Marise Payne (NSW, Liberal Party, Minister for Foreign Affairs) Share this | Hansard source

Thank you Senator Gallacher. I don't disagree about the seriousness of the issues that Senator Gallacher has raised. I know him to have a long history in this chamber, and in fact more broadly, on these issues over time. But, to be clear, the legislation that we are dealing with today is about ensuring the proper governance of registered organisations in this space. The questions that Senator Gallacher has asked in large part go to potential regulatory fixes in other regimes. The role of the Fair Work Ombudsman as it currently exists is around the recovery of wages, and I've discussed that with senators during the debate today. It is an investigative and regulatory body rather than having the role that Senator Gallacher has raised.

But I want to note for the record—and this was reported in the media earlier this month—that the Attorney-General has quite clearly said, in putting employers or corporate Australia, if you like, on notice, that, for example, directors of companies who fail to pay workers properly could be banned from sitting on boards. In specific response to Senator Gallacher, I note that the Attorney has declared that the coalition would consider empowering the Fair Work Ombudsman to pursue banning-order applications against the directors of underpaying companies. The Attorney's made the point, which is similar in some ways to the point that Senator Gallacher has made, that the impact of such action will be felt if there is something, as the Attorney said, on the line for employers in that context. The minister has also expressed support for an ACTU proposal to allow workers to go to the commission and have underpayment claims dealt with quickly and fairly. As I have also discussed in this chamber, he has referred to the second discussion paper on wage underpayment, which would canvass the specific options of banning orders and the small claims process inside the commission.

We obviously have very complex sets of awards, but the Attorney's view, and the government's view, is that the law should have the ability to provide deterrence against the sorts of behaviours that those in this chamber, including Senator Gallacher, have raised. He does not believe it is doing it effectively at the moment. In fact, I think it's worth quoting the Attorney in this regard. He observes in relation to large corporate organisations:

If their eye was on the ball, this wouldn't happen. These organisations have a massive amount of time, energy and resources devoted to ensuring they don't pay a cent more tax than they have to; they get involved in sporting teams and social issues. If they put commensurate resources into making sure they got their payrolls working in accordance with EAs, awards and the law, they wouldn't be having this problem.

Senator Ayres and Senator Farrell have raised these issues, as have you and Senator Sheldon, Senator Gallacher. So we are considering those in this process. I think that is responsive. I think that is the appropriate action of government.

But the bill we have in front of us today is about addressing the numerous examples of organisations and their officers who are repeatedly flouting the law, misappropriating funds, putting their own interests before members and generally failing to meet what are regarded as basic standards of accountability and governance. I don't think the provisions in the bill should be conflated with the Corporations Act and its regulation of officers of corporations. It is a distinct compliance regime, and we have separately introduced strengthened measures against corporate noncompliance, to which I would also draw the Senate's attention.

The government has introduced higher penalties in the Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Act 2019 for corporate and financial misconduct. Those amendments increased various criminal penalties to imprisonment for up to 15 years or maximum fines up to $945,000, or three times the benefit derived from the contravention. For bodies corporate, those amendments included new penalties of up to $9.45 million, or three times the benefit derived from the contravention or 10 per cent of annual turnover. We have also increased civil penalties, and penalties against individuals are now available for up to the greater of $1.05 million or three times the benefit derived from the contravention. For bodies corporate, penalties were increased similarly. So our approach to workplace exploitation, to the sorts of employers that Senator Gallacher has raised, has been dealt with as well. And, in this legislation, we have to deal with the issues before the chamber, which I have already talked about, but we can do both, Senator Gallacher. We are able to address wage underpayment and the unlawful actions of employers in cases such as those that have been raised by those opposite as well as bring this legislation forward to the chamber, to the house.