Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2010-2011-2012
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SOCIAL AND COMMUNITY SERVICES PAY EQUITY SPECIAL ACCOUNT
BILL 2012
SOCIAL AND COMMUNITY SERVICES PAY EQUITY SPECIAL ACCOUNT
(CONSEQUENTIAL AMENDMENTS) BILL 2012
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Families, Community Services and Indigenous Affairs,
Minister for Disability Reform, the Hon Jenny Macklin MP)
SOCIAL AND COMMUNITY SERVICES PAY EQUITY SPECIAL ACCOUNT
BILL 2012
SOCIAL AND COMMUNITY SERVICES PAY EQUITY SPECIAL ACCOUNT
(CONSEQUENTIAL AMENDMENTS) BILL 2012
OUTLINE
On 22 June 2012, Fair Work Australia handed down its first equal remuneration
order, providing significant pay rises to Australia's social and community
services sector workers.
Workers in this sector carry out a wide range of challenging jobs, including
counselling families in crisis, running homeless shelters, and working with
people with disability and victims of domestic violence or sexual assault.
The order delivers pay rises, ranging from 23 per cent to 45 per cent, to around
150,000 low-paid workers in the sector, predominantly women. The increases
are to be phased in over eight years, in nine equal instalments from
1 December 2012 to 1 December 2020.
The Social and Community Services Pay Equity Special Account Bill 2012 will
establish a Special Account under section 21 of the Financial Management and
Accountability Act 1997 to underpin the Commonwealth contribution to these
pay rises for social and community services sector workers in
Commonwealth-funded programs, including programs funded under
agreements with and payments to States and Territories, such as National
Partnership Payments and National Specific Purpose Payments.
The Commonwealth supplementation will be delivered through funding drawn
from the Special Account by eight Commonwealth agencies, and paid to assist
employers who are directly or indirectly funded by the Commonwealth for the
purposes of a program prescribed under the new legislation and who are
required to make payments to their employees under the pay equity
arrangements.
The Social and Community Services Pay Equity Special Account
(Consequential Amendments) Bill 2012 will make a consequential amendment
to the COAG Reform Fund Act 2008 in relation to supplementation for programs
funded under agreements with and payments to States and Territories, such as
National Partnership Payments and National Specific Purpose Payments.
Financial impact statement
The total Commonwealth supplementation is expected to be limited to costs of
around $3 billion phased in over eight years, in nine equal instalments from
1 December 2012 to 1 December 2020.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
The statement of compatibility with human rights appears at the end of this
explanatory memorandum.
SOCIAL AND COMMUNITY SERVICES PAY EQUITY SPECIAL ACCOUNT
BILL 2012
SOCIAL AND COMMUNITY SERVICES PAY EQUITY SPECIAL ACCOUNT
(CONSEQUENTIAL AMENDMENTS) BILL 2012
NOTES ON CLAUSES
Abbreviations used in this explanatory memorandum
· The Account means, unless otherwise specified, the Social and
Community Services Pay Equity Special Account as established by this
Act.
· COAG Reform Fund means the COAG Reform Fund established by
the COAG Reform Fund Act 2008.
· The Special Account Bill means the Social and Community Services
Pay Equity Special Account Bill 2012.
· The Consequential Amendments Bill means the Social and
Community Services Pay Equity Special Account (Consequential
Amendments) Bill 2012.
· Final Fair Work Australia Order means the Social, Community and
Disability Services Industry Equal Remuneration Order 2012 made by
Fair Work Australia on 22 June 2012.
· The Minister is the Minister responsible for administering the Social
and Community Services Pay Equity Special Account Bill 2012.
· The Modern Award means the Social, Community, Home Care and
Disability Services Industry Award 2010.
· The Queensland Award means the Queensland Community Services
and Crisis Assistance Award - State.
· Pay equity orders means the Social, Community and Disability
Services Industry Equal Remuneration Order 2012 (`the Final Fair Work
Australia Order') and the transitional pay equity order (Queensland), as
defined in the Bill.
1
Summary
The Special Account Bill establishes the Social and Community Services Pay
Equity Special Account under section 21 of the Financial Management and
Accountability Act 1997. The Account will be used to fund the Commonwealth
share of pay increases provided by the pay equity orders by way of additional
funding to Commonwealth programs, including those funded through the
States and Territories.
The Consequential Amendments Bill makes a relevant amendment to the
COAG Reform Fund Act 2008.
Background
The Queensland Industrial Relations Commission decision
On 6 May 2009, the Queensland Industrial Relations Commission awarded
significant pay increases to the social and community services sector under
the Queensland Community Services and Crisis Assistance Award - State.
The Queensland Industrial Relations Commission ruled that the work of the
Queensland social and community services sector was undervalued, and
awarded wage increases of between 18 and 37 per cent, phased in over a
three-year period from July 2009.
On 11 November 2009, the Queensland Parliament passed the Fair Work
(Commonwealth Powers) and Other Provisions Act 2009 (Qld). This Act
referred the State's industrial relations powers over the private sector to the
Commonwealth from 1 January 2010. As a result of this referral of power,
Queensland social and community services sector employers and their
employees who were covered by the Queensland Industrial Relations
Commission order were subject to the Fair Work Act 2009 from
1 January 2010.
In the transition to the Commonwealth, the Queensland Industrial Relations
Commission order was preserved in the order taken to have been made on
1 January 2010 by Fair Work Australia under item 30A of Schedule 3A to the
Fair Work (Transitional Provisions and Consequential Amendments) Act 2009.
An Order was also taken to have been made on 27 March 2011 by Fair Work
Australia under item 43 of Schedule 3 to the Fair Work (Transitional Provisions
and Consequential Amendments) Act 2009.
The Fair Work Australia decision
Following the Queensland Industrial Relations Commission decision, the
Australian Services Union applied to Fair Work Australia for an equal
remuneration order under Part 2-7 of the Fair Work Act 2009 for the social and
community services sector. The Government provided a joint submission to
Fair Work Australia on 17 November 2011, committing to fund its share of any
pay increases.
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On 1 February 2012, Fair Work Australia determined the equal remuneration
case in favour of the Australian Services Union, awarding pay increases of
between 19 and 41 per cent over eight years. These pay increases take effect
from 1 December 2012 to 1 December 2020. Fair Work Australia ordered a
further four per cent loading over nine equal instalments.
Fair Work Australia made the final Social, Community and Disability Services
Industry Equal Remuneration Order 2012 on 22 June 2012. The order
finalised equal remuneration increases of between 23 and 45 per cent.
The Fair Work Australia equal remuneration decision is limited to workers
covered by Schedule B (Social and Community Services Employees) and
Schedule C (Crisis Accommodation Employees) of the Modern Award. This
includes workers who undertake social, recreation, welfare, youth or
community development work. It also includes the provision of home care
services to people with disability in private residences.
Social and Community Services Pay Equity Special Account
The Special Account Bill gives effect to the Government's commitment to fund
its share of pay increases to social and community services sector workers.
The Special Account Bill further recognises the Government's ongoing
commitment to equal remuneration.
The establishment of the Social and Community Services Pay Equity Special
Account recognises the Government's commitment to the social and
community services sector and its intention to provide supplementation,
consistent with the pay equity orders, over the full nine financial years. The
Account is established as a Special Account for the purposes of section 21 of
the Financial Management and Accountability Act 1997.
The Account will be credited annually with the amounts specified in the Special
Account Bill. This is consistent with the Government's commitment to provide
assistance throughout the pay equity order phase-in period.
The Special Account Bill ensures that employers will be assisted to meet the
cost of payments required to be made as a result of the pay equity orders,
provided that the employers are covered by a pay equity order and that they
receive Commonwealth funding under a specified program.
An additional mechanism has also been included to ensure that assistance is
provided to employers who are covered by a pay equity order and who receive
Commonwealth funding on a fee-for-service basis.
Programs
The Commonwealth supplementation will be provided by way of additional
funding for programs, pursuant to varied or new funding agreements with
relevant employers.
3
Section 32B of the Financial Management and Accountability Act 1997
provides legislative authority for expenditure for the purposes of most of these
programs. These programs are listed in Schedule 1AA to the Financial
Management and Accountability Regulations 1997. Other legislation provides
this authority in relation to the other programs (as indicated in Part 2 of each of
Schedules 1 and 2 to the Special Account Bill).
These programs are administered by seven agencies. In practice, it is
envisaged that drawing rights would be issued to relevant agencies,
authorising the payment of money debited from the Account (for the purposes
of paragraph 26(a) of the Financial Management and Accountability Act 1997).
Payments to State and Territory Governments
The Government's commitment to fund its share of pay increases resulting
from the pay equity orders extends to programs funded through the States and
Territories.
To ensure that these employers also receive assistance to meet the cost of
payments required as a result of the pay equity orders, the Special Account Bill
provides for funds to be transferred from the Account to the COAG Reform
Fund. These funds will then be paid to the States and Territories, consistent
with the purposes of the Special Account Bill.
To enable the crediting of the COAG Reform Fund, a minor amendment to the
COAG Reform Fund Act 2008 is set out in the Consequential Amendments
Bill.
Queensland
The Special Account Bill gives effect to the Government's commitment to fund
its share of pay increases under the Queensland Industrial Relations
Commission order, as well as under the final Fair Work Australia Order.
The Bill specifically ensures that employers captured by the transitional pay
equity order (Queensland) are assisted to pay the preserved rates.
Sunset
The final Fair Work Australia Order provided pay increases over eight years in
nine equal instalments from 1 December 2012 to 1 December 2020.
Consistent with the order, the Bill will sunset on 30 June 2021. At this point,
the Account will cease to exist.
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SOCIAL AND COMMUNITY SERVICES PAY EQUITY SPECIAL ACCOUNT
BILL 2012
Part 1 - Preliminary
Summary
Part 1 provides the formal matters in relation to the Special Account Bill, a
simplified outline and definition provisions.
Explanation of the clauses
Clause 1 - Short title
Clause 1 sets out how the new Act is to be cited, that is, as the Social and
Community Services Pay Equity Special Account Act 2012.
Clause 2 - Commencement
Clause 2 provides that the new Act will commence on the day it receives
Royal Assent.
Clause 3 - Simplified outline
Clause 3 provides an outline of the new Act.
Clause 4 - Definitions
Clause 4 defines certain terms that are used in the new Act. In this
explanatory memorandum, the defined terms will be addressed in the context
in which they appear.
5
Part 2 - Social and Community Services Pay Equity Special Account
Summary
Part 2 concerns the establishment of the Social and Community Services Pay
Equity Special Account.
Explanation of the clauses
Clause 5 - Social and Community Services Pay Equity Special Account
Clause 5 establishes the Social and Community Services Pay Equity Special
Account.
Subclause 5(2) clarifies that the Social and Community Services Pay Equity
Special Account is a Special Account for the purposes of section 21 of the
Financial Management and Accountability Act 1997.
Clause 6 - Credits to the Account
Clause 6 details how the Account will be credited.
Subclause 6(1) provides for the Account to be credited annually. The table
set out in subclause 6(1) specifies the dates on which, and amounts by which,
the Account will be credited.
The amounts to be credited to the Account each year, over nine financial
years, reflect the requirements of the pay equity orders.
The amounts to be credited and the dates on which they will be credited have
been specified in the Special Account Bill to ensure that the crediting of the
Account is both transparent and certain. This is consistent with the
Government's commitment to meet its share of the cost of the pay equity
orders throughout the phase-in period.
Clause 7 - Purposes of the Account
Clause 7 provides the purposes of the Account.
Subclause 7(1) clarifies that clause 7 details the two purposes of the
Account.
Subclause 7(2) provides that the primary purpose of the Account is to assist
employers:
· who are covered by a pay equity order or to whom a pay equity order
applies (as defined in clause 4); and
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· who receive funding, directly or indirectly, from the Commonwealth for
the purposes of a program specified in Schedule 1 to the Special
Account Bill (including that Schedule as modified by an instrument
under subclause 7(4)).
Funds from the Account are to be provided to employers to meet the cost of
payments required to be made as a result of the pay equity orders.
Pay equity order is defined in clause 4 as the Social, Community and
Disability Services Industry Equal Remuneration Order or a transitional pay
equity order (Queensland).
The Social, Community and Disability Services Industry Equal
Remuneration Order is defined in clause 4 as the `Social, Community and
Disability Services Industry Equal Remuneration Order' made by Fair Work
Australia on 22 June 2012 under section 302 of the Fair Work Act 2009.
The transitional pay equity order (Queensland) is defined in clause 4 as
either:
· the order that, under subitem 43(1) of Schedule 3 to the Fair Work
(Transitional Provisions and Consequential Amendments) Act 2009, is
taken to have been made by Fair Work Australia under item 43 of that
Schedule on 27 March 2011; or
· the order that, under subitem 30A(1) of Schedule 3A to the Fair Work
(Transitional Provisions and Consequential Amendments) Act 2009, is
taken to have been made by Fair Work Australia under item 30A of that
Schedule on 1 January 2010.
Clause 4 further specifies that the second order (made under subitem 30A(1)
of Schedule 3A) covers or applies to an employer only if the Division 2B State
award referred to in paragraph 30A(2)(a) of Schedule 3A to the Fair Work
(Transitional Provisions and Consequential Amendments) Act 2009 was
derived from the Queensland Award.
Subclause 7(3) provides the second purpose of the Account, which is to
assist employers who are funded on a fee-for-service basis. This enables
funds from the Account to be used to provide for any increases to schedules
of fees resulting from the pay equity orders. Any other fee increases would
not be provided for out of the Account.
Subclause 7(3) requires that, to be in scope, an employer must be receiving
fees for services from the Commonwealth and those services must be
provided for the purposes of a program specified in Schedule 2 (including that
Schedule as modified by an instrument under subclause 7(4)).
A purpose of the Account is to pay some or all of any increase in those fees
paid to those employers, to the extent that the increase relates to one or more
pay equity orders.
7
Subclauses 7(4) and 7(5) provide for instruments to be made to modify the
list of programs in either Schedule 1 or 2.
Subclause 7(4) provides that the Minister may modify Schedule 1 or 2 by
written instrument to do any one or more of the following:
· add an item that specifies a program;
· omit an item that specifies a program;
· omit and substitute an item that specifies a program; or
· vary an item that specifies a program.
Subclause 7(5) clarifies that any written instrument made under
subclause 7(4) is a legislative instrument for the purposes of the Legislative
Instruments Act 2003. Such an instrument is, however, exempt from
section 42 (disallowance of legislative instruments). Clause 9 provides for
disallowance of legislative instruments made under subclause 7(4).
All of the programs within the scope of clause 7 are listed in Schedules 1
and 2. This approach has been adopted to ensure that Parliament can
consider and scrutinise, as part of the principal legislation, the programs
under which employers will be able to receive assistance from the Account.
Listing the in-scope programs in Schedules to the Special Account Bill
provides greater immediate accountability and transparency than having them
detailed later in legislative instruments.
There is, however, also a need for flexibility to ensure that the Schedules
accurately reflect the programs within the scope of clause 7. A mechanism
must be available to enable the Schedules to be updated to reflect common
changes, including renaming programs, identification of additional in-scope
programs and removal of programs.
Subclause 7(4) has been designed to achieve that flexibility. It ensures that
the Schedules accurately reflect the programs within the scope of clause 7.
At the same time, any instrument made under subclause 7(4) is subject to the
requirements of the Legislative Instruments Act 2003, including tabling
procedures. The usual disallowance procedures are, however, replaced by
clause 9 of the Special Account Bill, which offers rigorous Parliamentary
oversight of any proposed changes to the Schedules.
Clause 8 - COAG Reform Fund
Clause 8 provides an additional mechanism for delivering funding to affected
employers. It provides for funds to be transferred from the Account to the
COAG Reform Fund, which will subsequently be transferred to a State or
Territory.
8
This clause ensures that employers who are funded by the Commonwealth
through certain agreements and payments receive assistance to meet the
cost of payments required by the pay equity orders.
Subclause 8(1) provides that the Minister may make a written direction,
specifying that an amount is to be debited from the Account and credited to
the COAG Reform Fund on a specified day.
Subclause 8(2) clarifies that a written direction made by the Minister under
subclause 8(1) must be expressed as debiting an amount from the Account
and crediting it to the COAG Reform Fund to enable the COAG Reform Fund
to be debited for the purpose of making a specified grant of financial
assistance to a State or Territory.
Subclause 8(3) ensures that a grant specified in subclause 8(2) must be
consistent with the purposes of the Account.
The grant of financial assistance specified in subclause 8(2) must be in
relation to assisting employers who are covered by a pay equity order or to
whom a pay equity order applies (as defined in clause 4).
The employers must also be receiving funding from a State or Territory
because of another grant of financial assistance:
· that is to the State or Territory and that is made under an agreement
specified in an item in Part 1 of Schedule 3 to the Special Account Bill
(including that Schedule as modified by an instrument under
subclause 8(7)); or
· that is to the State or Territory under Part 3 of the Federal Financial
Relations Act 2009 and that is a payment specified in Part 2 of
Schedule 3 (including that Schedule as modified by an instrument
under subclause 8(7)).
Funds from the Account are provided to meet the cost of payments required
to be made by the employers as a result of the pay equity orders.
Subclause 8(4) clarifies that two or more subclause 8(1) directions can be
made in the same document.
Subclause 8(5) provides for debits from the COAG Reform Fund.
Subclause 8(5) specifies that the Treasurer must ensure that any funds
credited to the COAG Reform Fund from the Account are debited for the
purposes of making the grant to the State or Territory as soon practicable.
9
This provision does not require the Treasurer to create new procedures for
funds credited to the COAG Reform Fund from the Account. The provision
specifies that, as soon as reasonably practical, funds credited to the COAG
Reform Fund from the Account need to be transferred to the appropriate State
or Territory. It further specifies that any funds credited to the COAG Reform
Fund from the Account must be transferred for the purposes of making a grant
of financial assistance as envisaged by subclause 8(2).
Subclause 8(6) specifies that a direction made under subclause 8(1) is not a
legislative instrument, consistent with section 5 of the Legislative Instruments
Act 2003. This is because the direction relates to the transfer of funds from
one Special Account to another. This provision is declaring the law to assist
readers, and is not specifying a new exemption to the Legislative Instruments
Act 2003.
Subclauses 8(7) and 8(8) provide for instruments to be made to modify
Schedule 3.
Subclause 8(7) provides that the Minister may modify Schedule 3 by written
instrument to do any one or more of the following:
· add an item that specifies an agreement or payment;
· omit an item that specifies an agreement or payment;
· omit and substitute an item that specifies an agreement or payment; or
· vary an item that specifies an agreement or payment.
Subclause 8(8) clarifies that any written instrument made under
subclause 8(7) is a legislative instrument for the purposes of the Legislative
Instruments Act 2003. Such an instrument is, however, exempt from
section 42 (disallowance of legislative instruments). Instead, clause 9
provides for disallowance of legislative instruments made under
subclause 8(7).
All of the grants of financial assistance within the scope of clause 8 are listed
in Schedule 3. This approach has been adopted to ensure that Parliament
can consider and scrutinise, as part of the principal legislation, the grants of
financial assistance in relation to which the Account will provide assistance to
meet the costs of the pay equity order. Listing the in-scope grants of financial
assistance in a Schedule to the Special Account Bill provides greater
immediate accountability and transparency than having them detailed later in
legislative instruments.
10
There is, however, also a need for flexibility to ensure that Schedule 3
accurately reflects the grants of financial assistance within the scope of
clause 8. A mechanism must be available to enable the Schedules to be
updated to reflect the creation of or variation to Agreements or Payments. It
is also important to ensure that the approach to modifying Schedules is
consistent throughout the Special Account Bill.
Subclause 8(7) has been designed to achieve that flexibility. It ensures that
Schedule 3 will accurately reflect the grants of financial assistance within the
scope of clause 8. At the same time, any instrument made under
subclause 8(7) is subject to the requirements of the Legislative Instruments
Act 2003, including tabling procedures. The usual disallowance procedures
are, however, replaced by clause 9 of the Special Account Bill, which offers
rigorous Parliamentary oversight of any proposed changes to the Schedule.
11
Part 3 - Other matters
Summary
Part 3 concerns the disallowance of instruments and the sunset of the new
Act.
Explanation of the clauses
Clause 9 - Disallowance of instruments
Clause 9 provides for the disallowance of instruments made under the new
Act.
Subclause 9(1) specifies that this clause applies to instruments made under
subclause 7(4) or subclause 8(7).
Subclause 9(2) provides for the disallowance of an instrument made under
subclause 7(4) or subclause 8(7).
Subclause 9(2) specifies that, in the five sitting days after an instrument is
tabled under section 38 of the Legislative Instruments Act 2003, either House
may, following a motion on notice, pass a resolution of disallowance.
Subclause 9(3) specifies that if a resolution of disallowance is not passed by
a House of Parliament by the fifth sitting day, then the instrument takes effect
the following day.
Subclause 9(4) provides that, if a House of Parliament passes a resolution of
disallowance, the Minister is not prevented from making another instrument
under either subclause 7(4) or subclause 8(7).
Clause 9 is designed to provide additional Parliamentary oversight of any
proposed changes to the Schedules to the Special Account Bill. Any
legislative instrument made under subclause 7(4) or subclause 8(7) will be
required to be tabled and remain before the Houses of Parliament for five
sitting days before it takes effect. During these five sitting days, Parliament
has the opportunity to pass a resolution of disallowance, preventing the
proposed change to the Schedule before they take effect.
This provision ensures that Parliament has active oversight of any proposed
changes to the Schedules.
Clause 10 - Sunset provision
Clause 10 provides for a sunset provision, under which the new Act will cease
to have effect on 30 June 2021.
12
Schedule 1 - Programs
Summary
Schedule 1 provides an exhaustive list of the programs that are within the
scope of subclause 7(2).
Explanation of the clauses
Part 1 - Programs in the Financial Management and Accountability
Regulations
Part 1 sets out all the programs that are within the scope of subclause 7(2)
and that are listed in Schedule 1AA to the Financial Management and
Accountability Regulations 1997.
Part 2 - Other programs
Part 2 sets out all the other programs that are within the scope of
subclause 7(2).
13
Schedule 2 - Programs
Summary
Schedule 2 provides an exhaustive list of the programs that are within the
scope of subclause 7(3).
Explanation of the clauses
Part 1 - Programs in the Financial Management and Accountability
Regulations
Part 1 sets out all the programs that are within the scope of subclause 7(3)
and that are listed in Schedule 1AA to the Financial Management and
Accountability Regulations 1997.
Part 2 - Other programs
Part 2 sets out all the other programs that are within the scope of
subclause 7(3).
14
Schedule 3 - Grants of financial assistance
Summary
Schedule 3 provides an exhaustive list of agreements and payments that are
within the scope of subclause 8(3).
Explanation of the clauses
Part 1 - Agreements
Part 1 sets out the agreements (or parts thereof) that are within the scope of
subclause 8(3), as made under the COAG Reform Fund Act 2008.
Part 2 - Payments
Part 2 sets out the Payments that are within the scope of subclause 8(3), as
made under the Federal Financial Relations Act 2009.
15
SOCIAL AND COMMUNITY SERVICES PAY EQUITY SPECIAL ACCOUNT
(CONSEQUENTIAL AMENDMENTS) BILL 2012
Clause 1 - Short title
Clause 1 sets out how the new Act is to be cited, that is, as the Social and
Community Services Pay Equity Special Account (Consequential
Amendments) Act 2012.
Clause 2 - Commencement
Clause 2 provides a table setting out the commencement dates of the various
sections in, and Schedules to, the new Act.
Clause 3 - Schedule(s)
Clause 3 provides that each Act that is specified in a Schedule is amended or
repealed as set out in that Schedule.
16
Schedule 1 - Amendments
Summary
Schedule 1 makes a consequential amendment to the COAG Reform Fund
Act 2008.
Explanation of the changes
COAG Reform Fund Act 2008
Item 1 adds a new note to section 5 of the COAG Reform Fund Act 2008.
This explains that an amount debited from the Account can be credited to the
COAG Reform Fund. Amounts are then able to be transferred to a State or
Territory, consistent with clause 8 of the new Social and Community Services
Pay Equity Special Account Act 2012.
17
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011
Social and Community Services Pay Equity Special Account Bill 2012
Social and Community Services Pay Equity Special Account
(Consequential Amendments) Bill 2012
These Bills are 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 Bills
On 1 February 2012, Fair Work Australia granted an Equal Remuneration Order
to certain workers in the Social and Community Services sector. The equal
remuneration order will provide wage increases ranging from 23 per cent to
45 per cent phased-in over nine annual instalments from 1 December 2012 to
1 December 2020.
On 10 November 2011, Prime Minister Gillard announced the Commonwealth
would provide over $2 billion to pay its share of wage increases. Commonwealth
funds will be administered through a newly created Social and Community
Services Pay Equity Special Account. The Special Account will administer the
Social and Community Services award funding adjustments for providers of in-
scope Commonwealth programs that have been identified as having Social and
Community Services workers covered by the Fair Work Australia equal
remuneration order.
Human rights implications
These Bills engage and promote the human right, Right to work and rights in
work.
Fair Work Australia determined that Social and Community Services industry
workers currently receive significantly less remuneration for performing
comparable work to public sector employees. Equal remuneration is set out
under Article 7 of the International Covenant on Economic, Social and Cultural
Rights and includes remuneration which provides all workers, as a minimum,
with fair wages and equal remuneration for work of equal value without
distinction of any kind - in particular, women being guaranteed conditions of
work not inferior to those enjoyed by men, with equal pay for equal work.
The Social and Community Services Pay Equity Special Account will essentially
facilitate the administration of funding to affected Commonwealth-funded
employers with Social and Community Services workers and enhance
transparency to government.
Conclusion
These Bills are compatible with human rights.