Lucy Wicks (Robertson, Liberal Party) Share this | Hansard source

[by video link] by leave—I thank the deputy chair for tabling the report this afternoon. I also thank him and all members for their work on this report and the work on the Joint Committee of Public Accounts and Audit.

One of the primary roles of this committee is to examine all the reports of the Auditor-General tabled in parliament, and the committee then periodically selects several of these reports for a further detailed review. This inquiry focused on five Auditor-General reports that examined various aspects of regulatory activity. They include the regulation of environmental approvals under the Environment Protection and Biodiversity Conservation Act by the Department of Agriculture, Water and the Environment; the management of the Register of Lobbyists by the Attorney-General's Department; the Australian Electoral Commission's regulation of financial disclosure requirements; the regulation of the Australian energy market by the Australian Energy Regulator; and the Tertiary Education Quality and Standards Agency's regulation of higher education. One of the key functions of regulatory agencies is to establish the rules and guidelines in a defined sector, industry or area. Agencies receive their regulatory powers and responsibilities through acts of the parliament, and therefore the parliament needs to be assured that they are exercising those powers and undertaking those responsibilities appropriately.

This report highlights the fact that, although the field managed by each regulator is unique, there are practices and procedures that every regulator should follow in order to be effective. First, regulators should have good systems for gathering and managing information. Relevant, timely and accessible information assists in decision-making and should be used to inform strategic planning and risk-assessment processes. Secondly, compliance and enforcement activity undertaken by regulators should be risk based and proportionate to the risk being managed. Regulators should not impose a burden on entities that is either too heavy or too light. This balance can be difficult to achieve, especially in more complex markets. Finally, the inquiry highlighted that regulators, like all government entities, need to ensure that their own performance and internal governance processes meet the standards set out in the Public Governance, Performance and Accountability Act.

A number of recommendations are set out in the report, targeting these key areas. Recommendation 1 suggests that the Department of Agriculture, Water and the Environment update the committee on projects launched in response to the ANAO's findings, including regarding ICT systems; record-keeping practices, as the deputy chair referred to; compliance risks; performance measurement frameworks; quality assurance frameworks; and the efficiency of its environmental regulation. This reflects the committee's view that the department had previously initiated projects in response to report recommendations that either remained incomplete or were ineffective. As such, the committee believes that the department will benefit from this additional oversight. Further, recommendation 2 suggests that the Auditor-General consider conducting a follow-up audit of the department in 2023 to assess the department's progress in implementing the audit report recommendations. The committee also intends to list this program in its future audit priorities to the parliament to advocate for a further audit and continued oversight of the department until substantial change is demonstrated.

Recommendation 3 suggests that the Attorney-General's Department provide a written update on the implementation of recommendations from past audit reports. This includes improvements to the post-transfer IT system, the Lobbying Code of Conduct's communication and stakeholder engagement strategy, risk management processes and an evaluation framework. The committee requests that the department provide this update within six months of the report. Again, this provides an additional level of oversight to ensure that recommendations are implemented and improvements are made to the current code of conduct. I also note the deputy chair's comments in relation to some additional comments made and would just note that some of the discussions included the fact that there wasn't sufficient evidence taken during the inquiry to include any further recommendations or views in relation to that in this report.

Recommendation 4 suggests that the Australian Public Service Commission update its guidance to government entities on machinery of government changes regarding responsibility for the implementation of parliamentary committee or ANAO recommendations. This aims to provide greater clarity and accountability throughout machinery of government changes.

Recommendation 5 suggests that TEQSA update the committee on the progress of its efforts to ensure timely reregistration and reaccreditation of low-risk providers. This recommendation is in response to a finding that TEQSA had not met its targets in this area. The agency has since advised that it's working on a number of projects to address this finding, and, given regulatory approvals form an important part of TEQSA's responsibilities, the committee is interested in the progress and outcome of these initiatives.

Recommendation 6 suggests that TEQSA identify cybersecurity as a specific risk indicator. The committee is of the strong view that Commonwealth entities should take steps to develop cyber-resilience. Assigning risk ratings to cyberthreats will assist TEQSA to more closely understand the challenges posed and work to improve the security of the entity's data and information.

Recommendation 7 suggests that the Australian government provide TEQSA with the ability to extend a deadline by mutual consent to allow providers time to submit further evidence in the interests of reducing the necessity of appeals to the AAT. This is in response to TEQSA's advice that it's required to meet legislative time frames and is therefore unable to provide additional time in these cases. This amendment, if it were to be adopted, will assist in reducing the high percentage of matters that are either resolved after an appeal is lodged or successfully appealed to the AAT, improving efficiency and reducing unnecessary regulatory burden.

In relation to the report outlining the administration of financial disclosure requirements under the Commonwealth Electoral Act, the committee acknowledges the difference in understanding between the ANAO and the Australian Electoral Commission and acknowledges the AEC's explanation of its longstanding approach to achieve transparency through disclosure. The committee also acknowledges the AEC's explanation of its educative approach and its evidence that this is appropriate in many instances, including for major political parties, candidates and donors, given the serious reputational risks of noncompliance. The AEC's response to the ANAO's report acknowledges that there is room for continuous improvement in their approach to compliance, and the committee considers that this should occur in the context of the Regulator Performance Framework.

The committee agrees with the ANAO's recommendations with respect to information management, data matching and analytics, risk management and performance measurement and considers that the administration of the scheme would be improved by their implementation. I note that the committee's comments are in the report but also note that no recommendations were made with respect to either the AEC or the ANAO with regard to the audit report's findings.

In conclusion, I would like to thank the ANAO and five audited entities for their participation in the inquiry. I would like to thank the committee secretariat for their continued and very professional assistance. I would like to thank all members of the committee for their participation in this inquiry. I commend the report to the House.

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