Senate debates

Wednesday, 6 September 2023

Bills

Crimes Legislation Amendment (Combatting Foreign Bribery) Bill 2023, Social Services and Other Legislation Amendment (Australia's Engagement in the Pacific) Bill 2023, Social Security and Other Legislation Amendment (Miscellaneous Measures) Bill 2023; Second Reading

5:55 pm

Photo of Carol BrownCarol Brown (Tasmania, Australian Labor Party, Assistant Minister for Infrastructure and Transport) Share this | | Hansard source

I 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 speech es read as follows

CRIMES LEGISLATION AMENDMENT (COMBATTING FOREIGN BRIBERY) BILL 2023

The Crimes Legislation Amendment (Combatting Foreign Bribery) Bill 2023 will amend the Criminal Code and the Income Tax Assessment Act 1997 tostrengthen the legal framework for prosecuting foreign bribery. The measures in the Bill seek to address key challenges with investigating and prosecuting cases of foreign bribery in Australia.

The measures in the Bill will look familiar to many members of this Parliament.

That is because Schedule 1 of this Bill is in substantially the same form as Schedule 1 of the Crimes Legislation Amendment (Combatting Corporate Crime) Bill 2019—which was, in turn, in substantially the same form as Schedule 1 of the Crimes Legislation Amendment (Combatting Corporate Crime) Bill 2017.

On two occasions—across two Parliaments and over a period of 5 years—the previous government introduced a Bill to strengthen the legal framework for prosecuting foreign bribery. But on two occasions, the previous government allowed those Bills to lapse. Those Bills were never put to a vote, despite measures like those contained in Schedule 1 of this Bill enjoying bipartisan support over many years.

It is my hope that those opposite will work with the Government to complete the work that they commenced when they were on this side of the Chamber by supporting this Bill.

Foreign bribery is a serious and insidious problem across the world. At a local level, it can harm communities by increasing the costs and reducing the quality of vital public goods and services for citizens, skewing competition and misallocating precious resources. At a macro level, it impedes economic development, corrodes good governance and undermines the rule of law. Further, bribery by Australians and Australian businesses damages our international standing and can shrink the global market for Australian exports.

As the Australian Institute of Company Directors told the Senate Committee that inquired into the Crimes Legislation Amendment (Combatting Corporate Crime) Bill 2019, "[f]oreign bribery and corruption causes significant harm to the governance of societies and economies abroad, as well as distorting competition and the integrity of markets".

As a signatory to the OECD Anti-Bribery Convention, Australia is required to ensure that our laws are effective in holding natural and legal persons to account for foreign bribery. In 1999, Australia gave effect to these obligations by enacting the current foreign bribery offence in Division 70 of the Criminal Code. Over time, that offence has proven to be overly prescriptive and difficult to use. The measures in this Bill have been carefully developed and targeted to overcome these issues, to ensure our legislative framework adequately deters and punishes the corrupt practice of foreign bribery.

Under the current foreign bribery offence, the prosecution needs to show that both the bribe and the business advantage sought were 'not legitimately due'. This presents challenges where bribes are concealed as legitimate payments.

To address this, the Bill replaces this requirement with the concept of 'improperly influencing' a foreign public official to better reflect the type of conduct involved in foreign bribery. The Bill amends the definition of 'foreign public official' to also include candidates for public office.

The Bill also broadens the scope of the foreign bribery offence to capture bribery conducted to obtain a personal advantage, not a businessadvantage. This is because, as the experience of law enforcement agencies has shown, a bribe could be in a range of different forms—such as the include the bestowal of a personal honour, the processing of a visa request, or a reduction in an individual's personal tax liability.

The Bill also removes the existing requirement that, for the offence to be established, the foreign public official must be influenced in the exercise of their official duties. The Bill also clarifies that the offence does not require the accused to have had a specific business or advantage in mind, and that the business or advantage can be obtained for someone else.

Most significantly, the Bill creates a new offence for corporations that fail to prevent foreign bribery, which carries a maximum penalty of $27.5 million or higher.

This measure holds companies directly liable for the foreign bribery activities of their employees, external contractors, agents and subsidiaries, unless the business can demonstrate that they had adequate procedures in place.

The United Kingdom has successfully used a similar offence to prosecute companies in several foreign bribery cases, which has reportedly had a significant and positive influence on the adoption of more effective corporate compliance programs to prevent bribery.

To support the introduction of this new offence, guidance material on what constitutes 'adequate procedures' to avoid criminal liability will be published. The Bill requires me, as the responsible Minister, to publish guidance on the types of measures that are likely to constitute 'adequate procedures' within 6 months of Royal Assent of the Bill. The draft Guidance will largely be modelled on the UK Government's Guidance that accompanies the 'failure to prevent' offence under section 7 of the UK Bribery Act.

In finalising the Guidance material over the coming months, the Government will build on the work that was undertaken—but never completed—by the previous government in 2019 and 2020.

The Government will also have regard to existing guidance published by the Australian Trade Commission, the OECD and other international organisations.

This is intended to enable Australian companies that have already framed their anti-bribery policies on international guidelines to easily incorporate additional policies relevant to the Australian context.

In addition to the measures contained in this Bill, the Crimes Legislation Amendment (Combatting Corporate Crime) Bill 2019 would have introduced a Deferred Prosecution Agreement Scheme. This Bill contains no such scheme.

The purpose of a Deferred Prosecution Scheme is to strike a balance between encouraging companies to self-report serious offending and holding companies to account for serious corporate crime. However, given that the is universal agreement that the existing foreign bribery offences in the Criminal Code are grossly inadequate, it is premature to entertain the introduction of a Deferred Prosecution Scheme.

The introduction of such a Scheme should only be entertained after the measures in this Bill have been enacted and given time to work.

When ordinary Australians commit crimes, they feel the full force of the law. However, under the Deferred Prosecution Agreement scheme proposed by the former government, companies that engaged in serious corporate crime, including foreign bribery, would have been able to negotiate a fine, agree to a set of conditions and have their cases put on indefinite hold.

The amendments in the Bill will strengthen Australia's implementation and enforcement of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the United Nations Convention against Corruption.

In December 2021, the OECD found that Australia had increased its enforcement efforts against companies and subsequently upgraded Australia under the relevant recommendation. Introduction of this Bill will further enhance our enforcement efforts under the Anti-Bribery Convention.

The Albanese Government takes corruption very seriously—whether it is corruption in the public sector or the private sector.

In July 2023, the National Anti-Corruption Commission will be established to investigate and report on serious or systemic corruption in the Commonwealth public sector, refer evidence of criminal corrupt conduct for prosecution and undertake education and prevention activities regarding corruption. The Combatting Foreign Bribery Bill enhances Australia's response to foreign bribery and supports our obligations under the OECD Anti-Bribery Convention.This Bill demonstrates the Government's commitment to combatting foreign bribery and ensuring our laws are effective in detecting, investigating and prosecuting foreign bribery.

SOCIAL SECURITY AND OTHER LEGISLATION AMENDMENT (MISCELLANEOUS MEASURES) BILL 2023

The Bill makes some technical amendments to Chapter 2D of the Social Security Act, which provides legislative authority for spending on grants and arrangements to help people obtain and maintain paid work, to address labour shortages, and for related purposes.

Chapter 2D was introduced in April 2022. Its purpose was to provide more streamlined and transparent legislative authority for spending on such assistance.

More specifically, Chapter 2D was intended to provide more streamlined legislative authority than that provided by section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FFSP Act), without changing processes and requirements for the establishment and oversight of programs supported by Chapter 2D.

Chapter 2D was introduced by the former Government as part of the Social Security Legislation Amendment (Streamlined Participation Requirements and Other Measures) Bill 2022. The explanatory memorandum stated that:

"all Chapter 20 does is provide statutory authority for expenditure ... All of the usual processes and requirements for the establishment and oversight of such programs will remain unchanged."

The amendments in this Bill will ensure that this original intent is achieved by making it clear that regardless of whether a program derives its legislative authority from Chapter 2D or elsewhere, the processes and requirements for the establishment and oversight of the program will be the same. That was always the intention of Chapter 2D.

While Chapter 2D is achieving its purpose, its operation will be improved through the technical amendments in this Bill.

The Bill will ensure that where new or updated legislative authority is needed for programs that help people to obtain and maintain paid work, it is available in the best possible way.

I commend this Bill to the chamber.

SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (AUSTRALIA'S ENGAGEMENT IN THE PACIFIC) BILL 2023

The Social Services and Other Legislation Amendment (Australia's Engagement in the Pacific) Bill 2023 will establish the legislative power to extend a range of government supports and benefits to Pacific Engagement Visa holders and eligible Pacific Australia Labour Mobility (PALM) scheme families.

The Bill will provide immediate access for Pacific Engagement Visa holders to higher education and VET student loans, financial supports while studying and training, and Family Tax Benefit Part A.

It will also extend access to Family Tax Benefits and Child Care Subsidy for families participating in family accompaniment under the PALM scheme.

This Bill reflects Australia's special relationship with the Pacific and Timor-Leste.

The Albanese Government has said before that Australia's central message to the Pacific is that we are here to listen, we are here to work together, and we are here to make a difference.

This Bill puts words to action.

The measures contained in the Bill extend support and benefits to Pacific Engagement Visa holders, so that participants have the opportunity to not just settle in Australia, but to pursue education opportunities and flourish in their new communities.

The new Pacific Engagement Visa is designed to grow the Pacific and Timor-Leste diaspora in Australia with ongoing connections to their home country, deepening our ties to the region.

The Bill also delivers on the Government's commitment to expand and improve the PALM scheme by introducing family accompaniment, beginning with a pilot of 200 families.

Workers under the PALM scheme provide essential support to Australia's economy, often in critical sectors, including in aged care and agriculture.

But to do so, many leave their families behind for months or years.

PALM scheme family accompaniment will permit workers on one to four-year placements to bring their immediate family to Australia, with the support of their employer.

This Bill means that PALM scheme workers participating in family accompaniment will be able to access benefits to support them with the costs of raising a family and enable full participation of spouses in the workforce, if they choose to do so.

It recognises the invaluable contribution that people from the Pacific and Timor-Leste make to Australia.

And addresses the under-representation of some of Australia's closest neighbours and partners in our migration program.

It brings to the fore the importance Australia places on our relationships with the countries of this region, and upholds our commitment to strengthening ties with the Pacific family.

Pacific Engagement Visa

This package of legislation builds on two related Bills introduced by my colleague Minister Giles to establish a pre-application ballot process for prospective Pacific Engagement Visa holders, and charge a small fee to enter the ballot.

Collectively, these Bills represent a significant step towards delivering on the Government's commitment to introduce a new Pacific Engagement Visa—a ground-breaking, signature initiative of our plan to build a stronger Pacific family.

The Pacific Engagement Visa is a substantive expression of the value Australia places on its relationship with the Pacific family and has been welcomed by the Pacific.

Importantly, the Pacific Engagement Visa will address longstanding concerns of Pacific countries about limited migration pathways to one of their closest neighbours.

Less than one per cent of Australia's permanent migrant intake is from Pacific countries, which is disappointing given our proximity and many shared values.

The Pacific Engagement Visa will establish a permanent resident visa program for participating countries across the Pacific and Timor-Leste.

3,000 visas, inclusive of partners and dependent children, will be allocated annually through a ballot process.

While the ballot process has been the subject of debate already in this chamber, I cannot overemphasise the importance of the ballot process to delivering on the objectives of the program. A ballot process ensures fair and transparent access, and gives equal chance to higher and lower skilled applicants, ensuring we do not deprive Pacific countries of skills and talent.

This approach has been welcomed by Pacific partners during consultations. It provides broad access for Pacific and Timor-Leste citizens, including for applicants from remote and economically disadvantaged islands and regions.

Eligible participants aged 18 to 45 will register in the ballot. If drawn from the ballot, they can then apply for the Pacific Engagement Visa and include their partner and dependent children in their application.

Being drawn in the ballot does not automatically mean a visa will be granted.

To be granted a visa, those drawn from the ballot will then need to apply and show that they meet the relevant criteria before being granted a visa.

Those drawn or their partners will need to have an ongoing job offer in Australia.

There will also be basic English language, health and character requirements for applicants.

The Government has consulted widely with Pacific leaders to ensure the program meets the shared needs and priorities of our Pacific and Timor-Leste partners, and removes barriers for low- and semi-skilled workers.

This is a key ask of the Pacific, and the ballot and the measures contained in this Bill respond to this ask.

A key measure of success will be the growth of a flourishing diaspora with opportunities for education and skills development and career progression.

The measures outlined in the Bill will support this shared objective ensuring Pacific Engagement Visa holders are afforded basic levels of economic security when settling in Australia.

Pacific Engagement Visa Support Measures

To help eligible Pacific Engagement Visa holders and their families, the Bill will introduce measures that assist with the cost of raising a family and ease the financial burden of undertaking further education.

The Bill will amend the Social Security Act 1991 to provide an exemption to the newly arrived resident's waiting period for Pacific Engagement Visa holders' access to Austudy and Youth Allowance, while studying or completing an apprenticeship.

The Bill also amends A New Tax System (Family Assistance) Act 1999 to provide an exemption to the newly arrived resident's waiting period for Pacific Engagement Visa holders for Family Tax Benefit Part A.

We know the power of education and upskilling, and so supporting access to our world class education and training system for the Pacific family is a top priority.

That's why the Bill also amends the Higher Education Support Act 2003 to extend the Higher Education Loan Program or HELP to Pacific Engagement Visa holders.

It also amends the VET Student Loans Act 2016 to extend eligibility for holders of the Pacific Engagement Visa.

These initiatives will open pathways for lower skilled and low-income applicants to upskill, and enable career progression and economic mobility. This will be good for individuals and families, Australian employers and regional economies and communities.

Providing access on arrival to Family Tax Benefit Part A demonstrates our commitment to growing a flourishing diaspora from a diverse range of backgrounds and skills. The waiving of the one-year waiting period will also provide immediate access to Rent Assistance and the Health Care Card for eligible families.

The inclusion of HELP and VET student loans for PEV holders will be transformative.

Providing immediate access to Youth Allowance for students and apprentices is an important step to ensuring Pacific Engagement Visa holders can meaningfully engage with Australia's quality education and vocational training sectors.

We expect these reforms will result in more Pacific islanders participating in Australia's domestic education system than ever before.

By supporting participation in our education system, we are saying to our Pacific family: 'We support your ambition to further your education and the opportunities that this will bring you, your families and future generations of Pacific diaspora in Australia'.

It will mean Pacific Engagement Visa holders are better equipped to participate in the job market and contribute to both the Australian economy and their Pacific communities through remittances or during periods living back home, should they wish to do so.

PALM scheme

The PALM scheme allows approved employers to recruit workers from nine Pacific countries and Timor-Leste to address labour shortages in rural and regional areas. It includes short term, seasonal work placements of up to nine months, and long-term placements between one to four years.

The PALM scheme is highly valued by Australia, the Pacific and Timor-Leste. It delivers wins for workers, communities, Pacific countries and Australian businesses.

And it addresses youth unemployment, supports economic integration of our region and draws our societies together.

The scheme is an important part of a wider package of measures designed to deepen Australia's ties with the Pacific and build a stronger and more united Pacific family.

PALM scheme workers are reliable and productive, ensuring businesses can continue to run and support their communities when there are not enough local workers available.

And they make a positive contribution in their communities.

Fijian workers in Swan Hill have joined the Country Fire Authority as volunteer fire fighters.

In Stawell, ni-Vanuatu workers spend time in the community visiting the elderly and people living with disabilities, helping them with general chores like gardening and moving furniture.

And during the flooding in Lismore, PALM scheme workers volunteered to be part of the rescue effort, working with the SES to rescue people trapped by flood waters and get them safely to evacuation centres.

The PALM scheme also, importantly, helps support the economic development of Pacific countries and Timor-Leste through remittances.

We have already delivered on our commitment to expand the PALM scheme. The total number of Pacific and Timor-Leste workers in Australia has risen from over 24,000 a year ago to more than 39,000 today.

And we will continue to expand the scheme, responsibly.

New investments in skills development will deliver more training opportunities—helping PALM scheme workers return home with important skills and qualifications to contribute to their home economies and communities.

Over the next six months, we will welcome 500 new workers in the aged care sector who will complete a Certificate III in Individual Support (Ageing), while working as carers in aged care homes in rural and regional Australia.

Before the last election, as part of our plan for a stronger Pacific family, we announced that families would be able join PALM scheme workers in Australia.

This arose from feedback from Pacific countries and Timor-Leste and their workers regarding the negative social impacts of extended periods of family separation.

Currently, workers on long-term placements can spend up to four years in Australia filling critical roles that employers cannot find local labour to fill. This means they are separated from their partners and children back home for an extended period.

Family accompaniment will allow these workers to bring their immediate families to Australia.

We will start with 200 families and carefully monitor, evaluate, adjust and refine the program to ensure that family accompaniment is delivering for everyone.

Any workers seeking to bring their families to Australia will need the agreement of their employer and will need to have been approved as participants in family accompaniment.

They will also need to meet additional program criteria to be eligible to participate, particularly in the initial stage.

Workers participating in the pilot will need to have spent 12 months in Australia prior to their families arriving. This means that the workers will have already completed the newly arrived resident's waiting period for Family Tax Benefit Part A prior to families arriving. After 12 months, PALM scheme workers will also be familiar with life in Australia and will be able to help their family settle into their communities.

We know that for family accompaniment to be successful, partners and children will need to feel part of their local communities, whether through work, study, or other community involvement. That is why accompanying family members will be able to take up paid work and children will be able to go to school. For some families, the opportunity for their children to benefit from an Australian education will be an important factor in their participation.

In the most recent budget, we announced that workers and their families participating in the family accompaniment pilot will also be able to access Medicare. This will support families to receive the health care they need during their time in Australia.

The Government is committed to supporting the welfare of PALM scheme families. We will be providing a range of settlement and welfare support to help families transition smoothly to life and work in Australia.

It's in nobody's interests for PALM scheme workers or their families to be inadequately supported during their time in Australia.

This Bill is an important part of the support the Government is providing to PALM.

The Bill will amend the A New Tax System (Family Assistance) Act 1999 to enable eligible PALM scheme workers and their families in Australia under the family accompaniment initiative to access Family Tax Benefit Parts A and B and associated payments; and the Child Care Subsidy.

These measures will support eligible PALM scheme families while they are raising children in Australia. These measures will also reduce the barriers to workforce participation for partners of PALM scheme workers, by ensuring the cost of childcare does not act as a disincentive.

We have prioritised those payments of most importance to lower income families.

Conclusion

Closer engagement between Australia and Pacific island countries deepens our people-to-people connections and enriches our communities and countries.

As a member of the Pacific family, Australia is committed to working with all countries in the Pacific and Timor-Leste to achieve our shared aspirations and address our shared challenges.

This Bill is an important step towards delivering on our commitment to strengthen the Pacific family by supporting a flourishing Pacific diaspora in Australia, deepening connections with the countries of the Pacific and Timor-Leste.

We will look back on this moment as a critical advancement in our relationship with the Pacific. A moment when Australia took steps to address a major shortcoming in our migration program—the under-representation of some our closest neighbours, those we consider family.

These initiatives will strengthen our links with the Pacific family and deepen our ties to the region that is our home, and that is critical to our future.

I commend this Bill to the Chamber.

Debate adjourned.

Ordered that the bills be listed on the Notice Paper as separate orders of the day.