Coalition Senators acknowledge the concerns expressed in the evidence of the witnesses who made submissions and appeared before the Select Committee on Work and Care. Coalition Senators also note the aspirational views expressed in the recommendations presented in the Work and Care final report, however these recommendations do not take into account the significant impact on Budget implications across the broad portfolio areas of workplace relations, education, social services, housing and health.
Industrial relations
Coalition Senators note the numerous recommendations that relate to the Australian workplace relations system.
The Australian labour market is diverse and provides various forms of work for people in different circumstances or with different needs. As policymakers we note that the best way to encourage Australians into work is to support all forms of work, as this gives Australian jobseekers the ability to find positions, arrangements and levels of work that fit around their needs. Many recommendations in this report, which reflect the Australian Labor Government policy, look to demonise certain forms of work as well as limit or discourage them.
Many recommendations of this report will see further deterioration of the flexibility and consideration of what employers and employees are looking for when it comes to fulfilling work, and a move to a further regimented and legalistic nature of the workplace relations system. Such change will be detrimental to all Australians.
Coalition Senators note that the employer/employee relationship is better when approached from a position of flexibility and common sense, and both the needs of the employer and employee are taken into consideration—not by a 'one-size-fits-all' approach. Many of these recommendations would require a significant consultation with both employers and employees to ensure that concerns of potential unintended consequences are addressed when considering the impact they would have on that employer/employee arrangement.
We note the former Coalition Government introduced the first statutory definition of a casual employee, despite the opposition by the Australian Greens and Australian Labor Party. The introduction of a statutory definition benefited both employees and employers as it now provides a clear determination of the nature of the employment arrangement at the outset of employment.
It also introduced, for the first time, a right to convert to permanent employment, by enshrining a casual conversion entitlement in the National Employment Standards. This means if employees wish to, they have the ability to convert after 12 months.
These changes also protect Australian businesses from significant additional costs if they were to incorrectly label an employee a casual. The legislation, which Labor and the Greens opposed, removes a potential $30 billion liability by allowing employers to offset entitlements claims with casual loading already paid during the employment of the employee. This stopped any double dipping of entitlements, and protected Australia's 4.2 million small businesses from financial ruin.
Recommendations to Fair Work Commission processes, reviews, and umpire decision-making
As is the case through many changes of the workplace relations system, governments must undertake considerable consultation and time to ensure that productivity, choice and options for Australians are improving, rather than moving back to a time of more disputation, delay and minimal confidence in the economy from employers.
Any changes to leave entitlements, awards, rights and obligations in the workplace relations system need to follow previous procedures for changes, which are appropriately done through the independent umpire of workplace relations in Australia, the Fair Work Commission. As was the case with the introduction of Paid Family and Domestic Violence Leave, the Fair Work Commission had a considerable number of hearings and extensive deliberations on how any changes would impact Australian employers and employees.
Any potential changes to how the gig-economy operates and choices independent contractors, more broadly, make around flexibility arrangements will need careful consultation and consideration for unintended consequences and impact. Your local plumber, electrician and the owner-drivers in the transport industry could be caught out, losing the main reason they chose to be an independent contractor—the freedom of choosing when, and if, they work and who to sell their services to.
Coalition Senators note over-regulation of the gig-economy has the potential to wreck the flexibility it offers. Failure to properly consider the possible consequences of any such changes could also mean gig-economy workers could miss out on the ability to work for more than one platform at the same time.
Coalition Senators disagree with moves to establish superannuation as a National Employment Standard. Superannuation continues to consume real wage growth by up to 80 per cent, as confirmed by the Department of the Treasury. The Australian Government should be making workplaces more flexible, not less.
Safety in the workplace
Every single worker, no matter how their employment arrangements are structured, has the right to a safe working environment and to come home safe at the end of each day.
Under the model Work, Health and Safety (WHS) laws, any person conducting a business or undertaking, which can include gig-economy platforms, has a duty to ensure that workers and other persons in the workplace are not exposed to health and safety risks as far as is reasonably practicable. This includes risks to both physical and psychological health.
While the Australian Government has no direct authority to unilaterally make changes in relation to WHS laws, the former Coalition Government worked constructively with State and Territory ministers on improving the safety of all workers. WHS ministers from all Australian jurisdictions agreed to refer work on compliance and enforcement initiatives to the Heads of Workplace Safety Authorities (HWSA) for consideration, and to refer work on promoting and strengthening education on obligations and WHS to Safe Work Australia.
Employment programs and mutual obligations
Our social security system provides a strong safety net that is available to any Australian, for as long as they need it, where they meet eligibility criteria including residency, income and asset tests. Australia's income support system is part of a wide-ranging welfare system that helps people through support programs and other measures, for example, supporting working families via paid parental leave and the Child Care Subsidy.
Coalition Senators note Australia's welfare system operates as a safety net within the context of government economic and social policy. This system is funded by taxpayers and needs to be managed responsibly—a responsibility that extends to future generations as they will have to meet the cost of any system implemented in the decades to come.
Coalition Senators strongly support the principle of mutual obligations. Mutual obligation requirements are designed to ensure jobseekers are actively looking for work and are participating in activities that will help them into employment. This is critical, with many employers looking to fill jobs. Mutual obligation requirements are flexible and must be tailored to jobseekers' individual circumstances and consider local labour market conditions while being delivered in a safe manner.
Coalition Senators strongly support the ParentsNext program, which helps parents return to the workforce. This is a highly successful program that continues to demonstrate positive outcomes for parents. The program gives parents personalised assistance to improve their work readiness and progress on a path from welfare to work.
Between 1 July 2018 and 28 February 2022:
203 986 ParentsNext participants started to plan for education and employment (this figure includes 37 240 Indigenous parents);
96 078 participants commenced education;
56 350 participants commenced employment; and
7131 participants exited the ParentsNext program due to stable employment.
Since the introduction of mutual obligation requirements to ParentsNext in July 2018, attendance at compulsory appointments has increased from 67 to 79 per cent. Evidence from the program indicates that those most in need are less likely to participate if it is not compulsory.
Coalition Senators strongly support a flexible workplace relations system which mutually benefits both employers and employees and opposes the move to a 'one-size-fits-all' approach by the Labor Government and the Australian Greens. Coalition Senators also support a strong employment services system, which is underpinned by the principle of mutual obligations, and oppose moves to abandon mutual obligations or to water down these requirements.
Under the previous Coalition Government, a stable workplace relations framework and a strong employment services system was one of the reasons that unemployment was at a 50-year low when the Coalition left office in May 2022.
Early childhood education
Coalition Senators note multiple recommendations that relate to education, specifically early childhood education and care (ECEC).
Addressing childcare deserts
While Coalition Senators support recommendations to address childcare deserts by increasing access to early childhood education in rural, remote and some regional areas, they do not believe the Australian Government should be involved in creating the centres themselves. Instead, the Australian Government should work with communities to increase access to early childhood education through funding for community groups and councils to establish centres, or through other means. The Kingston South East model is a good example of how this funding model could work.
Developing an early childhood education and care system
We note the Coalition supported the Australian Government's Cheaper Childcare Bill, as we believe in 'the family as the building block of society'. Coalition Senators support regular reviews of ECEC systems by the Australian Government to ensure Australian families continue to have choice and access to quality care that work for them.
Coalition Senators support the development of a framework through National Cabinet for an ECEC system that is flexible and delivers quality access and choice for families. However, Coalition Senators also note such a framework is already under review via the Australian Competition and Consumer Commission Childcare Inquiry, the Productivity Commission Early Childhood Education and Care Inquiry and the Australian Government's Early Years Strategy, so any recommendations from this committee should consider recommendations from these current inquiries.
Extending the existing Preschool Reform Agreement
Rather than requesting the Productivity Commission to identify ways to extend the Preschool Reform Agreement (PRA), Coalition Senators support the Australian Government working with State and Territory governments to extend the current PRA for four-year-old children past 2025. The current PRA was established by the Coalition Government in 2021 and the Australian Government has not yet started work to extend this agreement.
Coalition Senators note Victorian and New South Wales (NSW) governments are already extending the existing PRA to three-year-old children through their own budgets. Indeed, the NSW Government is assisting more parents to re-enter the workforce through its 'life-changing investment' in a universal free pre-kindergarten program. We recommend the Australian Government consider mechanisms to incentivise and support other State and Territory governments to roll out similar programs.
Instead of increasing the hours of subsidised care provided under the current PRA, Coalition Senators support reviewing ECEC recommendations once the Productivity Commission inquiry has finished. Additionally, Coalition Senators support a Productivity Commission investigation into why not all eligible families are utilising the 15 hours of care currently available.
Productivity Commission reviews
Coalition Senators support an annual review of Inclusion Support Program (ISP) funding to ensure children who have additional needs to participate in ECEC are provided appropriate support.
Coalition Senators note the Productivity Commission should investigate the operation of markets in the ECEC sector, rather than the Department of Prime Minister and Cabinet. When considering models of provision, Coalition Senators note competition in the quality early childhood care market is important and also acknowledge not all not-for-profit ECEC providers are large businesses.
Before making any decision around abolishing the Activity Test, Coalition Senators support the Australian Government waiting for the final report from the Productivity Commission's Childcare Inquiry. Coalition Senators also note the Activity Test has already been expanded for Indigenous children.
Mental health
Mental health support is important for all Australians, particularly for both paid and unpaid carers as they deal with the pressures of their caring role and the support they provide to those relying on their care.
The former Coalition Government led reform of the mental health and suicide prevention system by committing almost $3 billion to the National Mental Health and Suicide Prevention Plan. This plan sought to expand Australia's headspace network to 164 locations and established a national network of new adult Head to Health centres and child mental health hubs to provide access to free, multidisciplinary mental health care.
Coalition Senators note that a whole-of-population telehealth model of care was implemented throughout the COVID-19 pandemic, including mental health care through general practitioners, psychologists, and psychiatrists. This initiative enabled mental health professionals to provide mental health care services via telehealth to Australians who required support, including carers. Noting the impact of the pandemic on the care workforce as well, it is important to reflect on plausible targeted support that was provided over the recent years; notably, the $3 million provided to establish a dedicated mental health service for health care workers, including those in the aged care sector, and $760 000 for the Australian Psychological Society to develop online mental health training for health practitioners and health workers.
During this time of rising interest rates, rising energy bills and rising cost of living pressures, it is essential that the Australian Government continue the former Coalition Government's investment in mental health support. Despite these pressures still impacting our communities, the Labor Government has slashed access to psychology sessions in half. The independent evaluation of the Better Access initiative even recommended that 'the additional 10 sessions should continue to be made available and should be targeted towards those with complex mental health needs'. Coalition Senators do not support attacks on the mental health services Australians are relying on and recommend urgent reinstatement of the full 20 Medicare-subsidised mental health sessions to support vulnerable Australians.
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Senator the Hon Anne Ruston
Member
Liberal Senator for South Australia
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Senator Wendy Askew
Member
Liberal Senator for Tasmania
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Senator Andrew Bragg
Member
Liberal Senator for New South Wales
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