Cassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

The Albanese Labor government agenda to tackle ongoing skills shortages and underemployment in Australia has been front and centre since the federal election last year. I am honoured to join several of my colleagues in advocating for the passage of the Jobs and Skills Australia Amendment Bill 2023. The bill will amend the Jobs and Skills Australia Act 2022 to outline Jobs and Skills Australia's permanent functions and the governance arrangements. It will ensure that the body is set up for success by enshrining an economy-wide perspective that encourages contributions from the union, industry, vocational education and training and higher education sectors.

The passage of this bill will complete the second stage of the two-stage process that was made clear in the introduction of The Jobs and Skills Australia Bill 2022. We are living in a time of rapid change, where technology advancements and global competition are transforming the way that we work and live. In this dynamic environment, it is more important than ever to have a skilled and adaptable workforce. Jobs and Skills Australia will be a crucial pillar in making sure we can meet the challenges of the present and the future.

The bill is a result of extensive consultation and deliberation, which began in the lead up to this government's landmark Jobs and Skills Summit in September last year. This was followed by the Senate Education and Employment Legislation Committee inquiry into the first bill, a discussion paper seeking public comment and bilateral and other targeted engagement activities. Feedback received through the stakeholder engagement process did not just inform the development of the legislation. Rather, it informed, and will continue to inform, the engagement protocols and operational elements of Jobs and Skills Australia. Over 130 submissions from across government, unions, business, industry and employer groups and education sectors were received by the committee during the public submission process.

The high level of interest in and engagement with this process reiterated the importance of Jobs and Skills Australia. This process was crucial in ensuring the body operates in a way that serves the purpose and needs of different partners across states and territories, industry, business and the entire tertiary sector. As a result, the government has committed to state and territory colleagues that they will have a role in Jobs and Skills Australia governance to ensure that it is working to provide analysis and advice on areas that are crucial for them. In addition, the government will make sure that industry, education providers and union voices are a feature of Jobs and Skills Australia's governance. The deep insights and observations they will bring will ensure Jobs and Skills Australia's outputs are fit for purpose and have an economy-wide focus. The vision is necessary for Australia to resolve the labour market issues it currently faces. Currently, Australia has the second-highest labour supply shortage across the OECD. This means over three million Australians did not have the necessary skills to participate in training and secure work. Even industries crucial to Australia are not immune to skill shortage. Of the top 20 occupations in demand, seven have a shortage that is primarily driven by a lack of people with required skills, reinforcing the importance of having a renewed approach to our skills system for addressing these shortages.

The passage of this bill will introduce that renewed approach Australia desperately needs and deserves. It will establish Jobs and Skills Australia as a permanent body, including its full range of functions and governance arrangements. The major difference in the governance of the proposed permanent model is embedded in the commitment to its tripartite governance, with a Jobs and Skills Australia commissioner who will in turn be supported by deputy commissioners and a ministerial advisory board. The proposed permanent arrangements outlined in this bill will mean Jobs and Skills Australia adopts a broad based approach with a range of functions and responsibilities. These functions include: identifying labour market imbalances to analyse the role played by the demand and supply of skills; building an evidence base to assess the impact of various workplace arrangements, like insecure work and casualisation, on economic and social outcomes; analysing workforce needs and skills to align our migration program with what the Australian economy requires; undertaking studies to improve employment, VET and higher education outcomes for cohorts that have historically experienced disadvantage, thus ensuring a fairer and more credible system; and contributing to industry consultation forums.

The bill also includes a requirement for a statutory review of Jobs and Skills Australia to commence within 24 months of the commencement of the amended bill. The statutory review will guide the execution of the bill and rectify any issues that may arise in the future. The core of Jobs and Skills Australia remains unchanged from the objectives of this government's jobs and skills agenda, engagement and collaboration. The JSA will be one body that will bring together unions, employers and state and territory governments, which are largely responsible for our education system. It will be a mechanism for the tripartite partners to engage and collaborate to achieve goals which require efforts that are bigger than the respective sectors alone. All three sectors share the experience of the existing skills shortages and changing labour market needs. Through the JSA, these three sectors will work towards achieving their shared aspiration for Australia's workforce into the future. The government and the JSA will hear directly from these partners about industry-specific issues and requirements relating to skills and the labour market.

The provisions outlined in this bill specifically require JSA's advice to be informed by stakeholder expertise, insights and networks. These provisions ensure that JSA can inform the government to support our response to the evolving demands of the economy and Australia's workforce and learners, and better support the training system to deliver the skilled workers that Australians need. The bill will require JSA to consult with a broad-based ministerial advisory board in the development of its work plan. This approach was emphasised by stakeholders throughout the consultation process. It will ensure that the work plan directly aligns with addressing workforce shortages and building long-term capacity in priority sectors. The bill will establish the Jobs and Skills Australia commissioner as the head of Jobs and Skills Australia, who will be appointed in a long-term, permanent capacity through the merit based selection process, in line with the APS merit and transparency guidelines. To support the commissioner, the bill will allow for up to two long-term deputy commissioners to be appointed for up to a five-year period for Jobs and Skills Australia's functions and business as usual requirements.

Additionally, the bill amends flexibility in the agency's framework to ensure it can best respond to emerging needs and priorities in the response to changing economic conditions. Experts will be engaged under a written agreement on a time limited or study-by-study basis, ensuring that sector-specific experience, influence and networks are brought to each of the JSA's workforce and cohort studies or detailed regional assessments.

To further support the governance of Jobs and Skills Australia, the bill will establish a ministerial advisory board that consists of representatives and independent experts with skills and experience in areas relevant to Jobs and Skills Australia. Board members will include experts from tertiary education, employment and industrial relations with experience in unions, data analysis, workforce planning and regional organisations, and those representing priority cohorts and those most disadvantaged in the labour market. The board will be tripartite, and participation from employer organisations and unions will be fair and equitable. The ministerial advisory board will provide the minister and the JSA commissioner with expert advice on the work plan of Jobs and Skills Australia and other products. Board members will also be expected to consult with and represent the views of respective sectors and industry where relevant.

A large part of this bill builds on the work of the interim Jobs and Skills Australia, which has been underway since November 2022 and has continued the important work already begun by the National Skills Commission. It has also started new work such as commencing a clean energy capacity study and a national study on adult foundation skills to better understand the barriers to the workforce faced by so many Australians.

JSA will continue to produce skills and workforce data and analytics to contribute to a more granular national evidence base. It will continue to provide crucial insights into disadvantaged cohorts, provide regional analysis and support workforce planning. Workforce planning for industries is crucial. It will support education and training and migration systems to respond to current and future workforce needs. This bill expands the workforce planning function for Jobs and Skills Australia, which will assess how skills and workforce issues can be addressed across the whole economy. For example, skilled STEM graduates from both higher education and the VET system are likely to have the skills and training which are adaptable for several different emerging and crucial industries, like technology and clean energy. It will complement the sector-specific workforce planning undertaken by jobs and skills councils. The government has consulted broadly on the permanent model of Jobs and Skills Australia to ensure that this bill supports an ideal range of ongoing functions and products it will deliver. Equipping Australians with the skills and knowhow they require to remain at pace with the rapid growth of this age has been at the forefront of the government's priorities. Indeed, I believe the Jobs and Skills Summit will continue to be among the cornerstones of Australian political history.

This bill gives effect to the tripartite approach that became a signature of the summit—one that was reflected in the Holt jobs and skills summit ahead of the main Jobs and Skills Summit in Canberra. Establishing a permanent Jobs and Skills Australia will mean that this approach is permanently enshrined. It will mean that the people of Holt will be able to receive the skills they need to get the jobs they want. I commend the bill to the House.

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