Services Australia income support payments while also receiving the coronavirus supplement, which contributed to fewer NEIS participants leaving the program (or working for 20 hours a week) three months after participating. Likewise, periods of lockdown impacted the number of prisoners estimated to have participated in the Time to Work Employment Service program.
2.11
While continuing to support the Australian Government's response to COVID‑19, DESE continued to progress other initiatives in early childhood education and child care, schools and youth, higher education, skills and employment and workforce. During the financial period, DESE adopted six socio-economic targets from the National Agreement on Closing the Gap, signed in July 2020. DESE also carried out a review of the Disability Standards for Education 2005 through online consultation, which had over 2500 interactions via questionnaires, webinars and face-to-face discussions.
2.12
The annual report noted that two of the four measures not achieved in Outcome 2 were COVID-19 related. In addition, pandemic restrictions had a negative impact on teaching and learning methods which impacted students' ratings of teaching quality for 2020 for undergraduate, domestic and international students. Under Outcome 3, all targets measuring the performance of maintaining the quality of vocational education and training were achieved.
2.13
Overall, the committee considers that DESE has met its reporting requirements and is in a strong position to continue supporting students, employers, and education training providers.
Financial reporting
2.14
For the 2020–21 financial year, DESE reported a surplus of $119.7 million after adjusting for unfunded expenses. This is significantly larger than the reported surplus of $4.3 million for the previous financial period. This substantial increase was attributed to additional funding that DESE received to supplement expenses from prior years, as well as difficulties in acquiring contractors to complete projects.
2.15
During the 2020–21 period, DESE administered $48.7 billion of expenses, of which $33.7 billion went towards funding for schools and higher education institutions, $8.7 billion towards the child care sector, $1.8 billion to employment services, and $2.3 billion to supporting apprenticeships and trainees.
Australian Curriculum, Assessment and Reporting Authority
2.16
The Australian Curriculum, Assessment and Reporting Authority (ACARA) is a corporate Commonwealth entity established by the Australian, Curriculum, Assessment and Reporting Authority Act 2008. ACARA's purpose is 'to be the authoritative source of advice on, and delivery of, national curriculum, assessment and reporting for all Australian education ministers, with international recognition of our work'.
2.17
During the reporting period, ACARA prioritised the Review of the Australian Curriculum and publications that related to supporting resources for the current Australian Curriculum. This also saw DESE commission work to outline user experience requirements to improve the Australian Curriculum website and its digital presentation.
2.18
ACARA's Chief Executive Officer, Mr David de Carvalho, reflected on the agency's draft curriculum during the committee's Supplementary Estimates 2020–21 hearing:
The Queensland Institute for Social Science Research has now looked at all that material and provided the ACARA board with a series of consultation reports, independently produced. There is one for each of the eight learning areas, one for the three cross-curriculum priorities and one for the various general capabilities—10 reports in all. The board has considered all that feedback.
2.19
The Annual Report 2020–21 acknowledged the challenges that COVID-19 presented in terms of remote learning and digitising education materials, but also highlighted the insight that parents gained into their children's education.
Performance reporting
2.20
ACARA measured its performance against six purposes as set out in its Corporate Plan:
To provide a world-class curriculum from Foundation to Year 12 in specified learning areas as agreed by the Ministerial Council, and assemble the evidence base required to review, develop and refine curriculum;
To provide a quality, comprehensive and cohesive suite of national assessments;
To provide and apply a comprehensive and reliable national measurement framework; to facilitate the use and dissemination of data for research and policy development in accordance with agreed protocols; to present detailed, accessible, timely and meaningful school education performance information;
To provide effective national leadership in curriculum development, educational assessment and national reporting, and closely collaborate with jurisdictions, the non-government education sectors and relevant stakeholders in pursuing the national education agenda;
ACARA will recruit, develop and retain high-performing staff and will foster a positive and agile work culture. Its people will reflect the diversity and dynamism of the education community and will have the skills and values needed to support ACARA's ongoing responsibilities as well as advance the authority's strategic proposals; and
ACARA will maintain a risk management policy framework, consistent with ISO 31000, that is compliant with the Public Governance, Performance and Accountability Act 2013. ACARA's risk management policy framework is supported by a risk-based internal audit plan that is focused on providing assurance over key controls and assists ACARA to achieve its objectives by aligning internal audit activity to the areas of highest risk.
2.21
The performance criteria for two purposes were assessed as having been met fully, while the other four were assessed to have been partially met. The performance criteria under 2.4: National Collaboration and Leadership, which had four measures allocated to it (the most of any performance criterion), was fully achieved.
2.22
Of the four purposes which were partially met, two were reported as being impacted by COVID-19. This saw the finalisation of the illustration of practice demonstrating the Framework for Aboriginal Languages and Torres Strait Islander Languages being delayed. Home-based schooling due to state lockdowns resulted in data relating to student attendance for 2020 not being published as the comparability of the data was affected by changing health advice and schooling arrangements.
2.23
Performance criteria under 2.2: National Assessment, which covered the provision of a quality, comprehensive and cohesive suite of national assessments, was considered by ACARA to have been met. The publication of new resources to support the implementation of the current curriculum under 2.1: National Curriculum, were only partially achieved due to the Review of the Australian Curriculum.
2.24
One of the performance criteria under 2.3: National Data and Reporting in relation to advice concerning improvements to the national reports developed, was only partially achieved. The development of formal arrangements for secondments or lateral transfers of ACARA staff were only partially achieved, with the development of a cross-sector talent mobility framework and a national network of partner organisations being established within the education sector to facilitate formal arrangements.
2.25
ACARA's partial achievement of its final performance measure under 2.6: Risk Oversight was linked to unanticipated data transfer issues to their new risk management tool. It focused on the training of all of ACARA's executive staff in the revised risk management frameworks and risk management system.
2.26
The committee considers that ACARA has met its reporting obligations as a corporate Commonwealth entity and its annual report is 'apparently satisfactory'.
Financial performance
2.27
ACARA reported a surplus result of $0.07 million for the year ended 30 June 2021, compared to a forecast deficit of $1.57 million. The 2020–21 annual report noted:
Of the $1.64 million difference, $0.86 million is attributable to timing differences (recognition of revenue in FY20 for which work was completed in FY21) created as a result of AASB 15 (a technical deficit). $2.16 million for activities delayed to FY22 per direction of the Australian Government Minister for Education. The remaining $0.34 million is predominantly attributable to underspend in travel and headcount as a result of COVID‑19 impacts.
Australian Research Council
2.28
The Australian Research Council (ARC) is a non-corporate Commonwealth entity guided by the Australian Research Council Act 2001. Its purpose is 'to grow knowledge and innovation for the benefit of the Australian community through funding the highest quality research, assessing the quality, engagement and impact of research and providing advice on research matters'.
2.29
The ARC's Chief Executive Officer (CEO), Professor Sue Thomas, reflected on three significant developments in the ARC's Annual Report 2020–21. This included the response to COVID-19, where disruptions to workplaces and accessibility to facilities and resources were impacted through lockdowns and travel restrictions. The ARC adopted remote based activities to adapt to the pandemic, including organising online Selection Advisory Committee meetings to continue supporting ARC assessors and College of Expert members.
2.30
The CEO's review reflected on the ARC's appearance before the Parliamentary Joint Committee on Intelligence and Security, which inquired into the National Security Risks Affecting the Australian Higher Education and Research Sector and considered the national security risks to the sector. A review of the ARC's conflict of interest policy for research grant applications was undertaken to provide assurance that publicly funded research reflected Australia's national interest.
2.31
Arrangements were also put into place to support the Guidelines to Counter Foreign Interference in the Australian University Sector. This included continuous engagement between the ARC and government agencies and sought to bolster due diligence regarding grant application processes, administration of projects and the appointment of committee members within the agency.
2.32
The ARC also reported on the ongoing implementation of recommendations from the Australian National Audit Office (ANAO) performance audit of the National Competitive Grants Program (NCGP). The annual report noted that the ARC had completed two of the three ANAO recommendations.
Performance Reporting
2.33
The ARC has one outcome: Growth of knowledge and innovation through managing research funding schemes, measuring research excellence and providing advice. The ARC achieves this outcome through three programs:
Program 1.1 – Discovery - research and research training.
Program 1.2 – Linkage - cross-sector research and partnerships.
Program 1.3 – Excellence in Research for Australia.
2.34
The ARC reported achieving most of its performance measures. Of the ARC's 18 performance measures, 13 were reported as achieved, with Performance Measure 1.4 reported as partially achieved and Performance Measure 1.5 reported as substantially achieved.
2.35
The committee notes that the target set for Performance Measure 1.4 was a 100 per cent completion rate for the review of NCGP grant reports within three months. However, the ARC reviewed only 986 out of 1156 (85.3 per cent) final reports within three months as ARC support was focused on addressing the immediate impact of COVID-19 on active projects.
2.36
Similarly, under Performance Measure 1.5, only 6971 of 7176 End of Year Reports and Progress/Annual Reports were reviewed within three months, resulting in a 97.1 per cent result against a target of 100 per cent. Performance Measures 2.2, 2.3 and 2.7 were reported as not available due to there being no results to report on.
Financial performance
2.37
The ARC reported an operating deficit of $3.1 million compared to the original budget position of $3.0 million.
Education, Skills and Employment portfolio, including Industrial Relations
Attorney-General's Department
2.38
As a result of the transfer of a number of industrial relations and workplace safety functions to the Attorney-General's portfolio, this chapter reviews Outcome 2 of the Attorney-General's Department (AGD), which is 'to facilitate jobs growth through policies and programs that promote fair, productive and safe workplaces'. Outcome 1 for AGD is concerned with Australia's law, justice and security measures and is therefore not considered in this report. Examination of Outcome 1 can be found within the Legal and Constitutional Affairs Legislation Committee's Annual reports (No. 1 of 2022).
Performance reporting
2.39
AGD achieved strong results for performance measures relating to the administration of the industrial relations system. This includes stakeholder and client satisfaction, and engagement in discussion on policy development for companies, unions, industry stakeholders and state and territory governments. Qualitative analysis regarding effective policy and legal advice accompanied these performance targets. Stakeholder and client satisfaction was rated at 90 per cent regarding effectiveness and 80 per cent regarding efficiency and it was indicated that timely communication was an area that would benefit from improvement.
2.40
Engagement with stakeholders regarding policy and legislation development was rated as achieved and quantitative analysis supporting policy advice (regarding the effectiveness of the industrial relation systems) was also rated as achieved. This measure was supported through AGD's coordination of the government's submission to the Fair Work Commission's Annual Wage Review and as well as the production of the Quarterly Trends in Federal Enterprise Bargaining report.
2.41
AGD also assessed itself as effective in providing legal advice to support litigation to achieve effective and efficient functioning of the industrial relations framework.
2.42
Due to COVID-19, the Fair Entitlements Guarantee (FEG) program resulted experienced an increase in claims. Performance targets relating to the administration of the FEG program, which provides financial support for workers who have not received their full entitlements due to the liquidation or bankruptcy of their employer, were all achieved.
2.43
Performance targets which measured satisfaction of claimants and insolvency practitioners with AGD's administration and services were rated at 86 per cent and 89 per cent respectively. This is in comparison to the 2019–20 reporting period, where the satisfaction of claimants was at 85 per cent representing a slight increase in the 2020–21 reporting period. Meanwhile, 96 per cent of insolvency practitioners were satisfied in the 2019–20 period, representing a 7 per cent decrease which AGD attributed to the number of options offered to insolvency practitioners when answering headline satisfaction questions. On the basis of advice provided by internal behavioural insights psychologists, AGD has amended the options for 2020–21.
2.44
AGD also found that 98.1 per cent of FEG payments were correct after auditing 480 out of 7635 claim decisions made during the 2020–21 reporting period. This satisfied their target claim payments measure and was a 3.1 per cent increase from the 2019–20 reporting period.
2.45
AGD performed strongly in measures regarding the timely processing of applications and claims. Within the reporting period, 96 per cent of effective FEG claims were processed within 16 weeks, compared to 89 per cent in 2019–20. The AGD's average processing time for claims was 13.4 weeks, which was within its set target of 14 weeks. This increase in processing time, when compared to the 8.1 weeks in the 2019-20 reporting period has been attributed by AGD to a single case received in 2019 which involved 439 claims and was not completed until May 2021 due to its complexity.
Financial reporting
2.46
The total administered expenses for 2020–21 was $713.490 million compared to $897.952 million in 2019–20. Major expenses in 2020–21 totalling $289.294 million were linked to grant payments. The Coal Mining Industry (Long Service Leave Funding) Corporation received $139.610 million in special appropriation payments. Royal Commissions including legal assistance for witnesses also received $104.889 million.
Australian Building and Construction Commission
2.47
The Australian Building and Construction Commission (ABCC) is a non-corporate Commonwealth entity established under the Building and Construction Industry (Improving Productivity) Act 2016. The purpose of ABCC is to ensure the building and construction industry is fair, efficient, and productive through the changing of behaviour and upholding of law.
2.48
ABCC's sole outcome is to 'enforce workplace relations laws in the building and construction industry and ensure compliance with those laws by building industry participants through the provision of education, assistance and advice'. To achieve this, the agency has one program which focuses on the education of participants involved in the building industry to promote workplace laws and compliance. Five strategic objectives are outlined in the agency's 2020–21 annual report:
impartially monitor and assess compliance;
use litigation and other enforcement options to drive a change in behaviour; and
promoting an impartial, flexible and innovative workforce.
Performance reporting
2.49
The 2020–21 annual report had eight performance criteria which were all achieved in the reporting period, with strong achievement rates compared to the targets set out in the Corporate Plan.
2.50
For the strategic objective relating to education, it was reported that 99 per cent of clients who were surveyed indicated that the resources provided by the ABCC enhanced their understanding of workplace rights and responsibilities. This was in comparison to the set target of 80 per cent for the reporting period. According to the annual report, building code issues were the main topic of enquiry in 2020–21, which was also the case in the previous year's reporting period. There was an increase from the 2019–20 period in enquiries not relevant to the building industry and workplace laws outside of ABCC's jurisdiction.
2.51
Performance criteria two, three and four were reported as achieved to support strategic objective two regarding advising and assisting. The agency delivered 241 presentations to an audience of 3036 participants across Australia which was higher than their target delivery of 150 formal presentations and an increase on the number of presentations which were delivered in the previous reporting period. In addition, approximately 99.6 per cent of surveyed stakeholders were either satisfied or highly satisfied with the advice and assistance they received from ABCC which was also higher than its set target of 80 per cent satisfaction levels. Regarding visits across building and construction worksites, staff from ABCC undertook 1543 visits which was above the target of 1200 site visits.
2.52
Strategic objective three regarding the impartial monitoring and assessing of compliance had a target of one month to assess the compliance of enterprise agreements with the building code but was accomplished in 2.2 weeks. The ABCC acknowledged that due to the COVID-19 pandemic, more desk-based audit assessments were undertaken in relation to code compliance activities. The second performance criterion allocated to this objective was achieved by conducting an additional 61 compliance activities. The ABCC discovered through its wage audit campaign on 154 building employers that 77 per cent did not comply with Australia's workplace laws. In the 2020–21 period, 1448 employees had unpaid wages totalling to $902 464 recovered.
2.53
The ABCC's performance against criteria seven and eight both surpassed the set targets in support of strategic objective four. Civil penalty proceedings were commenced within 8.5 months which achieved the agency's target of less than 12 months. Further, 94 per cent of civil proceedings were finalised which was over the target of 80 per cent.
Financial reporting
2.54
The ABCC recorded a surplus of $1.838 million for the 2020–21 financial year. The annual report noted that 'total income for the agency was $34.041 million for 2020–21, which included appropriation funding of $33.789 million. The agency incurred total expenses of $32.203 million'.
Seafarers Safety, Rehabilitation and Compensation Authority
2.55
Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) is a non-corporate Commonwealth entity established under the Seafarers Rehabilitation and Compensation Act 1992 (Seafarers Act). Its purposes are drawn from its functions within the Seafarers Act and Occupational Health and Safety (Maritime Industry) Act 1993. These purposes include:
the promotion of healthy and safe work environments, as well as just and timely compensation of injured workers who are covered by the Seacare scheme; and
maintaining a safety net for the Seacare scheme to enable it to meet its liabilities.
Performance reporting
2.56
The Seacare Authority measured its performance against these outcomes during the reporting period using three performance measures:
Measure 1 – The Seacare Authority promotes healthy and safe workplaces;
Measure 2 – The Seacare Authority promotes timely rehabilitation and compensation; and
Measure 3 – The target reserves of assets is appropriate to meet the Seafarers Safety Net Fund's (the Fund's) liabilities and external factors.
2.57
The Seacare Authority considered that its members were satisfied with the consistent reporting of the agency's outcomes for Key Activity 1.1. The Seacare Authority reported that performance information was taken into consideration at its meetings, which allowed the agency to identity and come to a consensus on opportunities regarding the promotion of health and safety in the scheme.
2.58
During the reporting period, engagement with the Seacare Authority's jurisdiction on safety issues was reported as successful with actions undertaken in accordance with the joint occupational health and safety plan 2019–2022 (OHS Plan). This included a publication of the Seacare Scheme Data Report 2019–20, an outcome letter to the Minister for Industrial Relations, and further information regarding the outcomes against the OHS Plan.
2.59
Key Activity 1.3 regarding the promotion of occupational health and safety through information and guidance was achieved through the agency agreeing to develop a social media presence in conjunction with the redevelopment of its website in the latter half of 2021. Among other initiatives, information on the COVID-19 pandemic was also made accessible to scheme stakeholders through the agency's website.
2.60
In addition, Measure 2 was supported by improvements in return-to-work outcomes through collaboration with health experts, providers, and scheme stakeholders. The Seacare Scheme Data Report stated that lost time relating to serious claims reduced from 15.9 weeks to 11.7 weeks and the lost time relating to the number of accepted claims leading to 28 days or more also decreased from 77 per cent to 70 per cent.
2.61
The Seacare Authority also reported that scheme stakeholders were satisfied with the availability, currency, and content of guidance on claims management in relation to Key Activity 2.2. The Seacare Authority reported that it had revised content on its website to confirm the relevance and accessibility of information. When the site was finalised and launched in June 2021, feedback received indicated an enhanced user experience.
2.62
Timeframes in relation to employer reporting and payment obligations were also achieved, with the Seacare Authority reporting that all 'non-compliant employers subsequently met their reporting and payment obligations, with no instances of further compliance action required'.
2.63
Measure 3 relating to maintaining a target reserve to meet the Fund's liabilities and external factors was supported through an actuarial review of the Fund. The Seacare Authority reported that significant 'pressure has been placed on the Fund as a result of current claim liabilities'. The annual report noted that actions have been undertaken to address the financial pressures, including 'regular monitoring and reviewing of the financial position of the Fund and maintaining appropriate insurance for the Fund'.
Financial reporting
2.64
The annual report noted that the Seacare Authority 'does not have a departmental budget. All departmental expenses of the Seacare Authority are paid by Comcare under its Portfolio Budget Statements'.
Senator the Hon Matthew Canavan
Chair