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2010-2011-2012
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
THE SENATE
Fair Work (REGISTERED ORGANISATIONS) AMENDMENT (TOWARDS TRANSPARENCY) BILL
2012
EXPLANATORY MEMORANDUM
Circulated by the authority of Senator the Hon. Eric Abetz,
Leader of the Opposition in the Senate
Fair Work (REGISTERED ORGANISATIONS) AMENDMENT (TOWARDS TRANSPARENCY) BILL
2012
OUTLINE
The Fair Work (Registered Organisations) Amendment (Towards Transparency)
2012 Bill amends the Fair Work (Registered Organisations) Act 2009.
The Bill improves the operation of the Fair Work (Registered Organisations)
Act and the general framework under which registered organisations operate
through a series of measures that will increase financial transparency and
accountability. These measures have the effect of aligning relevant
obligations of registered organisations to those which are applicable to
entities covered by the Corporations Act 2001.
The improved obligations aim to ensure that members of registered
organisations are protected and that the conduct and actions of officers
and employees of registered organisations are in the best interests of
their members.
This Bill will ensure that there is a strong deterrent in place to prevent
a reoccurrence of the kinds of wrongdoing and malfeasance found by Fair
Work Australia in its report "Investigation into the Victoria No. 1 Branch
of the Health Services Union under section 331 of the Fair Work (Registered
Organisations) Act 2009" and further report "Investigation into the
National Office of the Health Services Union under section 331 of the Fair
Work (Registered Organisations) Act 2009." Similar conduct was also
identified in the report titled "Final Report on HSUeast by Ian Temby QC
and Dennis Roberston FCA."
These reports have exposed significant loopholes where a culture of misuse
of members' money for the personal benefit of individuals, general
mismanagement, poor financial control and lack of transparency could exist.
The deterrent value of effective penalties are well known and understood in
the community. Increased penalties will assist in ensuring members can once
again have confidence in their registered organisations.
NOTES ON CLAUSES
Clause 1 - Short Title
This is a formal provision specifying the short title.
Clause 2 - Commencement
The Bill's provisions are to commence the day after the Bill receives Royal
Assent
Clause 3 - Schedules
This clause provides that an Act that is specified in a Schedule is amended
or repealed as set out in that Schedule, and any other item in a Schedule
operates according to its terms.
Schedule 1-Amendments to the Fair Work (Registered Organisations) Act 2009
Items 1 & 2 make it an offence to not lodge a complaint full or concise
report with Fair Work Australia. These reports are required to be submitted
under the Fair Work (Registered Organisations) Act 2009, however there are
inadequate penalties for the lodgement of non-compliant reports.
Item 3 adds section 288A to impose penalties for officers who do not act in
good faith or misuse their position. This provision is similar to an
existing provision in the Corporations Act and uses the same penalty of
imprisonment for 5 years or 2,000 penalty units or both.
Under the present penalty regime, the alleged $20 million misuse of
members' funds identified in the Temby Report could attract a maximum
penalty of just $6,600. This serves not just as an injustice to members but
also fails to serve as an appropriate deterrent for officers who handle -
in some cases - millions of members' money.
Members of registered organisations should have the same comfort to know
that their money is spent in a proper manner and the conduct of officers is
above board as shareholders of corporations.
Items 4, 5 & 6 are consequential amendments.
Items 7 & 8 increase penalties for existing offences under the Act in line
with the Corporations Act.
Item 9 makes it a criminal offence for officers of or a registered
organisation to not comply with orders of a State or Federal court that
applies to the organisation.
For an abundance of clarity, it is the intent of this Bill that this Item
apply to registered organisations who breach orders of a court of competent
jurisdiction in either the Commonwealth, State or Territory in Australia.
Items 10 and 11 deal with the commencement of provisions within this Bill.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011
Fair Work (REGISTERED ORGANISATIONS) AMENDMENT (TOWARDS TRANSPARENCY) BILL
2012
This Bill is compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the Human
Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
This Bill amends the objects the Fair Work (Registered Organisations) Bill
2009 to increase penalties for officers of Registered Organisations who
misuse members' funds.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms as
listed in the Human Rights (Parliamentary Scrutiny) Act 2011.
Conclusion
This bill is compatible with human rights as it does not raise any human
rights issues.
Senator the Hon. Eric Abetz