Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Hansard source

I table revised explanatory memoranda relating to the Fair Work Amendment Bill 2013 and the Tax Laws Amendment (2013 Measures No. 2) Bill 2013 and move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

COMPETITION AND CONSUMER AMENDMENT BILL 2013

This Bill will amend the Competition and Consumer Act 2010 to enable regulations to be made to provide exemptions from the single pricing requirements in the Australian Consumer Law.

The purpose of these amendments is to allow an exemption to be made for restaurant and cafe menu surcharges on specific days.

The Bill acts on a 2010 Productivity Commission recommendation to reduce the regulatory burden for small businesses in the restaurant sector.

Restaurants and cafes are an important part of the Australian economy. As submissions on the draft Bill noted, there are around 38,000 restaurants and cafes in Australia, generating more than $29 billion per annum. It is important that these businesses are not subject to any unnecessary regulatory burden.

The single pricing requirements in the Australian Consumer Law prohibit businesses from stating a price that is only part of the cost, unless they also prominently advertise the single price for the good or service.

The exemption will ensure that restaurants and cafes no longer need to provide a separate menu for days when they choose to apply a surcharge, such as on public holidays and weekends.

The Government is mindful of the need to ensure price transparency for consumers while also minimising compliance costs for small business.

The amendments will achieve a reduction in the regulatory burden for small business while still ensuring that consumers have protection and clarity when ordering from restaurant and cafe menus.

The positive impact of these amendments will be significant for small business and will enable many venues that are open on weekends and public holidays to continue to provide valuable service to consumers in major cities and regional areas.

I commend the Bill to the House.

FAIR WORK AMENDMENT BILL 2013

The Gillard Government is committed to ensuring productive, collaborative, innovative, profitable, safe and cooperative workplaces.

The Fair Work Act considers the context of productivity in its objectives.

The independent and expert Fair Work Act Review Panel found the Fair Work Act is operating as intended and in accordance with the objects of the legislation – which include productivity and economic growth.

The Panel confirmed that the Act does not negatively impact productivity growth. This conclusion is confirmed by the independent data provided by the ABS. In trend terms there has been growth in productivity in the last nine quarters.

Labour productivity in the market sector grew by 2.9 per cent in 2011-12, a significant improvement over labour productivity growth in the previous year and above the historical average of 2.2 per cent per annum since 1994-95.

While productivity estimates can be volatile, productivity growth in the last year has been fairly rapid in the context of a longer-term slowdown since the 1990s. Indeed, productivity growth under the Fair Work Act is around triple the rate than that experienced under the former Coalition Government's disastrous Work Choices.

This Government installed a legislative framework to improve productivity through a focus on protecting terms and conditions, through dialogue and negotiation at the workplace level.

Just as it would be wrong to suggest the Fair Work Act alone is solely or largely responsible for this productivity performance, it is clearly a fallacy to suggest that the Fair Work Act has been a drag on Australia's productivity performance.

Indeed the evidence on Australia's economic performance is compelling: there are more Australians in work than ever before and our jobs growth is at least twice as fast as any of the major advanced economies. Productivity is up, wages growth is steady and restrained and jobs are being created (some 460,000 jobs created since the Gillard Government was elected), economic growth is up, interest rates are down and inflation is down.

In addition, industrial disputation is down and is, on average, at one third the rate than under the previous Government. In the building and construction industry the rate is on average less than one fifth the rate we saw under the Howard Government.

Productivity is not about cutting wages or entitlements. This Government does not support a workplace relations system that lets important protections be undermined through the false flag of a 'race to the bottom' brand of flexibility.

We understand that the drivers of productivity improvement at the enterprise level are stimulated by innovation and creativity. We understand that engagement at all levels of the enterprise needs to occur not just during bargaining for an agreement or contract once every three or four years, but on a day to day basis.

The Fair Work Act promotes this engagement. Engaged employees are productive employees.

This Bill:

In addition, the Bill provides the Fair Work Commission with power to arbitrate general protections dismissal disputes and unlawful termination disputes where both parties expressly consent to the Commission doing so. The measures proposed in the Bill are designed to provide an accessible, timely and cost effective alternative to applicants pursuing these matters in a Federal Court. The provisions include measures to deal with procedural matters relating to this new consent arbitration jurisdiction, including new measures to limit appeals and provide for costs orders in certain circumstances.

The Bill also clarifies that the time limit for making an unlawful termination application is 21 days, which is the same time limit applied to general protections dismissal and unfair dismissal applications.

The Gillard Government has also done more to support modern Australian families balance their work and life than any other Government before it.

We believe in a balanced framework that supports cooperative and productive workplace relations and promotes economic prosperity and social inclusion for all.

It was this Government that established a strong safety net comprising the National Employment Standards and modern awards, providing all employees in the federal system with clear, comprehensive and enforceable minimum terms and conditions of employment.

It was this Government that responded to the needs of carers and parents by providing employees with a right to request flexible work arrangements to help them in balancing their work and family life for the first time.

It was this Government that provided more flexible parental leave arrangements through the Fair Work Act, as well as paid parental leave and Dad and Partner Pay.

And that is why, as part of this Bill, the Government is seeking to ensure that work at hours which are not family friendly is fairly remunerated. This will be done by amending the modern awards objective to ensure that the Fair Work Commission, in carrying out its role, must take into account the need to provide additional remuneration for employees working outside normal hours, such as employees working overtime or on weekends.

The Government recognises that there are certain groups that require additional support to balance work and life, particularly those employees with special caring responsibilities.

The Fair Work Amendment Bill 2013 represents the Government's further response to the Fair Work Act Review recommendations, but it also represents a number of key policy priorities of this Government.

The Bill includes new family friendly arrangements:

The proposed family friendly amendments will help parents balance their family and work commitments.

The Bill will increase the amount of concurrent unpaid parental leave that can be taken by new parents from three weeks to eight weeks. In addition, the new eight week period of concurrent leave will be able to be taken in separate blocks, of no less than two weeks, at any time during the first twelve months after the birth of the child.

At present concurrent leave can only be taken at the time of the birth or placement of a child. The changes will provide greater flexibility for parents in responding to the caring needs of their new child and better align with Dad and Partner Pay, which can be accessed at any time during the first twelve months after the birth of a child.

The Bill also includes two amendments aimed at ensuring the safety and wellbeing of pregnant employees.

The first of these will implement the independent Review Panel's recommendation that any unpaid special maternity leave taken by a pregnant employee should not reduce that employee's entitlement to unpaid parental leave.

Special maternity leave is provided for circumstances such as a woman suffering a pregnancy related illness. This amendment will ensure that the employee is not penalised when they are forced to take special maternity leave as a result of circumstances outside of her control. It will mean they retain their full entitlement to unpaid parental leave.

The second amendment is specifically aimed at protecting the safety of pregnant employees at the workplace. At present there is an express right in the Fair Work Act for a pregnant employee to transfer to a safe job where they can provide evidence that they cannot continue in their usual role due to an illness or risk arising from their pregnancy.

Currently, only workers who will have served 12 months' service at the expected date of the birth of their child, amongst other things, are entitled to this protection. The Government is are proposing to ensure that employees who will have less than 12 months' service at the time of birth the right to transfer to a safe job. Where no safe job is available, the employee in this situation would be eligible for unpaid no safe job leave.

This Labor Government was the first Government to introduce a legislated right to request flexible working arrangements in 2009 to allow workers to care for a child under school age or a child under 18 years with a disability.

The independent Review Panel's report found that the right to request provisions are beneficial to both employees and employers, and a recent report from the Fair Work Commission's General Manager found that over 90 per cent of requests for flexible working arrangements were granted by employers.

The Review Panel recommended that the right be extended to a larger range of workers, including those with caring responsibilities.

This Bill implements that Recommendation by providing the right to request flexible working arrangements to:

The Bill also includes new consultative requirements to recognise employees have family responsibilities outside of work that can be adversely affected when changes to employees' rosters and regular working hours are proposed.

We all arrange our lives around work commitments, so when work rosters change at short notice there is an impact not just on our work life, but also our family life. The unilateral imposition of changed rosters and working hours can cause particular hardship for people who have family caring responsibilities.

The amendments will place an obligation on employers to provide employees with information about changes to their roster or hours of work and consult with employees on the impact any changes will have, including on the employees' family and caring responsibilities.

Employers must then consider any views the employees have about how the change will impact them before implementing any changes.

The proposed approach will ensure that when decisions on rostering and working conditions are made, they involve a consideration of the needs of both employers and employees.

The dispute resolution mechanisms of relevant workplace instruments will continue to apply in relation to consultation obligations in awards and enterprise agreements, including these new consultation requirements.

In response to recommendations of the House of Representatives Standing Committee on Education and Employment inquiry into bullying the Bill introduces a long overdue remedy for victims being bullied at work to seek a timely recourse through the Fair Work Commission.

Bullying is a real menace in our workplaces that costs the economy as it damages productivity. Most tragically, it hurts people – sometimes with fatal consequences.

All Australian workers have a right to return safely home from work.

All Australian workers have a right to a safe and healthy workplace that is free from bullying and harassment.

Last year, the Government initiated a Parliamentary inquiry, Chaired by the Member for Kingston, into workplace bullying in response to community concerns about the impact of bullying across Australian workplaces and industries.

Over 300 individuals and organisations gave evidence to the Inquiry about the damaging, and in many cases, long-lasting effects of bullying.

The evidence to the Inquiry was overwhelmingly that the status quo was manifestly inadequate at protecting vulnerable workers.

For workers, bullying causes physical and psychological injuries, a loss of enjoyment and satisfaction from work and, in some cases, the loss of a job and future career opportunities.

For employers, workplace bullying reduces employee morale and productivity, increases absenteeism and staff turnover, increases workers' compensation costs and results in a loss of business reputation.

On 12 February 2013, the Minister for Employment and Workplace Relations tabled the Government's response to the report by the House of Representatives Standing Committee on Education and Employment - Workplace Bullying "We just want it to stop".

The Committee made 23 recommendations to eliminate and prevent bullying in the workplace and support workers and employers to respond more effectively to allegations of bullying.

One of the key issues highlighted by the Committee was the difficulty people face in trying to find a quick way to make the bullying stop so that they do not suffer further harm or injury.

The Committee recommended that the Government provide an individual right of recourse to provide a new and timely mechanism to help people resolve bullying matters quickly and inexpensively.

This Bill provides that a worker who has been bullied at work will be able to make an application to the Fair Work Commission for assistance to resolve the bullying.

The Bill defines 'bullying' as repeated unreasonable behaviour directed towards a worker, or a group of workers of which the individual is a member, that creates a risk to health and safety.

Importantly, the Bill expressly states that reasonable management action conducted in a reasonable manner is not bullying.

To support the early resolution of matters, the Fair Work Commission will be required to commence to deal with a matter within 14 days of an application being made. This may include seeking further information from the parties, conducting a conference to try and resolve matter, or holding a hearing.

Where a worker has been bullied and the matter cannot be resolved between the parties, the Fair Work Commission will have the power to make an order to prevent bullying in the workplace in the future. While the Commission will be able to make a range of orders, this will not include being able to order compensation.

Breach of an order made by the Commission will attract a maximum penalty of 60 penalty units (or up to $10 200 for an individual or $51 000 for a body corporate).

This Bill is designed to complement, not replace, existing work health and safety obligations on employers and workers and the work done by work health and safety regulators.

This new individual right of recourse will encourage early intervention to stop the bullying, help people resume normal working relationships, and prevent further episodes of bullying in the workplace into the future.

These measures will commence on 1 January 2014.

The Bill also provides for reforms to the right of entry regime in response to the independent Fair Work Review Panel recommendations, with amendments to better balance unions being able to represent their members professionally with the need for employers to go about their business productively.

The measures in this Bill are entirely consistent with the objective of the Fair Work Act to support cooperative and productive workplace relations.

They reflect this Government's respect for the principles of freedom of association, that people have a right to choose to belong or not to belong to a union and that the vast majority of trade unions and employer organisations are democratic and accountable to their members.

There are clear rules about when and how right of entry may be exercised in the Fair Work Act.

The Government's policy intention when setting those rules and introducing the amendments in this Bill is to balance the right of employers to go about their business without undue interference with the democratic right of employees to be represented in the workplace and to participate in discussions with their union at appropriate times.

In almost all cases entry to workplaces by permit holders involves no disruption to a business' operation. The Review Panel was however concerned that in some workplaces the frequency of visits by some unions was imposing a significant burden on employers in dealing with those visits.

It therefore recommended that the Fair Work Commission should have greater powers to deal with disputes about the frequency of right of entry visits to a workplace.

The Bill will implement that recommendation and give the Fair Work Commission the capacity to deal with disputes about the frequency of visits to hold discussions. The Fair Work Commission will be able to make any order it considers appropriate if satisfied that the frequency of visits by a permit holder or permit holders of the one union would require an unreasonable diversion of the occupier's critical resources.

The Bill will also address the problem identified by the Review Panel in relation to disputes over the location for interviews and discussions between right of entry permit holders and eligible employees. In the vast majority of cases permit holders and employers agree on a suitable location for such visits without conflict.

In some workplaces however, evidence presented to the Review Panel showed that some employers had dictated that rooms be used which would discourage or intimidate employees from meeting with the union.

Permit holders are permitted under the Act to hold discussions with workers during mealtimes and other breaks. It is reasonable that, in clarifying the rules about location, we provide for discussions to occur in the locations where workers ordinarily spend their breaks.

The Bill therefore clarifies that in instances where a reasonable location for discussions can't be agreed between the parties the discussions will be held in any room or area in which meal or other breaks are ordinarily taken by employees and is provided for that purpose.

Permit holders will continue to be required to comply with an occupier's reasonable request to take a particular route to reach the room or area where the discussions are to be held. The requirement that such a request by an employer will not be unreasonable only because it is not the route that the permit holder would have chosen is retained in this Bill.

The current conduct rules applying to permit holders, occupiers and employers in respect of right of entry will continue to apply unchanged.

The Fair Work Commission will maintain its powers to restrict the rights of an organisation or permit holder that has misused their entry rights.

The Government believes that all Australian workers, regardless of the location of their workplace, have a right to union representation and that unions should have fair access those workers they are entitled to represent. For this reason the Bill will introduce an obligation on an employer to facilitate access to travel and accommodation for permit holders to access certain remote locations where access can only occur by the employer assisting with transport or accommodation.

These new requirements will apply only where the parties cannot otherwise agree, where the premises are not reasonably accessible by transport other than that provided by the occupier of the premises or that the nature of the premises means the permit holder is required to stay overnight and no accommodation other than that provided by the occupier is reasonably available.

To ensure that the rights of employees and unions are balanced with the need of the employer to carry on their business without undue interference, this obligation will not apply if it would cause the occupier undue inconvenience. Furthermore, a permit holder or union must make a request for transport or accommodation in a reasonable period of time before that transport and/​or accommodation is required.

Let me be clear - the access is to facilitate right of entry, not for 'helicopter joyrides'; this is not for employers to pay the cost of transportation. The Bill does not provide that the cost of transport and accommodation has to be paid by the employer facilitating access to the location.

What the Bill provides is that if an arrangement for accommodation or transport is made, the occupier may charge the union or permit holder that amount necessary to cover the cost of that transport and/​or accommodation.

Lastly, the Bill makes a number of technical and clarifying amendments, including to amendments to the Fair Work (Registered Organisations) Amendment Act 2012 to specify the commencement of Part 2 of Schedule 1 of the ROA Act is 1 January 2014 (while ensuring that relevant disclosures for the period between 1 July 2013 and 31 December 2013 are still required), provide greater clarity and ensure consistency with the ROA Act amendments in respect of disclosure of remuneration, and make related consequential amendments to the ROA Act.

This Bill reflects the Government's commitment to improving the lives of Australian workers, whilst supporting business flexibility and profitability.

These modest, balanced and pragmatic enhancements to the Fair Work Act proposed in this Bill will further encourage productive, collaborative and clever workplaces.

It will also provide certainty for employers in key areas while ensuring that all workers, especially those with family and caring responsibilities, can effectively participate in the workforce and be represented at work.

This Bill implements several of the recommendations of the Fair Work Act Review and is the result of extensive consultation with both employer and employee stakeholders during the Review and since the Review report was published last year.

The Senate Committee reviewing the Bill upon its introduction into the House of Representatives has recommended the Bill be passed by the Senate.

I encourage all Senators to support this Bill.

HIGHER EDUCATION SUPPORT AMENDMENT (ASIAN CENTURY) BILL 2013

Asia’s transformation into the world’s most dynamic economic region is the defining development of our time. This transformation presents both opportunities and challenges for Australia. To be successful in the 21st century, the Asian Century, Australians will need to have the capabilities and connections to engage effectively with the region.

The Prime Minister released the Australia in the Asian Century White Paper on 28 October 2012, to serve as a roadmap for navigating the Asian Century.

The White Paper identified a need for a larger number of Australian university students to be studying overseas and for a greater proportion of them to be undertaking part of their degree in Asia.

The Bill addresses this need by amending the Higher Education Support Act (2003) to provide additional assistance through the OS-HELP scheme for university students who wish to undertake part of their study in Asia. The Bill also expands eligibility for OS-HELP to assist more students to undertake a wider variety of study-related activities.

OS-HELP provides low cost, student friendly loans to assist eligible students to pay expenses associated with undertaking overseas study as part of their higher education.

As Australian universities play a key role in administering the OS-HELP scheme, the Government has consulted with the sector to ensure that the amendments will maximise the support provided to those students who wish to take advantage of the many benefits that come from an overseas study experience in Asia.

The Government is committed to supporting Australian students to gain the Asia-literacy skills they, and Australian businesses, will need to take full advantage of the opportunities presented by the Asian Century. The best way for students to become Asia-literate is to experience Asia first hand.

A growing number of Australian students are undertaking overseas study. According to a 2011 survey, approximately 20,000 Australian university students were studying overseas, with around 7,000 studying in Asia. However, data shows that only one in eight OS-HELP loans is for study in Asia. The changes contained in this Bill will help Asia become the destination of choice for more students.

The Bill increases the maximum OS-HELP loan amount for students undertaking study in Asia to $7,500 in 2014, $1250 more than for other destinations. This funding will send a strong signal to students of the Government’s support for engagement with the region.

The Government understands that language can be a barrier to overseas travel for many students, particularly for those considering study in Asia. To help overcome this, the Bill introduces a new loan worth up to $1,000 for intensive Asian language training taken in preparation for study in Asia. This extra assistance will help students better prepare for their study in Asia, and also help them get the most out of it when they are there.

Work placements and international experience are increasingly being sought by both students and prospective employers. Expanded eligibility and flexibility for the OS-HELP scheme will help more students undertake a wider range of overseas study experiences, including in Asia.

Students accessing OS-HELP are currently required to be enrolled at an overseas campus of an Australian higher education provider or with an overseas higher education institution. This has largely restricted access to OS-HELP to students undertaking traditional, semester long exchanges with overseas universities.

The Bill removes this requirement, so that students will be able to access OS-HELP for a wider range of study-related activities, including clinical placements and internships.

Eligibility for OS-HELP is also being extended to postgraduate students. This will assist the growing number of students who undertake professional entry courses at postgraduate level, such as in education, allied health, architecture and engineering, to include an overseas study experience in their course.

The Bill reduces the amount of study a student must have remaining upon completion of their overseas study from 0.5 Equivalent Full Time Student Load (EFTSL) to 0.125 EFTSL, which is generally the equivalent of one unit of study. This will particularly improve access to OS-HELP for students following a non-traditional study pattern, including many postgraduate students, part-time students, and students undertaking shorter work placements outside of standard semesters.

These initiatives will support more Australian university students, across all disciplines, to develop Asian literacy skills by experiencing Asia first hand. The skills and relationships developed during these experiences will be invaluable to the students and will help Australia take full advantage of the possibilities available in the Asian Century.

TAX LAWS AMENDMENT (2013 MEASURES NO. 2) BILL 2013

This Bill amends various taxation laws to implement a range of improvements to Australia's tax system.

Schedule 1 amends the tax lawsto require large entities in the Pay As You Go instalment system to make their instalments monthly, instead of quarterly.

This change does not increase the tax liabilities of an entity, merely the frequency with which instalment amounts must be remitted to the Australian Taxation Office.

These reforms will make Australia's tax system more responsive, efficient and consistent by better matching tax collections with the economic conditions faced by traders.

It is the next step in the process to reform the timing of businesses' tax payments that began in the 1980s.

Tax entities will migrate to the new system in four stages. Corporate tax entities with a turnover threshold of more than $1 billion will move to monthly instalments from 1 January 2014 and corporate tax entities with a turnover of more than $100 million will make the transition from 1 January 2015.

Corporate tax entities with a turnover of $20 million, and all other tax entities with a turnover of $1 billion, will move from 1 January 2016.

In the final stage, all other entities in the Pay As You Go regime with a turnover of more than $20 million will move to monthly instalments from 1 January 2017.

The turnover test will apply to the current measure of income for Pay As You Go instalments: base assessment instalment income.

To ensure that comparable entities receive the same treatment, entities in the taxation of financial arrangements regime will use an adjusted base assessment instalment income calculation. It will be based on their gross TOFA income, rather than their net TOFA inco