Anne Ruston (SA, Liberal Party, Assistant Minister for Agriculture and Water Resources) Share this | Link to this | Hansard source

These bills are being introduced together. After debate on the motion for the second reading has been adjourned, I shall move a motion to have the bills listed separately on the Notice Paper. I move:

That these bills may proceed without formalities, may be taken together and be now read a first time.

Question agreed to.

Bills read a first time.

I move:

That these bills now be read a second time.

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

Leave granted.

The speeches read as follows—

FAIR WORK AMENDMENT (CORRUPTING BENEFITS) BILL 2017

I move that this Bill now be read a second time.

This Bill bans corrupt and secret payments made between employers and unions. It also requires disclosure by both employers and unions of financial benefits they stand to gain as a result of an enterprise agreement before employees vote on the agreement.

The role of union leaders is to put their members' interests first. Indeed, they are paid by members to represent their interests, which members rightly trust will be the first priority of their union.

Any union leader who accepts corrupt or secret payments from the employers of their members is placing themselves in a highly compromising position.

A business that makes such payments is also seriously compromised. As the Royal Commission into Trade Union Governance and Corruption found: "Corrupt receipt implies corrupt payment."

Yet successive Royal Commissions have uncovered millions of dollars of payments secretly transferred between employers and unions.

These deals were never revealed to the union's own members or the employer's own workforce.

Some payments involve union leaders obtaining kickbacks for their own personal benefit, like the officials who obtained free renovations on their homes.

Other payments involve deals to bolster the status and power of union leaders, particularly within the Labor Party. These deals involve employers making payments accompanied by lists of employee names which are used to secretly sign employees up to the union.

Shockingly, there are also payments that are used to encourage unions to sell out their members – the very members they are paid to represent.

A repeat offender when it comes to these payments was the AWU Victoria under the leadership of the Leader of the Opposition.

In fact, the AWU Victoria received hundreds of thousands of dollars of payments from employers at the same time as its members were facing lower pay or redundancies.

For example, the AWU received half a million dollars from a glass manufacturer that was laying off workers at its factory in western Melbourne. In return for the payments, the employer undertook these redundancies without any agitation by the union.

The AWU also received $24,000 from a mushroom picking company that was casualising its workforce. Again, the employer avoided union agitation as it was undertaking redundancies and employing labour hire workers in their place. The deal saved the company millions of dollars.

The AWU also received $75,000 from a cleaning company in exchange for maintaining a workplace deal that paid cleaners well-below award rates and stripped them of penalty rates, overtime and shift loadings. This deal saved the company about $2 million each year.

These deals have the potential to corrupt union leaders, corrupt employers, and seriously disadvantage workers. On any measure they are morally wrong. They need to be outlawed, and that is exactly what this Bill will do.

Today the Government is introducing the Fair Work Amendment (Corrupting Benefits) Bill 2017 because we are committed to ending these secret deals between unions and employers, and because we are committed to putting the interests of workers first.

We are committed to ending the dodgy arrangements which ensure millions of dollars in financial benefits flow into union coffers from insurance, training and superannuation schemes, with employees none the wiser.

The Bill therefore criminalises benefits given or received with the intention of corrupting officers of registered organisations.

The Bill also outlaws payments or other benefits transferred from employers to unions or their officers. Certain legitimate categories of payments will be allowed, such as payments at market value for genuine services that are actually provided by a union, or genuine payment of membership fees.

Criminal penalties will apply equally to an employer and a union. The party that makes or offers the payment will be penalised in the same way as the party that solicits or receives the payment.

Criminal penalties for payments with the intent to corrupt will be a maximum of 10 years in prison and $900,000 for an individual, or $4.5 million for companies.

Maximum penalties for other illegitimate payments will be 2 years in prison or $90,000 for an individual, or $450,000 for companies.

The Bill also requires full disclosure by both employers and unions of financial benefits they stand to gain under an enterprise agreement before employees vote on the agreement.

If money changes hands between an employer and a union then both parties have an obligation to honestly declare these payments to their employees and members.

Employees have a right to know about any deals derived by their employer or the union before they vote on an agreement.

The Government is committed to restoring integrity and fairness to workplaces. This starts with requiring employers and unions to act with integrity and fairness in negotiations.

All parties in this Parliament who believe in fairness, honesty and transparency in workplaces should now support this vital reform to outlaw corrupting benefits.

If you believe in stopping corruption, and believe that unions and employers must put workers first, then this Bill must be supported.

FAIR WORK AMENDMENT (PROTECTING VULNERABLE WORKERS) BILL 2017

I rise to introduce the Fair Work Amendment (Protecting Vulnerable Workers) Bill. This delivers on the final element of the Government's election commitment to protect vulnerable workers.

We know that the majority of employers do the right thing, but it is also apparent that there are some cases of widespread underpayment or coercion of workers, such as the well-publicised exploitation of workers by some 7-Eleven franchisees. These are the instances this Bill seeks to address.

The Bill introduces higher penalties for 'serious contraventions' of payment-related workplace laws, which will apply where the underpayments or other breaches are deliberate and systematic. The penalties for these contraventions will be ten times higher than usual. This will not apply to genuine mistakes, but only deliberate and systematic breaches.

The Bill also prohibits employers asking for 'cash back' from their employees. It is of concern to this Government that instances have occurred such as young workers being led from their workplace to the nearest ATM, and forced to hand back part of their wages in cash. Our amendments will make it clear that this type of practice is unlawful, and employees can get their wages back.

The Bill will also clarify the accessorial liability provisions to make them more effective. These changes will ensure that franchisors and holding companies that exercise significant control over their franchisees or subsidiaries will be responsible for underpayments where they turned a blind eye or were complicit in such a breach.

Where the franchisor or holding company should have known of the breach, or a similar breach, but did not take reasonable steps to try to prevent it then they may be liable for the underpayments.

We also recognise that not all franchise networks are the same and not all franchisors will be in a position to influence or control the employment practices of their franchisees. That is why the Bill does not mandate a particular requirement for companies who do exercise this control. What is appropriate in any particular case will depend on the size, resources and control exercised by a particular business and what steps they are already taking to encourage compliance with the law within their corporate networks. In many cases, existing measures will be sufficient and there will be no need to take any further measures.

The Fair Work Ombudsman will provide advice for businesses seeking further information about these provisions.

The Bill will not absolve franchisees or subsidiaries of their responsibility under workplace laws. These employers will remain liable for any breach of the Fair Work Act under existing laws. A franchisor or holding company that is required to rectify underpayments will also be given a statutory right to recover any amounts paid from the franchisee or subsidiary, ensuring that the direct employer continues to be liable for the breach, or can use contractual arrangements to recover in the case of a settlement.

These changes will not hold companies liable for mistakes. The Fair Work Ombudsman is required to act as a model litigant and will pursue prosecution only in cases where penalties are appropriate.

Finally, the Bill strengthens the Fair Work Ombudsman's evidence gathering powers to ensure that deliberate and systematic contraventions of workplace laws can be effectively investigated—even if there is no paper trail.

The Bill provides the Fair Work Ombudsman with powers similar to those held by other regulators such as ASIC and ACCC. These powers will allow the Ombudsman to compel a person to provide information or answer questions if all other avenues of investigation fail. These powers will be accompanied by safeguards to ensure they are used appropriately and consistently.

The Bill also expressly prohibits anyone from hindering or obstructing an investigator, or giving the Fair Work Ombudsman false or misleading information or documents.

Combined with the $20.1 million in funding the Government has restored to the Fair Work Ombudsman, after Labor ripped away 17 per cent of its funding when in Government, our workplace regulator will now be well placed to identify worker exploitation.

The regulator will also be in a position to support businesses, especially franchisors, franchisees and small businesses, to understand these changes and take any necessary simple steps to ensure that their networks are aware of their obligations under the Fair Work Act.

The development of this Bill has been informed by evidence from numerous reports and inquiries as well as extensive consultation with community, employer and employee representatives.

I trust that all those in this place who share the Government's commitment to stamping out worker exploitation will support our amendments and respect the decision of the Australian community to endorse our policy at the 2016 Federal Election.

SOCIAL SERVICES LEGISLATION AMENDMENT (ENERGY ASSISTANCE PAYMENT AND PENSIONER CONCESSION CARD) BILL 2017

This Bill provides for a one-off Energy Assistance Payment to welfare recipients who have a limited ability to earn additional income; and reinstates the Pensioner Concession Card to more than 92,000 former pensioners that ceased being eligible for a pension on 1 January 2017 due to the rebalancing of the pension assets test.

Energy Assistance Payment

This bill provides for a one-off Energy Assistance Payment to recipients of the Age Pension, Disability Support Pension, Parenting Payment Single and Veterans and their partners paid the Service Pension, the Income Support Supplement and relevant compensation payments who are eligible for payment and residing in Australia on 20 June 2017 (the test date) to assist them with their energy costs.

The Energy Assistance Payment will be $75 for singles and $62.50 for each member of a couple, providing additional assistance to around 3.8 million Australians, including:

To be eligible you must be in receipt of one of the qualifying payments and be residing in Australia on 20 June 2017. Those qualified will automatically receive the payment through Centrelink or the Department of Veterans' Affairs – they will not need to take any action, and no claim is necessary. The payment will not be taxed and will not reduce their rate of income support.

Those people who have made a claim for payment on or before the test date and subsequently have that claim granted, will also be paid the one-off payment.

Legislation ensures that a person cannot receive more than one entitlement and no payment would be made to non-Australian residents. People who are not in receipt of payment because they are suspended on the test date will not be eligible. This may include people who are in gaol on the test date.

Qualifying veterans will include those receiving Disability Pension and War Widow(er)'s Pension under the Veterans' Entitlements Act 1986, Permanent Impairment compensation, Special Rate Disability Pension or Wholly Dependent Partner payments under the Military Rehabilitation and Compensation Act 2004 or Permanent Impairment compensation under the Safety, Rehabilitation and Compensation Act 1988 on the test date.

Pensioner Concession Card

This Bill will also reinstate the Pensioner Concession Card to around 92,300 former pension recipients. Former pensioners who lost entitlement to the Pensioner Concession Card when they ceased being eligible for the pension on 1 January 2017 due to the rebalancing of the pension assets test will once again be eligible for this card.

This consists of 88,700 former pensioners paid by the Department of Social Services and 3,600 former pensioners paid by the Department of Veterans' Affairs.

From 1 January 2017, these people were all issued with a Health Care Card, and those over Age Pension qualification age were also issued with a Commonwealth Seniors Health Card. From the Commonwealth perspective, these cards provide the same benefits to the card holder in terms of access to cheaper medicines through the Pharmaceutical Benefits Scheme and the lower Extended Medicare Safety Net. These cards did not, however, provide access to free hearing services provided by the Department of Health or a range of concessions and benefits provided by states and territories, and/or private providers, which are available to Pensioner Concession Card holders.

The Government has decided to reinstate the Pensioner Concession Card to maximise concessions to this cohort.

While eligibility criteria for concession cards are set by the Commonwealth Government, the decision to use certain Commonwealth Government concession cards as a vehicle for targeting state and territory concessions is a choice made by state and territory governments, and other private providers.

State concessions on rates, utilities, motor vehicle registrations and public transport are all determined by the type of card you hold. Due to the decisions of state and territory governments, and/or private providers, some concessions available to Pensioner Concession Card holders are not available to holders of other types of concession cards, including a Health Care Card and a Commonwealth Seniors Health Card. Reissuing the Pensioner Concession Card will help overcome this anomaly, and help facilitate people to again access these discounts and concessions.

It will cost $3.1 million over two years to reinstate the Pensioner Concession Card to this cohort of former pensioner recipients whose pension was cancelled due to the rebalancing assets test measure. This is a small expense to the Government, but will go a long way to assist this group in managing their daily budgets.

Consistent with the Health Care Card and Commonwealth Seniors Health Card they have now, the Pensioner Concession Card will be automatically reissued from 9 October 2017 with an ongoing income and assets test exemption.

To maintain their current Commonwealth benefits, those former pensioners issued with a Commonwealth Seniors Health Card will also retain that card. As the Pensioner Concession Card provides all the benefits the Health Care Card does, the Health Care Card would become redundant and would be deactivated for those former pensioners issued with a Health Care Card on 1 January 2017 due to the rebalancing of the pensions assets test.

The eligibility requirements ensure that these former pensioners will maintain ongoing eligibility to the stand alone Pensioner Concession Card, but still have to meet some of the conditions in place for usual Pensioner Concession Card holders. These conditions include portability requirements where cardholders will have their card suspended after being overseas for 6 weeks. The card will be reactivated on return to Australia. The Pensioner Concession Card will also be cancelled if the cardholder is in gaol. This bill acts on the Government's commitments outlined in the 2017-18 Budget.

TREASURY LAWS AMENDMENT (ACCELERATED DEPRECIATION FOR SMALL BUSINESS ENTITIES) BILL 2017

Today I rise to introduce a Bill which backs small business.

We know small businesses employ almost half of our country's workforce.

We know our economy grows when the small business sector is strong.

And we know every small business starts as the spark of someone's idea, with hard work and dedication to see it become a reality.

So, if you're an Australian in small business, this is our Bill to back you.

This Bill amends the tax law to help small businesses to invest and grow. It builds on the plan for jobs, for growth and for opportunities through small business tax cuts and other support as part of the past two Budgets.

On any day, 5.6 million Australians are at work in small business, earning a wage from one of our 3.2 million small businesses.

Small businesses make up 99 per cent of all Australian businesses and annually contribute $380 billion to the economy.

This means a strong small business sector means more jobs for Australians and more opportunities to build vibrant local communities across the country.

The Government is committed to cutting small business taxes and helping them invest and grow.

The measure this Bill enacts today was delivered as part of the 2017-18 Budget, delivered to Parliament a little over two weeks ago.

On that day – 9 May – this Government kicked its biggest goal yet for small business: a cut in the company tax rate.

Thanks to laws passed in this Parliament that day, the tax rate for small business is now at its lowest level in many, many decades and small businesses have more money to invest in themselves today.

That change in the law also means more than 90,000 additional businesses can access to tax concessions as a result of redefining small business to those turning over $10 million per annum.

The 2017 Budget continues the Government's plan to back small business.

Whether it's the local small business owner in Western Sydney, the mature aged worker in Noosa or the young job seeker looking to start their career in Gympie – this Budget is full of opportunities.

In the 2015-16 Budget the Government increased the small business immediate deductibility threshold from $1,000 to $20,000 from 12 May 2015 until 30 June 2017.

This Bill extends that measure by 12 months so small businesses with turnover less than $10 million can immediately deduct purchases of eligible assets each costing less than $20,000 first used or installed ready for use by 30 June 2018.

This continues the Government's strong record of backing small business to grow and deliver more and better paying jobs by helping them replace or upgrade their machinery and equipment.

This measure will improve cash flow for small business, providing a boost to small business activity for another year, helping them to reinvest in their business.

Improved cash flow will also give businesses the flexibility to hire more employees and pay staff more.

Business tools and equipment can be expensive and the rules around depreciating them can be time consuming to understand.

Under the extended immediate deductibility measure, small businesses can write-off each and every item under $20,000 that is purchased until 30 June 2018.

In the process, small businesses support other small businesses and by purchasing new or second hand equipment they're spending money locally which has a flow on and multiplier effect.

The result: more efficiency, greater productivity, more consumers and a boost to small business morale. This impact is beneficial for our regional towns and communities.

This Government understand the daily demands and constraints facing small businesses. Small business people are time poor.

Under this measure, the business does not have to keep track of the item records and can use the extra cash-flow to reinvest in the business.

Assets valued at $20,000 or more can continue to be placed together into the small business simplified depreciation pool and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter.

Once assets are placed in the pool, there is no requirement to track each item's depreciation over multiple income years.

This reduces paperwork and allows small business to get on with doing what they do best.

The pool itself may also be immediately deducted if its value falls below $20,000 at the end of the financial year, providing an additional cash flow benefit to small businesses.

The law previously included 'lock-out rules' that stop small businesses that elect out of the simplified depreciation regime from re-entering for five years.

These rules were relaxed when the threshold was increased to $20,000 and will continue to be suspended until 30 June 2018 to allow all small business entities to access this measure.

The small number of assets not eligible for accelerated depreciation, such as capital works, will continue to be excluded under this measure, consistent with the current law.

On 1 July 2018, the thresholds for immediate deductibility of individual assets and the value of the pool will revert to $1,000.

The instant asset write-off has proved to be one of the most popular small business incentives and encourages Australia's 3.2 million small businesses to invest in their business and create more jobs.

That's why we made the decision to continue to back small business in this year's Budget. Extending the instant asset write-off is the highlight in the Budget for small business and part of our plan to increase business confidence.

Small businesses, industry groups and business leaders have been vocal in their calls for an extension to the program. The response from business and stakeholders has been well received.

Since Budget night, the support from small business welcoming the extension of this program and the Government's ongoing commitment to small business has been overwhelming.

Peter Strong, CEO of the Council of Small Business of Australia said:

" … the Federal Government has demonstrated a genuine commitment to small business. "

" The Australian Government is clearly walking the talk when it comes to supporting Australia ' s … small businesses. "

On Budget night two weeks ago James Pearson, CEO of the Australian Chamber of Commerce and Industry said the "extension of the instant asset write-off is terrific."

" This Budget will encourage restaurants to buy more kitchen equipment, landscape gardeners to buy more lawn mowers and tech companies to buy more hardware through the extension and expansion of the instant asset write-off. This is good for small business and good for jobs. "

Denita Wawn the CEO of the Master Builders Association who looks after the interests of 32,000 members in the building and construction industry responded to the Budget saying:

" The Budget ' s small business measures will particularly benefit the building and construction industry which is 98% made up of small businesses. The building industry is a big winner from the extension of the accelerated depreciation measures by one year and to businesses turning over up to $10 million. "

This Government stands up for more small businesses being able to take advantage of the instant asset write-off, to be able to invest in their capital equipment and in their businesses, and to be able to employ more Australians.

We are extending the instant asset write-off to hardworking small businesses to ensure they can continue to get ahead, to progress, to employ more people.

Small business deserves the confidence this Bill proposes and I encourage all Senators to get on board and back small business. Full details of the measure are contained in the explanatory memorandum.

VETERANS' AFFAIRS LEGISLATION AMENDMENT (BUDGET MEASURES) BILL 2017

I am pleased to present the Veterans' Affairs Legislation Amendment (Budget Measures) Bill 2017 (Budget Measures Bill.)

The Budget Measures Bill would implement three of the Government's 2017 Budget announcements for the veteran community.

As the Prime Minister has said, we best honour the diggers of a century ago by supporting the servicemen and women, the veterans and their families of today. This budget will do just that.

The Government has invested an additional $350 million in this year's budget to support veterans. I am very pleased to say that there was a strong focus on two issues that are raised regularly by veterans: mental health support and reform of the Department's processes and systems.

The Government is expanding our program of free and immediate mental health support to current and former Australian Defence Force Members. This treatment is currently available for five specified mental health conditions.

The Government is expanding our Non-Liability Health Care programme so that it will be available for any mental health condition, including phobias, adjustment disorder and bi-polar disorder.

It is important that this House notes the significance of this programme for veterans and their families.

Just over twelve months ago, anyone who has served one day in the full-time Australian Defence Forces had to prove that any mental health condition was linked to their service.

Already suffering from these conditions, they would have to wait to have their eligibility and claim approved from the Department. It meant wait times which would see their mental health either deteriorate or not receive support that they desperately needed.

Last year, this Government provided a new approach – free and immediate treatment for depression, anxiety, PTSD, alcohol abuse and substance abuse without the need to prove the condition was service related.

In this budget, the Government has gone even further. Now, we will commit to provide this for all mental health conditions.

It will mean that from now on, veterans and defence personnel can get free and immediate treatment without a burden of proof and without the need for a bureaucratic barrier.

This Government has delivered this barrier-free support for the first time in Australia because we know that the earlier intervention and support is provided, the better the outcome for the individual.

Most importantly, this policy is completely uncapped. If there is a need, it will be funded.

As part of our veterans' mental health initiatives, the Government is also expanding eligibility for the Veterans and Veterans Families Counselling Service (VVCS).

VVCS is a vital service that saves lives. The Government understands that partners, families and former partners of our veterans are an important part of the ex-service community and that they too are affected by military service.

In recognition of this, the Budget provides extra funding so that any partner, dependant or immediate family member will have access to VVCS, and former partners of ADF personnel will also be able to access VVCS up to five years after a couple separates, or while co-parenting a child under the age of 18.

In addition to this, this Budget begins the Government's response to the complex problem of veteran and defence suicide.

The Government has received a report from the National Mental Health Commission on services provided to defence personnel and veterans and a preliminary report on suicide rates from the Australian Institute for Health and Welfare.

Suicide prevention is a complex issue and as the reports have shown, there is no simple solution. It requires a multi-faceted response.

This Budget will provide $9.8 million to pilot new approaches to suicide prevention and improve care and support available to veterans.

We know that some of our most vulnerable veterans are those who have just been discharged from hospital care.

The Mental Health Clinical Management Pilot will assess the benefits of providing intensive clinical management immediately after hospital discharge to help meet a veteran's complex mental health and social needs.

The second part to this Budget for veterans is the investment it will make in improving the services and systems of the Department of Veterans' Affairs.

As part of the Veteran Centric Reform, the Government has committed $166.6 million towards making DVA a 21st century Department with a 21st century service.

This includes a significant investment in the upgrading of the Department's computer systems and processes. We can only have a better service from DVA if they have the tools to do the job. Claims and wait times will be cut by this investment, something that is long overdue.

Finally, the Governme