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Department of Employment—Report for 2014-15


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ANNUAL REPORT 2014 15

More Jobs. Great Workplaces.

ANNUAL REPORT 2014 15

More Jobs. Great Workplaces.

iv | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

LETTER OF TRANSMITTAL

Secretary

Renée Leon PSM

Senator the Hon. Michaelia Cash M inister for Employment

Parliament House CANBERRA ACT 2600

Dear Minister In accordance with section 63 of the Public Service Act 1999, I present the Department of Employment’s annual report for 2014-15. It reflects the guidelines as approved by the Joint Committee of Public Accounts and Audit.

As required by section 10 of the Public Governance, Performance and Accountability Rule 2014, I certify that the department:

- has prepared fraud risk assessments and a fraud control plan - has in place appropriate fraud prevention, detection, investigation and reporting mechanisms that meet the specific needs of the department - has taken all reasonable measures to appropriately deal with fraud relating to the

department.

Yours sincerely

Renée Leon Secretary 30 September 2015

OUR REPORT OUR DEPARTMENT

Secretary’s review and an overview of the department

OUR PERFORMANCE

Summary of our performance in 2014-15

OUR OPERATIONS AND ACCOUNTABILITY

Our operations and accountability, including governance, our people, communications, external scrutiny and the Shared Services Centre

FINANCIAL STATEMENTS

Our 2014-15 financial statements, including the Auditor-General’s report

APPENDIXES

Additional information about our operations and mandatory reporting requirements

CONTENTS | v

CONTENTS Letter of transmittal ............................................................................................................................................................................................ ii

Our report ................................................................................................................................................................................................................. ii

Portfolio overview ..............................................................................................................................................................................................iv

OUR DEPARTMENT 1

Our vision ..................................................................................................................................................................................................................1

Our organisational structure .........................................................................................................................................................................2

Secretary’s review ................................................................................................................................................................................................3

Our executive .........................................................................................................................................................................................................6

OUR PERFORMANCE 7

Outcome structure ..............................................................................................................................................................................................7

Outcome 1 ................................................................................................................................................................................................................8

Outcome 2 ..............................................................................................................................................................................................................41

OUR OPERATIONS AND ACCOUNTABILITY 57

Governance ........................................................................................................................................................................................................... 57

People....................................................................................................................................................................................................................... 65

Communication ................................................................................................................................................................................................ 79

Parliamentary services .................................................................................................................................................................................... 81

Deregulation ....................................................................................................................................................................................................... 81

Corporate support services ........................................................................................................................................................................ 83

External scrutiny .................................................................................................................................................................................................88

International labour organization ........................................................................................................................................................... 91

FINANCIAL STATEMENTS 93

APPENDIXES 169

1: Ecologically sustainable development .........................................................................................................................................169

2: Agency resource statements ..............................................................................................................................................................173

3: Advertising and market research ......................................................................................................................................................177

4: Corrections .....................................................................................................................................................................................................178

Acronyms .............................................................................................................................................................................................................180

Glossary .................................................................................................................................................................................................................181

List of figures and tables ............................................................................................................................................................................ 182

List of requirements .......................................................................................................................................................................................186

Index ........................................................................................................................................................................................................................188

vi | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

PORTFOLIO OVERVIEW at 30 June 2015

MINISTERS

Senator the Hon. Eric Abetz

Minister for Employment

The Hon. Luke Hartsuyker MP Assistant Minister for Employment

DEPARTMENT OF EMPLOYMENT Secretary: Renée Leon PSM

PORTFOLIO AGENCIES Asbestos Safety and Eradication Agency Chief Executive Officer: Peter Tighe

Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarer’s Safety, Rehabilitation and Compensation Authority Chief Executive Officer: Jennifer Taylor

Fair Work Commission General Manager: Bernadette O’Neil

Office of the Fair Work Building Industry Inspectorate Director: Nigel Hadgkiss

Office of the Fair Work Ombudsman Ombudsman: Natalie James

Safe Work Australia Chief Executive Officer: Michelle Baxter

Workplace Gender Equality Agency Director: Helen Conway

OUR DEPARTMENT | 1

OUR DEPARTMENT

The Department of Employment is responsible for national policies and programmes that help Australians find and keep employment and work in safe, fair and productive workplaces.

OUR VISION More Jobs. Great Workplaces.

Employment is central to the Australian way of life. Having a job provides financial security, enabling choice of investment in housing, education and health and enhancing self-esteem, social skills and self-confidence. We want every Australian to have the opportunity to get ahead and build a better life for themselves and their families, and for employers to have confidence to grow their businesses and hire new employees.

A great workplace is a productive workplace, where people contribute to the best of their ability and skills, and are able to do their jobs safely. In a productive workplace employees and managers are engaged and motivated to look for better ways to do their work. As well as being good places to work, these workplaces are generally more efficient and profitable.

Our vision is built on the government’s plans for stronger economic growth. By providing effective advice on policies that will create jobs, help job seekers into work and encourage great workplaces, the Department of Employment contributes to building Australia’s participation and productivity.

2 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

OUR ORGANISATIONAL STRUCTURE The department is structured to deliver its business through the Executive and groups. The department’s organisational structure at 30 June 2015 is shown in Figure 1.

Figure 1 Organisational structure at 30 June 2015

WORKPLACE RELATIONS AND ECONOMIC STRATEGY Sandra Parker Deputy Secretary

Workplace Relations Programmes Kylie Emery - Office of the Federal Safety Commissioner

- Fair Entitlements Guarantee

Work Health and Safety Policy Steve Kibble - Work Health and Safety Policy - Workers’ Compensation Policy

Workplace Relations Policy Alison Morehead - Wages Policy and Industries - Participation and International Labour - Framework Policy - Australian Representative to the ILO,

Geneva

Workplace Relations Legal Jeremy O’Sullivan - Bargaining and Coverage - Safety, Compensation and Institutions - Employment Standards

Economic Strategy Jo Wood - Evaluation, Research and Evidence - Economics - Workforce Strategies

Renée Leon PSM Secretary

CORPORATE SERVICES

People and Communication Vicki Rundle PSM - People - Communication - Audit and Parliamentary

Finance, Legal and Governance Jamie Clout - Finance - Assurance and Business

Services - Legal Services

SHARED SERVICES CENTRE

Secretary Employment (Chair)

Secretary Education

EMPLOYMENT Martin Hehir Deputy Secretary

Employment Services 2015 Taskforce Marsha Milliken

- Operations - Policy

Employment Services Support Anthony Parsons - Business Partnerships - Provider Support - Work for the Dole - Policy Cluster Finance and Coordination

Labour Market Strategy Margaret Kidd - Labour Market Research and Analysis - Labour Market Policy - Industry and International Strategies - Minister Counsellor (Employment) to

the OECD, EU, UNESCO and France

Job Services Australia Moya Drayton - Data, Reporting and Outcomes - Job Seeker Compliance - Job Seeker Operations - Job Seeker Programmes

Employment Systems Stephen Moore - Application Development - Employment Business Intelligence and

Technical Support - Job Seeker Development - Online Services and Transition

Development

State Network Helen Willoughby

SECRETARY’S REVIEW

Secretary for the Department of Employment Renée Leon

In the department’s first full year of operation we achieved substantial progress towards our vision of More Jobs. Great Workplaces. We did this working across the domains of delivery, collaboration, people and being forward-looking, as set out in our Strategic Plan 2014-2017.

We also provided responsive support to our portfolio ministers, the Minister for Employment, Senator the Hon. Eric Abetz, and the Assistant Minister for Employment, the Hon. Luke Hartsuyker MP, and the Australian Government as a whole.

Delivery The department is increasingly recognised for our ability to deliver robust policy advice, effective programmes and valued services in support of the government and the community.

The government’s new five-year model for employment services, jobactive, was prepared for launch on 1 July 2015 following the release of the tender in October 2014. The successful delivery of jobactive is a significant milestone in the department’s history, requiring years of preparation and development by many people. I thank Martin Hehir, Deputy Secretary, Employment, and everyone involved. The national Work for the Dole programme was also launched as part of jobactive with 53 forums held for potential host organisations in May and June. I am confident that we will achieve some excellent results for employers and job seekers through the innovative and client-focused improvements embedded in jobactive.

In September 2014 we were the lead agency in organising and hosting the successful G20 Labour and Employment Ministerial meeting in Melbourne. The department supported Minister Abetz in his role as chair, providing secretariat services for this logistically complex event. This was a welcome opportunity to showcase Australian employment and workplace relations policies and programmes internationally. The meeting contributed to strengthening global economic growth, improving international employment outcomes and boosting resilience in the face of future events affecting the labour markets of participating nations.

During the year we supported the government in the complex and dynamic area of workplace relations and I thank Sandra Parker, Deputy Secretary, Workplace Relations and Economic Strategy, for her leadership in these areas. We contributed to the government’s submission to the Fair Work Commission’s Annual Wage Review, and assisted Safe Work Australia to examine model work health and safety laws for red tape reduction opportunities.

OUR DEPARTMENT | 3

4 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Our exceptional governance structure—linking the corporate, strategic, business and individual performance plans—continues to enable the department to clearly outline our performance targets and how we will deliver against them at organisational, team and individual levels. Regular review of the structure and planning tools ensures ongoing effectiveness and reinforces our commitment to innovation in what we do.

Collaboration Collaboration is essential to being a high-performing organisation and I have asked all of the department’s employees to strengthen our collaborative efforts within the government sector and externally with the private, academic and community sectors.

I chaired the governance board of the Shared Services Centre during the year. The centre is an innovative development in public service administration and collaboration at the Commonwealth level, having been established in 2014 to share the corporate support and enabling services of the Department of Employment and the Department of Education and Training between the two partner departments and with other government agencies. The Shared Services Centre continues to expand the number of agencies served—most recently including the Department of the Prime Minister and Cabinet.

People A positive and connected culture and effective leadership are also crucial to a high-performing organisation. During 2014-15 we invested in the development of our current and future leaders to support them in being inspiring, honest, accessible, effective communicators and able to build respectful and lasting relationships with colleagues at all levels.

In November I was proud to present the inaugural Secretary’s Achievement Awards, recognising excellence in the work of our employees.

The state network undertakes a valuable and demanding role, including as our point of contact with many of our employment partners. I was very pleased to visit all state offices in the network through the year and personally acknowledge the excellent work underway.

In the department we consider Indigenous business is our business. We promote a positive culture of recognition and advancement, marking significant national events such as NAIDOC Week and using our Reconciliation Action Plan to engage all employees. Our active Indigenous staff committee is led by Indigenous Leader Rob Willmett and supported by our Indigenous Champion, Jo Wood. I was delighted to welcome five new Indigenous Australian Government Development Programme recruits to the department in November.

OUR DEPARTMENT | 5

Forward-looking Moving into 2015-16 we are building on our strengths in delivery by seeking further opportunities to use our expertise, capability and data in the service of the Australian community.

We are also maintaining our focus on implementing the Australian Government’s agenda of working with employers to create more jobs, ensuring job seekers are job-ready, fine-tuning the workplace relations system and improving return to work outcomes for injured workers. We continue to contribute to the government’s red tape reduction target.

As a department we are always looking for innovative ways to achieve our vision of More Jobs. Great Workplaces. We are forging a collective mindset of being thought-leaders in our areas of expertise, consciously embedding innovation into every aspect of our work through the implementation of an innovation framework. This will add to our already strong capability to respond rapidly to economic and social trends affecting Australian workforces, workplaces and job seekers.

In early 2015 the department participated in a voluntary capability review, facilitated by the Australian Public Service Commission. The report noted many areas of strength in our capabilities and highlighted possible areas where our abilities could be improved. At the time of publishing this report we are developing a capability improvement plan to address these findings and outline the possible benefits to be realised—I look forward to overseeing this process of growth and continuous improvement.

Finally, I thank everyone in the Department of Employment for the positive way they have approached their work during 2014-15 and the significant achievements made. I look forward to continuing to work with all employees and our partners to deliver more jobs and high-performing workplaces as we serve the government and, through it, the Australian community.

Renée Leon Secretary October 2015

6 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

OUR EXECUTIVE

The department’s Executive at 30 June 2015 Left to right: Vicki Rundle, Martin Hehir, Renée Leon, Sandra Parker and Jamie Clout.

SECRETARY Renée Leon Renée has been in the public sector for over 20 years, and in 2013 was awarded a Public Service Medal for outstanding public service to public administration and law in leadership roles in the ACT and the Commonwealth. She is qualified in arts and law and holds a Masters in Law from Cambridge University. Renée is a Fellow of the Australian Institute of Public Policy at the Australian National University.

Renée was appointed Secretary of the Department of Employment on 18 September 2013.

DEPUTY SECRETARY Workplace Relations and Economic Strategy—Sandra Parker Sandra began her public service career in the ACT education and training sector in 1994, moving to the Commonwealth in 1998. She has held various policy and programme positions in vocational education and training, social policy and workplace relations. She was the head of the Office of the Australian Safety and Compensation Council from 2005 to 2008. Before her current role, Sandra was Deputy Secretary for Employment at the former Department of Education, Employment and Workplace Relations.

DEPUTY SECRETARY Employment—Martin Hehir Martin took up the role of Deputy Secretary, Employment, in August 2014 after holding a Deputy Secretary role in the Department of Education and former Department of Education, Employment and Workplace Relations since 2012. Prior to this he held a number of senior positions across ACT Government agencies.

GROUP MANAGERS Corporate Services—Jamie Clout and Vicki Rundle Our corporate services are overseen by Jamie Clout (Group Manager, Finance, Legal and Governance) and Vicki Rundle (Group Manager, People and Communication).

OUR PERFORMANCE | 7

OUR PERFORMANCE

OUTCOME AND PROGRAMME STRUCTURE

Outcome 1

Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.

- Programme 1.1 Employment services

Outcome 2

Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

- Programme 2.1 Employee assistance - Programme 2.2 Workplace assistance - Programme 2.3 Workers’ compensation payments

8 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

OUTCOME 1

Martin Hehir Deputy Secretary, Employment

Outcome 1 aims to foster a productive and competitive labour market by developing and implementing policies and programmes that assist job seekers into work, meet employers’ needs and increase Australia’s workforce participation.

During 2014-15 the department focused on setting the agenda for employment services for the next five years. A major component of this work was designing the new employment services model— jobactive—to ensure its seamless implementation on 1 July 2015. This included developing new payment and performance arrangements and strengthening the mutual obligation framework to ensure that job seekers remain active and engaged while looking for work.

The department continued to provide efficient, effective support to Job Services Australia providers in the last year of operation of the Job Services Australia model, monitor labour market conditions in Australia, and provide quality policy advice to the government in order to maximise workforce participation and boost Australia’s productivity.

OUR PERFORMANCE | 9

MORE JOBS.

Highlights - In 2014-15 the Job Services Australia programme recorded its two-millionth job placement since it

began on 1 July 2009. - The department developed the new and innovative employment services model, jobactive, which on

1 July 2015 will replace Job Services Australia.

- The department established a new quality assurance framework for jobactive providers, for

implementation from 1 July 2015 as part of the jobactive Deed 2015-2020.

- The department successfully phased in the Work for the Dole programme in 18 selected areas across

Australia. Work for the Dole Coordinators began work nationally on 1 May 2015 and are part of jobactive. - The department provided policy advice to government on the development of the $330 million jobs

package, including a flagship Youth Employment Strategy, as part of the Growing Jobs and Small Business package announced in the 2015-16 Budget.

- The department organised the 2014 G20 Labour and Employment Ministerial Meeting, chaired by

Senator the Hon. Eric Abetz, Minister for Employment, in Melbourne during September. The group of international ministers reached agreement on key global issues such as female participation and workplace safety. - During 2014-15, 117 new employers committed to the Corporate Champions programme, bringing

the total number of employers assisted to 486.

Challenges The department prepared for the implementation of jobactive in addition to managing existing employment services and introducing Work for the Dole in 18 selected areas. Ensuring a smooth transition and continuity of services for job seekers and employers from Job Services Australia to jobactive was

a priority.

The challenge of ensuring that job seekers were in Work for the Dole places in a timely fashion during 2014-15 was addressed by communicating clearly with Job Services Australia providers about their contractual obligations and the benefits of the Work for the Dole programme to job seekers.

Labour market conditions continued to influence the success of job seekers in securing work and, as a result, Job Services Australia’s performance against key performance indicators. The department’s Survey of Employers’ Recruitment Experiences showed that recruitment conditions remained challenging for job seekers in 2014-15, with average applicant numbers well above levels recorded in previous years.

10 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Programme 1.1 Employment services

Farewelling Job Services Australia This was the final year of Job Services Australia, the Australian Government’s primary employment services programme available to all job seekers entitled to work in Australia. Starting on 1 July 2015, the programme is being replaced by jobactive.

Since Job Services Australia began on 1 July 2009, the department has contracted a total of 116 Job Services Australia providers, selected through a competitive tender process, and monitored and supported them as they delivered services to job seekers in more than 2000 locations across the country.

Over the six years of the programme, the government spent $8.2 billion and assisted more than 3.5 million job seekers. Job Services Australia recorded 2,281,734 job placements, of which nearly 970,000 achieved the 13-week employment and education outcome and more than 600,000 the 26-week outcome.

Job Services Australia had a strong focus on delivering services to a range of priority groups, including Aboriginal and Torres Strait Islander people, mature-age job seekers, youth job seekers, job seekers with disability, and culturally and linguistically diverse job seekers. Over the life of the programme, Job Services Australia recorded:

- 220,000 job placements for Aboriginal and Torres Strait Islander people

- 310,000 job placements for mature-age job seekers (aged 50 and over)

- 725,000 job placements for youth job seekers (aged under 25)

- 425,000 job placements for job seekers with disability

- 325,000 job placements for culturally and linguistically diverse job seekers.

Job seeker attendance rates at all appointments with employment services providers in 2014-15 increased by 2 percentage points on the previous year, from 65 per cent to 67 per cent. Changes to job seeker compliance arrangements led to a significant increase, from 65 per cent to 80 per cent, in attendance rates at reconnection appointments, which job seekers are required to attend in order to re-engage with their provider following an initial failure to attend.

See pages 25-30 for a summary and analysis of the programme’s performance against its deliverable and key performance indicators in 2014-15.

Preparing for the new employment services programme—jobactive Throughout 2014-15, the department worked on the development and implementation of the new employment services model, jobactive.

The introduction of jobactive on 1 July 2015 is part of the government’s overall commitment to building a strong and prosperous economy that promotes stronger workforce participation by working-age Australians and helps more job seekers move from welfare to work. This demand-driven programme will receive funding of over $6 billion over four years (from 2015-16 to 2018-19).

A network of providers has been contracted to deliver jobactive across Australia. They are a mix of large, medium and small, for-profit and not-for-profit organisations that are experienced in delivering services and support for job seekers and employers.

OUR PERFORMANCE | 11

MORE JOBS.

How jobactive will work There are five jobactive services:

- Forty-four jobactive providers will assist job seekers to find and keep a job and ensure employers are

receiving candidates that meet their business needs.

- Nineteen Work for the Dole Coordinators will source suitable Work for the Dole activities in the

not-for-profit and government sectors. These activities will help prepare job seekers for the work environment.

- Twenty-one organisations delivering the New Enterprise Incentive Scheme will help eligible job

seekers to start and run their own small businesses. Support includes accredited small business training, business advice and mentoring for up to 52 weeks as well as an allowance for up to 39 weeks. - Five Harvest Labour Services will gather information on vacancies from growers and supply eligible job

seekers to horticultural producers in regions that have a need for out-of-area harvest workers.

- The National Harvest Labour Information Service will continue to coordinate information about harvest

opportunities across Australia.

The jobactive programme is a new system that is more flexible and responsive to the needs of job seekers and employers. It has been designed to:

- ensure that job seekers better meet the needs of employers

- increase job seeker engagement by introducing stronger mutual obligation requirements

- increase job outcomes for unemployed Australians

- reduce prescription and red tape for service providers.

Launching jobactive Ms Sarah Henderson MP, Member for Corangamite, Senator the Hon. Eric Abetz, Minister for Employment, Prime Minister the Hon. Tony Abbott MP, and the Hon. Luke Hartsuyker MP, Assistant Minister for Employment, announcing jobactive on 31 March 2015 in Geelong, Victoria.

The jobactive performance framework will emphasise achieving sustainable employment outcomes and ensuring that job seekers are satisfying their mutual obligation requirements. For the first time, collaboration between providers and contractual compliance will also be recognised through the star ratings model.

12 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Star ratings Under Job Services Australia, star ratings were used by:

- job seekers to compare the performance of providers in their local area

- providers as a measure of their performance

- the department to drive improved performance and allocate business share to providers.

Star ratings will continue to be used in the delivery of jobactive, enabling the department to monitor the performance of providers based on what providers could reasonably be expected to have achieved, given the unique set of job seekers they assist in their specific labour market.

The ratings measure the relative performance of providers against contractual performance measures. The main focus is on efficiency—the average time taken by a provider in comparison with other providers to assist participants into employment—and effectiveness—the proportions of participants for whom placements and outcomes are achieved.

The star ratings model calculates a performance score for each site across Australia and uses those scores to calculate a national average performance score. Star ratings are then allocated by comparing the scores for individual sites to the national average. For example, sites that are 40 per cent or more above the national average are allocated five stars.

Quality assurance framework During 2014-15 the department developed and established a new quality assurance framework for implementation from 1 July 2015 as part of the jobactive Deed 2015-2020. The introduction of certification of jobactive providers recognises that the quality of service delivery is integral to provider performance.

All jobactive providers will be required to be certified within the first year of the programme. The service guarantee reflects the government’s expectations of jobactive providers, stating the minimum level of service each job seeker can expect to receive as well the requirements they need to meet while looking for employment.

The jobactive service guarantee defines the nature and frequency of services to be provided to job seekers to ensure that they receive quality, personalised assistance.

To complement service guarantees, each jobactive provider is required to publish service delivery plans setting out, for the information of job seekers and employers, the additional services that job seekers and employers can expect to receive. The department will also use the plans to measure the tender commitments of providers against services actually delivered. The last of the plans were finalised in May 2015 and they can be viewed on the service page for each provider on the Australian JobSearch website.

The mutual obligation framework for job seekers has been simplified and extended to ensure job seekers remain active and engaged while looking for work. Job seekers with mutual obligation requirements will generally need to enter into a job plan with their jobactive provider setting out all the activities they are required to undertake to help them find work.

OUR PERFORMANCE | 13

MORE JOBS.

The new employment services system is less prescriptive and will allow jobactive providers to be more innovative and explore new ways to support job seekers to gain the skills and attributes that employers need. Also, to encourage greater efficiency through economies of scale, 51 employment regions will replace the 110 employment service areas under Job Services Australia. There will be, at most, seven jobactive providers in an employment region.

Preparing for implementation Throughout 2014-15, the department worked on programme design, IT development, brand design, communication and stakeholder engagement and training to prepare for the introduction of jobactive.

JobSearch website development The department made a range of modifications to the Australian JobSearch website to support the introduction of jobactive and improve the focus on providing job seekers with the tools they need. A dashboard provides job seekers with information about their search history, résumé updates and

employment services providers, as well as a number of self-help tools. In some cases, employment services providers can access data through the dashboard, enabling them to provide tailored services to and initiate discussions with job seekers.

As part of these changes, in December 2014 JobSearch moved to using myGov as the sign-in system for job seekers. All job seekers are now required to use myGov to access their JobSearch accounts. This change reflects the department’s ongoing commitment to provide best-practice online security and simplify access to government services online. By 30 June 2015, more than 70,000 job seekers had linked their JobSearch accounts to myGov.

In December 2014 the department released a new and improved Job Seeker JobSearch app. The app allows job seekers to enjoy the benefits of the JobSearch website on the go. It is available for free from the Google Play Store and Apple App Store, and since its release it has been downloaded more than 53,000 times. In early July 2015, the department is scheduled to release a new Employer jobactive app. This app will allow employers to create and manage vacancies, find potential candidates and find

employment services providers on the go.

On 27 June 2015, the upgraded website was rebranded ‘jobactive, powered by JobSearch’.

Job Seeker Classification Instrument The Job Seeker Classification Instrument is used to measure a job seeker’s relative difficulty in gaining and maintaining employment and helps identify the level of support they will need to help them find work. Job seekers must have an assessment when they first register for Australian Government employment

assistance, and whenever their circumstances change.

The Job Seeker Classification Instrument uses 18 factors and a number of sub-factors that have been identified—through ongoing formal research, expert advice and consultations—as having a significant relationship with a job seeker’s likelihood of remaining unemployed for another year. These factors include age and gender, educational attainment, English proficiency, geographic location, and disability or medical conditions.

During the year, the department re-estimated the Job Seeker Classification Instrument; the results will be implemented in jobactive from 1 July 2015.

14 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

The jobactive procurement process The department released an exposure draft of the purchasing arrangements for the jobactive programme on 28 July 2014. Sixteen information sessions were held nationally to allow the public to provide feedback before the release of the request for tender in early October 2014. A further 14 sessions were held to

explain the requirements of the tender, including the procurement process. The Employment Services Information Hotline—a dedicated hotline available to tenderers throughout the procurement process— responded to approximately 900 calls and emails between the release of the exposure draft and the announcement of tender results.

Robust and transparent governance arrangements were developed to support staff during the procurement process. As a matter of best practice and to ensure compliance with the Public Governance, Performance and Accountability Act 2013, an external probity adviser was appointed to oversee the process. This ensured the process was conducted transparently, including that interested parties were treated fairly

and that information was communicated consistently and uniformly.

After tenders closed, staff evaluated the submissions and conducted financial viability checks. Recommendations from the evaluation were reviewed by a specialist committee comprising senior departmental managers and state office managers. The recommendations from the committee were then presented to the delegate, the department’s Deputy Secretary, Employment, Martin Hehir, for decision. Outcomes of the procurement were announced on 31 March 2015, and 66 jobactive deeds and 19 deeds

for Work for the Dole Coordinators were dispatched.

The department offered debriefing sessions for all successful and unsuccessful tenderers; 88 organisations requested a debriefing.

Transition arrangements The department established comprehensive transition arrangements to support the smooth transfer from Job Services Australia to jobactive and minimise disruption for job seekers, employers and providers.

A number of strategies were implemented to help job seekers understand the transition process and let them know what to expect under the new arrangements. Registered Job Services Australia job seekers were notified about the changes through two advices. The first was sent in April 2015 to provide general information about jobactive and the transition process. The second was sent in late May and early June 2015 to advise job seekers of their status under the new arrangements, and provide the details of their new

jobactive provider, steps they could follow to change their provider, and how to get more information. The department also published fact sheets and information for job seekers on its website.

After the successful tenderers were announced, a dedicated Transition Hotline was set up to respond to job seeker queries. The department also released a number of online tools to support job seekers through the transition process. For example, new functions were added to Australian JobSearch so that job seekers could see which jobactive provider they were transitioned to and select a different provider.

The department provided extensive support to jobactive organisations, including releasing guidelines and learning centre modules. Webinar sessions were also held that provided detailed information about jobactive and its IT system. A national forum was held in April 2015 for organisations delivering jobactive in order to build connections and encourage collaboration.

OUR PERFORMANCE | 15

MORE JOBS.

Work for the Dole From 1 July 2014, the department phased in a new Work for the Dole programme in 18 selected areas across Australia. Job seekers aged 18 to 29 years who were registered with a Job Services Australia provider in the selected areas and who had a work experience activity requirement were required to participate.

The Work for the Dole programme is designed to help job seekers gain the skills and experience they need to move from welfare to work, while at the same time making a positive contribution to their local community.

From 1 July 2014 to 30 June 2015, more than 26,700 Work for the Dole places were created in the department’s database. This corresponds to around 4200 Work for the Dole activities, and more than 25,500 commencements in those activities. The Work for the Dole programme has achieved 92 per cent of its expected number of commencements (27,709) and 135 per cent of its expected number of places

sourced (19,792).

The department is in the process of evaluating the 2014-15 programme to identify learnings, drawing on feedback from the state network and Job Services Australia providers. The department also conducted work health and safety audits and surveyed participants, providers and host organisations.

Work for the Dole Coordinators under jobactive commenced in each of the 51 employment regions on 1 May 2015, following a competitive tender process. They started early so that they could work with local not-for-profit organisations to source Work for the Dole places for the commencement of jobactive on 1 July 2015.

Work for the Dole participants restore RSL hall After hearing about Work for the Dole, members of the Bangalow RSL Branch in northern New South Wales sought assistance from the programme to refurbish the Bangalow RSL Hall. The local community used the hall for a range of activities—such as the local darts club, performances by the

local public school, dance and yoga classes, social and fundraising events, and community group meetings—but it was in urgent need of an upgrade.

The project started with a group of 10 Work for the Dole participants, expanding at its peak to 15. The local community was quick to embrace the project and its participants, and local RSL members were soon daily visitors to the site. A number of the members were retired tradespeople and took on a mentoring role, sharing their significant technical knowledge and skills with participants.

The work included internal and external painting, sanding and polishing timber floors, installing a new ceiling in the kitchen, creating an outdoor memorial area and cleaning up the garden, building a covered outdoor eating area and refurbishing the toilet block. Participants learned about the use of power tools, painting techniques, working in a team, workplace health and safety, and basic construction.

The refurbishment was completed in time for Anzac Day 2015 celebrations. The hall is now regularly booked for functions and events and is a valued facility in the local community. Six of the Work for the Dole participants have since gained employment or moved into further study, and the others have moved on to other activities.

16 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Work for the Dole participants restore local waterways in Bundaberg, Queensland Saltwater Creek in Bundaberg is an integral waterway for the surrounding ecosystem. Native animals and the water quality of Baldwin Swamp, and ultimately the Burnett River, all rely on the

creek’s ability to function. The creek runs through residential and industrial areas of Bundaberg, and in recent years had become clogged with noxious vegetation and rubbish transported by floodwater in 2013, as well as illegal dumping.

Recognition of the need for regeneration of this important tributary and expansion of the Baldwin Swamp Environmental Park resulted in the creation of a Work for the Dole activity—the Saltwater Creek Rehabilitation Project. Initiated by Work for the Dole Coordinator Mission Australia, the project started in early 2015.

Bundaberg Landcare teamed up with a Job Services Australia provider to work on removing weeds and rubbish, expanding the environmental park to strengthen the local ecosystem, and enhancing the community space. Eight job seekers participated in the activity and achieved a range of outcomes, including acquiring skills in nursery and pest management and bush regeneration, experience working alongside others and employment.

The project succeeded in its goals of regenerating the region and providing job seekers with meaningful agricultural and horticultural foundation skills. The creek and its banks were cleared of environmental and health hazards, and more than 300 trees were planted to expand the riparian buffer zone. This work will improve connectivity of the creek ecosystems, provide more habitat for native wildlife, and contribute to improved water quality in the region.

The project is an example of how collaboration between local organisations, employment services providers and a Work for the Dole Coordinator can achieve long-term results for individuals and communities.

New Enterprise Incentive Scheme In 2014-15 the department’s New Enterprise Incentive Scheme supported the establishment of 5946 small businesses. The scheme provides accredited small business training, business advice and mentoring to eligible job seekers who are interested in starting and running a small business. Once their business has started, the job seekers are eligible for an allowance (equivalent to Newstart) to support them into sustainable self-employment. In 2015, the New Enterprise Incentive Scheme celebrated its 30th anniversary.

Since its establishment in 1985, the New Enterprise Incentive Scheme has helped around 150,000 people establish their own small businesses. In the process they have developed new business opportunities and created jobs for themselves and other job seekers.

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The New Enterprise Incentive Scheme will be streamlined and continue under jobactive with 21 providers delivering services nationwide. Organisations contracted directly by the department will arrange small business training for job seekers interested in starting a new small business and provide business mentoring and coaching to participants accepted into the scheme.

Dave Court at his store, Created Range.

New Enterprise Incentive Scheme delivers winning results in South Australia Dave Court, a 23-year-old job seeker from South Australia, established his Adelaide-based street-wear clothing label ‘foolsandtrolls’ after completing a Certificate IV in Small Business Management.

He received mentoring and assistance through the New Enterprise Incentive Scheme while he was studying, and successfully completed his programme in April 2015.

Dave’s products are manufactured in Adelaide, using Australian woven fabric, and the business has received certification from Ethical Clothing Australia for its ethically and environmentally responsible products.

Dave has since consolidated his award-winning business by supporting others to realise their dreams in clothing design. Passionate about promoting South Australian clothing designers, Dave now showcases young artists and designers in his independent boutique fashion store, Created

Range. He was the 2014 winner of the Career Kick Start Award in the South Australia Channel 9 Young Achiever Awards.

With his strong emphasis on art and design, Dave has also received commissions to paint murals and has exhibited at art shows, festivals and galleries. In 2014 Dave received the Best Social Innovation and Cultural Initiative Award in the Renew Adelaide Awards and was selected to exhibit in the Helpmann Academy Graduate Exhibition.

18 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Harvest Labour Services The department contracts providers of Harvest Labour Services to help growers supplement local labour with out-of-area workers. Harvest Labour Services providers filled approximately 18,600 harvest labour positions in 15 harvest areas throughout Australia in 2014−15.

As part of jobactive, five Harvest Labour Services providers will serve 11 harvest areas—Kununurra, Top End, Tablelands, North Burnett, Southern Queensland, Riverina, Goulburn Valley, Mid Murray, Sunraysia, Riverland and Adelaide Hills.

Indigenous mentoring pilot The department designed and implemented the Indigenous mentoring pilot to test whether culturally appropriate mentoring support improves employment sustainability for Indigenous job seekers. Between 1 July 2012 and 30 June 2015, 2784 Indigenous job seekers participated in the pilot. The department is

developing a fact sheet for jobactive providers to build on the lessons learned from the pilot in order to increase employment outcomes for Indigenous job seekers.

Relocation Assistance to Take Up a Job The department administers the Relocation Assistance to Take Up a Job programme, which started on 1 July 2014. The programme replaced the previous labour mobility programme, Move 2 Work, which ceased on 30 June 2014.

The programme provides practical and financial assistance to long-term unemployed job seekers who relocate to take up ongoing employment. Eligible job seekers who are registered with employment services providers can receive assistance of up to $6000 when they move to a regional area or up to $3000 if they move to a capital city for a new job. Families with dependent children can receive up to an extra $3000 of assistance. A total of 477 job seekers (401 from Job Services Australia and 76 from Disability

Employment Services) were assisted under the programme during 2014-15.

Tasmanian Jobs Programme The department implemented changes to the Tasmanian Jobs Programme to provide a stronger incentive for employers to hire eligible job seekers into sustainable, ongoing employment. Placements for the programme are delivered through employment services providers.

Any Tasmanian business that employs eligible job seekers on a full-time basis for at least six months is now eligible to receive $6500 (previously $3250). In addition, any Tasmanian business that employs eligible job seekers in part-time work (with a minimum of 25 hours per week) for at least six months is eligible to receive $3250. To be eligible, a job seeker must have been resident in Tasmania for the preceding six months, received an eligible income support payment for the same period and had participation requirements.

Since the changes came into effect on 13 May 2015, there has been an 8.2 per cent increase in job seekers gaining employment through the programme.

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Don Pears (left) and Eamonn Regan from Clifton Fine Furniture.

Tasmanian Jobs Programme helps job seekers and small businesses The Tasmanian Jobs Programme has helped businesses and job seekers in Tasmania. The Tasmanian Cask Company makes casks for the distillery industry. The company took on a job seeker who was

registered with Workskills Incorporated, a longstanding employment services provider in Tasmania. The company was pleased to be one of the first employers to benefit from the enhanced Tasmanian Jobs Programme and receive a wage subsidy of $6500.

Clifton Fine Furniture is an award-winning furniture manufacturer in the Launceston area. Don Pears from Clifton Fine Furniture recognised the value of mature-age and experienced workers, and was able to use subsidies from both the Tasmanian Jobs Programme and the Restart programme (available to mature-age job seekers) to take on an additional employee. The new employee,

Eamonn Regan, was the one-thousandth Restart sign-up.

Job Commitment Bonus The department worked closely with the Department of Human Services to implement the Job Commitment Bonus on time and to the parameters agreed by government. The Job Commitment Bonus provides an incentive for young Australians aged 18 to 30 years to find a job, keep it and stay off welfare. An

eligible young Australian who has been on Newstart or Youth Allowance as a job seeker for 12 months or more will receive a Job Commitment Bonus payment of $2500 if they find a job and stay off welfare for 12 months. They will receive a further payment of $4000 if they remain in work and off welfare for another 12 months (24 months altogether). The initiative started on 1 July 2014 and the first payments will be

available from July 2015.

20 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Youth Employment Strategy—Transition to Work A key feature of the Growing Jobs and Small Business package, announced as part of the 2015-16 Budget, is the Youth Employment Strategy—Transition to Work programme. The programme will provide intensive pre-employment assistance to young job seekers aged 15 to 21 years who have completely disengaged

from work or education, are at high risk of becoming long-term unemployed and require more intensive assistance. Intensive pre-employment assistance will improve the work-readiness of participants so they can gain employment, move into education or participate effectively in jobactive.

The department consulted with employers and the welfare sector in 2014-15. Transition to Work services will commence progressively across employment regions from January 2016.

Intensive support for vulnerable job seekers During 2014-15, the department worked closely with a range of government agencies, including the Department of the Treasury and the Department of Social Services, to develop policy underpinning the employment measures announced in the 2015-16 Budget that focus on making job seekers more employable, reducing the costs to businesses of taking on new staff, and ensuring job seekers are meeting their obligations and actively looking for work.

The 2015-16 Budget also included two new programmes, targeted at assisting young people who are at greatest risk of long-term welfare dependency to become job-ready and find employment.

The Innovative Youth Trials will provide grants to community and non-government organisations to trial innovative and localised programmes to help around 10,000 young people at high risk of welfare dependency to find a job. The programme, worth $55 million, is due to begin in January 2016.

The Supporting Parents to Plan and Prepare for Employment programme, worth $90.6 million, will continue the most successful elements of the Helping Young Parents and Supporting Jobless Families measures, which are in the trial phase. It will provide early intervention for parents with a focus on getting them job-ready earlier and, in particular, by the time their youngest child goes to school. The department has extended the existing trials to 31 March 2016 (they were due to end on 30 June 2015), at which point they will transition to the new programme.

The Helping Young Parents measure works on a compulsory model of activity participation, while Supporting Jobless Families involves voluntary activity participation. Results from the Helping Young Parents interim evaluation have demonstrated that parents are completing Year 12 or equivalent qualifications and children are participating in early childhood development activities at a higher

proportion than a comparison group:

- The Helping Young Parents trial participants’ attainment rate of Year 12 or equivalent is 11.9 per cent

compared with 4.2 per cent attainment for the comparison group.

- A significantly larger proportion of the Helping Young Parents trial participants were using a childcare

service compared with the comparison group (8.3 percentage point difference).

The voluntary nature of the Supporting Jobless Families measure makes it more difficult to determine specific outcomes achieved as parents are under no obligation to report their level of participation in activities to the Department of Human Services. The Supporting Parents to Plan and Prepare for Employment programme will continue, and from 1 April 2016 will place a compulsory activity requirement on the parents in the programme.

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Seasonal Worker Programme The department led the whole-of-government implementation of the Seasonal Worker Programme, a low-skilled seasonal migration programme with an aid objective involving Pacific Island countries and Timor-Leste. The department manages agreements with participating employers, engages with industry,

and manages relationships with officials in partner country governments.

During 2014-15 the department worked with industry stakeholders to extend the programme’s reach. Fifty-nine employers are now approved to participate in the programme. In 2014-15, there were 3177 seasonal worker placements and 1346 seasonal workers undertaking Australian Government-funded skills training. The department also negotiated and entered into an agreement with the Republic of Fiji for its

participation in the programme.

Following an announcement by Senator the Hon. Eric Abetz, Minister for Employment, the department worked to provide the horticulture sector with additional programme places in response to increasing demand.

The department convened the second Seasonal Worker Programme conference in August 2014, which attracted strong participation by industry and international officials. The biennial conference provides an opportunity for participants and stakeholders from partner countries, employers, registered training organisations and other Australian government agencies to share knowledge and discuss challenges. Before the conference, the department hosted nine partner country delegates on a visit to Queensland

farms, where they viewed work demonstrations.

The department provided policy advice to the government on changes to the programme resulting from the white paper on developing northern Australia, and prepared to implement the changes in 2015-16. This includes uncapping the number of programme participants; concluding the trial of arrangements in the accommodation, aquaculture, cane and cotton sectors and rolling them into the ongoing programme;

expanding the programme to include other occupations in the agriculture industry; and increasing flexibility for employers. The department also started preparing for the rollout of a trial of other seasonal labour mobility arrangements in the northern Australian tourism industry in 2015-16.

Mature-age employment As the Australian population ages, it is now more important than ever to foster workforce participation by encouraging experienced workers to remain in the workforce and pass their skills and knowledge on to others. The department, through the Restart and Corporate Champions programmes, provides support for

mature-age job seekers, and their employers, aimed at keeping mature-age Australians engaged in the workforce.

22 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Restart The Restart programme, which began on 1 July 2014, provides a wage subsidy of up to $10,000 to employers that employ mature-age job seekers who have been unemployed and on income support for at least six months.

Restart is delivered through employment services providers, who play an important role in promoting the wage subsidy to employers and mature-age job seekers. They refer suitable candidates to employers, enter into Restart agreements and manage the payments.

As at 30 June 2015, a total of 1735 mature-age job seekers had been placed into jobs through Restart.

The department consulted with stakeholders about ways to improve the programme and increase take-up of the wage subsidy. Feedback from the consultations contributed to the development of changes to Restart announced in the 2015-16 Budget. The changes include payment of the subsidy over 12 instead of 24 months from 1 November 2015. Large employers that take on 10 or more mature-age job seekers will

also be able to negotiate the timing of payments to help meet the up-front costs associated with hiring multiple employees, such as group training and induction.

Restarting a Career The Restart programme has provided an opportunity for a mature-age job seeker who lacked confidence in returning to the workforce, had low job search computing skills and was unsure about what he wanted to do. His employment consultant booked him into Job Services Australia

provider Direct Recruitment’s training programme, ‘Marketing Me’, which is designed to increase job seeker confidence and develop skills in looking for and applying for jobs. The programme gave the job seeker skills in interview preparation, which increased his confidence in the interview process.

The job seeker, keen to get back into the workforce and happy to be referred to any suitable position, interviewed for and was successful in gaining a role with a camper manufacturing company in his local area. With duties such as general assembly and refitting of motor homes, the position enabled him to use his prior experience and skills. Direct Recruitment negotiated the Restart agreement and provided the company and the job seeker with post-placement support.

Before gaining the job, the job seeker had been unemployed for more than two years. After an initial struggle with some elements of returning to work, he overcame these challenges and now loves the work he is doing and is recognised as a great employee who is committed to his role.

Corporate Champions The Corporate Champions programme supports employers to move towards best practice in their recruitment and retention of mature-age staff (aged 45 years and over). The programme assists employers with assessing their workplace strategies and developing action plans to improve their workplace practices.

It also provides wage subsidy assistance and information on topics such as positive age management and career planning.

During 2014-15, the department facilitated and participated in 20 seminars for employers and employment services providers across Australia to increase awareness of the benefits to business of employing mature-age people and the government assistance that is available.

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Corporate Champions are employers that have agreed to demonstrate leadership in the recruitment and retention of mature-age workers. Endorsed Corporate Champions employers receive up to $20,000 worth of tailored support and assistance from an industry expert. As at 31 May 2015, 486 Corporate Champions employers had been endorsed under the programme.

The department ran a national advertising campaign to complement the Restart and Corporate Champions programmes and to raise awareness of the positive contributions mature-age workers make to the workforce.

The industry with the largest number of Corporate Champions is health care and social assistance; it is also the industry with the largest mature-age workforce and is expected to be a growth industry in coming years.

State network The department’s state network has a presence in all capital cities and in eight regional centres across Australia and employed 382 staff as at 30 June 2015. The network is responsible for the frontline delivery of the department’s employment programmes, and network employees maintain strong relationships with

employment services providers and employers. The network’s functions include contract management, policy development and implementation, stakeholder engagement and local labour market research. The network also has strategic relationships with other stakeholders, including the Department of Social Services, the Department of the Prime Minister and Cabinet and other Commonwealth, state, territory and

local government organisations.

In 2014-15 a major part of the state network’s work was managing the transition from Job Services Australia to jobactive. The tender assessment process represented a significant additional body of work— 134 network staff were directly involved in the process. The network also continued to deliver its core contact management business during this period. After the successful tenderers were announced, the

network worked with the department’s policy and programme areas and employment services providers to ensure a smooth transition for employers, job seekers and other stakeholders to jobactive. The network also contributed to the planning of jobactive policy by being actively involved in targeted policy working groups throughout the year.

Employment support officers from the state network supported the introduction of Work for the Dole in 18 selected areas across the country in July 2014. The officers were responsible for the initial implementation of the programme. They worked closely with the programme area in the department’s national office on ongoing programme design, and worked with employment services providers to ensure

commencements and successful collaboration between providers and host organisations.

Following a competitive tender process, Work for the Dole Coordinators were appointed to the lead role in developing and delivering places; they began delivering services in August 2014. The programme is proving highly successful in providing young job seekers with work-like places, targeted at building their work experience and capabilities.

In preparation for the start of jobactive and the national rollout of Work for the Dole, the state network held Work for the Dole forums for host organisations across the country during May and June 2015. More than 2200 individual registrations were received from 960 organisations for 53 separate locations. The forums were highly successful in engaging with local stakeholders to build community awareness of jobactive, the

national implementation of Work for the Dole from 1 July 2015 and the benefits of the programmes.

24 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

The state network is also responsible for managing the National Customer Service Line. The service line receives and responds to job seeker enquiries related to government-funded employment services, including jobactive, Disability Employment Services, the Remote Jobs and Communities Programme and Job Services Australia. In 2014-15 the service line received more than 94,000 calls, up from 45,500 calls in

2013-14. The increased call volume was a result of the transition from Job Services Australia to jobactive and the new job seeker compliance arrangements. Further information about the department’s customer service line is on page 39.

Robert Willmett, Queensland State Manager and Indigenous Leader; Lennett Sandy, Australia Post; Melinda Shekle, Western Australia state office; and Ian Richards, Western Australia State Manager, at the Western Australia state office forum, June 2015.

‘Changing it up’ for reconciliation A Western Australia state office forum held during Reconciliation Week was a great way to promote the achievement of higher employment outcomes for Indigenous job seekers. Held in June 2015 and facilitated by the department’s Indigenous Leader, Robert Willmett, the forum demonstrated

the 2015 Reconciliation Week theme of ‘Change It Up’. The state office co-hosted the forum with Crown Perth.

The forum brought together significant employers, such as Woolworths and Australia Post, with employment services providers, all of whom have a common interest in Indigenous employment. Employers took the opportunity to share what they have done to engage, retain and develop Indigenous staff, as well as what both they and employment services providers could improve in the future. The employment services providers shared information on their service offers and plans

for Indigenous employment. Ivan Neville from the department’s Labour Market Research and Analysis Branch gave a presentation on challenges and opportunities for Indigenous job seekers in the labour market.

Forum participants heard an inspirational address from Rosemary May, a young Indigenous Australian who is building a career with the Crown Group. Her success came after being referred by, and receiving assistance from, an employment services provider.

Crown’s Group Manager of Indigenous Employment, Sean Armistead, reflected that, ‘Although everyone should be proud of what had been achieved to date, we all need to do more to ensure that we make progress in closing the gap’.

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Programme performance

In 2014-15, the department met or exceeded six of the 19 key performance indicator targets for Programme 1.1.

The subdued labour market continued to limit the number of job opportunities for job seekers in 2014-15—the final year of the Job Services Australia programme. Only 72 per cent of the headline annual 450,000 job placement target was achieved (see Table 1).

Table 1 Programme 1.1 deliverable

2013-14 2014-15 estimate 2014-15 actual

Job Services Australia 

Total job placements achieved 337,632 450,000 324,342

The strong influence of labour market conditions on achievement of targets is demonstrated by the close relationship between the department’s internet vacancy index and job placements in Job Services Australia, as shown in Figure 2. In general, the number of job vacancies increases as labour market conditions improve, which means there are more jobs to place job seekers into. By contrast, in subdued labour markets, vacancies fall, making it harder for job seekers to gain employment. This helps to explain why the annual job placement target was only achieved once during the six years of the Job Services Australia programme (in 2010-11).

Figure 2 Number of Job Services Australia job placements versus internet vacancy index, 2009 to 2015

0

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Nov-14 Aug-14

May-14 Feb-14

Nov-13 Aug-13

May-13 Feb-13

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May-12 Feb-12

Nov-11 Aug-11

May-11 Feb-11

Nov-10 Aug-10

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Number of job placements

Number of job advertisements

26 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Tables 2 to 6 show the department’s results for the key performance indicators for Programme 1.1 in 2014-15 and the previous year. The department met or exceeded seven of the 19 key performance indicator targets in 2014-15.

Under the Job Services Australia programme, fully eligible job seekers were assisted in one of four streams depending on their level of labour market disadvantage. The most job-ready job seekers were assisted in Stream 1, while job seekers with the most severe barriers to employment were assisted in Stream 4. For each stream, the department measured the programme’s effectiveness by the percentage of job seekers

moving into work or study or off benefit (Newstart or Youth Allowance (other)) three months after participation in the programme. Longer term off-benefit outcomes were measured 12 months after participation.

For 2014-15, the department amended the targets for five key performance indicators. The Stream 2 employment outcome and off-benefit targets were lowered, and the employment targets for Streams 1 and 3 were increased to reflect recent performance.

The proportion of job seekers achieving employment outcomes and moving off benefit was below targeted rates. However, job seekers moved into education and training at higher than targeted rates and the cost of moving job seekers into work was below target levels.

The department will report on a new range of performance measures and targets in 2015-16 to reflect the objectives of the jobactive programme.

Table 2 Cost per employment outcome for employment services delivered by Job Services Australia

Key performance indicator 2013-14 2014-15 estimate 2014-15 actual

Streams 1-3 $1,890 $3,000 $1,794

Stream 4 $6,971 $12,000 $7,177

Note: The cost per employment outcome for Job Services Australia is calculated as the cost of job seekers assisted divided by the number of job seekers employed (as measured through the department’s Post-Programme Monitoring Survey) in the reporting period.

Table 3 Proportion of job seekers in employment three months following participation in employment services

Key performance indicator 2013-14 2014-15 estimate 2014-15 actual

Stream 1 55.1% 60% 55.2%

Stream 2 41.2% 40% 39.5%

Stream 3 33.4% 35% 32.6%

Stream 4 23.6% 25% 21.8%

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Table 4 Proportion of job seekers in education or training three months following participation in employment services

Key performance indicator 2013-14 2014-15 estimate 2014-15 actual

Stream 1 22.5% 15% 21.1%

Stream 2 24.8% 15% 24.9%

Stream 3 22.6% 15% 23.1%

Stream 4 20.2% 15% 22.7%

Table 5 Proportion of job seekers off benefit three months following participation in employment services

Key performance indicator 2013-14 2014-15 estimate 2014-15 actual

Stream 1 50.1% 55% 47.2%

Stream 2 34.9% 40% 31.7%

Stream 3 21.9% 35% 20.1%

Stream 4 24.7% 30% 21.9%

Table 6 Proportion of job seekers off benefit 12 months following participation in employment services

Key performance indicator 2013-14 2014-15 estimate 2014-15 actual

Stream 1 63.5% 65% 61.9%

Stream 2 48.5% 50% 46.3%

Stream 3 32.9% 40% 31.0%

Stream 4 34.0% 35% 31.3%

The deliverable and key performance indicators presented in Tables 1 to 6 are based on departmental administrative and programme monitoring data. The department also measures the effectiveness of employment services through the following broad indicators:

- unemployment rates for disadvantaged groups

- the labour force participation rate and the employment-to-population ratio for people of workforce

age (15-64 years) - the average duration of unemployment per labour force member.

These broad indicators are based on Australian Bureau of Statistics data and so provide externally available indicators of performance. In addition to the effectiveness of employment services, the outcomes for these broad indicators also depend on economic and labour market conditions, so those two factors are described first, before the broad indicators are discussed.

28 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Economic conditions Both the global and Australian economies expanded at a moderate pace in 2014-15. In seasonally adjusted terms, Australia’s real gross domestic product grew by 2.0 per cent over the year to the June quarter 2015, which is higher than in Japan, but lower than in India, China, the United States and the United Kingdom.

The Australian economy is still in the slow process of a major economic transformation—away from growth led mainly by investment in mineral and energy resources to the broader-based drivers of activity in the non-resources sector. Over the past year, the volume of mining exports rose, while commodity prices and the terms of trade (the ratio of the export price to the import price) fell. Profits dropped by 7.2 per cent over the year to the June quarter 2015, and total compensation to employees (wages, salaries and supplements) rose by around 2.2 per cent over the same period. Overall, labour market conditions remained soft, and the unemployment rate was elevated.

Labour market conditions Against the backdrop of subdued global growth and below-trend economic activity domestically, the Australian labour market improved somewhat, although underlying conditions remained soft. For instance, the level of employment rose by 224,400 (or 1.9 per cent) between June 2014 and June 2015 to stand at a

record high of 11,768,600. Full-time employment increased by 133,500 (1.7 per cent) over the period to 8,156,200 in June 2015, also a record high. Part-time employment rose by 90,900 (2.6 per cent) to a record high of 3,612,400 in June 2015. The stronger growth in part-time work reflects, at least in part, a rise in underemployment, which increased by 104,200 (10.9 per cent) over the year to the May quarter 2015 (latest available data).

Employment growth was mixed across industries over the year to May 2015, with employment increasing in 10 industries and declining in nine. Professional, scientific and technical services recorded the largest gain, adding almost 100,000 new jobs to the economy over the past year. Solid increases were also recorded in Australia’s largest employing industry, health care and social assistance (up by 67,300), as well as in accommodation and food services (48,100), transport, postal and warehousing (24,700) and construction (23,500). Manufacturing employment fell by 9700, and the longer term outlook for manufacturing remains subdued, although the fall in the Australian dollar over the past year provided some relief. The largest fall in

employment was recorded in mining (down by 33,300), as the industry continues to transition from a construction phase to a less labour-intensive production and export phase and as projected future mining investment falls. A large decline in employment was also recorded in agriculture, forestry and fishing (20,200), but employment in the industry is projected to rise slightly in the medium term.

The level of unemployment increased by 10,500 (1.4 per cent) in 2014-15, while the unemployment rate fell marginally, from 6.1 per cent in June 2014 to 6.0 per cent in June 2015. The slight fall in the unemployment rate occurred in conjunction with a 0.1 percentage point increase in the participation rate, to 64.8 per cent in June 2015, although it remains below the peak of 65.8 per cent in November 2010.

Reflecting the underlying soft labour market conditions that continue to prevail, the level of long-term unemployment (people unemployed for 52 weeks or more) increased by 2900 (or 1.7 per cent) between June 2014 and June 2015, to 183,300. The level of very long-term unemployment (people unemployed for 104 weeks or more) also rose, by 9900 (or 12.6 per cent) to 89,000 in June 2015.

While youth labour market conditions improved slightly over 2014-15, the cohort remains disadvantaged. For instance, the level of youth employment increased by 33,000 (1.8 per cent) over the period, while the youth unemployment rate declined by 0.2 percentage point to stand at 13.3 per cent in June 2015, although it remains more than double the rate for all persons.

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Labour market conditions, while improving somewhat in the first half of 2015, are expected to remain reasonably soft. The latest Treasury budget forecasts are for employment to increase by 1.5 per cent in 2015-16, before rising to 2 per cent in 2016-17; Treasury expects the unemployment rate to reach 6.5 per cent in the June quarter 2016 before declining to 6.25 per cent in the June quarter 2017.

The department provides current labour market data for employment services providers and the general public through the Labour Market Information Portal website. Table 7 provides a five-year view of the variances in unemployment rates across segments of the labour force.

Table 7 Unemployment rates for disadvantaged groups, 2010-11 to 2014-15

Population group 2010-11 2011-12 2012-13 2013-14 2014-15

People from culturally and linguistically diverse backgrounds (15 years and older)a 5.7 5.7 6.3 6.7 6.8

Lone parents (with children aged under 15 years)a 11.4 11.1 11.9 11.6 13.2

People with disability (15-64 years)b na 9.4 na na na

Youth (15-24 years)c 11.4 11.4 11.9 12.6 13.7

Aboriginal and Torres Strait Islander Australians (15-64 years)d na na 20.9 na na

na = not available. Note: Data are for the financial year (July to June) and in original terms unless otherwise stated. Historical statistics reported in previous annual reports have been impacted by revisions made by the ABS to Labour Force Survey estimates, as a result of updated population benchmarks as released in Australian Demographic Statistics (cat. no. 3101.0). The currently quoted unemployment rate for Indigenous Australians is based on the full suite of responses to the 2012-13 Australian Aboriginal and

Torres Strait Islander Health Survey by the ABS. The unemployment rate for youth is in seasonally adjusted terms. Sources: a Australian Bureau of Statistics, Labour force, Australia, detailed—electronic delivery, July 2015, cat. no. 6291.0.55.001. b Australian Bureau of Statistics, Disability, ageing and carers, Australia: summary of findings, 2012, cat. no. 4430.0. c Australian Bureau of Statistics, Labour force, Australia, June 2015, cat. no. 6202.0, Table 17, seasonally adjusted. d Calculation based on figures from the National Aboriginal and Torres Strait Islander Health Survey, 2012-13, Australian Bureau of Statistics 2013, customised report.

Labour force participation rate and employment-to-population ratio for people

aged 15-64 years

The labour force participation rate refers to the proportion of the workforce-age population (people aged 15-64 years) that is either employed or looking for work. It is used to determine whether an increasing proportion of the population is working or looking for work and is a good indicator of the total supply of labour. However, it does not include those who are marginally attached to the labour force, such as

discouraged job seekers.

The employment-to-population ratio refers to the proportion of the workforce-age population that is employed. This ratio is influenced by both labour demand and effective labour supply factors. It is also a good summary indicator for measuring labour market performance relative to other countries, particularly those in the Organisation for Economic Co-operation and Development (OECD).

Australia’s trend employment-to-population ratio for workforce-age people increased by 0.5 percentage point over the year to June 2015, to 72.1 per cent (see Figure 3). The trend workforce-age participation rate also increased by 0.5 percentage point over the same period, and was 76.8 per cent in June 2015.

Figure 3 Labour force participation rate and employment-to-population ratio, people aged 15-64 years, trend data, June, 1978 to 2015

Per cent

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64

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78

Employment-to-population ratio Participation rate

Jun-2015

Jun-2013

Jun-2011

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Jun-2001

Jun-1999

Jun-1997

Jun-1995

Jun-1993

Jun-1991

Jun-1989

Jun-1987

Jun-1985

Jun-1983

Jun-1981

Jun-1979

Source: Australian Bureau of Statistics 2015, Labour force, Australia, June 2015, cat. no. 6202.0, Table 18.

Average duration of unemployment Changes in the average duration of unemployment per labour force member indicate the ability of unemployed people to find work. Figure 4 provides a time series for this measure in trend terms for the past 14 years. In the 12 months to June 2015, the average duration of unemployment per labour force member

increased marginally, from 2.6 weeks to 2.7 weeks.

Figure 4 A verage duration of unemployment per labour force member, June, 2001 to 2015

Weeks

0

1

2

3

4

Jun-15

Jun-14

Jun-13

Jun-12

Jun-11

Jun-10

Jun-09

Jun-08

Jun-07

Jun-06

Jun-05

Jun-04

Jun-03

Jun-02

Jun-01

Source: B ased on data from SuperTABLE Data Cube UM1 and Spreadsheet Table 01 in Australian Bureau of Statistics 2015, Labour force, Australia, detailed—electronic delivery, June 2015, cat. no. 6291.0.55.001. These statistics were seasonally adjusted and trended by the department.

30 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

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Industry and cross-agency collaboration The department recognises that collaboration and fostering positive relationships with internal and external stakeholders enables more effective delivery of our strategic priorities. During 2014-15 we worked with government at the Commonwealth, state, territory and local levels to share our knowledge and

expertise and gain critical information and assistance.

We take an active approach with stakeholders to ensure that programmes in the Employment portfolio are effectively contributing to the achievement of government priorities across whole-of-government challenges such as deregulation, rural and Indigenous affairs, disability services and responses to major crisis events.

Working in partnership to meet industry demand In the Northern Territory, the department worked in collaboration with the Department of Industry and Science, the Northern Territory Government, the Housing Industry Association and the provider STEPS Education and Training to address the skills shortage in Darwin’s building and construction industry. A tailored employment programme called Get Skilled was developed to upskill a group of job seekers for a

range of jobs in the building and construction industry, including trade assistants, apprenticeships and other entry-level positions.

The department brought together the Housing Industry Association, STEPS and Job Services Australia providers in Darwin to facilitate the implementation of the programme and encourage suitable referrals. The programme was embraced by Job Services Australia providers, who referred job seekers from across Darwin.

The programme was based on a holistic approach and involved eight weeks of industry-related literacy and numeracy training under the STEPS Skills for Education and Employment (SEE) programme, to ensure that job seekers with low language, literacy and numeracy levels developed skills to further their education and employment opportunities. The programme also involved units of a Certificate II in Construction and a one-day-a-week industry job placement. Participants were provided with additional placement support through their Job Services Australia providers.

Sixteen of the 20 participants successfully completed the employment programme, as well as SEE. Of these, two secured full-time employment in construction, two gained apprenticeships and three continued with further training. The programme is a good example of the success that can be achieved through collaborative approaches.

Industry, employers and training organisations working in collaboration produce positive outcomes for disadvantaged job seekers.

32 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Graduates of the fourth Sydney Metro West Rail Link pre-employment course with Helen Willoughby, NSW/ACT State Manager (second from left), and other key stakeholders.

Pre-employment training unlocks jobs for disadvantaged job seekers on the North West Rail Link In New South Wales, the state network worked with the NSW Government, TAFE Western Sydney Institute and local employment services providers to garner the support of major contractors on the North West Rail Link. The aim of the project is to assist employers to fill vacancies with locally based disadvantaged job seekers. TAFE Western Sydney Institute developed a series of pre-employment training courses to meet employer needs.

A 29-year-old job seeker was referred to the training course after being unemployed for three and a half years. Facing barriers including anxiety and low self-esteem, the job seeker reported that he was feeling demoralised and inadequate after several unsuccessful job applications. He grasped the opportunity of working in a hands-on environment and attended training every day. As his knowledge and skills in the industry grew, his confidence increased.

He graduated from the course and, after a series of interviews, started employment. He has been working full-time for several months and says that he is feeling happy and more confident, and his employer says that he is very impressed with his attitude and work ethic.

The results have been impressive—to date, of the 33 job seekers who commenced training, 95 per cent graduated and over 70 per cent gained employment. The fourth graduation of the course was held recently, where the department’s NSW/ACT State Manager Helen Willoughby spoke of the benefits of the course to all involved. ‘It is exciting to see the programme produce such great results for both job seekers and employers,’ Helen said. 

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Responding to community and industry needs In response to the restructuring occurring in the automotive industry, the department worked closely with the Department of Human Services, the Department of Education and Training and state governments to provide information and seamless support for retrenched automotive workers. Representatives from the department are part of a governance committee responsible for ensuring that retrenched workers from automotive manufacturing firms and relevant supply chains receive training, skills and career advice to help them become job-ready.

In 2014-15, the department conducted labour market, industry and employment services sessions for affected automotive workers in Victoria and South Australia. The department also managed four structural adjustment programmes—the BlueScope Steel Labour Adjustment Programme, the Textile, Clothing and Footwear Structural Adjustment Programme, the Automotive Industry Structural Adjustment Programme and the Forestry Industry in Tasmania Structural Adjustment Programme—to support workers who were made redundant.

Assistance for retrenched workers in the Geelong area During 2014-15, the department continued to assist unemployed people in the Geelong area. The area is undergoing a period of significant structural adjustment following the closures of a number of large-scale businesses in recent years, including Ford Australia and Alcoa.

The department continued to fund a Geelong employment facilitator to work with stakeholders— including the government, employers, employment services, training providers and the community sector—to identify and fund local projects and activities to generate employment opportunities and assist retrenched workers in Geelong. Activities have included job fairs; workshops on job-seeking skills, résumé

writing and interview skills; and taster programmes that enable retrenched workers to experience working in non-traditional industries such as the community sector.

Launceston jobs fair and workshop On 11 March 2015, the department held a jobs fair in Launceston, Tasmania, to promote employment opportunities and services to the local community. A total of 929 people attended the fair, which had 43 exhibitors and promoted around 230 local job opportunities.

Senator the Hon. Eric Abetz, Minister for Employment, launched the event with Eric Hutchinson MP, Federal Member for Lyons. The fair featured a range of exhibitors, including small and large employers, industry associations, government agencies, employment services providers, educational institutions and apprenticeship advisers. There were also information sessions on the local labour market and tips for writing a résumé.

Staff from the department’s national and Tasmanian state offices supported the event and talked with the community about departmental programmes and resources, including the benefits of the Tasmanian Jobs Programme and the Australian JobSearch website.

On 12-13 March 2015, the department hosted a joint Commonwealth, Tasmanian Government and OECD workshop on job creation and local economic development. The workshop brought together representatives from the OECD, employers, policy makers and other stakeholders to learn from international experiences and share local perspectives. The workshop sought to understand the challenges faced by employers in order to further support more and better quality jobs in Tasmania.

34 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Workforce participation policy

Disability Employment Services Although responsibility for managing the Disability Employment Services contract moved to the Department of Social Services (DSS) in 2013, the Department of Employment continues to closely liaise with DSS on matters relating to the delivery of the programme, such as data collection and sharing.

Support for job seekers with disability The department is an active contributor to the development of the Disability Employment Taskforce, established by the government in April 2015 and led by DSS. The taskforce is reviewing the effectiveness of the current range of support services for job seekers with disability, with a view to developing a new

national disability employment framework in 2016. The aim of the framework will be to improve employment outcomes for people with disability by developing a more flexible system of employment services that gives individuals more choices and control and better meets employer needs. Around 410,000 job seekers identified as having a disability are supported through employment

services at any point in time, with 220,000 of these job seekers supported through jobactive.

Work visas and migration programmes The department advised the government on portfolio interests in migration programmes and free trade agreements (including temporary entry commitments, labour market, workplace rights and government procurement) and other bilateral and multilateral international agreements and forums.

In May 2015, the department coordinated a whole-of-government submission to the Senate inquiry into the impact of Australia’s temporary work visa programmes on the Australian labour market and on the visa holders.

During 2014-15 the department also provided advice to the Department of the Prime Minister and Cabinet regarding a range of employment and labour market issues.

Research and evaluation Targeted research, analysis and evaluation activities underpin the department’s policy development and programme management work. These activities combine in-house expertise in administrative data systems and research and evaluation with the expertise and independence of external consultants.

In 2014-15, data from the department’s research and evaluation database and employment services system were used extensively in the development of jobactive, the next employment services model. The department’s ongoing survey programme continued in 2014-15.

Survey of Employment Services Providers The department conducted the annual Survey of Employment Services Providers in February and March 2015 and invited the managers of all sites in the Job Services Australia programme to participate in an online survey. A random sample of providers was also invited to participate in qualitative interviews. This information gives the department an insight into providers’ attitudes, perceptions and experiences of

interacting with the department, working with employers, servicing job seekers, the governance model, and the administration of government-funded incentives.

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Survey of Employers The department also ran the Survey of Employers in 2014-15. This survey is conducted every two years and seeks to better understand employers’:

- recruitment experiences and servicing requirements

- drivers of satisfaction and dissatisfaction with using government-funded employment services

providers and programmes - barriers to using government-funded employment services

- attitudes towards specific job seeker target groups.

Employers from across Australia are invited by the department to participate in the study, which has both qualitative and quantitative components.

Post-Programme Monitoring Survey The Post-Programme Monitoring Survey of job seekers assisted through employment services is a longstanding survey conducted by the department. Improvements to the survey will be implemented to support the monitoring of jobactive. In early 2015, a specialist statistical consultant provided advice on

various aspects of the survey to maximise its robustness and cost-effectiveness. An external consultant also undertook cognitive testing of the survey with job seekers to ensure that the questions asked are relevant and meaningful to participants and effective in obtaining a response.

Planning and design work also began for the evaluation of jobactive.

Survey of Employers’ Recruitment Experiences In 2014-15 the department surveyed more than 11,000 employers from 37 regions across Australia to identify how job seekers can better meet the needs of employers and connect with local opportunities. The Survey of Employers’ Recruitment Experiences collects information on employer demand for labour and skills, particularly looking at employers’ recent recruitment experiences and future recruitment intentions.

The survey regions included capital cities, the 18 Work for the Dole trial sites, northern Australia and other employment service areas where there has been strong interest in recruitment activity.

The survey findings, together with other labour market information, inform the development of strategies to better match job seekers with job opportunities. In 2014-15, as in 2013-14, the survey results show that, regardless of the strength of the local labour market, there are still opportunities for job seekers across all skill levels. The survey also provides insights into recruitment and identifies what employers are looking for

in job applicants and how job seekers, including young, Indigenous and mature-age people, can better connect with employment opportunities.

The department used the results of the surveys in reports and presentations at a wide range of events during the year, including:

- whole-of-government events attended by stakeholders such as employment services providers,

training organisations, federal and state departments and local councils to develop local solutions to regional employment challenges - careers seminars aimed at teachers, career advisers and students, which identify pathways from school

to work

- information sessions for employees of companies with large announced redundancies, including

Electrolux and Holden - events for employers and industry such as business breakfasts.

36 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

In 2014-15, the department delivered 66 presentations across the country. These presentations were attended by more than 4600 stakeholders who received targeted information on their local labour market and potential opportunities. Feedback from presentations was overwhelmingly positive and copies of the presentations and related information were widely distributed.

The Survey of Employers’ Recruitment Experiences reports and presentations are published on the department’s website at www.employment.gov.au/regionalreports and on the Labour Market Information Portal at http://lmip.gov.au.

Survey of Employers Who Have Recently Advertised To gain an understanding of employers’ ability to recruit the workers they need, and to identify current and emerging skill shortages, during 2014-15 the department spoke with more than 5000 employers and assessed a range of labour market indicators. The Survey of Employers Who Have Recently Advertised

assesses the labour market for around 100 skilled occupations, focusing mainly on professions and trades but also including a small number of management, technician and other occupations. The findings informed the department’s submission to the annual review of the Skilled Occupation List, which is used to guide Australia’s independent skilled migration programme.

The results of this ongoing research are published on the department’s website as analytical and statistical reports and listings of occupational shortages.

Australian Jobs 2015 Australian Jobs is the department’s annual report on trends in the Australian labour market. The 2015 edition was released in April 2015.

The report helps job seekers to understand where the jobs are and what employers look for when recruiting. It provides information to support people at all stages of their working lives, whether they are looking for their first job, returning to the workforce or transitioning between sectors.

Recognising the challenges that young and mature-age people seeking employment can face, the 2015 report includes an analysis of the labour market for these groups, identifying key employing industries and providing useful tips on looking for a job. It also highlights the importance of non-technical skills, like communication and teamwork, in gaining and keeping a job.

Around 90,000 copies have been distributed, providing a vital resource for secondary schools, Centrelink offices, tertiary education institutions and employment intermediaries, including newly announced jobactive organisations.

Australian Jobs is a highly regarded publication and feedback on the 2015 edition has been overwhelmingly positive.

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Monthly Leading Indicator of Employment The Leading Indicator of Employment, produced monthly by the department, provides advance warnings of whether employment is likely to grow faster or slower than its long-term trend rate of growth. The report anticipates movements through the use of a composite index of series that have been shown to lead

employment over the last two decades. For example, when the leading indicator is rising following a trough, employment may grow above its long-term trend rate of growth.

The indicator is designed to give advance warning of ‘turning points’ in employment trends. The average lead time of the indicator—or the time between a peak or trough in the indicator and the corresponding peak or trough in cyclical employment—is slightly over a year. A turning point in the indicator is said to be confirmed when there are six consecutive monthly movements in the same direction after the turning point. A rise or fall in the indicator does not necessarily mean that the level of employment will immediately rise or fall—rather, it implies that after a lag, the growth rate of employment may rise above or fall below its centred six-year trend rate of about 1.3 per cent a year.

In response to the effects of the global recession and structural economic changes on the Australian labour market, the department reviewed the components of the indicator, releasing the final results in November 2014. The department launched an improved version in January 2015, which should enable improvement in the predictive performance of the indicator while allowing a reasonable degree of continuity with the former version.

Engagement with international organisations The department makes a strategic investment in its international engagement. The three main goals are building the evidence base for domestic policy development and programme delivery, promoting an Australian Government view internationally and meeting our international obligations.

Australia holds membership in the OECD and the department is represented by a Minister-Counsellor (Employment). During 2014-15, the department participated in major OECD projects on social policies for youth, displaced workers, and mental health and work. The department’s contribution to the last project was in partnership with the Department of Social Services, with an international synthesis report published

in March 2015. An Australia-specific report is expected in late 2015.

In 2014-15, the department was active in the Asia-Pacific Economic Cooperation (APEC) forum, participating in a variety of projects to build employment and living standards. The 6th APEC Human Resources Development Ministerial Meeting, held in Vietnam in September 2014, focused on promoting quality employment and strengthening people-to-people connectivity in the region through human resource development. At the meeting, APEC members agreed on a new action plan for 2015-2018. The department also continued to chair the APEC Labour and Social Protection Network and participated in a high-level policy dialogue on human capacity development hosted by Papua New Guinea.

The department hosted visiting international delegations from both government and non-government organisations with an interest in Australia’s best-practice public employment system and policies. Delegations in 2014-15 included officials from the UK Department for Work and Pensions, the New Zealand Productivity Commission, the Singapore Ministry of Social and Family Development, and the Timor-Leste National Petroleum Authority and Secretariat of State for Vocational Training and Employment.

38 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

The Minister for Employment, Senator the Hon. Eric Abetz, with the Secretary of the Department of Employment, Renée Leon (right), and the co-chair of the G20 Taskforce on Employment, Margaret Kidd, at the G20 Labour and Employment Ministerial Meeting, September 2014.

G20 Labour and Employment Ministerial Meeting As G20 president in 2014, Australia steered a global agenda to strengthen economic growth and job creation. The department played an important role in ensuring employment was central to the agenda. During the year, the department hosted a series of G20 Taskforce on Employment

meetings, which provided the foundation for a strong G20 Labour and Employment Ministerial Meeting in September. The department led discussions with international counterparts on key global employment challenges, exchanging policy strategies and best practice in areas ranging from local job creation and skills mismatching, to safer workplaces and gender equity.

G20 Labour and Employment Ministers made progress on a number of key global issues, agreeing on strategies to prevent structural unemployment, create better jobs and boost participation. Ministers laid the groundwork for the G20 Leaders’ Summit in November 2015, at which there was agreement on a goal to substantially reduce the gender gap in labour force participation by 2025, and to take action to ensure young people are in education, training or employment.

‘We agree to the goal of reducing the gap in participation rates between men and women in our countries by 25 per cent by 2025, taking into account national circumstances, to bring more than 100 million women into the labour force, significantly increase global growth and reduce

poverty and inequality.’ Extract from the G20 Leaders’ Communiqué, Brisbane Summit, November 2014

A first for 2014 was the creation of G20 Employment Plans. Each G20 member outlined the challenges their labour markets face and the steps they will take to address those challenges across a range of policy areas. The plans are living documents—members will continue to develop and implement their employment plans in the years to come.

Hosting the G20 was a significant body of work, drawing in more than 200 staff from across the department and other agencies to advise on global issues and host ministerial delegations from more than 24 countries and the heads of international organisations.

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Customer service statistics In 2014-15, the department’s Employment Services Information Line and National Customer Service Line collectively handled more than 186,000 calls from the public about employment support services.

The Customer Service Line managed 39,501 Job Services Australia feedback items, including 12,222 complaints, 6491 requests for information and 16,692 transfers of job seekers between employment services providers (Table 8).

Table 8 Breakdown of feedback by type, 2014-15

Feedback type Percentage of total Number

Complaints 30.94 12,222

Requests for information 17.57 6,941

Transfers of job seekers 42.94 16,962

Other (e.g. compliments and suggestions) 8.55 3,376

Total 100 39,501

Table 9 Outcome 1 departmental outputs—client satisfaction

Performance indicator 2014-15 estimate 2014-15 actual

Level of satisfaction of service providers with contracted information and support 80% 89.4%

Outcome 1 cross-outcome work Each year, various areas of the department combine to provide input to the Australian Government’s submission to the Fair Work Commission’s annual wage review. The department’s contribution to the 2014-15 review included analysis of the current state of the labour market as well as developments for key

groups including youth, the long-term unemployed, lone parents, jobless families, and regional labour markets. See page 46 for more information on the review.

The department advised the government on portfolio interests related to the industry innovation and competitiveness agenda and the ongoing Tax White Paper process.

To support higher labour force participation, the department undertook economic research and analyses into a broad range of issues affecting the Australian labour market, and particularly disadvantaged job seekers.

The department has been active in developing its capability to apply behavioural economics approaches to support policy and programme design and implementation. By using behavioural economics as part of a broader evidence-based approach, the department can drive continued improvement in outcomes for Australian job seekers, employers, jobactive providers and employees.

40 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Innovation through collaboration Ex-offenders have one of the lowest employment outcome rates of all cohorts serviced by employment services providers. Ex-offenders often face more complex hurdles than any other job seekers because of the long periods of time they spent out of the workforce and real or perceived stigma associated with their criminal record.

Most pre-release prisoners are not currently eligible for services from an employment services provider—a complex situation that prompted the department to develop an innovative strategy. During 2014-15 two areas within the department—the Job Seeker Programmes Branch and the Evaluation, Research and Evidence Branch—partnered with the Victorian State Department of Justice to trial a new approach. The trial investigated new ways to assist ex-offenders, by extending

basic jobactive servicing to participating prisoners in Victoria, to achieve two ambitious and worthwhile outcomes: increase employment opportunities post-release and reduce recidivism.

Over the longer term, it is hoped that the trial will generate an effective approach that could be integrated into jobactive and rolled out nationally.

Outlook The department will ensure that jobactive services are operating and job seekers are connected quickly and effectively to jobactive providers once the programme starts on 1 July 2015. The department will provide comprehensive training to jobactive providers to assist them to understand the requirements for

achieving certification under the quality assurance framework.

Successful implementation of an expanded national Work for the Dole programme is a focus for the department, as well as ensuring eligible job seekers are in Work for the Dole places from 1 July 2015.

The department will implement the employment-related measures of the Growing Jobs and Small Business package. This includes a range of new employment measures that provide incentives for employers to take on unemployed job seekers, build employability skills (particularly for young people) and strengthen job seeker obligations. A further three employment services programmes are scheduled for procurement during 2015-16.

In 2015-16 the department will be implementing the $1.2 billion national wage subsidy pool as part of the Growing Jobs and Small Business package. Wage subsidies will be available for young people, mature-age people, parents and Indigenous Australians after six months of unemployment and for all other job seekers after 12 months of unemployment.

The Department of Social Services and the department will work collaboratively to develop the investment approach to welfare to inform future policy advice. The new approach will use actuarial valuations of lifetime costs of welfare and services to identify the groups of people most at risk of welfare dependency and then to determine the impact of policy and operation change on future welfare costs.

The department will continue to monitor labour market conditions in Australia and provide policy advice to the government to enable employment services to respond to emerging labour market and economic developments, and to bolster workforce participation and Australia’s productive capacity.

As co-chair of the G20 Employment Working Group, the department will work with Turkey to support the implementation of employment-related G20 commitments.

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OUTCOME 2

Sandra Parker Deputy Secretary, Workplace Relations and Economic Strategy

Outcome 2 facilitates jobs growth by developing and implementing policies that promote fair, productive and safe workplaces.

The department, alongside its seven portfolio agencies—the Asbestos Safety and Eradication Agency; Comcare (including the Safety, Rehabilitation and Compensation Commission and the Seafarers’ Safety, Rehabilitation and Compensation Authority); the Fair Work Commission; the Office of the Fair Work Building Industry Inspectorate; the Office of the Fair Work Ombudsman; Safe Work Australia; and the Workplace Gender Equality Agency—works to achieve this outcome by managing the Commonwealth workplace relations, work health and safety, and workers’ compensation frameworks; leading economic policy, research and evaluation; and administering the Fair Entitlements Guarantee and the Australian Government Building and Construction WHS Accreditation Scheme.

The department focuses on economic prosperity by identifying the key economic challenges facing the nation and developing departmental policies that meet these challenges. By analysing the drivers of labour market disadvantage and business performance, as well as the role of human capital in the workplace, the department works to support increased levels of workforce participation and wellbeing. Information on the department’s formal evaluation and research of employment services programmes in 2014-15 can be found on pages 34-37 of this report; our work in the deregulation area is detailed on pages 81-82.

42 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Highlights - In March 2015, the department worked with the Department of the Treasury to prepare the

government’s submission to the Fair Work Commission’s annual wage review. The review considers the national minimum wage, which affects around 157,000 employees, as well as award classification wages, which affect around 1.9 million employees. The department also continued to engage with the Fair Work Commission’s four-yearly review of modern awards.

- The department made a submission to the Productivity Commission review of the workplace relations

framework.

- The department undertook business process improvements to modernise the administration of the

Fair Entitlements Guarantee programme and ensure accurate and timely payments to redundant workers. - The department supported the introduction of amendments to the Safety, Rehabilitation and

Compensation Act 1988 into parliament in March 2015. The amendments will modernise the workers’ compensation arrangements for all APS employees as well as employees of the ACT Government and of 33 self-insured national companies.

- The department led an APS-wide strategy to improve the way the public service prevents workplace

injuries and assists injured workers to return to work.

- Following the department’s 2014 review of the Australian Government Building and Construction WHS

Accreditation Scheme, the government agreed to implement 23 of the review’s 25 recommendations in full and the remaining two with minor modifications. Implementation of the recommendations was largely completed during the year, including regulatory changes that took effect from 1 January 2015.

- The department contributed to Safe Work Australia’s examination of how model work health and

safety laws could be improved to reduce red tape and make it easier for businesses and workers to comply. The department also reviewed the governance arrangements for Safe Work Australia, which included a review of the Intergovernmental Agreement for Regulatory and Operational Reform in Occupational Health and Safety.

- The department led an inter-departmental committee that advised the government on a response to

the ACT Government’s request for assistance to deal with Mr Fluffy loose-fill asbestos in houses in the Australian Capital Territory.

Challenges Demand in the Fair Entitlements Guarantee programme continued to be high with the average time to process claims in 2014-15 significantly increasing. The department is undertaking significant process improvements to reduce the wait time for workers seeking assistance under the scheme.

Developing a comprehensive reform package for the Commonwealth Seacare scheme is an ongoing and complex undertaking. The department’s work on the reforms was delayed by the need to develop a response to the Federal Court’s decision in Samson Maritime Pty Ltd v Aucote [2014]. Work on the reforms recommenced following the passage of the Seafarers Rehabilitation and Compensation and Other Legislation Amendment Act 2015. The Minister made a commitment to introduce legislation to reform the Seacare

scheme by the end of 2015.

OUR PERFORMANCE | 43

GREAT WORKPLACES.

Programme 2.1 Employee assistance The department administers the Fair Entitlements Guarantee and the General Employee Entitlements and Redundancy Scheme, which provide a safety net to protect the entitlements of workers who have lost their jobs as a result of bankruptcy or liquidation of their employer where the employer has not made

arrangements to cover employee entitlements. The Fair Entitlements Guarantee is a legislative scheme that provides assistance to employees whose employers went bankrupt or entered liquidation on or after 5 December 2012. The General Employee Entitlements and Redundancy Scheme applies to employer bankruptcies and liquidations that occurred before 5 December 2012.

During 2014-15 the department advanced approximately $301.04 million under the Fair Entitlements Guarantee and $11.39 million under the General Employee Entitlements and Redundancy Scheme to 19,074 Australian workers after they lost their jobs as a result of their employers’ insolvency and had unpaid employment entitlements.

The schemes cover five employment entitlements: unpaid wages (up to 13 weeks); unpaid annual leave; unpaid long service leave; unpaid payment in lieu of notice (up to five weeks); and unpaid redundancy (up to four weeks for each full year of service). Payments are subject to a maximum weekly wage cap, which for 2014-15 was $2451.00.

During 2014-15:

- more than $23.29 million was recovered from liquidated companies on behalf of the Commonwealth

through creditor dividends in the winding-up process - $301.04 million was paid to 18,849 claimants under the Fair Entitlements Guarantee

- $11.39 million was paid to 225 claimants under the General Employee Entitlements and Redundancy

Scheme

- the Fair Entitlements Guarantee hotline handled 38,230 telephone calls and responded to

19,408 emails about the operation of the schemes - the department initiated an internal review of 1347 Fair Entitlements Guarantee claim decisions under

section 37 of the Fair Entitlements Guarantee Act 2012 (8.3 per cent of the total number claiming assistance) - claimants made formal requests for review of 944 Fair Entitlements Guarantee decisions under

section 38 of the Fair Entitlements Guarantee Act (5.8 per cent of the total number claiming assistance).

Twenty-one appeals to the Administrative Appeals Tribunal were lodged by Fair Entitlements Guarantee claimants who were dissatisfied with the outcomes of their claims following the department’s review (2.2 per cent of the total number of employees seeking a section 38 review). Twelve appeals were finalised without adverse findings. Two decisions were affirmed, three decisions were set aside with the

department’s agreement and seven matters were either dismissed, withdrawn or did not proceed because the tribunal judged that they were not able to succeed.

The department responded to one matter from the Commonwealth Ombudsman relating to Fair Entitlements Guarantee assistance. The Commonwealth Ombudsman closed its inquiry without making any adverse findings about the department’s administration of the scheme.

44 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

In administering the Fair Entitlements Guarantee and the General Employee Entitlements and Redundancy Scheme, the department works closely with insolvency practitioners to verify unpaid employment entitlements and distribute approved payments. In 2014-15, $6.07 million was paid to insolvency practitioners for verification and distribution services.

The Australian National Audit Office completed a performance audit of the administration of the programme and tabled its report in parliament in April 2015. The report contained one recommendation designed to strengthen the department’s management of fraud risk by increasing the focus on prevention and detection. The department accepted the recommendation and is working to strengthen fraud control and compliance. The department is also actioning other areas to strengthen programme performance. These relate to managing risk and non-compliance, maintaining working relationships with insolvency

practitioners, developing stronger mechanisms to measure claimant satisfaction, and conducting programme evaluations.

The department completed research on the influences on company creation and destruction in Australia (the rates of start-ups, insolvencies and other wind-ups) to gain a better understanding of the drivers of spending on the Fair Entitlements Guarantee.

The Fair Entitlements Guarantee at work On 5 September 2014, Chassis Brakes International Castings Pty Ltd, a company involved in transport equipment manufacturing, entered liquidation. Most of the 79 permanent and casual employees made redundant were left with unpaid employment entitlements on termination and applied for financial assistance under the Fair Entitlements Guarantee.

The department advanced more than $8.3 million to eligible redundant workers.

Chassis Brakes International is one of the 2630 company insolvencies in 2014-15 where assistance was provided to redundant workers under either the Fair Entitlements Guarantee or the General Employee Entitlements and Redundancy Scheme.

Programme 2.2 Workplace assistance The objective of this programme is to ensure the successful operation of the workplace relations system through initiatives designed to encourage employers and employees to adopt productive and modern workplace relations.

Protected action ballots scheme Under the Fair Work Act 2009, a ballot of eligible employees is required before protected industrial action can be taken to pursue claims during bargaining for an enterprise agreement, except when the action is in response to industrial action by the other party. During 2014-15 the government met the full cost of 1037 ballots, paying $1.39 million under the scheme.

OUR PERFORMANCE | 45

National Workplace Education Programme In 2014-15 the department continued to fund the National Workplace Education Programme. The programme provided a one-off grant of $10 million to the Union Education Foundation in 2010 to deliver national workplace education programmes to employee representatives over a five-year period. The programme ended on 30 June 2015.

Productivity Education and Training Fund During 2014-15 the department continued to implement the Productivity Education and Training Fund. The fund supports peak employer and employee organisations in developing and delivering education programmes to enhance workplace productivity. The programmes are being delivered by the Union

Education Foundation, the Australian Chamber of Commerce and Industry and the Australian Industry Group.

The programmes started in 2012-13 and will run for between five and 10 years.

Gender equality reporting In 2014, the government sought to identify ways to streamline the gender equality reporting framework while continuing to meet the policy objectives of the Workplace Gender Equality Act 2012. The department worked with the Department of the Prime Minister and Cabinet and consulted widely with stakeholders through roundtable meetings, a formal submission process and an electronic survey.

From 1 April 2015, organisations are no longer required to report data on issues such as the remuneration of CEOs or equivalent and contract workers. Reporting on parental leave continues but is more targeted to focus on the retention and turnover of employees after a period of parental leave. This replaces the requirement to report on the number of requests and approvals for extensions to parental leave. Reporting against certain gender equality indicators—including the gender composition of the workforce and governing bodies, flexible working arrangements and equal remuneration—remains unchanged.

In February 2015, the government announced changes that will provide the most value for employers for the effort of reporting. The changes will reduce the cost of compliance with the framework by more than one-third for each reporting organisation, while maintaining the integrity of the gender data.

To further improve gender reporting arrangements, in May 2015 Senator Michaelia Cash, the Minister Assisting the Prime Minister for Women, established a working group of stakeholders, supported by the department. The working group is examining potential improvements to the non-manager occupational categories used in gender reporting. The department engaged a research consultant to provide analysis

and advice to the working group on non-manager categories, and is liaising with the Workplace Gender Equality Agency. The working group will report back to government in the second half of 2015.

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Programme 2.3 Workers’ compensation payments Special appropriations to Comcare are provided through the department. This includes special appropriations under the Safety, Rehabilitation and Compensation Act 1988 for the payment of pre-premium claims expenses (before 1 July 1989) and under the Asbestos-related Claims (Management of Commonwealth Liabilities) Act 2005 for asbestos-related claims settlements. Expenses for claims accepted since 1 July 1989

do not require appropriation as they are funded from Comcare’s premium revenue.

Further information regarding the operations of Comcare can be found at www.comcare.gov.au.

During 2014-15, Comcare paid $32.7 million for incapacity, treatment and other costs for claims resulting from injuries that occurred before 1 July 1989 (pre-premium). The outstanding claims provision for pre-premium claims reduced from $409.2 million in 2013-14 to $368.4 million in 2014-15.

Table 10 Programme 2.3 performance indicators

Performance indicator 2014-15 estimate 2014-15 actual

Durable return to work rate (i.e. the percentage of injured workers from premium-paying organisations with 10 or more days lost time, who had submitted a claim seven to nine months prior to interview, and who were working in a paid job at the time of interview)

90% na

Funding ratio (i.e. the percentage of premium-related total assets to premium-related liabilities) 71% 76%

Commonwealth average premium rate 2.12% 2.12%

Employer satisfaction with recovery and support services 61% na

Injured worker satisfaction with recovery and support services 81% 62%

na = unavailable.

In 2014-15, Comcare settled 70 per cent of asbestos claims within 180 days; the 65 per cent target has been reached or surpassed for the last four reporting periods. The target is determined in accordance with the rules and timetables of the courts of each jurisdiction and performance can also be affected by the involvement of third parties.

Comcare recovered 24 per cent of the value of asbestos claims settlements from third parties in 2014-15. This result was significantly above the 5 per cent target and is an improvement on the 2013-14 result of 8 per cent.

Workplace relations policy advice

Annual wage review Together with the Treasury, the department managed the government’s participation in the Fair Work Commission’s 2015 review of minimum wages. This included drafting the government’s submissions, preparing responses to questions asked by the commission, and attending public hearings.

OUR PERFORM ANCE | 47

On 2 June 2015, the commission released its decision to increase the national minimum wage and award classification wages by 2.5 per cent. From 1 July 2015, the national minimum wage will increase to $656.90 a week ($17.29 an hour).

Productivity Commission review of Australia’s workplace relations system The department continued to advise the government on the progress of the Productivity Commission’s review of the workplace relations system. The terms of reference for the review require the Productivity Commission to assess the performance of the workplace relations framework, including the Fair Work Act,

focusing on key social and economic indicators important to the wellbeing, productivity and competitiveness of Australia and its people. The Productivity Commission released five issues papers on 22 January 2015 and invited public submissions. The department made a submission on 13 March 2015 and is continuing to monitor progress of the review. The final report is due to the government on 30 November 2015.

Centre for Workplace Leadership The department continued to contribute funding to the Centre for Workplace Leadership, established at the University of Melbourne in 2013. Total funding for the centre includes $12 million over four years from the government, of which around $3.4 million was provided in 2014-15. The Secretary of the Department

of Employment is a member of the centre’s advisory board, which helps guide the centre’s long-term strategic direction and foster industry partnerships. The board met five times in 2014-15 and provided guidance and advice on a number of the centre’s initiatives as well as its governance and future planning.

In April 2015 representatives from the department attended the centre’s second national conference— The Future of Work: People, Place, Technology. The centre is developing practical workplace training for managers and leaders and creating resources to help workplaces measure their own performance. One of the centre’s projects involves using the results of its national study of Australian leadership to establish a

benchmark for effective leadership.

The centre also completed the Workplace Gender and Equality Strategy Project, which was commissioned by the department. Through this project, the centre worked with 10 organisations to develop a strategy to promote and achieve gender equality in the workplace, building on their existing workplace policies and practices. The results are presented as case studies for other organisations to consider.

Safety net and awards policy The department continued to provide policy advice to the government on the Fair Work Commission’s four-yearly review of modern awards. In 2014-15 the government made a submission on part-time and casual employment and another on accident ‘make-up’ pay. The department also provided information in

response to a request by the president of the commission during the hearing of the annual leave common issue. This information went to the construction of section 90(2) of the Fair Work Act and updated the commission on the status of the Fair Work Amendment Bill 2014.

Superannuation The department provided policy advice to the government on the Fair Work Commission’s four-yearly review of default superannuation terms in modern awards.

The department continued to work closely with the Treasury to develop policy to implement the government’s election commitments on competition, corporate governance and transparency in the superannuation industry.

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Transparency and accountability of registered organisations The department continued to provide advice and assistance to the government on the implementation of its election commitment on accountability of registered organisations.

The department assisted with developing the Fair Work (Registered Organisations) Amendment Bill 2014 [No. 2], which includes measures to strengthen the reporting and disclosure requirements for registered organisations and their officers; increase civil penalties and introduce criminal penalties; and establish a registered organisations commission as an independent monitor and regulator.

The Bill was introduced into parliament on 19 March 2015. It replicates the Fair Work (Registered Organisations) Amendment Bill 2014, which was introduced into parliament on 19 June 2014 and rejected by the Senate on 2 March 2015.

Post-implementation reviews The department conducted a post-implementation review of the Fair Work Amendment (Textile, Clothing and Footwear Industry) Act 2012 which assessed whether the Act works effectively and efficiently to provide protections for outworkers. The review was prepared by the department and was assessed as adequate by

the Office of Best Practice Regulation on 5 September 2014.

The department conducted a post-implementation review of the Fair Work Amendment (Transfer of Business) Act 2012. The review was assessed as adequate by the Office of Best Practice Regulation on 22 August 2014.

Coastal shipping reforms The department provided workplace relations policy advice on the government’s coastal shipping reforms, announced by the Deputy Prime Minister, the Hon. Warren Truss MP, on 20 May 2015. The department worked closely with the Department of Infrastructure and Regional Development and the Office of

Parliamentary Counsel in drafting the Shipping Legislation Amendment Bill 2015. The Bill was introduced into parliament on 25 June 2015.

International engagement During 2014-15, the department provided policy advice to the government on international labour issues, with a particular focus on the Asia-Pacific region.

The department’s international engagement includes the annual International Labour Conference and meetings of the Governing Body of the International Labour Organization (ILO). The department represented the government at ILO Governing Body meetings in November 2014, March 2015 and June 2015, and at the 104th session of the International Labour Conference held in Geneva in June 2015. Australia is representing the Far-East Asia Pacific Sub-Group of countries on the Governing Body for a

three-year term until 2017.

During 2014-15 the department’s Minister-Counsellor (Employment) was Australia’s representative to the ILO. This role included chairing sessions of the Governing Body meetings in November 2014 and March 2015 and chairing the Committee on Labour Protection at the 2015 International Labour Conference.

OUR PERFORMANCE | 49

Chairing the ILO Governing Body meetings gave Australia an opportunity to provide strategic influence and take a leadership role internationally.

At the conference, a departmental representative chaired a sub-committee on the Cook Islands’ application for ILO membership. Departmental delegates participated in drafting a new recommendation on facilitating the transition from the informal (unregulated) to the formal economy and contributed to discussions on labour protection and employment creation in small and medium-sized enterprises.

In 2014-15, the department continued to support the ILO in implementing measures to improve the functioning of the conference and the Governing Body, in order to ensure the ILO is well placed to remain relevant in the contemporary world of work. In addition, the department provided advice to the government on a new protocol and recommendation on forced labour (adopted at the 2014 International Labour Conference), which has particular relevance for the Asia-Pacific region.

Australia’s international labour engagement included close work with Australia’s social partners—the Australian Chamber of Commerce and Industry and the Australian Council of Trade Unions. The social partners jointly administered the Pacific Growth and Employment Project, funded under the ILO - Australian Government Partnership Agreement 2010-2015, until its conclusion in November 2014. The

project was designed to improve vocational skills and employment opportunities for young people and their families in Pacific Island countries. It was piloted in Papua New Guinea’s transport sector and Vanuatu’s tourism sector.

Increasing employment opportunities through the Pacific Growth and Employment Project On 5 December 2014, Senator the Hon. Eric Abetz, Minister for Employment, acknowledged the Australian Council of Trade Unions’ and the Australian Chamber of Commerce and Industry’s

achievement in increasing employment opportunities in the Pacific through the Pacific Growth and Employment Project.

Over the past two years, the project has increased employment opportunities in Papua New Guinea and Vanuatu by drawing on the experience of Australian businesses to develop strategies that prepare young people for employment and create opportunities for the indigenous workforce. The project also focused on skills development, and Australian standard training certificates are now being provided in the transport sector in Papua New Guinea.

The project also led to increased opportunities for private enterprise engagement in the region and provided a strong foundation for ongoing employment growth and skills development in the Pacific.

50 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Workplace relations legal advice During 2014-15, the department provided legal advice to portfolio ministers, portfolio agencies and other stakeholders about the operation of the national workplace relations system; developments arising from relevant court and tribunal decisions in federal, state and territory jurisdictions; and work health and safety and workers’ compensation.

Primary legislation The department supported the development and passage through parliament of legislation to implement the government’s workplace relations priorities.

The Construction Industry Amendment (Protecting Witnesses) Act 2015 amended the Fair Work (Building Industry) Act 2012 to extend the period during which the director of the Fair Work Building Industry Inspectorate can apply to a nominated presidential member of the Administrative Appeals Tribunal for an examination notice by a further two years (until 1 June 2017). The amendment took effect from 20 May 2015.

The Fair Entitlements Guarantee Amendment Bill 2014 was introduced into the House of Representatives in September 2014. It would amend the Fair Entitlements Guarantee Act 2012 to cap the maximum amount of redundancy pay entitlement available under the Fair Entitlements Guarantee scheme at 16 weeks, consistent with the National Employment Standards.

The Fair Work Amendment Bill 2014 was introduced into the Senate in August 2014. The Bill would amend the Fair Work Act to implement elements of the government’s 2013 election commitments.

The Fair Work Amendment (Bargaining Processes) Bill 2014 was introduced into the parliament on 27 November 2014. It passed the House of Representatives on 9 February 2015 and was introduced into the Senate on 10 February 2015. The Bill would amend the Fair Work Act to give effect to the government’s commitment to enterprise bargaining.

The Fair Work (Registered Organisations) Amendment Bill 2014 [No. 2] was introduced into the parliament in March 2015. It would amend the Fair Work (Registered Organisations) Act 2009 to establish a registered organisations commission, strengthen officers’ and organisations’ reporting and disclosure obligations, increase civil penalties and introduce certain criminal penalties. The Bill was reintroduced into parliament in the same form as the Fair Work (Registered Organisations) Amendment Bill 2014.

The Seafarers Rehabilitation and Compensation and Other Legislation Amendment Bill 2015 was introduced into parliament in February 2015 following the Federal Court’s decision in Samson Maritime Pty Ltd v Aucote [2014] FCAFC 182. The Federal Court’s decision interpreted the Seafarers Act—and potentially the Occupational Health and Safety (Maritime Industry) Act 1993 which has very similar coverage provisions—as

having a much broader application than has previously been understood by regulators, maritime industry employers and maritime unions.

The Bill amended the coverage provisions of the Seafarers Act and the Maritime Industry Act, from their enactment in 1992 and 1993, respectively, until 26 May 2015 when the Bill received royal assent. The amended coverage provisions align with how the Seacare scheme had previously been understood to apply. Seafarers not covered by the Seacare scheme are covered by the relevant workers’ compensation and work

health and safety legislation of the state in which they work. The Bill passed the parliament on 14 May 2015.

The Safety, Rehabilitation and Compensation Legislation Amendment (Exit Arrangements) Bill 2015 was introduced into parliament on 25 February 2015 and passed the House of Representatives on 12 May 2015. It would amend the Safety Rehabilitation and Compensation Act 1988 to ensure that existing employers have ongoing rehabilitation responsibilities and enable Comcare to recover premiums and regulatory contributions if any employers leave the Comcare scheme.

OUR PERFORM ANCE | 51

The Safety, Rehabilitation and Compensation Legislation Amendment (Improving the Comcare Scheme) Bill 2015 was introduced into parliament on 25 March 2015. It is the first major update to the Comcare scheme since its establishment in 1988. The Bill would implement, in part or whole, recommendations of the 2012 review of the Safety, Rehabilitation and Compensation Act by Mr Peter Hanks QC and Dr Allan Hawke AC. The Bill would also make other changes to the Act following further consultations and analysis to support

better return-to-work outcomes and a more efficient scheme.

Regulations The department supported the development of regulations to give effect to the government’s workplace relations priorities. The following regulations were made during 2014-15:

- The Fair Work (Building Industry—Accreditation Scheme) Amendment Regulation 2014 implemented

the government’s response to the 2014 review of the Office of the Federal Safety Commissioner and the Australian Government Building and Construction WHS Accreditation Scheme. The Regulation also made a number of amendments that had been identified by the Federal Safety Commissioner to improve the clarity and effectiveness of the accreditation scheme. The majority of the amendments commenced on 1 January 2015.

- The Work Health and Safety Amendment Regulation 2015 (No. 1) made technical amendments to the

Work Health and Safety Regulations 2011 that were agreed by the workplace relations ministers in April 2014.

- The Work Health and Safety Amendment (Public Authorities) Regulation 2014 amended the

Work Health and Safety Regulations 2011 to prescribe Medibank Private Ltd and Star Track Express Pty Ltd as ‘public authorities’.

Workplace safety

Office of the Federal Safety Commissioner The Office of the Federal Safety Commissioner administers the Australian Government Building and Construction WHS Accreditation Scheme and works closely with government agencies and industry to ensure effective implementation of the health and safety requirements of the Fair Work (Building Industry) Act 2012.

The scheme aims to establish best practice in the health and safety systems and practices of building companies that wish to undertake Commonwealth-funded building work. As at 30 June 2015, 366 companies were accredited under the scheme. The Office of the Federal Safety Commissioner had been notified of 1302 directly and indirectly funded contracts for building work covered by the scheme

with a combined value of $67.86 billion.

Following the 2014 review of the scheme, on 1 January 2015, the Office of the Federal Safety Commissioner implemented a number of legislative changes designed to modernise and streamline the scheme. These included an extension of the joint venture arrangements for international companies to domestic companies, and the removal of a number of barriers to the application process, including the requirement to have certification to AS/NZS 4801 which sets out the requirements for an occupational health and safety management system.

A comprehensive review of the scheme’s audit criteria was also completed in 2014-15, which included producing plain-English guidance material on the criteria. The guidance is designed to assist companies to better understand the Federal Safety Commissioner’s expectations about safety systems and onsite implementation.

52 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

The Office of the Federal Safety Commissioner implemented a number of administrative enhancements to the scheme, including a new risk-based approach to compliance with scheme criteria and developed FSC Online, a web-based accreditation application system. FSC Online was released on 1 May 2015. Roadshow presentations about changes to scheme requirements started around the country.

The department conducted an open tender to refresh the standing panel for Federal Safety Officers in 2014-15. Federal Safety Officers assess compliance with scheme criteria at onsite audits on behalf of the Federal Safety Commissioner.

Outcome 2 effectiveness indicators The effectiveness of Outcome 2 in achieving the government’s policy and programme objectives is measured through the indicators set out in Table 11 and described in greater detail below.

The department closely monitors and analyses these indicators and advises the Minister accordingly.

Table 11 The federal workplace relations system supports improved productivity outcomes

Performance indicator Year to June quarter 2014 Year to June quarter 2015

Labour productivity as measured by gross value added per hour worked in the market sector (annual, trend terms) 1.9% 0.7%

Australian Bureau of Statistics wage price index (annual, seasonally adjusted terms) 2.5% 2.3%

Note: ABS figures, as cited in previous annual reports, are subject to revision as more complete and accurate information becomes available.

Table 12 Low incidence of industrial action (allowing for variations in the bargaining cycle)

Performance indicator Year to June quarter 2014 Year to June quarter 2015

Working days lost per thousand employees 8.5 7.3

Table 13 Collective bargaining is widely used by employers and employees to negotiate pay and conditions

Performance indicator Year to June quarter 2014 Year to June quarter 2015

Number of workplaces whose employees had their pay determined by an enterprise agreement made under the Fair Work Act 2009a

6410

Fair Work Act agreements approved

5481

Fair Work Act agreements approved

a Information on the number of workplaces covered by the enterprise agreement stream of the Fair Work Act is not available. The number of agreements made under the Fair Work Act has been used as a proxy.

OUR PERFORM ANCE | 53

Wages and earnings The Australian Bureau of Statistics’ wage price index is the preferred measure of wages growth. The index increased by 2.3 per cent (seasonally adjusted) over the year to the June quarter 2015, down from 2.5 per cent over the year to the June quarter 2014. The softening of wages growth reflects the current state

of the labour market.

Public sector wages grew by 2.5 per cent over the year to the June quarter 2015, and private sector wages increased by 2.2 per cent. In industry terms (original data), the highest wage growth was in financial and insurance services (2.8 per cent) and the lowest was in professional, scientific and technical services (1.7 per cent).

Productivity Labour productivity—as measured by real gross value added per hour worked in the market sector— increased by 0.7 per cent (trend terms) over the year to the June quarter 2015, down from 1.9 per cent growth over the year to the June quarter 2014.

Market sector real gross value added increased by 2.4 per cent, while hours worked (in the market sector) increased by 1.7 per cent. It should be noted that short-term measures of productivity are prone to volatility and cyclical effects and should therefore be interpreted with caution.

Industrial disputes Rates of industrial disputation declined over the year. Through the year to the June quarter 2015, 7.3 working days were lost per thousand employees. This was down from 8.5 working days lost per thousand employees through the year to the June quarter 2014. Through the year to the June quarter 2015, 76,800 working days were lost due to industrial disputes.

The construction industry accounted for the largest number of working days lost (29,800), followed by the combined education and training, health care and social assistance industries (9,400).

It should be noted that industrial disputes data are prone to short-term fluctuations and should be treated with caution.

Agreement making A total of 5481 enterprise agreements were approved by the Fair Work Commission in the year to 30 June 2015, compared to 6410 agreements approved in the year to 30 June 2014. Most industries experienced a lower rate of agreement-making, but in terms of the number of agreements, the decrease

was most pronounced in the construction, health care and social assistance industries. This is at least partly due to industry bargaining cycles, with enterprise agreements typically lasting three to four years. The average annualised wage increase under the enterprise agreements approved in the year to 30 June 2015

was 3.4 per cent (the same as in the year to 30 June 2014). 

54 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Outcome 2 departmental outputs

Table 14 Departmental outputs for Outcome 2

Performance indicator 2014-15 estimate 2014-15 actual

Fair Entitlements Guarantee—timeliness of processing claims 90% of requests for verified entitlement data are initiated within two weeks of claim receipt or

liquidation date (whichever is later)

90.5%

90% of eligibility and advance decisions are made within four weeks of receiving verified entitlement data

90.2%

Fair Entitlements Guarantee—accuracy of processing claims 90% of eligibility and advance decisions are accurate having regard to the information

available when making the decision

99.3%

Fair Entitlements Guarantee—stakeholder satisfaction 80% of stakeholders (insolvency practitioners) are satisfied with the administration of the Fair

Entitlements Guarantee

86.5% of surveyed stakeholders gave a rating of satisfied or above

Timeliness of departmental responses to client requests for assessment of industrial instruments against the code and guidelines

95% completed within 10 working days 99% completed within 10 working days

Office of the Federal Safety Commissioner— timeliness of responding to initial applications for accreditation

More than 90% of accreditation applications are assessed and contact is made with the applicant within 10 working days

93%

Level of satisfaction of clients with the provision of advice, information, education and promotion of safer workplaces on Australian Government construction sites by the Office of the Federal Safety Commissioner

Effective or above Effective

OUR PERFORMANCE | 55

Outcome 2 cross-outcome work The department’s Economic Strategy group works across the APS to develop evidence-based policies that promote the economic participation of people, particularly those at risk of disadvantage. The group provides advice on the economy, migration policy and trade agreements; manages the portfolio’s data

research and evaluation programmes; and works closely with internal and external stakeholders on policy development and research.

Outlook In 2015-16 the department will lead the delivery of the Fair Entitlements Guarantee recovery programme, which was announced in the 2015-16 Budget. The programme involves funding liquidators or legal practitioners to undertake proceedings that will increase the amount available for distribution following the liquidation of an employer. The aims of the programme are to improve the recovery of funds to the Fair Entitlements Guarantee and reduce the overall cost of the scheme. The programme will be trialled for two years with a budget of $11.5 million. Further funding will be subject to a review in 2017.

The department has a significant forward work programme on work health and safety and workers’ compensation, including finalising the comprehensive reform package for the Seacare scheme. Together with Comcare, other Commonwealth agencies and international leaders, the department will continue to lead policies that aim to prevent work-related injuries and disease and improve return-to-work outcomes

for injured workers.

The department will advise the government on the Productivity Commission’s review of the workplace relations framework, the Royal Commission into Trade Union Governance and Corruption, and the government’s deregulation agenda.

In 2015-16 the department will continue to work with portfolio agencies to support the government to deliver national workplace relations systems to underpin jobs growth and promote fair and safe workplaces for all Australians.

The department will continue to provide legal and policy advice on the workplace relations system and related matters and support the consideration of legislation before parliament.

MORE JOBS. GREAT WORKPLACES.

OUR OPERA TIONS AND A CCOUNTABILITY | 57

OUR OPERATIONS AND ACCOUNTABILITY

2014-15 was a very successful year for the People and Communication and Finance, Legal and Governance groups—we provided high-quality and responsive services to the department, which has been acknowledged through the positive feedback received.

The capability, commitment and willingness of our people to work collaboratively with stakeholders across the department remains our strongest asset. By working to understand the department’s business we are able to identify challenges and opportunities to provide tailored services that best meet the needs of our stakeholders.

GOVERNANCE In 2014-15 we continued to improve our governance framework to enhance our organisational capability and enable efficient and effective service delivery and policy design. The Department of Employment Strategic Plan 2014-2017 continued to provide a strong foundation for building the culture and

leadership of the department. These tools and structures set the direction to achieve our vision— More Jobs. Great Workplaces.

The department’s governance framework consists of structures and procedures that help our people to implement and understand the governance fundamentals—performance, transparency and integrity, and collaboration.

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Executive meeting The Executive meeting supports the Secretary with making key decisions for the department, focusing on the delivery of outcomes, collective decision making and operational matters. Committee membership consists of the Secretary, Deputy Secretaries, the Group Manager, Finance, Legal and Governance, and the

Group Manager, People and Communication.

Executive meetings are held every Monday and are followed by the release of an employee communiqué that summarises discussions and outcomes.

Committees Our committees are established to provide leadership, oversee decision making, accountability and management, and ensure effective and consultative policy development and efficient service delivery. They report to and are overseen by the Executive Meeting and work closely with sub-committees and inter-departmental committees.

Figure 5 Governance structure

THE SECRETARY

Shared Services Centre Board Chair—Renée Leon

Shared Services Centre Partners Forum

EXECUTIVE MEETING Chair—Renée Leon

Audit Committee Chair—Sandra Parker

Finance and Business Services Committee Chair—Martin Hehir

Information Technology Committee Chair—Anthony Parsons

People and Capability Committee Chair—Martin Hehir

Risk and Implementation Committee Chair—Sandra Parker

Strategy Committee Co-chairs—Martin Hehir and Sandra Parker

SENIOR MANAGEMENT MEETING

Employment Cluster Steering Committee Chair—Martin Hehir

Workplace Relations and Economic Strategy Cluster Steering Committee Chair—Sandra Parker

National Leadership Team Chair—Helen Willoughby

OUR OPERA TIONS AND A CCOUNTABILITY | 59

The department’s six top-tier committees are:

- Audit—assists the department to comply with its obligations under the Commonwealth resource

management framework and provides a forum for communication between the Secretary, senior managers and the department’s internal and external auditors - Finance and Business Services—considers and oversees the use of money, resources and procedures

to ensure the department meets its business goals - Information Technology—considers and oversees the management and use of information

technology to enable the department to meets its programme and corporate objectives - People and Capability—considers and oversees the management of people and organisational

strategies and assists the department to comply with its work health and safety duties and obligations - Risk and Implementation—considers and oversees the management of risks to the department’s

business delivery and provides strategic oversight on the implementation of government initiatives - Strategy—provides a forum for discussing strategic issues and opportunities, and promotes the

availability of data and insights to enhance department-wide strategic thinking.

The committees meet approximately six times per year, with additional meetings if necessary, and provide quarterly activity and yearly strategic reports. They are supported by secretariats that meet monthly to share ideas and lessons learned and foster a culture of continuous improvement.

The department is also guided by operational committees:

- Senior Management Meeting—a weekly meeting of the Executive with all group managers to

provide a shared management perspective on strategic and operational issues - Employment Cluster and Workplace Relations and Economic Strategy Cluster leadership forums in

each cluster (the collection of groups led by a deputy secretary) that promote the principles of good governance at the group and branch levels - National Leadership Team—a management forum for leaders from the state network and

national office.

The Secretary is also chair of the Shared Services Centre (SSC) board, which receives input from the SSC Partners Forum. The forum, established under the authority of the secretaries of the partner departments— Employment, and Education and Training—was formed to identify, examine, resolve or refer matters of direct interest to the partner departments and the SSC and advise on governance and strategic matters specified in the heads of agreement concerning the two partner departments. Further information about governance arrangements of the SSC is on page 83.

Committee structure review Our committee structure is reviewed annually to ensure that it continues to enhance our performance and help deliver on the government’s priorities. The 2014 review included an assessment against our strategic priorities, the requirements of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the principles in the Australian National Audit Office (ANAO) better practice guide on public sector governance.

Recommendations from the review included broadening the scope of the Finance Committee to include business improvement activities, and the Implementation Committee to include risk activities. The membership of committees was also broadened to include representatives at the Senior Executive Service (SES) band 1 and Executive Level (EL) 2 levels so that a wide range of perspectives and views are considered.

The Strategy Committee was established in late 2014 to oversee policy development, research and evaluation, as recommended by the review. The committee is intended to be a think-tank for developing longer term strategies and influencing the longer term direction and resourcing decisions of the department.

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In response to the review’s findings, the department made administrative changes to enhance the reporting of meeting decisions and outcomes, and ensure transparency and communication of decision making. The department also drafted guidance to support the committee members and secretariats in their roles, including a guide to governance that provides context and support to our people.

Planning

Strategic Plan 2014-2017 The department’s strategic plan outlines how we will deliver on the government’s priorities, work together and build the culture of the department.

The plan reflects the government’s priorities to create jobs, help job seekers into work and foster great workplaces to build Australia’s participation and productivity. The plan reinforces that:

- having a job provides financial security to ensure choice in housing, education and health, and can also

enhance self-esteem, social skills and self-confidence - a great workplace is a productive workplace where people contribute to the best of their ability and

skills, and are able to do their jobs safely.

The plan sets out strategies and priorities to ensure that we are a department that:

- delivers on the government’s agenda and its priorities

- is forward-looking and strives to be innovative in everything we do

- collaborates meaningfully across the public service

- has people at the core of our business.

The plan is put into action through the annual business planning process and is available on the department’s website at http://strategicplan.employment.gov.au.

Business planning We develop business plans in each area of the department, giving our people an opportunity to consider priorities for the year ahead, how they will be measured and how they will be achieved. The plans also provide an important link between the strategic plan and individual performance agreements. This also helps to drive performance, increase engagement and corporate alignment, and build capability in our people.

The business plan template is streamlined to focus on the four pillars of the strategic plan—delivery, collaboration, forward-looking and people—and is integrated with other corporate activities, inspiring our people to:

- conduct assessments for business continuity and strategic risks including fraud

- consider new ways of working to collaborate, innovate and be forward-looking

- use evaluation, research and evidence to meet our objectives

- develop as individuals and build our culture

- identify activities that further our commitment to reconciliation, reinforcing that Indigenous business is

our business.

OUR OPERATIONS AND AC COUNTABILITY | 61

As part of the business planning process, the Executive and each group’s leadership team meet twice a year to identify objectives, processes and challenges. The plans are living documents and are reviewed and updated as needed to reflect any changes in priorities; they are reviewed biannually to track progress.

Corporate plan During 2014-15 we worked on developing the department’s first corporate plan, a requirement for all entities under the PGPA Act and the enhanced Commonwealth performance framework. The first plan will be published in August 2015 and will be reported against in the annual performance statement in our 2015-16 annual report.

The corporate plan will set out our strategies for achieving our purposes and describe how success will be measured. In the annual performance statement we will assess the extent to which we succeeded in achieving our purposes.

As part of the development of the plan, we drew on information from internal and external publications and consulted with areas from across the department to gather information and seek feedback. To assist our portfolio entities with developing their plans, we formed a working group to collaborate and share ideas and lessons learned.

IT Strategic Plan 2014-2017 The department has a key dependency on information technology to support policy development, programme delivery and staff productivity. The department’s IT strategic plan, released in early 2015, guides our information technology direction and efforts and has seven high level strategies that work to:

- increase data analytics capability—supporting evidence-based policy development, programme

delivery and evaluation through efficient data collection, collation, analysis and presentation - increase efficiency and reduce red tape—effectively implementing government programmes,

streamlining processes and reducing the burden associated with programme participation and compliance - enable innovative business models—developing new service delivery methods as technology

advances

- support high staff productivity—increasing amenity and productivity by delivering modern and

functional IT support - implement effective IT sourcing strategies—securing the right tools and IT infrastructure

components on a cost-effective, capable and reliable basis - engage in whole-of-government IT initiatives—exploring opportunities for data-sharing, simplifying

access and shared services arrangements - improve IT capability—aligning investment with organisational strategies and priorities, responding

efficiently to changing demands.

The IT strategic plan enables the department to map how IT will be used to help achieve the objectives outlined in the department’s strategic plan, and is supported by the IT work plan which details the approved IT investment priorities, projects and services.

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Evaluation Research and Evidence Framework 2015-2020 During 2014-15, the department developed a framework that will ensure that our evaluation and research agenda is coherent, supports evidence-based policy and maximises the use of data and analysis. The framework was developed in the context of the PGPA Act and the department’s strategic plan.

The framework sets out goals under four pillars to focus our work:

- evaluation—provide timely and relevant evidence that supports reviews of current programmes and

provides an evidence base for new programmes - research—ensure the research agenda for the department is coherent and linked to policies

- data management—establish a programme of principles that improve data quality, accessibility

and capability - capability—enhance the skills and capability of staff in the production and use of evidence.

The pillars are supported by overarching strategies of governance, communication and engagement, which will provide the structure for continuous improvement. Projects under the framework will collectively seek to address complex issues and support the department to deliver on strategic priorities over the next five years.

Working groups with participants from across the department will deliver the projects identified under the framework. The responsible officer for the framework is the manager of the Evaluation, Research and Evidence Branch, who will report to the Strategy Committee on the progress of projects over the next five years.

Looking ahead During 2015-16 our governance activities will focus on continuous improvement and the ongoing implementation of the PGPA Act. The department will:

- build on the establishment of the Strategy Committee as our think-tank

- embed and promote the Evaluation, Research and Evidence Framework 2015-2020 and

IT strategic plan to develop long-term strategies and use data and analysis to enhance policy design and service delivery - launch our corporate plan and align our performance reporting and business planning

processes with the plan.

A governance review will be conducted in mid-2015 to ensure that we continue to meet the needs of the community, reduce duplication and refine processes, and build our organisational capability.

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Innovation at work Innovation is core to our business—being forward-looking is one of the four pillars of our strategic plan—and will guide the future direction of the work we do. In the department, innovation is defined as ideas successfully applied—and it is something that everyone does. It is about problem-solving in a new way. Most innovation happens through small improvements, but we also focus on making changes to our business and big ideas.

A highlight of the department’s calendar is Innovation Month. During the next Innovation Month in July 2015, we will work together to design an innovation framework for the department. The framework will improve the visibility of innovation already occurring in the department and provide a focus for additional efforts over the next 12 months. At the end of Innovation

Month, the Secretary will be presented with the framework designed by our employees.

Risk management Risk management in the department is integrated with our strategic and business planning processes, ensuring risks to delivery are actively identified, managed and monitored. A higher level of compliance was achieved in risk management during the year, with expansion of the Implementation Committee to include risk activities and the continued positive engagement of the Executive. We revised our risk management policy and framework to more directly align with the PGPA Act and the Commonwealth Risk Management Policy.

The department again achieved excellent results in the Comcover Benchmarking Survey, which in 2015 moved away from numerical scoring to a six-level maturity model aligned with the nine elements of the Commonwealth Risk Management Policy. Participation in the survey became mandatory for the first time in 2015. The department achieved an ‘advanced’ maturity level overall—higher than any other policy entity in

the survey. This result reaffirms the department’s well-embedded culture of risk management.

The department is continuing to work with Comcover on developing tailored risk appetite and tolerance statements, which will include significant revisions to the department’s risk matrix. Comcover has engaged Deloitte to guide the department through the process. Once the statements are finalised, the department will start work on system design for a new risk management approach that will more effectively link the customer relationship module, which is currently used to manage provider risk in employment services,

to a more fully integrated department-wide risk management system.

Fraud control The department is committed to preventing fraud in all aspects of our business. Our fraud control framework aims to ensure that we maintain a high level of service to the community by protecting public money and property and the integrity, security and reputation of the department.

The framework ensures that fraud against, and losses incurred by, the department are minimised; and that if fraud occurs, it is rapidly detected, effectively investigated and dealt with through appropriate sanctions (including criminal prosecution).

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In 2014-15, the department promoted fraud awareness and managed fraud risks by:

- continuing to integrate fraud risk assessment into our business planning processes

- providing an interactive online fraud awareness training package for employees

- maintaining a suite of fraud control guidance documents for all employees

- developing a new fraud control plan, which will be implemented in 2015-16 and ensure compliance

with the requirements of the PGPA Act - providing advice to programme and policy areas on fraud risk analysis and management

- investigating instances of possible fraud in accordance with the Australian Government Investigations

Standards and the Commonwealth Fraud Control Framework 2014.

Internal audit The internal audit team forms part of the department’s governance and assurance framework. The team provides independent assurance, advice and controls designed to contribute to the effective management of the department’s business risks, achievement of objectives and improvement of business performance. The team is also the Audit Committee’s secretariat.

The internal audit team contributes to fostering a culture of accountability, integrity and high ethical standards by encouraging debate and identifying common ground to achieve successful outcomes. By collaborating with internal and external stakeholders to build and share information and knowledge, the team encourages cost-effectiveness, self-assessment and continuous improvement across the department.

The internal audit function is also responsible for:

- delivering a programme of audits

- providing information and advice to the department’s key governance committees

- monitoring the implementation of internal and ANAO audit recommendations

- reviewing and monitoring ANAO audit reports and better practice publications and distributing

relevant information to the department and, where appropriate, the Shared Services Centre - facilitating ANAO activities related to the department.

The internal audit work programme, developed following consultations with the Executive and group and branch managers, outlines a three-year forward plan of potential internal audits. The programme takes account of ANAO activity, is consistent with the Audit Committee’s charter and reflects the department’s mission, business and risks. The programme is approved by the Audit Committee and operates on a financial year basis. It is adjusted as necessary to respond to the changing environment, with endorsement from the Audit Committee chair.

The 2014-15 internal audit work programme focused on assuring the risks, processes and arrangements resulting from the September 2013 machinery-of-government changes, including the establishment and operation of the Shared Services Centre, and the introduction of the PGPA Act.

The internal audit function reports to the Audit Committee and the chief internal auditor is accountable to the Secretary.

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Client service charter Our departmental client service charter is a statement of what we do and the standards of service our stakeholders can expect. The charter outlines how our stakeholders can help us improve our processes, how to provide feedback and the rights of our clients to have decisions reviewed or to lodge complaints. The charter also reinforces the department’s commitment to the APS Values and Code of Conduct, the

Privacy Act 1998 and the Freedom of Information Act 1982.

We use the charter as a guide to measure and monitor our performance, and review and update the content on an annual basis. In 2014-15 the department tailored and updated information on the website to better meet the needs of clients, stakeholders and the community.

This charter is the overarching client service statement for the department. Departmental programmes also employ specific charters which apply to their particular business activities.

The department aims to provide a high standard of service to all its stakeholders to serve the government and the community and to deliver the government’s agenda effectively. Links to the service charter are on the department’s intranet and on our website at www.employment.gov.au/about-department.

PEOPLE Our people are at the core of our ability to support the government, our ministers and the community. Our leaders and staff uphold and promote the APS Values and demonstrate leadership, integrity and responsiveness. These qualities define the department’s culture, and were evident in our 2014 APS employee census results.

‘This is a great place to work. Our APS census results are really positive and they show that our people are committed to their jobs, they are happy with our leadership and we really enjoy working together.’

James, People Branch, September 2014

The department’s People and Capability Strategy links with the Strategic Plan 2014-2017 and sets out our actions to maintain a positive culture and an engaged, capable, innovative and adaptive workforce.

The strategy guides our work practices at all levels. Everyone in the department is a leader—in our teams and in our daily interactions with colleagues and with our clients and stakeholders. All employees are encouraged to embed the priorities and leadership behaviours outlined in the strategy in their day-to-day work and interactions with each other.

The 2014 APS employee census provided a rich source of data on employee engagement, with 89 per cent of the department’s employees responding. Managers discussed the census results with their teams and recorded ideas for local-level actions in response to the results. Extensive demographic analysis—including gender, age, location, classification level, diversity status, tenure, employment status, education and type of work—was undertaken to explore the census results more deeply and identify agency-level and tailored responses.

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Staffing statistics At 30 June 2015 the department had 1867 employees—1805 ongoing and 62 non-ongoing.

Table 15 Ongoing employees by employment status, 30 June 2014 and 2015

30 June 2014 30 June 2015

Female Male Total Female Male Total

Full-time 765 790 1555 757 766 1523

Part-time 226 48 274 239 43 282

Total 991 838 1829 996 809 1805

Table 16 Non-ongoing employees by employment status, 30 June 2014 and 2015

30 June 2014 30 June 2015

Female Male Total Female Male Total

Full-time 5 5 10 22 22 44

Part-time 3 1 4 14 4 18

Total 8 6 14 36 26 62

Table 17 Employees by location, 30 June 2014 and 2015

30 June 2014 30 June 2015

Female Male Total Female Male Total

New South Wales 64 83 147 67 82 149

Victoria 31 21 52 26 21 47

Queensland 44 24 68 48 24 72

Western Australia 16 10 26 17 9 26

South Australia 23 11 34 30 15 45

Tasmania 9 4 13 9 5 14

Australian Capital Territory 805 687 1492 825 677 1502

Northern Territory 6 3 9 9 2 11

Overseas 1 1 2 1 0 1

Total 999 844 1843 1032 835 1867

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Table 18 Employees by classification, 30 June 2014 and 2015

30 June 2014 30 June 2015

Female Male Total Female Male Total

Cadets 1 1 2 0 0 0

Indigenous Australian Government Development Programme Trainees 1 3 4 2 3 5

Graduates 12 11 23 13 14 27

APS Level 1 0 0 0 0 2 2

APS Level 2 2 1 3 4 2 6

APS Level 3 40 31 71 45 38 83

APS Level 4 118 92 210 111 87 198

APS Level 5 175 130 305 188 124 312

APS Level 6 237 200 437 241 206 447

Executive Level 1 253 239 492 261 228 489

Executive Level 2 91 75 170 96 66 162

Information Technology Specialist 2 14 16 2 13 15

Government Lawyer 7 2 9 8 4 12

Senior Government Lawyer 11 8 19 14 9 23

Principal Government Lawyer 16 6 22 17 7 24

SES Band 1 19 25 41 20 25 45

SES Band 2 11 6 16 8 6 14

SES Band 3 2 0 2 1 1 2

Secretary 1 0 1 1 0 1

Total 999 844 1843 1032 835 1867

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People priorities The department’s People and Capability Strategy sets out five people priorities:

- A positive culture—A culture that embraces our vision and values, develops good leaders, helps to

create our identity and guides the way we work to support the department to deliver on our priorities.

- An engaged workforce—People who are productive, have a clear understanding of how their work

contributes to achieving the government’s goals, and feel valued.

- A capable workforce—People who have the capabilities they need to work effectively, deliver the

government’s priorities, and understand that effort and achievement are rewarded. - An innovative workforce—People who continually learn and explore new ways of thinking

and working.

- An adaptive, responsive workforce—A workforce that has developed both specialised and broad

skills, and readily adapts and responds as demands require.

All staff had the opportunity to contribute to the development of the strategy. Department-wide workshops gave employees the chance to share ideas about how to implement the people priorities, offering practical ways that the department and our leaders, teams and branches and our people individually can contribute to each priority.

The People and Capability Committee steered the development of the strategy and will continue to guide its implementation. Environmental scanning and analysis of our workforce data were used in the development process to strengthen the strategy.

Leading at all levels—our leadership statement Good leadership shapes everyone’s experience in the workplace. It helps keep our people engaged and builds a positive culture, and provides people with the clarity and focus they need to deliver the department’s objectives in the best possible way.

In our department we expect our leaders to display positive leadership behaviours and exemplify what it is to be a good leader. These principles are outlined in a leadership statement, which we expect to be embodied not just in our senior managers, but in people of all levels across the department.

By committing to the qualities and behaviours in the statement, our leaders aim to create an environment where we can get the best out of our people.

Our leaders are expected to demonstrate the following behaviours:

- Empower—We encourage our people to develop their skills and build their confidence. We provide

opportunities for learning and mobility within the department. - Communicate—We share information, communicate well about change, listen to our people and give

feedback. Our communication is genuine, timely and clear. - Work creatively—We look for new and innovative ways to deliver our work and support and

encourage our people to do the same. - Collaborate—We work collegiately and collaboratively with people across our department, the APS

and our stakeholders. We encourage teamwork and enable our people to engage with a range of stakeholders. - Adapt—We adapt to change in a proactive and constructive way. We encourage our people to

embrace change and see it as an opportunity.

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- Engage with risk—We address risk positively and find the best solution to deliver our priorities.

- Trust and encourage curiosity—We show confidence in our people and share responsibility with

them. We are open to discussion of new ideas and ways to improve our performance. - Expect and recognise high performance—We set high standards and make sure our expectations are

clear, work with people in a constructive and open way, and award and recognise them when they perform well.

Learning and development During 2014-15 the department continued to invest in the development of its people, with an emphasis on strong leadership and management skills as well as core skills such as writing and strategic thinking.

A new corporate learning and development plan was developed in 2014 that clearly articulates the department’s approach to learning and development and identifies five capability development priorities— leadership, management expertise, core skills, succession planning and talent development. Staff development strategies are based on a combination of on-the-job and formal training methods, and we evaluate their effectiveness through internal surveys, programme evaluations and APS employee census results.

A management development programme began in early 2015 for 100 APS 6, EL 1 and EL 2 staff. The programme was specifically designed for the department and aims to strengthen the capability and confidence of our managers in areas such as risk and financial management, performance management and innovation. Participants and their managers have given the programme positive reviews, and employees have reported notable positive changes in their managers’ capability. The programme will continue in 2015-16.

Senior leadership development continued to be a priority for the department. A programme of 360-degree feedback assessments was run for SES and EL 2 staff to identify individual development needs and benchmark leadership capability for the department. The programme provided feedback from various sources, including external stakeholders, and focused on areas of strength as well as opportunities for improvement.

Remuneration and conditions of employment A new enterprise agreement is currently being negotiated, consistent with the government’s workplace bargaining policy and a set of bargaining principles established by the department’s Executive. Through the enterprise bargaining process, the department aims to achieve a fair and responsible outcome for

employees and the department and an enterprise agreement that rewards people for their work and helps to create a high-performing workplace culture.

The department issued a notice of employee representational rights on 30 July 2014, formally inviting employees to appoint a bargaining representative to represent them during the bargaining process.

Until a new enterprise agreement is in place, all non-SES employees are covered by the preserved DEEWR Enterprise Agreement 2012-2014. The agreement provides a range of core conditions of employment and flexible working arrangements. When the department was created on 18 September 2013, a determination was signed under section 24(3) of the Public Service Act 1999 that preserved the conditions of employment that non-SES and SES employees had in place prior to that date.

Twenty-three non-SES employees have arrangements that recognise specific capabilities and additional responsibilities. Seventeen of these are supplementary section 24(1) determinations and a further six retained individual flexibility arrangements that were in place prior to the preservation of the DEEWR enterprise agreement.

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At 30 June 2015, 56 SES employees had section 24(1) determinations in place establishing their employment terms and conditions.

Salary ranges Table 19 shows the salary ranges available for employees by classification level. Salary ranges are unchanged between the 2013-14 and 2014-15 years.

Table 19 Salary ranges by classification, 2013-14 and 2014-15

Classification 2013-14 2014-15

APS Level 1 27,172—49,516 27,172—49,516

APS Level 2 53,190—56,680 53,190—56,680

APS Level 3 59,400—61,870 59,400—61,870

APS Level 4 64,615—69,103 64,615—69,103

APS Level 5 71,342—76,271 71,342—76,271

APS Level 6 80,204—88,197 80,204—88,197

Executive Level 1 98,624—109,001 98,624—109,001

Executive Level 2 116,056—139,311 116,056—139,311

Information Technology Specialist 114,451—119,901 114,451—119,901

Government Lawyer 61,870—88,197 61,870—88,197

Senior Government Lawyer 98,624—120,814 98,624—120,814

Principal Government Lawyer 132,400—142,794 132,400—142,794

SES Band 1 140,000—245,000 140,000—245,000

SES Band 2 206,000—279,000 206,000—279,000

SES Band 3 270,000—300,000 270,000—300,000

Note: The Secretary is not included in these figures as remuneration arrangements for departmental secretaries are set out under a separate instrument.

Table 20 Employment agreement statistics at 30 June 2014 and 2015

30 June 2014 30 June 2015

Section 24(1) determinations Enterprise agreement Total

Section 24(1) determinations Enterprise agreement Total

SES 59 0 59 56 0 56

Non-SES 10 1773 1783 17 1794 1811

Total 69 1773 1842 73 1794 1867

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Performance pay During 2014-15, no SES employees were granted performance pay. The enterprise agreement for non-SES employees does not provide access to performance pay.

Non-salary benefits The department provides a range of flexible working arrangements to assist employees to balance their personal and professional lives, including part-time working hours, flex-time, purchased leave, parental leave, cultural leave and community volunteer leave. Employees can also access studies assistance.

Flexible working arrangements allow the department to respond to new and changing business needs, and increase productivity through improved employee engagement. The 2014 APS employee census showed that the department had higher levels of employee engagement than the APS average.

Workforce planning and employee retention Ensuring we maintained a capable and adaptable workforce continued as a priority over the year in order to meet business objectives.

The department undertakes regular analysis of our workforce movements and demographics and reports the outcomes to the Executive and People and Capability Committee along with recommended changes to department policy. This includes analysis of risks associated with employees’ movements to ensure key skills are being retained in the department. The overall separation rate for the department remained low compared with long-term averages.

The flexibility of the department’s workforce was demonstrated during the year in the way we successfully delivered the job services tender and related work associated with the jobactive programme. These outcomes were achieved primarily by existing departmental employees, who were able to move from their usual roles into the tender team and apply their expertise in managing employment contracts. At the same time, they gained valuable experience and skills they could take back to their work groups.

Building and maintaining our workforce capability and implementing effective succession planning strategies will be continuing priorities for the year ahead to ensure that we can meet the challenges associated with the delivery of jobactive.

The department started developing an enterprise workforce plan that aims to identify workforce risks such as retention and loss of critical skills, as well as articulate strategies to develop capability, manage performance, plan for succession and manage talent, and articulate how to position the workforce in 2015-16 to best deliver business outcomes. The workforce strategies required to mitigate these risks are

set out in a people and capability implementation plan.

We will continue to monitor and manage recruitment actions in 2015-16 to ensure that roles are advertised at appropriate classification levels, consistent with work-level standards.

Entry-level recruitment programmes The department offers a range of entry-level recruitment programmes, including the Employment Graduate Programme, Employment ICT Internship Programme, Indigenous Cadetship Programme, and Indigenous Australian Government Development Programme. These programmes allow the department to

build and maintain capability and offer participants the chance to gain specific skills and knowledge through on-the-job training and formal learning and development opportunities.

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The Employment Graduate Programme is a 10-month programme offering workplace learning and development tailored to working in the department and the wider APS. The programme allows graduates to experience two job rotations in areas that will enhance their knowledge and capability. The 2015 programme started in February with 27 participants.

Our graduates visiting Parliament House in February 2015.

The department welcomes our 2015 graduates Every February the department receives a shot of energy and enthusiasm as a new set of graduates join. This year we welcomed 27 graduates with backgrounds in a range of fields including ICT, legal, economics and applied statistics and generalist disciplines. Of the 27 graduates, two are based in the state network—one in the New South Wales state office and another in the Western Australia state office—and two are in the Shared Services Centre. The rest are based in the national office.

Our graduates started with a two-day orientation programme that gave them a snapshot of the department’s priorities for the year ahead and an overview of our policies and procedures. It was also an opportunity to network with their cohort, their teams and graduate alumni.

Over the 10-month programme, they participate in two work placements, the second of which will start in July. They will build their APS skills through a blend of on-the-job learning, learning from each other during graduate-specific sessions, and learning from our leaders at ‘Grad-Meets’ sessions. The learning and development opportunities we offer graduates include training courses in

essential writing in the APS, Indigenous cultural awareness, presentations and public speaking, and constructive conversations. They can also participate in the Australian Public Service Commission’s series for graduates, which incorporates A Taste of Government, The Great APS Graduate Debate, Q&A—An APS Panel Discussion and Candid Reflections from Inspiring APS Leaders.

In consultation with their supervisors, graduates also have the opportunity to enhance their skills specific to their discipline and/or work area through training of their choice. They also run an active fundraising programme to support a community-based organisation of their choice.

The department’s graduate programme is rated very highly by graduates. It was ranked eighth on the list of the best Australian Government agency programmes in the Australian Association of Graduate Employers’ survey of the 2014 graduate intake. Overall, the department ranked 40th out of 100 organisations across all industries.

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The department’s ICT Internship Programme provides work experience opportunities for university students to complement their studies. The department employed three ICT interns in 2014 and one in 2015. Subject to successful completion of the programme, interns may be offered a position in the department’s Graduate Programme—ICT Discipline.

The Indigenous Cadetship Programme offers career development opportunities for Aboriginal and Torres Strait Islander students by providing an opportunity to study full-time as well as gain work experience in a government agency. At 30 June 2015, the department had one cadet.

The Indigenous Australian Government Development Programme is a joint initiative of the Department of Employment and the Department of Education and Training, managed on their behalf by the Shared Services Centre. It is widely taken up by other APS agencies and offers participants ongoing employment and the opportunity to undertake a Diploma of Government together with other professional and personal

development activities. At 30 June 2015, the department had five participants in the programme.

Diversity and inclusion The department is committed to diversity in all aspects of our work. Diversity and inclusion underpin the capability of our workforce. The department’s Diversity Strategy was finalised in 2014-15 and sets out the overarching framework to ensure that our workplaces support and embrace all elements of diversity. The

strategy encompasses a variety of activities, including maintaining a workforce that is flexible, fair, equitable and respectful, promoting lifelong learning, leveraging ICT and equipment to support our people, addressing barriers to gaining access to career development opportunities and ensuring workplace adjustment requirements are met.

The strategy has a strong emphasis on Aboriginal and Torres Strait Islander employees and people with disability, while acknowledging the need to maintain other areas of diversity such as gender, age and ethnicity. As part of a suite of people strategies, policies and plans, the strategy is aligned closely to the department’s Disability Action Plan, Agency Multicultural Plan and Reconciliation Action Plan, as well as the People and Capability Strategy and the strategic plan.

Disability Action Plan The department’s Disability Action Plan aims to develop a culture of support and respect in the department for people with disability—one that reflects a person’s contribution and ability, and allows for workplace adjustments to be made to maximise their contribution. Through our flexible workplace practices, we are

also committed to supporting our employees who care for people with disability.

At 30 June 2015, 3.38 per cent of departmental employees identified as having, or supporting a person with, disability.

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Three areas of activity in the plan are to:

- raise awareness and understanding of disability issues among employees, build manager capability,

and ensure our processes efficiently and effectively assist employees with disability or caring responsibilities - attract, recruit and retain employees with disability

- improve leadership across the department including establishing the disability employee network and

highlighting Executive engagement.

The department’s Disability Champion is state network manager Helen Willoughby, state manager of the NSW/ACT office. As the Disability Champion, Helen provides important leadership and support to our employees with disability. The Disability Champion represents the department externally and provides leadership across the APS by contributing to the APS Disability Champions Network and other related

forums. Helen is deeply committed to the disability sector and uses her role to help improve the outcomes for people with disability by raising awareness of their work and needs as employees of the department.

‘As this department’s Disability Champion I want to ensure that our colleagues working with a disability are given every opportunity to thrive and succeed.’

Helen Willoughby, September 2014

The department supports a disability employee network that offers peer support, helps to raise disability confidence, and is the primary advisory group to the department’s People and Capability Committee on matters affecting employees with disability.

Agency Multicultural Plan Our Agency Multicultural Plan 2014-15, launched in early 2015, aims to ensure equitable access to the department’s services and programmes. It supports our communication and engagement with culturally and linguistically diverse communities and organisations. The plan is embedded in the department’s business processes to ensure that multicultural access and equity is incorporated into policy development and programme and service delivery. The department’s multicultural champion is Martin Hehir, Deputy Secretary, Employment.

Reconciliation Action Plan The department is committed to achieving reconciliation between Aboriginal and Torres Strait Islander peoples and the wider Australian community. We are responsible for national policies and programmes that help Australians find and keep employment and work in safe, fair and productive workplaces. Through

this work we contribute to the government’s priority of getting more Indigenous Australians into work to close the gap on Indigenous disadvantage.

Our Reconciliation Action Plan (RAP) 2014-2016 includes a number of practical actions and targets to promote reconciliation within the department and create opportunities for our Indigenous employees. To enable Indigenous Australians to share equally in our vision of more jobs and great workplaces, the RAP sets out our commitment to:

- deliver policy and programmes that achieve strong outcomes for Indigenous Australians

- build the knowledge, awareness and cultural capability of our staff

- support the recruitment, retention and career development of our Indigenous staff.

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Forty-eight departmental employees identified as Aboriginal and/or Torres Strait Islander—2.57 per cent of our total workforce—at 30 June 2015. All of these employees are engaged on an ongoing basis.

During 2014-15, we made significant progress in implementing our RAP, which is monitored by the RAP working group of the People and Capability Committee. Key achievements included:

- introducing ‘policy circles’ to enable different areas across the department to consult with working

groups of Indigenous staff on how the programmes and services the department delivers are designed, evaluated or communicated about - providing all staff with access to a cultural awareness e-learning course and opportunities to attend

face-to-face cultural awareness training - updating our cultural protocols to ensure that we work with Aboriginal and Torres Strait Islander

people respectfully and in a way that recognises their culture and heritage - holding the department’s inaugural Aboriginal and Torres Strait Islander employee workshop, which

brought together staff from across the country to focus on career development and to assist employees to reach their potential - providing encouragement and support to Indigenous employees to develop individual career

management plans, including access to professional career coaches, job shadowing and co-mentoring with senior managers - celebrating significant Aboriginal and Torres Strait Islander events such as National Reconciliation Week

and NAIDOC Week.

The department’s Indigenous Leader, Queensland State Manager Robert Willmett, has an important role in advising on the department’s development and implementation of policies and programmes that improve the lives of Indigenous Australians and embedding a commitment to reconciliation into our work. He also has a key role in representing the interests of the department’s Indigenous employees to the Executive, including taking part in key governance committees and jointly chairing the Indigenous Staff Committee.

‘I’m proud to be the department’s Indigenous Leader. Indigenous business is our business. I’m keen to ensure this is a department where Indigenous staff enjoy working and feel they make a valuable contribution.’

Robert Willmett, September 2014

The department’s Indigenous Champion, Group Manager Jo Wood, plays an important role in our efforts to increase, retain and develop the Indigenous presence in the department. As chair of the RAP Working Group, she takes forward the key actions in our RAP, and she is actively involved in representational and leadership work across the APS.

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Lisa Charles, the department’s Senior Indigenous Adviser, event host Lisa Perez, special guest actor Lex Marinos, our Indigenous Leader Rob Willmett, People and Communication Group Manager Vicki Rundle and Ngambri Elder Paul House celebrating National Reconciliation Week in June 2015.

National Reconciliation Week celebrations in the department National Reconciliation Week, which ran from 27 May to 3 June 2015, was celebrated across the department, with staff participating in a range of events in all parts of the country.

There was a lot of activity in the state network, including morning and afternoon teas, visits to places of significance and cross-agency activities. The Western Australia office co-hosted a forum with Crown Perth to talk about jobactive and how it will support Indigenous employment, and staff from the South Australia office attended a National Reconciliation breakfast.

The national office kicked off its celebrations with a lunch-time visit to the National Museum of Australia for a guided tour of the First Australians: Gallery of Aboriginal and Torres Strait Islander Peoples. The department’s Indigenous Champion, Jo Wood, led a group of more than 35 staff who absorbed the history of the first Australians through stories and interactive displays.

An all-staff event was the centrepiece of the week. Australian entertainment industry veteran Lex Marinos gave staff an insight into his experience growing up in regional Australia and the close affinity he has had with Indigenous Australians throughout his life and career. The event was officially opened by Ngambri Elder Paul House, and the department’s Indigenous Leader and the Secretary spoke about the importance of reconciliation for them personally and for the department.

The HarmonE choir joined in the celebrations with two performances—‘Stomping the Ground’ and ‘Sesere eeye’, a traditional song from the Torres Strait Islands. Lisa Charles, the department’s Senior Indigenous Adviser, presented Vicki Rundle, Group Manager, People and Communication, with artwork for the department on behalf of the Indigenous Staff Network and the Indigenous Staff

Committee. The artwork, titled Networks, was developed in collaboration with the Indigenous Staff Network and will remain on display in the department.

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Work health and safety The department is committed to providing a safe and healthy workplace for all employees with the aim of minimising the risk of injury and disease. The department’s health and safety arrangements are in accordance with the Work Health and Safety Act 2011.

The Work Health and Safety Committee focuses on continuous improvement in the management of workplace health and safety and provides an effective consultative mechanism for employees and departmental representatives.

The network of health and safety representatives was refreshed during the year following significant accommodation relocations of many work groups. The department continued to meet all employer obligations and to effectively manage health and safety risks.

Work health and safety incident reporting A total of 63 incidents were reported in 2014-15, with ‘falls, including slips and trips’ accounting for the highest proportion (30 per cent) of all reported incidents (see Table 21). There was an increase in reported incidents of ‘other muscular stress’ (12.7 per cent of total reported incidents), which was partly related to the

accommodation moves.

Between 1 July 2014 and 30 June 2015, the department notified Comcare of three incidents pursuant to section 38 of the Work Health and Safety Act. This compares with two incidents reported to Comcare in the period 18 September 2013 to 30 June 2014. The three notifiable incidents were quite disparate in nature and were unforeseeable. Two of the affected employees required minimal time off work; the third employee continues to receive rehabilitation support to assist their return to work.

There were no investigations of the department under Part 10 of the Work Health and Safety Act.

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Table 21 Work health and safety incidents by type, 2013-14 and 2014-15

Mechanism of incident

2013-14 2014-15

%

DEEWR incidents (%)

Department of

Employment incidents (%)

Falls on the same level (including trips and slips)

34 30 30

Miscellaneous and uncategorised mechanisms

5.6 15 12.7

Vehicle accident 5.6 10 6.3

Unspecified mechanism of injury 1.9 10 9.5

Repetitive movement with low muscle loading

17 7.5 1.6

Being hit by moving objects 0 7.5 8

Other muscular stress 11.3 5 12.7

Single contact with chemical or substance (excluding insect and spider bites and stings)

0 5 1.6

Hitting objects with the body 3.8 2.5 8

Other and multiple mechanisms of injury 1.9 2.5 3.2

Fall from a height 0 2.5 1.6

Exposure to variations in pressure (other than sound)

0 2.5 0

Exposure to mental stress factors 7.5 0 0

Other contact with chemical or substance (includes insect and spider bites and stings)

3.8 0 0

Contact or exposure to heat and cold 3.8 0 3.2

Contact with electricity 1.9 0 0

Slide or cave in 0 0 1.6

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Attendance The department’s unscheduled absence rates compare favourably with other policy agencies. We remain committed to building employee engagement and removing barriers to participation in the workplace. During the year, a positive attendance pilot began in several areas of the department, which involves

manager participation in positive attendance training, meetings with senior managers to discuss ways to boost attendance, and the provision of regular and detailed attendance information to managers.

COMMUNICATION The department’s Communication Branch supports the department’s business areas to achieve their goals and outcomes by developing and implementing communication strategies and campaigns, events, media (including social media and media monitoring), speechwriting and staff communications.

High-quality communication products such as publications, media releases, speeches and online content are important in ensuring that the community has access to comprehensive and accurate information about our policies and programmes. The department works with our portfolio Ministers’ offices, the

Executive, business areas, journalists and other stakeholders to ensure information and presentation are consistent and effective.

In accordance with the requirements of the Australian Government guidelines on information and advertising campaigns, the department undertakes paid advertising to inform affected members of the Australian community about the range of programmes and initiatives we administer. More information on the department’s advertising is in Appendix 3.

Two major communications achievements for the department during 2014-15 were the Restart wage subsidy campaign and a campaign for jobactive.

Restart wage subsidy and mature-age employment communication campaign The second and final phase of the Restart wage subsidy and mature-age employment communication campaign occurred between February and April 2015. The goal of the campaign was to promote positive employer

attitudes towards employing mature-age job seekers, while raising awareness and encouraging take-up by employers of the Restart wage subsidy. It included newspaper, magazine, radio and digital advertising. Radio and press advertisements were translated into six languages (Arabic,

Cantonese, Mandarin, Vietnamese, Greek and Italian).

Developmental research and creative development for the campaign started in 2013-14, and the first phase of advertising went live in July 2014 and ran through November 2014.

Further information on the Restart wage subsidy is available on the department’s website at www. employment.gov.au/restart-wage-subsidy.

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jobactive campaign As part of the preparation for the introduction of jobactive on 1 July 2015, campaign development including benchmark research began in mid-2014. The jobactive campaign aims to promote the new employment service,

which is about meeting the needs of job seekers and employers to improve job outcomes.

The jobactive name and brand were developed in 2014-15. Further development of creative elements will continue in 2015-16, and it is likely that promotion will be through television, press, radio and digital advertising.

Further information on the jobactive programme is available on the department’s website at www.employment.gov.au/jobactive.

Employment delivers G20 success The G20 Labour and Employment Ministerial Meeting team, coordinated by the Communication Branch and made up of more than 130 staff from across the department, was responsible for delivering a highly successful

ministerial meeting in September 2014.

The meeting hosted dignitaries from many nations representing the world’s largest advanced and emerging economies. Everyone involved in the preparation and delivery of this logistically complex event showed tremendous energy and dedication to delivering a world-class summit, earning high praise from ministers and delegates. Both the department and the Australian Government were proud of the team for representing Australia so warmly and professionally.

The Communication Branch continued to provide a tailored approach to internal communication for the Secretary, the Executive and the wider department. Internal communications on various platforms are used to communicate the department’s priorities and engage with staff to share information and seek their feedback.

The Communication Branch also supports the department’s social club, Morty’s, which engages in fundraising for community organisations and facilitates social events. The branch provides the link between the social club and the department’s Executive and assists with the promotion of staff events.

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PARLIAMENTARY SERVICES The parliamentary team plays a key role in providing expertise and support to the department and our Ministers and portfolio agencies across a broad range of parliamentary matters. The team’s responsibilities include processing and quality-assuring ministerial correspondence and briefings, coordinating question

time briefings, and providing high-level support to the Executive and Ministers’ offices during Senate Estimates.

In the second half of 2014, the department implemented the new parliamentary document management system. The rollout, which started with a pilot for two departmental groups in October 2014, was part of a whole-of-government parliamentary workflow solution that will provide government agencies with a consistent system by mid-2016. The remainder of the department transitioned to the new system in

November 2014.

During 2014-15 the parliamentary team processed 4610 items of ministerial correspondence, 1750 Senate Estimates questions on notice and 965 briefings on behalf of the department and portfolio agencies.

DEREGULATION The Australian Government is committed to reform that reduces the burden of regulation, removes unnecessary regulation, lifts regulatory performance, boosts productivity and increases competitiveness.

Since 3 October 2013 the portfolio has reported more than $150 million in announced deregulatory savings.

Employment portfolio agencies and the department have made great progress in cutting red tape to businesses, community organisations and individuals. As reported in the department’s Annual Deregulation Report September 2013 - December 2014, published in March 2015, the portfolio has reported more than $150 million in deregulatory savings since 3 October 2013. Measures identified in 2014-15 included:

- modernising and streamlining the Australian Government Building and Construction WHS

Accreditation Scheme to reduce barriers to entry for small businesses to undertake Commonwealth-funded work, without reducing safety standards - releasing the Building and Construction Industry (Fair and Lawful Building Sites) Code 2013 to ensure

Commonwealth-funded building projects are delivered on time and on budget - streamlining gender reporting under the Workplace Gender Equality Act 2012 to reduce the burden

on employers - simplifying administrative requirements under the Seasonal Worker Programme to reduce the

reporting burden on participating employers.

The report is available at www.employment.gov.au/annual-deregulation-report.

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During 2014-15 the department’s deregulation unit developed strategies to help the portfolio find effective alternatives to regulation and move away from regulation as a default policy. This is part of a broader initiative to build a culture of best practice across the portfolio. These strategies fall into the following categories:

- Target levers for change—determine red tape reduction target and repeal days, forward work

programme, regulation audit, regulatory policy processes and new policy proposals.

- Develop capabilities—build a suite of tools, support policy and programme areas, run targeted

workshops and articulate the deregulation performance indicators.

- Drive change—support leaders, engage staff and deliver a communications plan.

- Foster relationships—facilitate work across the portfolio, with the Secretary and SES employees, cluster

deregulation contacts and an internal deregulation reference group.

The unit has built relationships with deregulation contacts across the department and within each of the portfolio agencies, enabling an ongoing conversation about the outcomes and expectations of the deregulation agenda. The unit collaborates with areas across the portfolio by:

- supporting policy and programme areas to understand the regulatory burden management

framework and cost regulations, prepare regulation impact statements and develop new policy proposals - developing useful information and tools for deregulation and policy development, such as quick

guides, assessment templates, checklists and regulatory costing guides - developing best practice case studies

- supporting leaders with regular information and updates.

The unit has also developed deregulation performance indicators for inclusion in the performance agreements of SES employees. This will ensure that all senior executives have a clear responsibility to personally support the deregulation agenda in ways relevant to their work.

Throughout 2015 the department will maintain the commitment to the deregulation agenda. We will continue to develop our forward work programme to ensure deregulation targets are achieved and real efficiencies for Australian businesses and the community are realised. Reform opportunities in the government’s priority areas of small business and inter-agency and cross-jurisdictional reforms will be a particular area of focus.

The department will work with portfolio agencies to implement the regulator performance framework and assist regulators to develop and identify metrics to measure performance. We will also develop an approach to the external validation of regulators’ self-assessments. These will be assessed over 2015-16 with findings published in the second half of 2016.

In support of the government’s principle to remove Australian regulation where trusted international standards exist, the department will lead the portfolio’s investigation of opportunities for applying international standards and risk assessments. This will be subject to rigorous assessment criteria with the goal of removing unnecessary compliance requirements, costs and delays for business. More broadly, the department and wider portfolio will continue to promote best practice in regulation, minimise regulation and use risk-based approaches in the targeting of compliance activities.

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CORPORATE SUPPORT SERVICES The department established the Shared Services Centre in partnership with the Department of Education and Training as a joint operation to provide shared corporate services for both departments. The two partner departments continue to provide ongoing funding and staffing support to enable the operations

of the SSC. The SSC is accountable to the two departments and overseen by a governance board.

The SSC is based on a shared services model that allows both departments to share corporate functions such as corporate IT, human resources, finance support, property management, design and website development, and library and mailroom services. The collaboration is designed to reduce costs and increase efficiencies through the consolidation and standardisation of processes. The SSC is building on the

work undertaken by the former Department of Education, Employment and Workplace Relations to improve and maximise the efficiencies of corporate functions.

The SSC provides additional services to other departments and agencies on a cost-recovery basis, and is committed to a culture of continuous service improvement, providing analysis and identifying solutions to best meet customer needs.

As at 30 June 2015, the Department of Employment had 309 employees working in the Shared Services Centre.

Shared Services Centre governance The SSC’s Chief Executive Officer, Delaine Wilson, was appointed in October 2014. Ms Wilson is an experienced manager, specialising in the leadership of operational areas including shared service initiatives for large organisations.

In 2014-15, the SSC developed a new vision statement—Leaders in exceptional and innovative shared services solutions—and released a suite of strategic documents that were endorsed by the board in June 2015:

- SSC Strategic Plan 2015-2017—key strategies and priorities that the SSC will work on to deliver

its vision

- Marketing and Growth Strategy—the SSC’s approach to sales and marketing

- IT Strategy—how the SSC will use technology to realise opportunities in its business and support the

delivery of its vision.

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The board oversees the strategic direction and priorities for the SSC. The board supports the extension of services by the SSC more broadly to the benefit of the APS as a whole. The members of the board at 30 June 2015 were:

- Renée Leon PSM, Secretary of the Department of Employment, chair

- Lisa Paul AO PSM, Secretary of the Department of Education and Training

- Delaine Wilson, Chief Executive Officer of the SSC, ex-officio member

- John Lloyd PSM, Australian Public Service Commission representative

- Stein Helgeby, Department of Finance representative

- Natalie James, Fair Work Ombudsman, client agency representative

- Julian Barrington-Smith, independent member.

The board met eight times during the year.

Priorities In line with the strategic priorities of the department and the Australian Government, the SSC is identifying new ways of delivering services to derive additional value for taxpayers.

The SSC’s service delivery is underpinned by four strategic goals. The SSC will:

- ensure cultural alignment with users to deliver a high-performing organisation

- optimise its service delivery to achieve operational excellence and improve productivity

- focus on continuous improvement of its services

- commercialise its partner model.

Services for the department

Recruitment The SSC supports the department to maintain compliance with the government’s APS recruitment arrangements and effectively manage approved external recruitment processes. The recruitment administration team has assisted the department by streamlining the processes associated with the

generation of offer letters and commencement of new employees.

In 2014-15 the SSC provided support to the department for recruitment processes, including bulk exercises such as the graduate recruitment round and the Indigenous Australian Government Development Programme.

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Recognition at the APS Diversity Awards The Indigenous Australian Government Development Programme—first managed by the former Department of Education, Employment and Workplace Relations and now by the SSC on behalf of the two partner departments—won the inaugural prize at the 2014 APS Diversity Awards in the

Indigenous Employment category.

The APS Diversity Awards are designed to recognise and reward innovative programmes aimed at improving diversity in the APS, particularly in the areas of disability and Indigenous employment. Nominated programmes are considered against criteria such as making a difference, being innovative, being sustainable and replicable, supporting collaboration and one APS and reflecting the agency’s commitment to APS-wide diversity.

The programme, designed to increase Indigenous Australians’ participation in the APS, was recognised for building participants’ confidence and capability as well as forming lasting linkages between participating agencies and Indigenous Australians. The programme has been continuously improved and strengthened with 53 participants in 2014-15, an increase

from 32 in 2013-14.

Communication During 2014-15 the SSC provided the department with web development, communications design and audiovisual services, including event management and webcasting of corporate events. Over time it is anticipated that standardising services and increasing the customer base will reduce unit costs and enable the SSC to operate more innovatively.

The SSC audiovisual team worked collaboratively and liaised with delegate countries and their respective media organisations to provide support for the G20 Labour and Employment Ministerial Meeting in Melbourne. The team provided valuable oversight of the complex broadcast arrangements and assistance with the management of broadcast issues.

The SSC audiovisual team worked with the department to establish a purpose-built facility to enable on-demand webcasting and facilitate two-way engagement with staff and stakeholders across Australia.

The team also produced on-demand video and animated products for the department that included video products promoting the benefits of the Work for the Dole programme, the changes resulting from the implementation of jobactive from 1 July 2015 and video addresses by the Federal Safety Commissioner.

The design and web development teams rebranded the department’s website, developing a contemporary design to reflect the department’s key business objectives. The visual identity was complemented with navigation tools to enable access to information on the website.

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Asset management The SSC manages the department’s non-financial assets, including property and facilities, under the policies maintained by the department. The department’s policies and procedures, listed in the Secretary’s instructions, emphasise whole-of-life asset management as well as specifying how the department

manages the acquisition, issuing, management and disposal of relevant property, loss of relevant property and any relevant assets under construction.

In 2014-15 the SSC developed a centralised gifts and benefits register and completed a stocktake to validate the existence and location of department-owned assets.

Purchasing and grants The SSC supports the department’s purchasing and grant processes, including training, and facilitates and advises on policy and process review. The SSC also facilitates internal and external reporting on procurement and grants activities.

The department retains responsibility for the approval, conduct, documentation and reporting of procurement and grants processes. This includes responsibility for authorising policy and processes related to procurement and grants practices in the department. The department also continues to be a lead contributor to whole-of-government initiatives to standardise and improve procurement and grants processes.

Purchasing The department’s purchasing policies and practices, implemented by the SSC, are consistent with all relevant Commonwealth laws, the Commonwealth financial framework (including the Commonwealth Procurement Rules) and other relevant policies. Specialist legal and probity advice is available to all areas of

the department engaged in procurement.

The department uses AusTender to publish its procurement activities and plans. As a result, the department’s procurement activities are readily communicated and accessible to all business enterprises. No contracts were exempt from AusTender reporting during 2014-15.

Aboriginal and Torres Strait Islander businesses The department implemented the Indigenous Opportunities Policy and internal procurement policies aimed at increasing opportunities for businesses owned by Aboriginal and Torres Strait Islander people. The department works in partnership with Supply Nation in applying the policies to support participation

of Aboriginal and Torres Strait Islander businesses in Australian Government procurement activities.

Small businesses The department supports small business participation in the Australian Government procurement market. Participation statistics for small and medium enterprises and small enterprises are available on the Department of Finance’s website at www.finance.gov.au/procurement/statistics-on-commonwealth-

purchasing-contracts.

The department recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Department of the Treasury’s website at www.treasury.gov.au/PublicationsAndMedia/Publications?q=payments+to+small +business&go=1.

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The department’s mechanisms for supporting small businesses include:

- using standardised contracts for low-risk procurements valued under $80,000

- incorporating Australian industry participation plans in whole-of-government procurement where

applicable - implementing the small business engagement principles (outlined in the government’s industry

innovation and competitiveness agenda), such as communicating in clear, simple language and presenting information in an accessible format - using electronic systems or other processes to facilitate on-time payment performance, including the

use of payment cards.

Grants Information on grants awarded by the department during 2014-15 is available at www.employment.gov.au.

Consultants Through the SSC, the department engages consultants to provide independent and expert advice or services, taking into account the skills and resources required for the task, the skills available internally and the cost-effectiveness of those options. The decision to engage a consultant is made in accordance with

the PGPA Act and related regulations.

The methods of selection used for consultancies are open tender, prequalified tender, limited tender and panel arrangements (initially selected through either an open tender or prequalified tender process). Consultants are typically engaged to investigate or diagnose a defined issue or problem; carry out defined research, reviews or evaluations; or provide independent advice, information or creative solutions to assist the department in decision making.

During 2014-15, the department entered into 36 new consultancies, involving total actual expenditure of $1,931,591. In addition, seven ongoing consultancy contracts were active during 2014-15, involving total actual expenditure of $221,842.

Information on the value of contracts and consultancies is available on the AusTender website at www.tenders.gov.au.

Information technology Delivery of the department’s outcomes is supported by a range of IT services, including application development and support, business analytics and geospatial reporting, application hosting, infrastructure provisioning and other support services. Responsibility for the department’s IT is shared between the department, which continues to sustain and develop its major business applications, and the SSC, which manages the rest of the IT services for the department.

The SSC provides the department with human resource and finance IT services. During 2014-15 a comprehensive SAP Connect platform upgrade was completed, which will enable the SSC to migrate core services onto SAP’s high-performance analytical application—a new super-fast database technology platform—during 2015-16.

As a leader in the adoption of cloud computing within government, the SSC has established 240 servers in the public cloud, used for the development and testing of applications and enabling the department to take advantage of the flexibility offered by cloud computing where privacy and performance constraints allow. The SSC also began a data centre relocation project to align with whole-of-government data centre

88 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

policy and provide a high-quality managed service with increased redundancy and reliability. The relocation project is complex; the transition to different locations involves many interrelated components which must be carefully planned and managed. Despite the challenges, the project is on schedule for completion by December 2015.

The information security operations and forensics team provides security and authentication services to the department, using new technologies to enhance security by reducing vulnerabilities of the department’s websites and applications.

The SSC complies with the Australian Signals Directorate’s Top 4 Mitigation Strategies to protect the department’s websites and systems. There were no known security breaches of the department’s websites or systems during 2014-15.

The successful implementation of SAS Visual Analytics software last year is supporting decision makers by enabling them to easily and quickly visualise and understand their data to make better policy, programme and corporate decisions. Enhanced geospatial capabilities for the department’s labour market information portal are also assisting employees to better understand labour markets at the national, state, labour force region, employment service area and statistical local area levels.

EXTERNAL SCRUTINY

Judicial and administrative tribunal decisions The Workplace Relations Legal Group supports an effective workplace relations system by providing legal advice to our portfolio Ministers and the government on key and emerging workplace relations issues and by facilitating parliamentary consideration of legislation that gives effect to government policy.

During the year the department was involved in the following significant matters before courts and administrative tribunals.

Annual wage review In the 2015 annual wage review, the department on behalf of the Australian Government submitted that the Fair Work Commission should take a ‘cautious approach, taking into account the need to boost employment and job creation, as well as maintaining wages for those on the minimum wage and those on award classification wages’. The department provided the commission with:

- an initial submission laying out the government’s position (27 March 2015)

- responses to questions raised by the commission (15 May 2015)

- a post-budget submission outlining the budget forecasts and relevant budget measures (15 May 2015).

On 19 and 20 May 2015, officials from the department and the Treasury appeared before the Fair Work Commission to outline and explain the government’s position.

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On 2 June 2015, the Fair Work Commission released its decision to increase the national minimum wage and award classification wages by 2.5 per cent. Starting on 1 July 2015, the national minimum wage will be $656.90 a week ($17.29 an hour).

Asmar v Fair Work Commission [2015] FCA 16 On 5 December 2014, Justice Beach of the Federal Court heard an application brought by Diana Asmar and Kimberley Kitching of the Health Services Union Victoria No. 1 Branch to prohibit the Fair Work Commission from continuing an inquiry into the potential revocation of fraudulently obtained entry permits. The applicants contended that the Fair Work Commission’s general revocation power in section 603 of the Fair Work Act 2009 did not include the power to revoke a right-of-entry permit.

The Fair Work Commission indicated that as an independent tribunal it would not take an active role in the proceeding. In the absence of any other appropriate contradictor, the Minister for Employment successfully intervened under section 569 of the Fair Work Act and made submissions that rejected the applicants’ argument.

Justice Beach dismissed the application, finding that there was no compelling reason to narrow the operation of section 603 to exclude a power to revoke a decision relating to the issue of a right-of-entry permit.

Teys Australia Beenleigh Pty Ltd v Australasian Meat Industry Employees Union [2015] FCAFC 11 In November 2014, the full court of the Federal Court heard an appeal against the decision in Teys Australia Beenleigh Pty Ltd v Australasian Meat Industry Employees Union [2014] FWCFB 1313, in which the full bench of

the Fair Work Commission quashed an earlier Fair Work Commission decision to approve an enterprise agreement. The employer sought judicial review. The union separately sought a declaration as to the legal effect of the decision to quash the approval. The applications to appeal were heard together.

The Minister for Employment intervened in relation to the scope of the Fair Work Commission’s power to quash a decision on appeal. This issue had not previously been considered by a court. The Federal Court found that the commission can only quash a decision to approve an enterprise agreement at the point when the agreement is approved, such that the agreement is taken to never have had legal effect.

Toyota Motor Corporation Australia Ltd v Mamara [2014] FCAFC 84 In May 2014, the full court of the Federal Court heard Toyota’s appeal against the decision in Marmara v Toyota Motor Corporation Australia Ltd [2013] FCA, in which the primary judge found that the employer’s proposal to vary an enterprise agreement during its nominal term was a contravention of the ‘no extra

claims’ clause in that agreement and a breach of section 50 of the Fair Work Act.

The Minister for Employment intervened and argued that ‘no extra claims’ clauses in enterprise agreements could not override the variation provisions of the Fair Work Act. On 18 July 2014, the full court of the Federal Court upheld Toyota’s appeal and found that the ‘no extra claims’ clause could not prevent the employer from pursuing variations to the enterprise agreement, as that would be inconsistent with the Fair Work Act.

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Parliamentary committee inquiries The department appeared before Senate Estimates on five occasions during 2014-15, for a total of six days:

- Supplementary Estimates—23 October and 14 November 2014

- Additional Estimates—26 February and 10 April 2015

- Budget Estimates—1 and 2 June 2015.

Senate Education and Employment References Committee The department assisted the committee with the following inquiry:

- The impact of Australia’s temporary work visa programs on the Australian labour market and on the

temporary work visa holders.

Senate Education and Employment Legislation Committee The department assisted the committee with its inquiries into the following Bills:

- Fair Work (Registered Organisations) Amendment Bill 2014 [No. 2]

- Safety, Rehabilitation and Compensation Amendment (Improving the Comcare Scheme) Bill 2015

[Provisions] - Construction Industry Amendment (Protecting Witnesses) Bill 2015

- Safety, Rehabilitation and Compensation Legislation Amendment Bill 2014, and Safety, Rehabilitation

and Compensation Legislation Amendment (Exit Arrangements) Bill 2015 - Fair Work Amendment (Bargaining Processes) Bill 2014

- Seafarers Rehabilitation and Compensation and Other Legislation Amendment Bill 2015 [Provisions]

- Social Security Legislation Amendment (Strengthening the Job Seeker Compliance Framework) Bill

2014 [Provisions] - Fair Entitlements Guarantee Amendment Bill 2014.

Reports by the Auditor-General During 2014-15, the Australian National Audit Office tabled one report in parliament that made recommendations relating to the department:

- Audit Report No. 32 2014-15: Administration of the Fair Entitlements Guarantee.

The department was also involved in the following cross-portfolio review:

- Audit Report No. 16 2014-15: Audits of the financial statements of Australian Government entities for the

period ended 30 June 2014.

Office of the Australian Information Commissioner During 2014-15 the Office of the Australian Information Commissioner made one finding in relation to the department involving documents requested under the Freedom of Information Act 1982. Details can be found at www.austlii.edu.au/au/cases/cth/AICmr/2014/115.html.

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Disability reporting mechanisms Since 1994, Commonwealth agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007-08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service Report

and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010-11, departments and agencies were no longer required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 2010-2020, which sets out a 10-year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high-level two-yearly report will track progress against each of the six outcome areas of the strategy and present a picture of how people with disability are faring. The first of these reports was released in 2014 and is available at www.dss.gov.au.

Information Publication Scheme Agencies subject to the Freedom of Information Act 1982 are required to publish information to the public as part of the Information Publication Scheme. This requirement is in Part II of the Act and has replaced the former requirement to publish a section 8 statement in an annual report. Each agency must display on its

website a plan showing what information it publishes in accordance with the scheme’s requirements. The department’s publication plan is available at http://docs.employment.gov.au/pages/information-publication-scheme-ips.

INTERNATIONAL LABOUR ORGANIZATION Australia has been a member of the International Labour Organization (ILO) since it was founded in 1919, and the department has primary responsibility for the Australian Government’s ILO engagement. Australia is required to report on the tripartite (three-part—employers, workers and government) consultations

concerning international labour standards in accordance with obligations under the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144). Australia ratified the convention in June 1979.

Tripartite consultation on ILO international standards occurs in a number of ways. Meetings of the International Labour Affairs Committee—a committee of the National Workplace Relations Consultative Council—are held twice each year. Direct consultation also takes place regularly between the department and the representative employer and employee organisations, the Australian Chamber of Commerce and Industry and the Australian Council of Trade Unions.

The International Labour Affairs Committee was established in 1978 under section 12(1) of the National Labour Consultative Council Act 1977. Its terms of reference are to consider matters of substance relating to the ILO and other relevant international bodies. The committee met twice during the reporting period, on 17 October 2014 and 27 February 2015.

Article 5 of Convention 144 requires consultation on several matters. These are discussed in the following sections, together with the action that took place during the reporting period.

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Forced labour protocol and recommendation Following the adoption in June 2014 of the Forced Labour Protocol of 2014 to the Forced Labour Convention 1930 (P029) and the Forced Labour (Supplementary Measures) Recommendation 2014 (No. 203), the documents were tabled in the Parliament of Australia on 13 May 2015. Prior to tabling,

the department provided a copy of the submission report to the Australian Chamber of Commerce and Industry and the Australian Council of Trade Unions.

Re-examination at appropriate intervals of unratified conventions and recommendations In February 2015, in accordance with Article 19 of the ILO Constitution, a report was submitted to the ILO on the following ILO instruments that Australia has not ratified:

- Migration for Employment Convention (Revised), 1949 (No. 97)

- Migration for Employment Recommendation (Revised), 1949 (No. 86)

- Migrant Workers (Supplementary Provisions) Convention, 1975 (No. 143)

- Migrant Workers Recommendation, 1975 (No. 151).

Prior to submission, the Australian Chamber of Commerce and Industry and the Australian Council of Trade Unions were given the opportunity to review and comment on the report.

Under the Declaration on Fundamental Principles and Rights at Work, countries that have not ratified the Minimum Age Convention, 1973 (No. 138) are requested to provide an annual review report on new developments over the last 12 months. Australia provided a report to the ILO in August 2014 and copies of the report were sent to the Australian Chamber of Commerce and Industry and the Australian Council of Trade Unions.

Questions arising out of reports made to the ILO under Article 22 of the ILO Constitution In September 2014, in accordance with Article 22 of the ILO Constitution, reports were submitted to the ILO on the following ILO conventions that Australia has ratified:

- Forced Labour Convention, 1930 (No. 29)

- Abolition of Forced Labour Convention, 1957 (No. 105)

- Employment Policy Convention, 1964 (No. 122)

- Workers’ Representatives Convention, 1971 (No. 135)

- Dock Work Convention, 1973 (No. 137)

- Labour Administration Convention, 1978 (No. 150)

- Termination of Employment Convention, 1982 (No. 158)

- Labour Statistics Convention, 1985 (No. 160)

- Worst Forms of Child Labour Convention, 1999 (No. 182)

- Maritime Labour Convention, 2006.

FINANCIAL ST ATEMENTS | 93

FINANCIAL STATEMENTS

CFO’S OVERVIEW

Glen Casson Chief Financial Officer

Financial performance—departmental The 2014-15 financial year was the first full year of operation of the department and it recorded a surplus before depreciation and amortisation of $15.7 million (5 per cent of total departmental revenue). Key drivers of the result were:

- higher than planned own-source revenue retained under section 74 of the Public Governance,

Performance and Accountability Act 2013 from property subleases and fees for service through the Shared Services Centre - revenue received from other Commonwealth agencies for capitalised enhancements to IT systems

managed by the department that increased operating revenue but not expense - lower than planned staffing costs and higher capitalisation of employee costs associated with software

development to support the implementation of jobactive.

94 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

The result places the department in a sound financial position as at 30 June 2015, with financial assets of $126.5 million exceeding total liabilities of $120.5 million. Non-financial assets were $111.3 million as at 30 June 2015, primarily reflecting the department’s IT systems and software, fit-outs, infrastructure and prepayments.

Financial performance—administered In 2014-15, total administered expenses on behalf of government were $1951.7 million, including:

- $1,298.4 million in supplier expenses primarily related to Job Services Australia

- $170.8 million in subsidies, primarily related to payments made under the Coal Mining Industry

(Long Service Leave) Administration Act 1992 - $385.0 million in personal benefits associated with the New Enterprise Incentive Scheme and

payments made under the Fair Entitlements Guarantee programme - $89.8 million in grants, primarily related to workers’ compensation payments associated with Comcare,

mature-age employment programmes and payments to the Centre for Workplace Leadership.

Total administered revenue in 2014-15 was $188.3 million, primarily associated with levy collections under the Coal Mining Industry (Long Service Leave) Administration Act 1992 funding arrangements managed by the Coal Mining Industry (Long Service Leave Funding) Corporation, and recoveries of certain payments made under the Fair Entitlements Guarantee programme and asbestos-related claims.

Administered assets at 30 June 2015 were $261.9 million, largely associated with investments in the Coal Mining Industry Corporation. Administered liabilities were $2953.2 million, of which $2794.4 million related to amounts payable by the Commonwealth under workers’ compensation arrangements administered by Comcare but reported in the department’s financial statements due to Comcare’s status as a corporate entity.

FINANCIAL S TATEMENTS | 95

96 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

FINANCIAL S TATEMENTS | 97

98 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment  STATEMENT OF COMPREHENSIVE INCOME  for the period ended 30 June 2015 

The above statement should be read in conjunction with the accompanying notes. 

      2015     2014 

   Notes  $'000     $'000 

NET COST OF SERVICES             

EXPENSES             

Employee benefits  4A  181,711     171,548 

Suppliers  4B  123,488     91,679 

Grants   4C  1,439     1,925 

Depreciation and amortisation  8A  27,875     43,362 

Finance costs  4D  474     35 

Write‐down and impairment of assets  4E  848     19,046 

Losses from asset sales     224     1,576 

Total expenses     336,059     329,171 

              

OWN‐SOURCE INCOME             

Own‐source revenue             

Sale of goods and rendering of services  5A  26,100     13,813 

External audit     460     465 

Total own‐source revenue     26,560     14,278 

              

Gains             

Gains from sale of assets     ‐     436 

Other gains  5B  1,361     821 

Total gains     1,361     1,257 

Total own‐source income     27,921     15,535 

              

Net cost of services      308,138     313,636 

              

Revenue from Government     295,989     288,195 

Deficit attributable to the Australian Government     (12,149)     (25,441) 

              

OTHER COMPREHENSIVE INCOME             

Items not subject to subsequent reclassification to net cost of  services             

Changes in asset revaluation surplus      â€     3,376 

Total other comprehensive income     ‐     3,376 

              

Total comprehensive loss     (12,149)     (22,065) 

 

Department of Employment STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2015

FINANCIAL ST ATEMENTS | 99

Department of Employment  STATEMENT OF FINANCIAL POSITION  as at 30 June 2015 

The above statement should be read in conjunction with the accompanying notes. 

      2015     2014 

   Notes  $'000     $'000 

ASSETS             

Financial Assets             

Cash and cash equivalents     6,321     5,669 

Trade and other receivables  7A  116,131     73,454 

Other financial assets  7B  4,094     2,604 

Total financial assets     126,546     81,727 

              

Non‐financial Assets             

Leasehold improvements  8A  20,260     21,017 

Infrastructure, plant and equipment  8A  13,239     13,102 

Intangibles  8A  65,761     40,011 

Other non‐financial assets  8B  12,011     16,050 

Total non‐financial assets     111,271     90,180 

              

Total assets     237,817     171,907 

              

LIABILITIES             

Payables             

Suppliers  9A  16,720     6,146 

Other payables  9B  34,936     29,165 

Total payables     51,656     35,311 

              

Provisions             

Employee provisions  10A  62,596     59,560 

Other provisions  10B  6,264     2,597 

Total provisions     68,860     62,157 

              

Total liabilities     120,516     97,468 

              

Net assets     117,301     74,439 

              

EQUITY             

Contributed equity     151,515     96,504 

Reserves     3,376     3,376 

Accumulated deficit     (37,590)     (25,441) 

Total equity     117,301     74,439 

 

Department of Employment STATEMENT OF FINANCIAL POSITION as at 30 June 2015

100 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment ATEMENT OF CHANGES IN EQUITY ST for the period ended 30 June 2015

Department of Employment  STATEMENT OF CHANGES IN EQUITY  for the period ended 30 June 2015

 

The above statement should be read in conjunction with the accompanying notes. 

Retained earnings 

Asset revaluation surplus 

Contributed equity/capital 

Total equity 

2015 

2014 

2015 

2014 

2015 

2014 

2015 

2014 

$'000 

$'000 

$'000 

$'000 

$'000 

$'000 

$'000 

$'000 

Opening

 balance 

Balance

 carried forward from previous period 

(25,441) 

 â€ 

3,376 

 â€ 

96,504 

 â€ 

74,439 

‐ 

Adjusted

 opening balance 

(25,441) 

‐ 

3,376 

‐ 

96,504 

‐ 

74,439 

‐ 

Comprehensive

 income 

Other 

comprehensive

 income 

‐ 

‐ 

  

3,376 

‐ 

‐ 

‐ 

3,376 

Deficit for the period 

(12,149) 

(25,441) 

‐ 

 â€ 

‐ 

  

(12,149) 

(25,441) 

Total 

comprehensive

 income 

(12,149) 

(25,441) 

‐ 

3,376 

‐ 

‐ 

(12,149) 

(22,065) 

Contributions

 by owners 

  

  

Equity injection â€ Appropriation 

 â€ 

 â€ 

 â€ 

 â€ 

23,987 

2,127 

23,987 

2,127 

Departmental

 capital budget 

 â€ 

 â€ 

 â€ 

 â€ 

31,024 

21,265 

31,024 

21,265 

Restructuring

 (Note 10) 

 â€ 

 â€ 

 â€ 

 â€ 

‐ 

73,112 

‐ 

73,112 

Sub‐total transactions with owners 

‐ 

‐ 

‐ 

‐ 

55,011 

96,504 

55,011 

96,504 

Closing balance attributable to Australian Government 

(37,590) 

(25,441) 

3,376 

3,376 

151,515 

96,504 

117,301 

74,439 

     

FINANCIAL ST ATEMENTS | 101

Department of Employment CASH FLOW STATEMENT for the period ended 30 June 2015

Department of Employment  CASH FLOW STATEMENT  for the period ended 30 June 2015 

The above statement should be read in conjunction with the accompanying notes. 

      2015     2014 

   Notes  $'000     $'000 

              

OPERATING ACTIVITIES             

Cash received             

Appropriations     281,233      262,471 

Sale of goods and rendering of services     28,130      16,405 

Net GST received     13,559      8,357 

Total cash received     322,922     287,233 

              

Cash used             

Employees     182,157      165,197 

Suppliers     110,617      94,897 

Grants     1,439      1,925 

Section 74 receipts transferred to the OPA     26,198      84 

Total cash used     320,411     262,103 

              

Net cash from operating activities  12  2,511     25,130 

              

INVESTING ACTIVITIES             

Cash received             

Proceeds from sales of infrastructure, plant and equipment     54      439 

Total cash received     54     439 

              

Cash used             

Purchase of infrastructure, plant and equipment     4,591      2,665 

Purchase / development of intangibles     41,634      19,025 

Purchase of leasehold improvements     7,526      205 

Total cash used     53,751     21,895 

              

Net cash used by investing activities     (53,697)     (21,456) 

              

FINANCING ACTIVITIES             

Cash received             

Contributed equity â€ restructure      â€     1,995 

Contributed equity â€ equity injection and capital budget     51,838       â€ 

Total cash received     51,838     1,995 

              

Net cash from financing activities     51,838     1,995 

              

Net increase in cash held     652     5,669 

Cash and cash equivalents at the beginning of the reporting period     5,669       â€ 

Cash and cash equivalents at the end of the reporting period1     6,321     5,669 

 

1. As shown in the Statement of Financial Position.   

102 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment SCHEDULE OF COMMITMENTS as at 30 June 2015

Department of Employment  SCHEDULE OF COMMITMENTS  as at 30 June 2015 

The above schedule should be read in conjunction with the accompanying notes. 

 

   2015     2014 

BY TYPE  $'000     $'000 

Commitments receivable          

Sublease rental income1  (6,490)     (10,424) 

Other commitments receivable  (109)      â€ 

Net GST recoverable on commitments  (20,752)     (10,694) 

Total commitments receivable  (27,351)     (21,118) 

           

Commitments payable          

Other commitments          

Operating leases1  191,961      81,028 

IT commitments2  17,118      27,164 

Research and development  28      30 

Other3  21,554      22,628 

Total other commitments  230,661     130,850 

Net commitments by type  203,310     109,732 

           

BY MATURITY          

Commitments receivable          

Operating lease income          

Within one year  (3,359)     (4,374) 

Between one to five years  (2,878)     (4,924) 

More than five years  (253)     (1,126) 

Total operating lease income  (6,490)     (10,424) 

           

Other commitments receivable          

Within one year  (5,488)     (5,209) 

Between one to five years  (7,838)     (4,931) 

More than five years  (7,535)     (554) 

Total other commitments receivable  (20,861)     (10,694) 

Total commitments receivable  (27,351)     (21,118) 

           

Commitments payable          

Operating lease commitments1          

Within one year  30,806      30,360 

Between one to five years  78,273      43,442 

More than five years  82,882      7,226 

Total operating lease commitments  191,961     81,028 

           

IT commitments2          

Within one year  10,501      13,680 

Between one to five years  6,617      13,484 

Total IT commitments  17,118     27,164 

           

Research and development commitments          

Within one year  28      30 

Total research and development commitments  28     30 

           

           

FINANCIAL ST ATEMENTS | 103

Department of Employment SCHEDULE OF COMMITMENTS as at 30 June 2015

Department of Employment  SCHEDULE OF COMMITMENTS  as at 30 June 2015 

The above schedule should be read in conjunction with the accompanying notes. 

   2015     2014 

   $'000     $'000 

Other commitments3          

Within one year  18,931      19,665 

Between one to five years  2,623      2,963 

Total other commitments  21,554     22,628 

Total commitments payable  230,661     130,850 

Net commitments by maturity  203,310     109,732 

  Note: Commitments are GST inclusive where relevant.   

1  Operating leases included are effectively non‐cancellable and comprise:    Nature of lease  General description of leasing arrangement 

Leases for office accommodation  Lease payments are subject to periodic market value or  indexed increases. 

Sub lease revenue for office accommodation  Vacant office space is sub leased where possible. The total  of future minimum lease payments expected to be  received over the next five years is $6.5 million including  GST. 

Agreement for provision of motor vehicles to senior  executive officers  No contingent rentals exist. There are no renewal or  purchase options available to the department. 

  2  IT commitments include contracts for data services, IT software licensing and hardware maintenance agreements.  3

 Other commitments include a range of contracts such as fees for provision of services.          

104 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME for the period ended 30 June 2015

Department of Employment  ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME  for the period ended 30 June 2015 

 

The above schedule should be read in conjunction with the accompanying notes. 

2015  2014 

Notes  $'000  $'000 

NET COST OF SERVICES         

EXPENSES    

Suppliers  18A  1,298,369  1,333,586 

Subsidies  18B  170,844  161,784 

Personal benefits  18C  384,959  212,836 

Grants   18D  89,773  37,279 

Write‐down and impairment of assets     155  203 

Payments to corporate Commonwealth entities     7,563  1,433 

Total expenses     1,951,663  1,747,121 

           

INCOME    

Revenue    

Taxation revenue    

Other taxes     159,401  133,578 

Total taxation revenue     159,401  133,578 

           

Non‐taxation revenue          

Interest     20  6 

Commonwealth asset recoveries     23,278  16,778 

Other revenue     5,643  3,969 

Total non‐taxation revenue     28,941  20,753 

Total revenue     188,342  154,331 

  

Gains    

Reversals of previous asset write‐downs and impairment     ‐  155 

Total gains     ‐  155 

Total income     188,342  154,486 

     

Net cost of services      (1,763,321)  (1,592,635) 

  

OTHER COMPREHENSIVE INCOME    

Items not subject to subsequent reclassification to net cost of  services    

Changes in asset revaluation surplus     79,181  28,752 

Total other comprehensive income     79,181  28,752 

Total comprehensive loss  (1,684,140)  (1,563,883) 

       

FINANCIAL ST ATEMENTS | 105

Department of Employment ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES as at 30 June 2015

Department of Employment  ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES  as at 30 June 2015   

The above schedule should be read in conjunction with the accompanying notes. 

2015  2014 

Notes  $'000  $'000 

ASSETS    

Financial assets    

Cash and cash equivalents     104  ‐ 

Trade and other receivables  20A  32,165  23,340 

Other investments  20B  224,658  145,477 

Total financial assets     256,927  168,817 

  

Non‐financial assets    

Prepayments  5,014  4,968 

Total non‐financial assets     5,014  4,968 

           

Total assets administered on behalf of Government     261,941  173,785 

           

LIABILITIES          

Payables          

Suppliers  21A  127,076  21,641 

Subsidies  21B  24,973  14,810 

Personal benefits  21C  6,692  9,441 

Grants  21D  ‐  459 

Other payables  21E  2,794,446  2,784,003 

Total payables     2,953,187  2,830,354 

           

Total liabilities administered on behalf of Government     2,953,187  2,830,354 

           

Net liabilities     (2,691,246)  (2,656,569) 

   

106 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment ADMINISTERED RECONCILIATION SCHEDULE for the period ended 30 June 2015

Department of Employment  ADMINISTERED RECONCILIATION SCHEDULE  for the period ended 30 June 2015 

The above schedule should be read in conjunction with the accompanying notes. 

2015     2014 

$'000     $'000 

              

Opening assets less liabilities     (2,656,569)     ‐ 

Adjustment for errors     5,023       â€ 

Adjusted opening assets less liabilities     (2,651,546)     ‐ 

              

Net cost of services             

Income    188,342  154,486 

Expenses             

Payments to entities other than corporate Commonwealth entities    (1,944,100)     (1,745,688)  Payments to corporate Commonwealth entities    (7,563)     (1,433) 

              

Other comprehensive income             

Revaluations transferred to reserves     79,181      28,752 

              

Transfers (to)/from the Australian Government    

              

Appropriation transfers from Official Public Account    

Administered assets and liabilities appropriations     â€     80 

Annual appropriations            

Payments to entities other than corporate Commonwealth entities  1,290,262      1,439,078  Payments to corporate Commonwealth entities  7,563      1,433 

Special appropriations (unlimited)            

     Payments to corporate Commonwealth entities    198,110    159,388 

Payments to entities other than corporate Commonwealth entities  334,246     162,615                

Appropriation transfers to Official Public Account             

Transfers to Official Public Account    (185,741)     (152,610) 

Restructuring      â€     (2,702,670) 

Closing assets less liabilities as at 30 June     (2,691,246)     (2,656,569) 

 

FINANCIAL ST ATEMENTS | 107

Department of Employment ADMINISTERED CASH FLOW STATEMENT for the period ended 30 June 2015

Department of Employment  ADMINISTERED CASH FLOW STATEMENT  for the period ended 30 June 2015 

10 

The above schedule should be read in conjunction with the accompanying notes. 

2015  2014 

Notes  $'000  $'000 

OPERATING ACTIVITIES 

Cash received    

Interest     20   6 

Net GST received     111,982   144,261 

Levies     158,606   127,622 

Other     28,982   20,747 

Total cash received     299,590  292,636 

           

Cash used    

Suppliers     1,308,506   1,482,956 

Subsidies     160,681   154,999 

Personal benefits     387,719   205,671 

Grants     71,792   55,743 

Payments to corporate Commonwealth entities     7,563   1,433 

Total cash used     1,936,261  1,900,802 

Net cash flows used by operating activities   22   (1,636,671)  (1,608,166) 

  

Net decrease in cash held     (1,636,671)  (1,608,166) 

  

Cash and cash equivalents at the beginning of the reporting period      â€   â€ 

  

Cash from the Official Public Account for    

‐ Appropriations     1,830,183   1,762,594 

‐ GST appropriations     115,076   43,205 

      1,945,259  1,805,799 

  

Cash to the Official Public Account for    

‐ Appropriations     (185,741)  (152,610) 

‐ Return of GST appropriations     (122,743)  (45,023) 

      (308,484)  (197,633) 

  

Cash and cash equivalents at the end of the reporting period1     104  ‐ 

       

1. As shown in the Statement of Financial Position       

 

108 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment ADMINISTERED SCHEDULE OF COMMITMENTS for the period ended 30 June 2015

Department of Employment  ADMINISTERED SCHEDULE OF COMMITMENTS  for the period ended 30 June 2015 

11 

The above schedule should be read in conjunction with the accompanying notes. 

2015  2014 

BY TYPE  $'000  $'000 

Commitments receivable 

Net GST recoverable on commitments  (855,520)  (145,685) 

Total commitments receivable  (855,520)  (145,685) 

Commitments payable 

Other commitments 

Employment programs  9,222,564   1,592,246 

Goods and services  177,798   3,519 

Grants  3,446   6,770 

Total other commitments  9,403,809  1,602,535 

Net commitments by type  8,548,289  1,456,850 

BY MATURITY 

Commitments receivable 

Within one year  (147,212)  (144,861) 

Between one to five years  (708,308)  (824) 

Total commitments receivable  (855,520)  (145,685) 

Commitments payable 

Other Commitments 

Within one year  1,619,334   1,593,469 

Between one to five years  7,784,474   9,066 

Total other commitments  9,403,809  1,602,535 

Net commitments by maturity  8,548,289  1,456,850 

    Note: All commitments are GST inclusive where relevant.  The value of commitments is determined based on expected value of services contracted, but yet to be performed under  the agreement.   

FINANCIAL ST ATEMENTS | 109

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 1 Summary of Significant Accounting Policies .......................................................................................................................110

Note 2 Events After the Reporting Period .............................................................................................................................................. 117

Note 3 Net Cash Appropriation Arrangements ..................................................................................................................................118

Note 4 Expenses ...................................................................................................................................................................................................... 119

Note 5 Income ..........................................................................................................................................................................................................120

Note 6 Fair Value Measurement ....................................................................................................................................................................121

Note 7 Financial Assets .......................................................................................................................................................................................124

Note 8 Non-Financial Assets ...........................................................................................................................................................................126

Note 9 Payables .......................................................................................................................................................................................................129

Note 10 Provisions .................................................................................................................................................................................................130

Note 11 Restructuring .........................................................................................................................................................................................131

Note 12 Cash Flow Reconciliation ...............................................................................................................................................................135

Note 13 Contingent Assets and Liabilities ..............................................................................................................................................136

Note 14 Senior Management Personnel Remuneration ...............................................................................................................137

Note 15 Jointly Controlled Operations .....................................................................................................................................................138

Note 16 Financial Instruments .......................................................................................................................................................................139

Note 17 Financial Assets Reconciliation ...................................................................................................................................................141

Note 18 Administered - Expenses ...............................................................................................................................................................142

Note 19 Administered - Fair Value Measurement ..............................................................................................................................143

Note 20 Administered - Financial Assets ................................................................................................................................................ 144

Note 21 Administered - Payables ................................................................................................................................................................ 146

Note 22 Administered - Cash Flow Reconciliation ............................................................................................................................147

Note 23 Administered - Contingent Assets and Liabilities ......................................................................................................... 148

Note 24 Administered - Financial Instruments ....................................................................................................................................149

Note 25 Administered - Financial Assets Reconciliation ...............................................................................................................152

Note 26 Appropriations......................................................................................................................................................................................153

Note 27 Reporting of Outcomes ..................................................................................................................................................................158

Note 28 Budgetary Reports and Explanations of Major Variances .........................................................................................161

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Note 1:  Summary of Significant Accounting Policies   

1.1 Objectives of Employment 

The Department of Employment (the department) is an Australian Government controlled entity.  It is a not‐for‐profit entity. 

The department provides advice to the Government and administers programmes to achieve the Government’s objectives to  create more jobs and increase productivity. The department works in partnership with the states and territories, non‐government  authorities, job service providers and industry. 

The department is structured to meet the following outcomes: 

Outcome 1: Fostering a productive and competitive labour market through employment policies and  programmes that assist job seekers into work, meet employer needs and increase Australia’s  workforce participation. 

Outcome 2: Facilitating jobs growth through policies that promote fair, productive and safe workplaces. 

The continued existence of the department in its present form and with its present programmes is dependent on Government  policy and on continuing funding by Parliament for the department’s administration and programmes. 

The department’s activities contributing toward these outcomes are classified as either departmental or administered.   Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the department in its  own right.  Administered activities involve the management or oversight by the department, on behalf of the Government, of items  controlled or i ncurred by the Government. 

The department conducts the following administered activities on behalf of the Government: 

 aid the gaining of paid employment, delivering benefits for individuals, their families and the community through job  service providers. 

 provide advice and support on the national workplace relations system that encourages employers and employees to  agree, and productive and competitive working arrangements to support jobs growth, and advise on workplace health  and safety and workers compensation. 

1.2 Basis of Preparation of the Financial Statements 

The financial statements are general purpose financial statements and are required by section 42 of the   Public Governance, Performance and Accountability Act 2013. 

The financial statements and notes have been prepared in accordance with: 

 Financial Reporting Rule (FRR) for reporting periods ending on or after 1 July 2014;  and 

 Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply  for the reporting period. 

The financial statements have been prepared on an accrual basis and are in accordance with the historical cost convention, except  for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the  results or the financial position. 

The f

inancial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless  otherwise specified. 

Unless an alternative treatment is specifically required by an accounting standard or the FFRs, assets and liabilities are recognised  in the Statement of Financial Position when and only when it is probable that future economic benefits will flow to the department  or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured.   However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard.   Liabilities and assets that are unrecognised are reported in the Schedule of Commitments or the Contingencies note. 

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in  the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has  occurred and can be reliably measured. 

Due to the Machinery of Government changes on 18 September 2013, comparatives for 2013‐14 are from 19 September 2013 to  30 June 2014. 

 

 

 

1.3 Significant Accounting Judgements and Estimates  

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1.3 Significant Accounting Judgements and Estimates  

In the process of applying the accounting policies listed in this note, the department has made the following  judgements that have the most significant impact on the amounts recorded in the financial statements: 

 the fair value of leasehold improvements and infrastructure, plant and equipment has been taken to  be the market value of similar items as determined by an independent valuer; and 

 the liability for long service leave has been estimated using an actuarial assessment based on the FRR  requirements.  This takes into account expected salary growth, attrition and future discounting using  the government bond rates. 

The department made no other assumptions or estimates identified as having a significant risk of causing a  material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 

1.4 New Australian Accounting Standards 

Adoption of New Australian Accounting Standard Requirements 

The following new and amended standards were issued prior to the signing of the statement by the  accountable authority and chief financial officer, were applicable to the current reporting period and had a  material effect on the entity’s financial statements:   

AASB 1055 

Budgetary Reporting â€ March 2013 (Principal) - this requires the department to explain  significant variances between the original budget and actual expenditure. 

AASB 2015‐7 

  The department has early adopted AASB 2015‐7 Amendments to Australian Accounting  Standards - Fair Value Disclosures of Not‐for‐Profit Public Sector Entities. AASB 2015‐7  amends AASB 13 Fair Value Measurement to provide disclosure relief to not‐for‐profit  public sector entities from certain disclosures about the fair value measurements of  property, plant and equipment held for their current service potential rather than to  generate net cash inflows. This includes relief from disclosures of quantitative  information about the significant unobservable inputs used in fair value measurements  and of the sensitivity of certain fair value measurements to changes in unobservable  inputs. 

All other accounting standards that were issued prior to the sign‐off date and are applicable to the current reporting period  did not have a material effect, and are not expected to have a future material effect, on the department’s financial  statements. 

Future Australian Accounting Standard Requirements 

The following new standards, revised standards, interpretations and amending standards were issued by the  Australian Accounting Standards Board prior to the sign‐off date and apply to future reporting periods, which  are expected to have a material impact on the departments financial statements for future reporting periods: 

AASB 2015‐2,   AASB 101  Presentation of Financial Statements â€ Initiatives to improve disclosures. 

AASB 15 

Revenue from Contracts with Customers - specifies the accounting treatment for all  revenue arising from contracts with customers. 

All other new standards and interpretations that were issued prior to the sign‐off date and are applicable to future reporting  periods are not expected to have a future material impact on the entity’s financial statements. 

 

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1.5 Revenue 

Revenue from the sale of goods is recognised when: 

 the risks and rewards of ownership have been transferred to the buyer; 

 the department retains no managerial involvement or effective control over the goods; 

 the revenue and transaction costs incurred can be reliably measured; and 

 it is probable that the economic benefits associated with the transaction will flow to the department. 

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting  date.  The revenue is recognised when: 

 the amount of revenue, stage of completion and transaction costs incurred can be reliably  measured; and 

 the probable economic benefits associated with the transaction will flow to the department. 

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date  bear to the estimated total costs of the transaction. 

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment  allowance account.  Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability  of the debt is no longer probable. 

Resources Received Free of Charge 

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the  services would have been purchased if they had not been donated.  Use of those resources is recognised as an expense. Resources  received free of charge are recorded as either revenue or gains depending on their nature. 

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the  asset qualifies for recognition, unless received from another non‐corporate or corporate Commonwealth entity as a consequence  of a restructuring of administrative arrangements (refer to Note 1.7). 

Revenue from Government 

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are  recognised as Revenue from Government when the department gains control of the appropriation, except for certain amounts that  relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations  receivable are recognised at their nominal amounts. 

Funding received or receivable from non‐corporate Commonwealth entities (appropriated to the non‐corporate Commonwealth  entity as a corporate Commonwealth entity payment item for payment to this entity) is recognised as Revenue from Government  by the corporate Commonwealth entity unless the funding is in the nature of an equity injection or a loan. 

1.6 Gains 

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the  asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of  administrative arrangements (Refer to Note 1.7). 

Sale of Assets 

Gains from disposal of assets are recognised when control of the asset has passed to the buyer. 

1.7 Transactions with the Government as Owner 

Equity Injections 

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital  Budgets (DCBs) are recognised directly in contributed equity in that year. 

Restructuring of Administrative Arrangements 

Net assets received from, or relinquished to, another Government entity under a restructuring of administrative arrangements are  adjusted at their book value directly against contributed equity. 

Other Distributions to Owners 

The FRR require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend. 

 

1.8 Employee Benefits 

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1.8 Employee Benefits 

Liabilities for ‘short‐term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits  expected within twelve months of the end of reporting period are measured at their nominal amounts. 

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. 

Other long‐term employee benefits are measured as net total of the present value of the defined benefit obligation at the  end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the  obligations are to be settled directly. 

Leave 

The liability for employee benefits includes provision for annual leave and long service leave.  No provision has been made  for sick leave as all sick leave is non‐vesting and the average sick leave taken in future years by employees of the  department is estimated to be less than the annual entitlement for sick leave. 

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be  applied at the time the leave is taken, including the department’s employer superannuation contribution rates, to the  extent that the leave is likely to be taken during service rather than paid out on termination. 

The liability for long service leave has been determined by reference to the work of an actuary as at   30 June 2014 and which has been assessed by the department as being relevant for 2015.  The estimate of the  present value of the liability takes into account attrition rates and pay increases through promotion and  inflation. 

Separation and Redundancy 

Provision is made for separation and redundancy benefit payments.  The department recognises a provision for  termination when it has developed a detailed formal plan for the terminations and has informed those  employees affected that it will carry out the terminations. 

Superannuation 

The majority of the Department’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public  Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or the Australian Government Employees  Superannuation Trust (AGEST). 

The CSS, PSS and AGEST are defined benefit schemes for the Australian Government.  The PSSap is a defined contribution  scheme. 

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by  the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules  and notes. 

The department makes employer contributions to the employee’s superannuation scheme at rates determined  by an actuary to be sufficient to meet the current cost to the Government.  The department accounts for the  contributions as if they were contributions to defined contribution plans. 

The liability for superannuation recognised as at 30 June 2015 represents outstanding contributions for the  final fortnight of the year. 

1.9 Leases 

An operating lease is a lease that is not a finance lease and where the lessor effectively retains substantially all such risks  and benefits. 

Operating lease payments are expensed on a straight‐line basis which is representative of the pattern of  benefits derived from the leased assets.  

 

Lease Incentives 

Lease incentives taking the form of ‘free’ leasehold improvements and rent free holidays are recognised as  liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of  the liability. 

1.10 Fair Value Measurements 

The department deems transfers between the levels of the fair value hierarchy to have occurred at the  end of the reporting period. 

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1.11 Cash  

Cash is recognised at its nominal amount.  Cash and cash equivalents include: 

 cash on hand; 

 cash held by outsiders; and 

 cash in special accounts.  

1.12 Financial Assets 

The department classifies its financial assets in the following category: 

 loans and receivables. 

The classification depends on the nature and purpose of the financial assets and is determined at the time of  initial recognition.  Financial assets are recognised and derecognised upon trade date.  

Loans and Receivables 

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in  an active market are classified as ‘loans and receivables’.  The department’s loans and receivables are  measured at their nominal amount less impairment. 

Impairment of Financial Assets 

Financial assets are assessed for impairment at the end of the reporting period. 

Financial assets held at cost‐ If there is objective evidence that an impairment loss has been incurred, the  amount of the impairment loss is the difference between the carrying amount of the asset and the present  value of the estimated future cash flows discounted at the current market rate for similar assets. 

1.13 Financial Liabilities 

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other  financial liabilities.  Financial liabilities are recognised and derecognised upon trade date.  

Financial Liabilities at Fair Value through Profit or Loss 

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value  adjustments are recognised in profit or loss.  The net gain or loss recognised in profit or loss incorporates any  interest paid on the financial liability. 

Other Financial Liabilities 

Other financial liabilities are initially measured at fair value, net of transaction costs.  These liabilities are  subsequently measured at amortised cost using the effective interest method, with interest expense  recognised on an effective yield basis. 

The effective interest method is a method of calculating the amortised cost of a financial liability and of  allocating interest expense over the relevant period.  The effective interest rate is the rate that exactly  discounts estimated future cash payments through the expected life of the financial liability, or, where  appropriate, a shorter period. 

Supplier and other payables are recognised at amortised cost.  Liabilities are recognised to the extent that the  goods or services have been received (and irrespective of having been invoiced). 

1.14 Contingent Liabilities and Contingent Assets 

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are  reported in the relevant notes.  They may arise from uncertainty as to the existence of a liability or asset or  represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets  are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when  settlement is greater than remote. 

 

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1.15 Acquisition of Assets  

Assets are recorded at cost on acquisition except as stated below.  The cost of acquisition includes the fair value of assets  transferred in exchange and liabilities undertaken.  Financial assets are initially measured at their fair value plus transaction  costs where appropriate. 

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at  the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements.  In the latter  case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the  transferor’s accounts immediately prior to the restructuring.    

1.16 Property, Plant and Equipment 

Asset Recognition Threshold 

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial  Position, except for purchases costing less than $2,000, (or $50,000 for leasehold improvements) which are  expensed in the year of acquisition (other than where they form part of a group of similar items which are  significant in total).    

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring  the site on which it is located.  This is particularly relevant to the restoration provisions in property leases taken  up by the department where there exists an obligation to restore the property to its original condition.  These  costs are included in the value of the department's leasehold improvements with a corresponding provision for  the ‘restoration’ recognised. 

Revaluations 

Fair values for each class of asset are determined as shown below: 

Asset Class  Fair value measurement 

Leasehold improvements  Depreciated replacement cost 

Infrastructure, plant and equipment  Market selling price 

Following initial recognition at cost, property, plant and equipment are carried at valuation less accumulated  depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure  that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date.   The regularity of independent valuations depends upon the volatility of movements in market values for the  relevant assets. This volatility is assessed at the end of each reporting period. 

Revaluation adjustments were made on a class basis.  Any revaluation increment is credited to equity under the  heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of  the same asset class that was previously recognised in the surplus/deficit.  Revaluation decrements for a class  of assets were recognised directly in the surplus/deficit except to the extent that they reverse a previous  revaluation increment for that class. 

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the  asset and the asset restated to the revalued amount. 

Depreciation 

Depreciable property, plant and equipment assets are written‐off to their estimated residual values over their  estimated useful lives to the department using, in all cases, the straight‐line method of depreciation.    

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and  necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. 

Depreciation rates applying to each class of depreciable asset are based on the following useful lives: 

Asset Class  2015 

Leasehold improvements  Lease term 

Infrastructure, plant and equipment  3‐25 years 

 

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Department of Employment 

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

    19 

Impairment 

All assets were assessed for impairment at 30 June 2015.  Where indications of impairment exist, the asset’s  recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less  than its carrying amount. 

The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use.   Value in use is the present value of the future cash flows expected to be derived from the asset.  Where the  future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash  flows, and the asset would be replaced if the department were deprived of the asset, its value in use is taken to  be its depreciated replacement cost. 

Derecognition 

An item of property, plant and equipment is derecognised upon disposal or when no further future economic  benefits are expected from its use or disposal. 

1.17 Intangibles  

The department’s intangibles comprise purchased and internally developed software for internal use.  These  assets are carried at cost less accumulated amortisation and accumulated impairment losses.  Purchases  costing less than $200,000 are expensed in the year of acquisition (other than where they form part of a group  of similar items which are significant in total). 

Software is amortised on a straight‐line basis over its anticipated useful life.  The useful lives of the  department’s software are 2‐15 years.    

All software assets were assessed for indications of impairment as at 30 June 2015. 

1.18 Taxation 

The department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and  Services Tax (GST).    

Revenues, expenses and non‐financial assets are recognised net of GST except:  

 where the amount of GST incurred is not recoverable from the Australian Taxation Office; and 

 for receivables and payables. 

1.19 Reporting of Administered Activities  

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules  and related notes. 

Except where otherwise stated below, administered items are accounted for on the same basis and using the  same policies as for departmental items, including the application of Australian Accounting Standards. 

Administered Cash Transfers to and from the Official Public Account 

Revenue collected by the department for use by the Government rather than the department is administered  revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of  Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on  behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by  the department on behalf of the Government and reported as such in the Schedule of Administered cash flows  and in the Administered Reconciliation Schedule. 

Revenue 

All administered revenues are revenues relating to the course of ordinary activities performed by the  department on behalf of the Australian Government.  As such, administered appropriations are not revenues of  the individual entity that oversees distribution or expenditure of the funds as directed. 

Administered fee revenue is recognised when the service is provided.  Collectability of the debt is reviewed at  balance date.  Impairment allowances are made when collectability of the debt is judged to be less, rather than  more, likely. 

 

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Loans and Receivables 

Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost  using the effective interest method.  Gains and losses due to impairment, derecognition and amortisation are  recognised through profit or loss.   

Administered Investments

Administered investments in subsidiaries, joint ventures and associates are not consolidated because their  consolidation is relevant only at the Whole of Government level. 

Administered investments other than those held for sale are classified as available‐for‐sale and are measured  at their fair value as at 30 June 2015.  Fair value has been taken to be the Australian Government's proportional  interest in the net assets of the entities as at the end of the reporting period.   

Prepayments 

All administered prepayments are current assets. 

Grants and Subsidies 

The department administers a number of grant and subsidy schemes on behalf of the Government. 

Grant and subsidy liabilities are recognised to the extent that: 

(i)    the services required to be performed by the grantee have been performed; or  

(ii)    the grant eligibility criteria have been satisfied, but payments due have not been made.  A     commitment is recorded when the Government enters into an agreement to make these grants but    services have not been performed or criteria satisfied. 

The Australian Government continues to have regard to developments in case law, including the High Court’s  most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they  contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance  with its general practice, the Government will continue to monitor and assess risk and decide on any  appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal  requirements. 

Personal Benefits 

The department administers personal benefit programmes on behalf of the government that provide  entitlements to individuals.  Payments are determined in accordance with provisions of the Fair Entitlements  Guarantee Act 2012 and the funding agreement for the New Enterprise Incentive Scheme under   Job Services Australia. 

Payments to Corporate Commonwealth Entities 

Payments to Comcare from amounts appropriated for that purpose are classified as administered expenses of  the department.  The appropriation to the department is disclosed in Table A of the appropriations note.  

  Note 2:  Events After the Reporting Period    There have been no events after balance date that have the potential to significantly affect the ongoing  structure and financial activities of the department.     

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Department of Employment

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 3: Net Cash Appropriation Arrangements

2015 2014

$'000 $'000

Total comprehensive income less depreciation/amortisation expenses previously funded through revenue appropriations1 15,726 21,297

Plus: depreciation/amortisation expenses previously funded through revenue appropriation (27,875) (43,362)

Total comprehensive loss - as per the Statement of Comprehensive Income (12,149) (22,065)

1. From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

21

FINANCIAL STATEMENTS | 119

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22 

 

Note 4:  Expenses   

  2015    2014 

                 $'000    $'000 

Note 4A: Employee Benefits                     

           

Wages and salaries  122,601     113,789 

Superannuation          

Defined contribution plans  12,392     9,929 

Defined benefit plans  16,391     16,899 

Leave and other entitlements  28,362     23,025 

Separations and redundancies  540     6,546 

Other employee expenses  1,425     1,360 

Total employee benefits  181,711     171,548 

 

Note 4B: Suppliers          

           

Goods and services supplied or rendered          

Consultants  8,854     9,775 

Contractors  8,980     1,795 

Travel  4,512     2,165 

IT services  24,180     23,467 

Property  8,838     6,522 

Resources provided free of charge  460     7,403 

Legal  2,870     1,041 

Other  14,100     7,210 

Total goods and services supplied or rendered  72,794     59,378 

           

Goods and services are made up of          

Provision of goods â€ related parties  52      84 

Provision of goods â€ external parties  2,047      3,536 

Rendering of services â€ related parties  6,145      11,663 

Rendering of services â€ external parties  64,550      44,095 

Total goods and services supplied or rendered  72,794     59,378 

           

Expenses paid on behalf of portfolio agency1  19,315     ‐ 

       

Other suppliers          

Operating lease rentals in connection with          

Minimum lease repayments â€ related parties  2,758       â€ 

Minimum lease repayments â€ external parties  25,180     30,174 

Workers compensation expenses  3,441     2,127 

Total other suppliers  31,379     32,301 

Total suppliers  123,488     91,679 

  1. Payments made to the Office of the Fair Work Building Industry Inspectorate to cover their operating costs from   1 July 2014 to 31 January 2015, due to legislative instruments not being enacted under the PGPA Act 2013.                

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23 

 

   2015     2014 

   $'000     $'000 

Note 4C: Grants          

           

Private sector          

Non‐profit organisations  423     1,139 

Other  1,016     786 

Total grants  1,439     1,925 

 

Note 4D: Finance Costs          

           

Unwinding of discount for restoration  17     35 

Unwinding of discount for surplus lease space  53     ‐ 

Discount on lease incentives  404     ‐ 

Total finance costs  474     35 

 

Note 4E: Write‐Down and Impairment of Assets          

           

Asset write‐downs and impairments from          

Write‐off of receivables â€ goods and services  8     13 

Impairment of receivables â€ goods and services  10     10 

Impairment of leasehold improvements  689     159 

Write‐off of leasehold improvements  2     ‐ 

Write‐off of infrastructure, plant and equipment  81     75 

Impairment of infrastructure, plant and equipment  ‐     2,878 

Write‐off of intangibles  58     33 

Impairment of intangibles  ‐     15,878 

Total write‐down and impairment of assets  848     19,046 

  Note 5:  Income             

OWN‐SOURCE REVENUE          

           

Note 5A: Sale of Goods and Rendering of Services          

           

Sales of goods â€ external parties  16     5 

Rendering of services â€ related parties  21,935     8,911 

Rendering of services â€ external parties  4,149     4,897 

Total sale of goods and rendering of services  26,100     13,813 

 

Note 5B: Other Gains          

           

Gain on write back of restoration provision  229     ‐ 

First time recognition of assets - infrastructure, plant and equipment  266     689 

Write back of provision for surplus lease space  11     ‐ 

Write back of leaseholds impairment  155     ‐ 

Other  700     132 

Total other gains  1,361     821 

 

FINANCIAL S TATEMENTS | 121

TEMENTS ART OF THE FINANCIAL STA

Department of Employment NOTES TO AND FORMING P

Department of Employment 

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

    24  Note 6:  Fair Value Measurement  The  following

 table provides an analysis of assets and liabilities that are measured at fair value.  The different levels of the fair value hierarchy are defined below.  Level 1:  Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement  date. 

Level 2:  Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or  indirectly.  Level 3:  Unobservable inputs for the asset or liability.     

Note 6A: Fair Value Measurements 

  

  

  

  

  

 

 

  

 

  

 

 

  

 

  

Fair value measurements at the end of the reporting period 

For Levels 2 and 3 fair value measurements 

 

2015

2014

Category (Level 

1, 2 or 3) 

Valuation  Techniques 

1

Inputs Used 

$'000

$'000

Non‐financial assets 

Leasehold

 Improvements 

 â€

409 

Replacement Cost

Replacement cost new (price per square metre) 

18,928 

20,608 

Depreciated 

Replacement Cost

Replacement cost new (price per square metre) 

 Useful life (consumed economic benefit/ 

obsolescence of asset) 

  

320 

 â€

Present Value

Current restoration costs (price per square metre) 

Discount rate  Indexation rates 

Infrastructure,

 plant and equipment 

 â€

101 

Replacement Cost

Replacement cost new (price per square metre) 

4,684 

4,433 

Market Approach

Adjusted market transactions 

8,525 

8,568 

Depreciated 

Replacement Cost

Replacement cost new (price per square metre) 

 Useful life (consumed economic benefit/ 

obsolescence of asset) 

Total non‐financial assets 

32,457

34,119

  

 

  

Total fair value measurements of assets in the Statement of  Financial

 Position 

32,457

34,119

  

 

  

  

 1. There has been no change to valuation techniques. 

 

 

122 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

2015

$’000

2014

$’000

Assets not measured at fair value in the statement of financial position

Leasehold Improvements

— AUC

1,013

-

Infr astructure, Plant & Equipment

— AUC

32

-

Total assets not measured at fair value in the statement of financial position

1,045

-

The Department has a number of assets and liabilities not measured at fair value in the Statement of Financial Position. The

carrying amounts of these assets and

liabilities are considered to be a

reasonable approximation of their fair value.

Fair value measurement

— highest and best use

The Department's assets are held for operational purposes not for the

purposes of deriving a profit.

The current use of all controlled assets is considered the

highest

and best use.

Recurring and non

- recurring Le

vel 3 fair value measurements

— valuation processes

Australian Valuation Solutions (AVS) provided a comprehensive valuation of all leasehold improvements as at 30 June 2014. The

department has a policy o

f testing

the currency of the valuation of various asset classes at least once every 12 months and to obtain a comprehensive valuation

at least once every three years. AVS

provided written assurance to the department that the models developed comply with A

ASB 13.

Significant Level 3 inputs used by the department are derived and evaluated as follows:

Leasehold improvements, infra

structure, plant and equipment

— depreciated replacement cost

Assets that do not transact with enough frequency or transparency to

develop objective opinions of value from observable market evidence have been measured

using the depreciated re

placement cost (DRC) approach.

Under the DRC approach the estimated cost to replace the asset is calculated and then adjusted to take into

accou

nt its economic useful life and obsolesce

nce (accumulated depreciation). The economic useful lives and asset obsolescence has been determined based on

professional judgement regarding physical, economic and external obsolescence factors relevant to the asset under considerati

on.

TEMENTS ART OF THE FINANCIAL STA

Department of Employment NOTES TO AND FORMING P

FINANCIAL STATEMENTS | 123

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26 

 

Note 6B: Reconciliation for Recurring Level 3 Fair Value Measurements       

Recurring Level 3 fair value measurements â€ reconciliation for assets 

Non‐financial assets 

Leasehold  Improvements 

Infrastructure, plant  and equipment  Total 

2015  2014  2015  2014  2015  2014 

$'000  $'000  $'000  $'000  $'000  $'000 

Opening balance  20,608  24,946  8,568  12,966  29,176   37,912 

Total losses recognised in net cost of  services1  (8,289)  (6,870) 

 

(2,852)  (6,025)  (11,141)  (12,895) 

Total gains recognised in comprehensive  income  (2)  3,376  (17)   â€  (19)  3,376 

Purchases  6,522  507  2,806  1,728  9,328   2,235 

Disposals   â€  (1,351)     (101)   â€  (1,452) 

Transfers into Level 32  409   â€  20   â€  429   ‐ 

Closing balance  19,248  20,608  8,525  8,568  27,773   29,176 

  1. These losses are presented in the Statement of Comprehensive Income under ‘depreciation and amortisation’ and ‘write‐down  and Impairment of assets’.  2. Transfers into level 3 represent assets that were moved from AUC level 2 category into level 3 during the year.

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27 

 

Note 7:  Financial Assets     2015     2014 

   $'000     $'000 

Note 7A: Trade and Other Receivables          

           

Goods and services â€ related parties  4,319     5,763 

Goods and services â€ external parties  1,229     1,296 

Appropriation receivables â€ for existing programs  109,207     65,080 

GST receivable from the Australian Taxation Office  1,386     1,325 

Total trade and other receivables (gross)  116,141     73,464 

           

Less impairment allowance account          

Goods and services  (10)     (10) 

Total impairment allowance account  (10)     (10) 

Total trade and other receivables (net)  116,131     73,454 

           

Trade and other receivables (net) expected to be recovered          

No more than 12 months  116,027      72,677 

More than 12 months  104      777 

Total trade and other receivables (net)  116,131     73,454 

           

Trade and other receivables (gross) aged as follows          

Not overdue  115,876      72,068 

Overdue by          

     0 to 30 days  20      232 

     31 to 60 days  60      153 

     61 to 90 days  28      218 

     More than 90 days  157      793 

Total trade and other receivables (gross)  116,141     73,464 

     

Impairment allowance account aged as follows          

Overdue by:          

     More than 90 days  (10)     (10) 

Total impairment allowance  (10)     (10) 

           

Credit terms are net 30 days.    

   

Reconciliation of the Impairment Allowance       

        

Movements in relation to 2015       

  

Goods and  services  Total 

   $'000  $'000 

Opening balance  (10)  (10) 

Amounts written off  10   10 

Decrease recognised in net cost of services  (10)  (10) 

Closing balance  (10)  (10) 

        

   

FINANCIAL STATEMENTS | 125

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28 

 

Note 7A: Financial Assets (continued)      Movements in relation to 2014       

  

Goods and  services  Total 

   $'000  $'000 

Opening balance   â€  ‐ 

Decrease recognised in net cost of services  (10)  (10) 

Closing balance  (10)  (10) 

 

   2015  2014 

   $'000  $'000 

Note 7B: Other Financial Assets          

           

Accrued revenue  4,094     2,604 

Total other financial assets  4,094     2,604 

        

All accrued revenue is expected to be received in no more than 12 months.               

 

126 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

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29 

 

  Note

 8: 

Non‐Financial Assets 

Note 8A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles 2014 â€15)

  

  

  

Leasehold 

improvements

Other plant &  equipment

Computer software  internally developed

Computer software 

purchased

Total 

$'000

$'000

$'000

$'000

$'000 

As at 30 June 2014 

Gross book value 

21,599 

21,582 

86,190 

706 

130,077 

Opening

 adjustment â€ gross book value 

 â€

80 

 â€

(5)

75 

Accumulated

 depreciation and impairment 

(582)

(8,480)

(46,744)

(141)

(55,947) 

Opening

 adjustment â€ accumulated depreciation and impairment 

155 

(80)

 â€

80 

Net book value 30 June 2014 

21,172

13,102

39,446

565

74,285 

Additions

 

 

 

 

 

  

Purchase

 or internally developed 

7,533 

4,990 

41,169 

 â€

53,692 

First time recognition 

 â€

152 

114 

 â€

266 

Impairments

 recognised in net cost of services 

(689)

‐

‐

‐

(689) 

Depreciation/amortisation

 expense 

(7,754)

(4,762)

(15,145)

(214)

(27,875) 

Disposals

 

  

Other 

‐

(162)

(116)

‐

(278) 

Write‐offs 

(2)

(81)

(58)

‐

(141) 

Total

 as at 30 June 2015 

20,260

13,239

65,410

351

99,260 

Total

 as at 30 June 2015 represented by: 

Gross book value 

Fair Value 

27,545

23,697

78,492

701

130,435 

Work in progress 

1,037 

 â€

929 

 â€

1,966 

Accumulated

 amortisation 

‐

‐

(13,143)

(319)

(13,462) 

Accumulated

 depreciation 

(7,432)

(9,239)

‐

‐

(16,671) 

Accumulated

 impairment 

(890)

(1,219)

(868)

(31)

(3,008) 

Total

 as at 30 June 2015 

20,260

13,239

65,410

351

99,260 

     

FINANCIAL S TATEMENTS | 127

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30 

 

  Note 8A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2014 â€15) (continued) 

  

  

  

 

There

 were no indicators of impairment identified for internally developed software during 2015 (2014:  $15.8m).  During 2015, $0.58 million of internally developed software was written off (2014:   nil).  There were no write offs of purchased software during 2015 (2014:  $0.33m).  There

 are 5 leased properties that the department manages which are due to be vacated within the next 12 months that have leasehold improvement assets.  The total net book value of the 

leasehold

 improvements,

 including restoration for these properties, was $0.59 million as at 30 June 2015. 

An 

impairment

 loss of $0.69 million was recognised for 7 properties associated with surplus lease space (2014: $0.159m, 5 properties).  

No material amounts of infrastructure, plant and equipment are expected to be sold or disposed of within the next 12 months.  

Revaluations

 of non‐financial assets 

All 

revaluations

 were conducted in accordance with the revaluation policy stated at Note 1. 

Revaluation

 increments for leasehold improvements credited to the asset revaluation reserve were included in the equity section of the Statement of Financial Position, no increments were 

expensed.

 

 

   

128 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

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31 

 

Note 8A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles (2013 â€14) (continued) 

Leasehold 

improvements

Other plant &  equipment

Computer     software  internally  developed 

Computer  software  purchased

Total

$'000

$'000

$'000

$'000

$'000

As at 19 September 2013 

Gross book value 

25,283 

18,267 

67,102 

184 

110,836

Accumulated

 depreciation and impairment 

 â€

 â€

 â€

 â€

‐

Net book value 19 September 2013

1  

25,283

18,267

67,102

184

110,836

Additions

 

 

 

 

 

 

Purchase

 or internally developed 

360 

3,367 

19,088 

 â€

22,815

First time recognition 

380 

309 

 â€

527 

1,216

Reclassification

 

 â€

(28)

 â€

28 

‐

Revaluations

 and impairments recognised in other comprehensive income 

3,376 

 â€

 â€

 â€

3,376

Impairments

 recognised in the operating result 

(159)

(2,878)

(15,824)

(54)

(18,915)

Depreciation/amortisation

 expense 

(6,753)

(5,602)

(30,920)

(87)

(43,362)

Disposals

 

 

From disposal of entities or operations (including restructuring) 

(119)

(28)

 â€

 â€

(147)

Other 

(1,351)

(230)

 â€

 â€

(1,581)

Write‐offs 

 â€

(75)

 â€

(33)

(108)

Net book value 30 June 2014 

21,017

13,102

39,446

565

74,130

Net book value as of 30 June 2014 represented by: 

Gross book value 

Fair Value 

21,190 

21,582 

84,686 

706 

128,164

Work in progress 

409 

 â€

1,504 

 â€

1,913

Accumulated

 amortisation 

 â€

 â€

(30,920)

(87)

(31,007)

Accumulated

 depreciation 

 â€

(5,602)

 â€

 â€

(5,602)

Accumulated

 impairment 

(582)

(2,878)

(15,824)

(54)

(19,338)

Net book value 30 June 2014 

21,017

13,102

39,446

565

74,130

  1. 

Opening

 balances represent the balances transferred as a result of the 18 September 2013 restructure (Refer Note 11).

FINANCIAL S TATEMENTS | 129

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Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

32 

 

   

   2015  2014 

   $'000  $'000 

Note 8B: Other Non‐Financial Assets          

           

Prepayments  12,011     16,050 

Total other non‐financial assets  12,011     16,050 

           

Other non‐financial assets expected to be recovered in    

No more than 12 months  10,314      13,743 

More than 12 months  1,697      2,307 

Total other non‐financial assets  12,011     16,050 

  No indicators of impairment were found for other non‐financial assets.      Note 9:  Payables 

           

           

Note 9A: Suppliers    

     

Trade creditors â€ related parties  136     745 

Trade creditors â€ external parties  14,470      2,658 

Operating lease rentals â€ external parties  2,114     2,743 

Total suppliers  16,720     6,146 

  

Suppliers expected to be settled    

No more than 12 months  15,652      4,047 

More than 12 months  1,068      2,099 

Total suppliers  16,720     6,146 

  Settlement is usually made within 30 days.    Note 9B: Other Payables          

           

Salaries and wages  6,252     5,176 

Superannuation  1,004     976 

Separations and redundancies  108     5,242 

Other employee benefits  58     210 

Lease incentive  16,817     6,548 

Unearned income  3,979     2,545 

Accrued expenses  6,718     8,468 

Total other payables  34,936     29,165 

        

Other payables  expected to be settled          

No more than 12 months  20,142      25,317 

More than 12 months  14,794      3,848 

Total other payables  34,936     29,165 

     

130 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 10: Provisions

2015 2014

$'000 $'000

Note 10A: Employee Provisions

Leave 62,596 59,560

Total employee provisions 62,596 59,560

Employee provisions expected to be settled

No more than 12 months 18,545 18,239

More than 12 months 44,051 41,321

Total employee provisions 62,596 59,560

Note 10B: Other Provisions

Provision for restoration 1,030 1,315

Provision for surplus lease space 5,234 1,282

Total other provisions 6,264 2,597

Other provisions expected to be settled No more than 12 months 4,224 759

More than 12 months 2,040 1,838

Total other provisions 6,264 2,597

Provision for restoration

Provision for surplus lease space Total

$’000 $’000 $’000

As at 30 June 2014 1,315 1,282 2,597

Additional provisions made 14 4,346 4,360

Amounts reversed (316) (11) (327)

Amounts used - (436) (436)

Unwinding of discount or change in discount rate 17 53 70

Total as at 30 June 2015 1,030 5,234 6,264

The department currently has three agreements for the leasing of premises which have provisions requiring the department to restore the premises to their original condition at the conclusion of the lease (2014: 5 agreements). The department has made a provision to reflect the present value of this obligation.

The department has recognised a provision for surplus lease on nine properties. Three of these properties have lease end dates in 2015-16. Five properties have a lease end date within two years. One property has a lease end date greater than two years.

FINANCIAL S TATEMENTS | 131

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 11: Restructuring

Note 11A: Departmental Restructuring

2014

Employment and Workplace Relations Functions

State Network and Corporate Functions

Indigenous Functions

Disability Employment Functions

Department of Education, Employment and Workplace Relations1

Department of Education2 Department of the Prime

Minister and Cabinet3

Department of Social Services4

$'000 $'000 $'000 $'000

FUNCTIONS ASSUMED

Assets recognised

Cash and cash equivalents 1,995 - - -

Trade and other receivables 21,858 - - -

Other financial assets 3,948 - - -

Leasehold improvements 25,283 - - -

Infrastructure, plant and equipment 18,267 - - -

Intangibles 67,286 - - -

Other non-financial assets 18,893 - - -

Total assets recognised 157,530 - - -

Liabilities recognised

Suppliers (5,194) - - -

Other payables (17,344) - - -

Employee provisions (71,176) (14,277) - -

Other provisions (1,526) - - -

Total liabilities recognised (95,240) (14,277) - -

Net assets/(liabilities) recognised 62,290 (14,277) - -

Income assumed

Recognised by the receiving entity 303,685 - - -

Recognised by the losing entity 41,538 - - -

Total income assumed 345,223 - - -

Expenses assumed

Recognised by the receiving entity (329,126) - - -

Recognised by the losing entity (83,340) - - -

Total expenses assumed (412,466) - - -

FUNCTIONS RELINQUISHED

Assets relinquished

Cash and cash equivalents - - - -

Trade and other receivables - - - -

Other financial assets - - - -

Leasehold improvements - - 119 -

Infrastructure, plant and equipment - - 27 1

Other non-financial assets

Total assets relinquished - - 146 1

Liabilities relinquished

Suppliers

Other payables - - - -

Employee provisions - (6,504) (9,970) (8,772)

Total liabilities relinquished - (6,504) (9,970) (8,772)

Net liabilities relinquished - (6,504) (9,824) (8,771)

132 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

35 

 

Note 11A: Departmental Restructuring (continued)    Notes  1. The employment and workplace relation functions were assumed from the Department of Education, Employment and 

Workplace Relations (DEEWR) as a result of the Administrative Arrangement Orders on 18 September 2013. 

2. Responsibility for corporate and state network functions in relation to the former DEEWR were acquired/relinquished  from/to the Department of Education on 28 February 2014.  The transfer of staff followed the transfer of function resulting  from the Administrative Arrangement Orders on 18 September 2013. 

3. Indigenous functions were relinquished to the Department of the Prime Minister and Cabinet (PM&C) during 2013‐14 as a  result of Administrative Arrangements Orders on 18 September 2013. 

4. The disability and income support functions were relinquished to the Department of Social Services (DSS) during 2013‐14 as a  result of Administrative Arrangements Orders on 18 September 2013. 

5. The net assets assumed from DEEWR and Education was $48,013,000 and net liabilities relinquished to Education, PM&C and  DSS was $25,099,000. 

6. In respect of functions assumed/relinquished, the net book values of assets and liabilities were transferred/received for no  consideration.    

   

FINANCIAL S TATEMENTS | 133

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 11B: Administered Restructuring

2014

Employment and workplace relations

Indigenous functions relating to employment

Disability employment functions

Department of Education, Employment and Workplace

Relations1

Department of the Prime Minister and Cabinet2

Department of Social Services3

$’000 $’000 $’000

FUNCTIONS ASSUMED Assets recognised Cash on hand 78 - -

Trade and other receivables 17,357 - -

Other non-financial assets 2,329 - -

Investments 116,725 - -

Total assets recognised 136,489 - -

Liabilities recognised Payables (2,840,851) - -

Total liabilities recognised (2,840,851) - -

Net liabilities recognised (2,704,362) - -

FUNCTIONS RELINQUISHED Assets relinquished Trade and other receivables - 63 2,801

Total assets relinquished - 63 2,801

Liabilities relinquished Payables - (4,556) -

Total liabilities relinquished - (4,556) -

Net (liabilities)/assets relinquished - (4,493) 2,801

Expenses Recognised by gaining entity 1,321,024 - -

Recognised by losing entity 345,604 - -

Total expenses 1,666,628 - -

Income Recognised by gaining entity 153,802 - -

Recognised by losing entity 24,266 - -

Total income 178,068 - -

134 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

37 

 

Note 11B:  Administered Restructuring (continued)    Notes  1. The employment and workplace relations functions were assumed from the former DEEWR on 18 September 2013 as a result 

of the Administrative Arrangement Orders. 

2. Indigenous functions were relinquished to PM&C during 2013‐14 as a result of the Administrative Arrangement Orders on  18 September 2013. 

3. Disability employment functions were relinquished to the DSS during 2013‐14 due to the Administrative Arrangement Order  of 18 September 2013. 

4. The net liabilities assumed from DEEWR were $2,704,362,000, net liabilities relinquished to PM&C were $4,493,000 and net  assets relinquished to DSS were $2,801,000. 

5. In respect of functions assumed/relinquished, the net book values of assets and liabilities were transferred/received for no  consideration 

   

FINANCIAL S TATEMENTS | 135

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

38 

 

 

Note 12:  Cash Flow Reconciliation  2015  2014 

$'000  $'000 

Reconciliation of net cost of services to net cash from (used by) operating activities  Net cost of services  (308,138)  (313,636) 

Revenue from Government  295,989   288,195 

  

Adjustments for non‐cash items    

First time recognition of non‐financial assets  (266)  (689) 

Depreciation / amortisation  27,875   43,362 

Net write‐down and impairment of non‐financial assets  830   19,023 

Net losses from sale of assets  224   1,140 

Finance costs  474   35 

Asset other movements  (153)   â€ 

Restructure   â€  (39,572) 

  

Movements in assets and liabilities    

Assets    

Increase in net receivables  (39,504)  (50,062) 

Increase in accrued revenue  (1,490)  (2,604) 

Decrease / (increase) in prepayments  4,039   (16,050) 

Liabilities       

Increase in employee provisions  3,036   59,560 

Increase in supplier payables  10,157   4,701 

Increase in other provisions  3,667   1,315 

Increase in other payables  5,771   30,412 

Net cash from operating activities  2,511     25,130 

136 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

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39 

 

Note 13:  Contingent Assets and Liabilities 

Claims for Damages and  Costs  Total 

2015  2014  2015  2014 

   $'000  $'000  $'000  $'000 

Contingent liabilities 

Balance from previous period  180   â€  180  ‐ 

New contingent liabilities recognised  125  244  125  244 

Re‐measurement  3  (64)  3  (64) 

Total contingent liabilities  308  180  308  180 

Net contingent liabilities  (308)  (180)  (308)  (180) 

    Quantifiable Contingencies 

The above table reports contingent liabilities in respect of claims for damages of $0.308 million (2014: $0.180). 

The department had no contingent assets in respect of claims for damages. 

Unquantifiable Contingencies 

As at 30 June 2015, the department had no contingent liabilities likely to be paid in respect of damages and claims that are not  quantifiable. 

Significant Remote Contingencies 

The value of contingent liabilities where the likelihood of payment is remote is $60.0 million. This represents the indemnities  provided to the Administrator and the Assistant Administrators of the Health Services Union. 

In addition to the unquantifiable contingencies listed above, the department has provided an indemnity to the Reserve Bank of  Australia against loss or damage arising from the bank acting in good faith on the instructions given to it under the provision of the  contract for the department’s transactional banking services for any error, mistake, fraud or negligence and any failure of the  department to observe its obligations.  The likelihood of any payment being required under the indemnity is remote and  unquantifiable. 

The department has also provided for four (4) indemnities in relation to venue hire agreements which are considered to be remote  and unquantifiable. 

 

FINANCIAL S TATEMENTS | 137

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

40 

 

Note 14:  Senior Management Personnel Remuneration    2015  2014 

$'000  $'000 

Short‐term employee benefits 

Salary  11,090   8,843 

Other1  2,357   1,722 

Total short‐term employee benefits  13,447  10,565 

Post‐employment benefits 

Superannuation  2,107   1,880 

Total post‐employment benefits  2,107  1,880 

Other long‐term employee benefits 

Annual leave accrued  990   621 

Long‐service leave  670   368 

Total other long‐term employee benefits  1,660  989 

Termination benefits 

Separation and redundancy payments  135   200 

Total termination benefits  135  200 

Total senior executive remuneration expenses  17,349     13,634 

The total number of senior management personnel that are included in the above table is 66 (2014: 86).    This note was prepared on an accrual basis and excludes acting arrangements, unless these are deemed to be significant long‐term  acting.    In 2014, the reporting period was from 19 September 2013 to 30 June 2014.    Due to changes in reporting requirements all substantive SES are included as headcount in the note regardless of time engaged  with the agency for the reporting period or dollar value of remuneration. Accordingly SES staff movements may result in SES  numbers that exceed the number of SES positions. This is particularly evident in 2014 due to the Machinery of Government  changes.    1. Other includes motor vehicle allowances, other allowances and reportable fringe benefits.       

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  Note 15:  Jointly Controlled Operations 

The Shared Services Centre (SSC) commenced operation on 1 July 2014. The SSC provides operational, transactional,  advisory and support functions for information technology and a range of corporate services for the partner  departments: the Departments of Employment (Employment) and Education and Training (Education).The SSC also  provides services to other agencies across the Commonwealth on a fee for service basis. 

The SSC is classed as a joint operation under AASB 11 - Joint Arrangement, whereby Employment and Education have  joint control of the arrangement with rights to the assets and obligations for the liabilities relating to the SSC. The rights  and obligations, as well as the contributions by the partner agencies, are underpinned by a Heads of Agreement between  the two partner departments.  The financial statements of both departments recognise their share of the assets,  liabilities, revenues and expenses of the SSC. 

The partner’s ownership in the SSC is 50:50.  Items are generally shared between the partners on a 50:50 basis, with the  main exception being property related items which are allocated based on occupancy at an agreed date.  The resultant  overall share of net assets for Employment in 2014-15 is 52%.             

   

FINANCIAL S TATEMENTS | 139

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42 

 

  Note 16:  Financial Instruments    Note 16A: Categories of Financial Instruments 

  

2015  2014 

$'000  $'000 

Financial Assets 

Loans and receivables 

Cash and cash equivalents  6,321   5,669 

Goods and services receivables  5,538   7,049 

Total loans and receivables  11,859  12,718 

           

Total financial assets  11,859  12,718 

Financial Liabilities 

Financial liabilities measured at amortised cost 

Trade creditors  16,720   6,146 

Total financial liabilities measured at amortised cost  16,720  6,146 

           

Total financial liabilities  16,720  6,146 

 

Note 16B: Net Gains or Losses on Financial Assets 

Loans and receivables 

Write off â€ goods and services  (8)  (13) 

Impairment of receivables â€ goods and services  (10)  (10) 

Net losses on loans and receivables  (18)  (23) 

Net losses on financial assets  (18)     (23) 

  The carrying amount of financial assets and liabilities is a reasonable approximation of fair value.         

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Note 16C: Credit Risk 

The department is exposed to minimal credit risk as loans and receivables were cash, cash on deposit and trade  receivables. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. This amount  was equal to the total amount of trade receivables of $5,548,000 (2014: $7,059,000). The department assessed the risk  of the default on payment and allocated $10,000 to an impairment allowance account (2014:  $10,000). 

The department has no significant exposures to any concentrations of credit risk. All figures for credit risk referred to did  not take into account the value of any collateral of other security.                      

Maximum exposure to credit risk (excluding any collateral or credit  enhancements)  2015  2014 

$'000  $'000 

Financial assets 

Cash and cash equivalents  6,321   5,669 

Goods and services receivables  5,548   7,059 

Total              11,869  12,728 

In relation to the department’s gross credit risk there is no collateral held however in 2015, 11 limited indemnities were  given in respect of venue hire between the Commonwealth and third parties.    

Credit quality of financial instruments not past due or  individually determined as impaired 

Not past  due nor  impaired 

Not past  due nor  impaired  Past due or 

impaired 

Past due  or 

impaired 

         2015  2014  2015  2014 

   $'000  $'000  $'000  $'000 

Cash and cash equivalents     6,321  5,669   â€   â€ 

Goods and services receivables     5,283  5,663  265   1,396 

Total        11,604  11,332  265  1,396 

                 

Ageing of financial assets that were past due but not impaired in 2015 

0 to 30   31 to 60  61 to 90  90+    

days  days  days  days  Total 

$'000  $'000  $'000  $'000  $'000 

Goods and services receivables  20   60  28  147  255  

Total  20  60  28  147  255 

Ageing of financial assets that were past due but not impaired for 2014  0 to 30   31 to 60  61 to 90  90+    

days  days  days  days  Total 

$'000  $'000  $'000  $'000  $'000 

Goods and services receivables  232   153  218  783  1,386  

Total  232  153  218  783  1,386 

     

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44 

 

Note 16D: Liquidity Risk 

The Department’s financial liabilities were trade creditors. The exposure to liquidity risk was based on the notion that the  department will encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely  as the department is appropriated funding from the Australian Government.  The department manages its budgeted  funds to ensure it has adequate funds to meet payments as they fall due. In addition, the department has policies in  place to ensure timely payments are made when due and has no past experience of default. 

Maturities for non‐derivative financial liabilities in 2015 

On demand 

Within one  year 

Between  one to two  years 

Between  two and  five years  More than 

five years  Total 

$'000  $'000  $'000  $'000  $'000  $'000 

Trade creditors   â€  15,652  656  109  303   16,720 

Total  ‐  15,652  656  109  303  16,720 

Maturities for non‐derivative financial liabilities 2014 

On demand 

Within one  year 

Between  one to two  years 

Between  two and five  years  More than 

five years  Total 

$'000  $'000  $'000  $'000  $'000  $'000 

Trade creditors   â€  4,047  1,045  584  470   6,146 

Total  ‐  4,047  1,045  584  470  6,146 

   

Note 16E: Market Risk 

  

The department held basic financial instruments that did not expose the department to market risks.    Note 17:  Financial Assets Reconciliation  2015  2014 

$'000  $'000 

Financial assets  Notes 

     

Total financial assets as per Statement of Financial Position     126,546  81,727 

Less: non‐financial instrument components    

Appropriations receivable  7A  109,207  65,080 

GST receivable from the ATO  7A  1,386   1,325 

Accrued revenue  7B  4,094  2,604 

Total non‐financial instrument components     114,687  69,009 

Total financial assets as per financial instruments note  16A  11,859     12,718 

   

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Note 18:  Administered â€ Expenses    Note 18A: Suppliers  2015  2014 

$'000  $'000 

Services rendered 

Labour market assistance to job seekers and industry â€ external parties  1,280,720   940,845  Industrial relations â€ external parties  17,649   7,974 

Assistance to people with disabilities â€ related parties   â€  73,240 

Assistance to people with disabilities â€ external parties   â€  311,527 

Total suppliers  1,298,369     1,333,586 

 

Note 18B: Subsidies    

  

Subsidies in connection with    

Labour market assistance to job seekers and industry â€ external parties  11,443   19,916  Industrial relations â€ related parties  159,401   133,578 

Assistance to people with disabilities â€ external parties   â€  8,290 

Total subsidies  170,844     161,784 

 

Note 18C: Personal Benefits 

Labour market assistance to job seekers and industry â€ direct  72,515   56,823 

Industrial relations â€ indirect  312,444   156,013 

Total personal benefits  384,959     212,836 

 

Note 18D: Grants 

Public sector 

Australian Government entities (related parties)  84,299  30,812 

Private sector       

Non‐profit organisations  957  1,521 

Other  4,517  4,946 

Total grants  89,773     37,279 

     

FINANCIAL S TATEMENTS | 143

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 19: Administered - Fair Value Measurement

The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability.

Note 19A: Fair Value Measurements

Fair value measurements at the end of the reporting period using

For Levels 2 and 3 fair value measurements

2015 2014

Category Level 1, 2 or 3) Valuation

Techniques Inputs used Weighted

average $'000 $'000

Financial assets

Administered investments 224,658 145,477 3

Net assets of the entity

Net

Assets

Total financial assets 224,658 145,477 - - -

Total fair value measurements of assets in the Administered Schedule of Assets and Liabilities 224,658 145,477 - - -

There are a number of administered assets and liabilities not measured at fair value in the Administered Schedule of Assets and Liabilities. The carrying amounts of these assets and liabilities are considered to be a reasonable approximation of their fair value. The department’s administered investments are classified as available-for-sale financial assets and are measured at their fair value as at 30 June 2015. Fair value is assessed as the Australian Government's proportional interest in the net assets of the entity at balance date. The methods and valuation techniques used for the purpose of measuring fair value of assets and liabilities in 2015 are unchanged from the prior year. Changing inputs to the level 3 hierarchy valuations to reasonably possible alternate assumptions would not significantly change amounts recognised in net cost of service or other comprehensive income.

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Note 19B: Reconciliation For Recurring Level 3 Fair Value  Measurements             

              

There have been no transfers between levels during the period.             

              

Recurring Level 3 fair value measurements â€ reconciliation for  assets             

   Financial assets 

  

Administered  investments  Total 

   2015  2014  2015  2014 

   $'000  $'000  $'000  $'000 

Opening balance  145,477  116,725  145,477   116,725 

Total gains recognised in administered equity  79,181  28,752  79,181   28,752 

Closing balance  224,658  145,477  224,658  145,477 

  Note 20:  Administered â€ Financial Assets    2015 2014

Note 20A: Receivables  $'000 $'000

  

Taxation receivables â€ related parties  14,002  13,207 

Goods and services receivables â€ related parties  124  ‐ 

Goods and services receivables â€ external parties  711  543 

GST receivable from the ATO  17,465  9,731 

Total trade and other receivables (gross)  32,302  23,481 

Less impairment allowance 

Goods and services  (137)  (141) 

Total impairment allowance  (137)  (141) 

Total trade and other receivables (net)  32,165  23,340 

Trade and other receivables (net) expected to be recovered 

No more than 12 months  32,072   23,340 

More than 12 months  93     

Total trade and other receivables (net)  32,165  23,340 

           

Receivables (gross) aged as follows 

Not overdue  31,682   22,939 

Overdue by: 

0 to 30 days  14   24 

31 to 60 days  14   125 

61 to 90 days  53   85 

More than 90 days  539   308 

Total trade and other receivables (gross)  32,302  23,481 

     

Impairment allowance aged as follows 

Overdue by: 

More than 90 days  (137)  (141) 

Total impairment allowance  (137)     (141) 

Credit terms are within 30 days.             

FINANCIAL S TATEMENTS | 145

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48 

 

Reconciliation of the Impairment Allowance          

           

Movements in relation to 2015          

Goods and  services     Total 

$'000     $'000 

Opening balance  (141)     (141) 

Amounts written off  141      141 

Increase/(decrease) recognised in net cost of services  (137)     (137) 

Closing balance  (137)     (137) 

           

Movements in relation to 2014          

Goods and  services     Total 

$'000     $'000 

Opening balance  ‐     ‐ 

Increase/(decrease) recognised in net cost of services  (141)     (141) 

Closing balance  (141)     (141) 

2015  2014 

$'000  $'000 

Note 20B: Other Investments 

Other Investments 

Coal Mining Industry Corporation1  224,658  145,477 

Total other investments  224,658  145,477 

 All other investments are expected to be recovered in greater than 12 months.       The department retains 100 per cent ownership of the listed investment.  The principle activity of the department’s   administered investment is as follows:     

1. Coal Mining Industry Corporation (CMIC) -the administration of the Coal Mining Industry Long Service Leave Fund (The   Fund).  The Fund has operated since 1949 to provide reimbursement payments to employers paying long service leave to   persons employed in the black coal industry in New South Wales, Queensland, Western Australia and Tasmania on the   basis of industry employment service.      No indicators of impairment were found for non‐financial assets.       

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Note 21:  Administered â€ Payables   

2015  2014 

$'000  $'000 

Note 21A: Suppliers 

Trade creditors and accruals â€ external parties  127,076  21,641 

Total suppliers  127,076  21,641 

All suppliers are expected to be settled in no more than 12 months. 

Settlement was made within 30 days. 

 

Note 21B: Subsidies 

Subsidies in connection with 

Related parties  14,001  13,207 

External parties  10,972   1,603 

Total subsidies  24,973  14,810 

All subsidies are expected to be settled in no more than 12 months. 

 

Note 21C: Personal Benefits          

           

Labour market assistance to job seekers and industry â€ direct  2,142     2,166 

Industrial relations â€ external parties  4,550     7,275 

Total personal benefits  6,692     9,441 

All personal benefits are expected to be settled in no more than 12 months.         

 

Note 21D: Grants 

Private sector       

Non‐profit organisations  ‐  459 

Total grants  ‐  459 

All grants are expected to be settled in no more than 12 months.

Settlement is made according to the terms and conditions of each grant.  This is usually within 30 days of performance or  eligibility. 

   

FINANCIAL S TATEMENTS | 147

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2015  2014 

$'000  $'000 

Note 21E: Other Payables 

Comcare payable1  2,787,681  2,769,241 

GST payable  6,765  14,762 

Total other payables  2,794,446  2,784,003 

Other payables expected to be settled 

No more than 12 months  6,765   14,762 

More than 12 months  2,787,681   2,769,241 

Total other payables  2,794,446     2,784,003 

  1. The amount payable to Comcare represents amounts payable by the Commonwealth for:  ‐ workers compensation claims resulting from injuries that occurred prior to 1 July 1989, referred to as ‘pre‐ premium’ claims; 

‐ workers compensation claims resulting from injuries that have occurred since 1 July 1989, referred to as  ‘premium’ claims; and  ‐ the management of asbestos related personal injury common law disease claims against the Commonwealth.    Full details of the amounts payable may be found in the Comcare annual report.    Note 22:  Administered â€ Cash Flow Reconciliation 

2015  2014 

$'000  $'000 

Reconciliation of net cost of services to net cash from / (used by) operating activities  Net cost of services  (1,763,321)  (1,592,635) 

Adjustments for non‐cash items 

Net write down of non‐financial assets  155   203 

Reversals of previous asset write‐downs and impairments   â€  (155) 

Movements in assets / liabilities 

Assets 

(Increase) / decrease in net receivables  (8,987)  (6,225) 

(Increase) / decrease in other non‐financial assets  (46)  (2,639) 

Liabilities 

Increase / (decrease) in supplier payables  105,432   (2,201) 

Increase in subsidies payable  10,163   6,785 

Increase / (decrease) in personal benefits payable  (2,749)  7,164 

Increase / (decrease) in other payables  23,141   (18,922) 

Increase / (decrease) in grants payable  (459)  459 

Net cash used by operating activities  (1,636,671)     (1,608,166) 

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Note 23: Administered - Contingent Assets and Liabilities

Claims for damages or costs Total

2015 2014 2015 2014

$'000 $'000 $'000 $'000

Contingent assets Balance from previous period 22,724 20,172 22,724 20,172

New contingent assets recognised - 2,615 - 2,615

Re-measurement 25,471 19,049 25,471 19,049

Assets realised (23,292) (19,112) (23,292) (19,112)

Total contingent assets 24,903 22,724 24,903 22,724

Contingent liabilities Balance from previous period 114,469 90,126 114,469 90,126

Re-measurement (70,036) 24,343 (70,036) 24,343

Total contingent liabilities 44,433 114,469 44,433 114,469

Net contingent assets / (liabilities) (19,530) (91,745) (19,530) (91,745)

Quantifiable Contingencies

The above table reports contingent assets and liabilities in respect of estimated payments and recoveries in relation to dividends for General Employee Entitlements and Redundancy Scheme (GEERS), the Fair Entitlements Guarantee (FEG), and proceedings in the Dust Disease Tribunal as a result of the department’s administration in prior years. The estimated contingent liability is $44.433 million. The estimated contingent asset is $24.903 million.

Unquantifiable Contingencies

As at 30 June 2015, the department had a number of claims for employee entitlements under the Fair Entitlements Guarantee Act 2012 which were currently subject to review by the Administrative Appeals Tribunal.

Relating to FEG, it is known that there are employers with outstanding employee entitlements that have been placed into liquidation. The amounts are unable to be quantified as no claim forms have been received.

Significant Remote Contingencies

The value of contingent assets and liabilities where the likelihood of receipt or payment is remote is nil.

FINANCIAL S TATEMENTS | 149

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Note 24:  Administered â€ Financial Instruments  2015  2014 

$'000  $'000 

Note 24A: Categories of Financial Instruments 

Financial Assets 

Available‐for‐sale financial assets 

Investments  224,658  145,477 

Total available‐for‐sale financial assets  224,658  145,477 

        

Loans and receivables 

Cash and cash equivalents  104   â€ 

Goods and services receivables  698  402 

Total loans and receivables  802  402 

Total financial assets  225,460  145,879 

Financial Liabilities 

Financial liabilities measured at amortised cost 

Trade creditors  127,076  21,641 

Grants payables   â€  459 

Total financial liabilities measured at amortised cost  127,076  22,100 

Total financial liabilities  127,076  22,100 

 

Note 24B: Net Gains or Losses on Financial Assets 

Available‐for‐sale financial assets 

Gains recognised in equity  79,181  28,752 

Net gains from available‐for‐sale financial assets  79,181  28,752 

Loans and receivables 

Interest revenue  20  6 

Reversal of impairment â€ goods and services   â€  155 

Write‐down and impairment  (155)  (203) 

Net losses from loans and receivables  (135)  (42) 

Net gains on financial assets  79,046  28,710 

     

150 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

53 

 

Note 24C: Fair value of Financial Instruments 

Carrying 

amount  Fair value  Carrying  amount  Fair value  2015  2015  2014  2014 

$'000  $'000  $'000  $'000 

Financial Assets 

Available‐for‐sale financial assets 

Investments  224,658  224,658  145,477   145,477 

Loans and receivables 

Cash at bank and on hand  104  104   â€   â€ 

Receivables for goods and services  698  711  402   543 

Total financial assets  225,460  225,473  145,879  146,020 

Financial Liabilities 

Financial liabilities measured at amortised cost 

Trade creditors  127,076  127,076  21,641   21,641 

Grants payable   â€   â€  459   459 

Total financial liabilities  127,076  127,076  22,100  22,100 

     

FINANCIAL S TATEMENTS | 151

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

54 

 

 

Note 24D: Credit Risk 

The administered loans and receivables of the department were not exposed to a high level of credit risk as the financial  assets were trade receivables.  The department manages its credit risk by undertaking background and credit checks  prior to allowing a debtor relationship.  In addition, the department had policies and procedures that guide employees’  debt recovery techniques that were to be applied.  

The department assessed the risk of the default on payment and allocated $0.137 million in 2015 (2014: $0.141m) to an  impairment allowance for doubtful debts for goods and services receivables.    The department held no collateral to mitigate against credit risk. 

 

Credit quality of financial instruments not past due or individually  determined as impaired 

Not past  due nor  impaired 

Not past  due nor  impaired 

Past due  or 

impaired 

Past due  or 

impaired 

      2015  2014  2015  2014 

      $'000  $'000  $'000  $'000 

Loans and receivables          

Cash at bank and on hand           104   â€   â€   â€ 

Goods and services receivables           91  1  620   542 

Total           195  1  620  542 

Ageing of financial assets that were past due but not impaired for 2015 

0 to 30  31 to 60  61 to 90  90+    

days  days  days  days  Total 

$'000  $'000  $'000  $'000  $'000 

Goods and services receivables        14  14  53   402   483 

Total        14  14  53  402  483 

Ageing of financial assets that were past due but not impaired for 2014 

0 to 30 31 to 60 61 to 90  90+    

days days days  days  Total 

$'000 $'000 $'000  $'000  $'000 

Goods and services receivables        24  125  85   167   401 

Total         24   125  85  167  401 

   

152 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 24E: Liquidity Risk

The department’s financial liabilities were trade creditors. The exposure to liquidity risk is based on the notion that the department would encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely as the department was appropriated funding from the Australian Government and the department manages its budgeted funds to ensure it had adequate funds to meet payments as they fall due. In addition, the department has policies in place to ensure timely payments were made when due and had no past experience of default.

Maturities for non-derivative financial liabilities in 2015

On

Within one

Between one to two Between two to five More than

demand year years years five years Total

$’000 $’000 $’000 $’000 $’000 $’000

Financial Liabilities

Trade creditors - 127,076 - - - 127,076

Total - 127,076 - - - 127,076

Maturities for non-derivative financial liabilities 2014

On Within one Between one to two Between

two to five More than five

demand year years years years Total

$’000 $’000 $’000 $’000 $’000 $’000

Financial Liabilities

At amortised cost: Trade creditors - 21,641 - - - 21,641

Grants payable - 459 - - - 459

Total - 22,100 - - - 22,100

The department has no derivative financial liabilities in the current year and prior year.

Note 24F: Market Risk

The department held basic financial instruments that did not expose it to certain market risks including to ‘currency risk’ and ‘other price risks’.

Note 25: Administered - Financial Assets Reconciliation

2015 2014

$’000 $’000

Financial assets Notes

Total financial assets as per Administered Schedule of Assets and Liabilities 256,927 168,817

Less: non-financial instrument components

GST receivable from Australian Taxation Office 20A 17,465 9,731

Taxation receivables 20A 14,002 13,207

Total non-financial instrument components 31,467 22,938

Total financial assets as per financial instruments note 24A 225,460 145,879

FINANCIAL ST ATEMENTS | 153

TEMENTS ART OF THE FINANCIAL STA

Department of Employment NOTES TO AND FORMING P

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 26: Appropriations Note 26A: Annual Appropriations (‘Recoverable GST exclusive’)

2015 Appropriations

Appropriation

applied in

2015 (current

and prior years)

Appropriation Act

PGPA Act

Total

appropriation

Annual

Appropriation

AFM

Section 74

Section 75

Variance

1

Section 51

determinations

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

DEPARTMENTAL

Ordinary annual services

327,013

-

26,198

-

353,211

307,996

45,215

-

Other

services

Equity

23,987

-

-

-

23,987

26,114

(2,127)

-

Total departmental

351,000

-

26,198

-

377,198

334,110

43,088

-

ADMINISTERED

Ordinary annual services

Administered items

1,552,552

-

-

-

1,552,552

1,290,262

262,290

-

Payments to corporate Commonwealth

entities

7,563

-

-

-

7,563

7,563

-

-

Total administered

1,560,115

-

-

-

1,560,115

1,297,825

262,290

-

The departmental ordinary annual services variance is due to closing liabilities not yet paid and operating surplus. The admi

nistered items variance relates to lower than planned

administered expenditure.

58

154 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

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Department of Employment NOTES TO AND FORMING P

Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

57 

 

Note 26A: Annual Appropriations (‘Recoverable GST exclusive’) (continued) 

 

  

2014 Appropriations 

Appropriation  applied in 2014  (current and  prior years) 

Variance 

  

Appropriation Act 

FMA Act 

Total 

appropriation 

  

Annual 

Appropriation 

Appropriations 

reduced

1  

AFM

2  

Section 30 

Section 31 

Section 32 

  

$’000 

$’000 

$’000 

$’000 

$’000 

$’000 

$’000 

$’000 

$’000 

DEPARTMENTAL

 

  

  

  

  

  

  

  

  

  

Ordinary annual services 

195 

 â€ 

 â€ 

 â€ 

16,672 

309,265 

326,132 

274,060 

52,072  

Other services 

  

  

  

  

  

  

  

  

  

Equity 

2,127 

 â€ 

 â€ 

 â€ 

 â€ 

 â€ 

2,127 

 â€ 

2,127  

Total 

departmental

 

2,322 

‐ 

‐ 

‐ 

16,672 

309,265 

328,259 

274,060 

54,199 

ADMINISTERED

 

  

  

  

  

  

  

  

  

  

Ordinary annual services 

  

  

  

  

  

  

  

  

  

Administered

 items 

14,321 

(127,366) 

 â€ 

1,440 

 â€ 

1,576,708 

1,465,103 

1,439,078 

26,025  

Payments to CAC Act bodies 

1,433 

 â€ 

 â€ 

 â€ 

 â€ 

 â€ 

1,433 

1,433 

 â€ 

Other services 

  

  

  

  

  

  

  

  

  

Administered

 assets and liabilities 

2,967 

(2,887) 

 â€ 

 â€ 

 â€ 

 â€ 

80 

80 

 â€ 

Total 

administered

 

18,721 

(130,253) 

‐ 

1,440 

‐ 

1,576,708 

1,466,616 

1,440,591 

26,025 

 

1.

Appropriations

 reduced under Appropriation Acts (No. 1, 3 & 5) 2013‐14: sections 10,11 and 12 and under Appropriation Acts (No. 2, 4 & 6) 2013‐14: sections 12, 13 and 14.  Departmental 

appropriations

 do not lapse at the end of the financial year.  However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the  Finance Minister to reduce that appropriation.  The reduction in the appropriation is effected by the Finance Minister’s determination and is disallowable by Parliament.   

As with 

departmental

 appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that 

appropriation.

  For administered appropriations reduced under section 11 of the Appropriations Acts (Nos 1, 3 & 5) 2013‐14 and section 12 of Appropriation Acts (No. 2, 4 & 6) 2013‐14, the 

appropriation

 is taken to be reduced to the required amount specified in Table F of this note once the annual report is tabled in Parliament.  All administered appropriations may be adjusted by a 

Finance

 Minister’s determination which is disallowable by Parliament.   

2.  Advance

 to the Finance Minister (AFM) - Appropriation Acts (No. 1, 3 & 5) 2013‐14: section 13 and Appropriation Acts (No. 2, 4 & 6) 2013‐14: section 15. 

3. 

Administered

 and departmental variances are due to the 18 September 2013 restructure and resultant section 32 transfers relating to opening and closing liabilities.  

   

FINANCIAL ST ATEMENTS | 155

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Department of Employment NOTES TO AND FORMING P

Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

 

 

Note 26B: Departmental and Administered Capital Budgets (‘Recoverable GST exclusive’) 

  

  

  

  

  

  

  

  

  

  

  

  

2015 Capital Budget Appropriations 

Capital Budget Appropriations applied in 2015 (current and 

prior years) 

Variance

3

 

  

Appropriation Act 

PGPA Act 

Total Capital 

Budget 

Appropriations 

Payments for  non‐financial 

assets

2

 

Payments for other 

purposes 

Total payments 

  

Annual Capital Budget 

Section 75 

  

$’000 

$’000 

$’000 

$’000 

$’000 

$’000 

$’000 

DEPARTMENTAL

 

  

  

  

  

  

  

  

Ordinary annual services 

  

  

  

  

  

  

  

Departmental

 Capital Budget

1

 

31,024 

 â€ 

31,024 

47,619 

 â€ 

47,619 

(16,595) 

    

2014 Capital Budget Appropriations 

Capital Budget Appropriations applied in 2014 

Variance

3

 

  

Appropriation Act 

FMA Act 

Total Capital 

Budget 

Appropriations 

Payments for  non‐financial 

assets

2

 

Payments for other 

purposes 

Total payments 

  

Annual Capital Budget 

Appropriations 

reduced 

Section 32 

  

$’000 

$’000 

$’000 

$’000 

$’000 

$’000 

$’000 

$’000 

DEPARTMENTAL

 

  

  

  

  

  

  

  

  

Ordinary annual services 

  

  

  

  

  

  

  

  

Departmental

 Capital Budget

1

 

 â€ 

 â€ 

21,265 

21,265 

 â€ 

 â€ 

 â€ 

21,265  

Notes:

 

1.  Departmental

 and Administered Capital Budgets are appropriated through Appropriation Acts (No.1, 3 & 5). They form part of ordinary annual services and are not separately identified in  the 

Appropriation

 Acts. For more information on ordinary annual services appropriation, please see Note 26A: Annual appropriations.  2. 

Payments

 made on non‐financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and  the capital repayment component of finance leases.  3.  The variances in 2014 and 2015 are a timing difference between the purchase of the assets and drawdown of the capital budget.

 

156 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

59 

 

 

Note 26C: Unspent Annual Appropriations ('Recoverable GST exclusive') 

  

2015  2014 

$'000  $'000 

Departmental 

     

     

Appropriation Act (No. 1) 2013‐14   18,428    41,493 

Appropriation Act (No. 1) Capital Budget 2013‐14  ‐   21,265 

Appropriation Act (No. 3) 2013‐14   195   195 

Appropriation Act (No. 4) 2013‐14  ‐   2,127 

Appropriation Act (No. 1) 2014-15   45,505    â€ 

Appropriation Act (No. 1) Capital Budget 2014-15   2,059    â€ 

Appropriation Act (No. 3) 2014-15   40,409    â€ 

Appropriation Act (No. 3) Capital Budget 2014-15   2,611    â€ 

Appropriation Act (No. 4) 2014-15   â€    â€ 

Cash at bank   6,321   5,669 

Total  115,528  70,749 

Administered 

     

     

Appropriation Act (No.1) 2013‐14  25,880   141,654 

Appropriation Act (No. 3) 2013‐14   â€  11,592 

Appropriation Act (No. 4) 2013‐14   â€  2,887 

Appropriation Act (No. 1) 2014-15  191,498    â€ 

Appropriation Act (No. 3) 2014-15  70,792    â€ 

Total  288,170  156,133 

 

FINANCIAL ST ATEMENTS | 157

TEMENTS ART OF THE FINANCIAL STA

Department of Employment NOTES TO AND FORMING P

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 26D: Special Appropriations ('Recoverable GST exclusive')

Authority

Type

Purpose

Appropriation applied

2015

2014

$'000

$'000

Fair Entitlements Guarantee Act 2012

- Section 50

(Administered)

Unlimited Amount

An Act to provide for financial assistance for workers who have not been fully paid for work done for insolvents or bankrupts, and for related purposes.

307,890

144,647

Coal Mining Industry (Long Service Leave Funding) Act 1992

(Administered)

Unlimited Amount

An Act to manage the long service leave entitlement of the Coal Mining Industry.

158,607

127,622

Safety, Rehabilitation and Compensation Act 1988 (SRC Act) (Administered)

Unlimited Amount

An Act to provide for the payment of workers compensation claims and associated expenses in accordance with the provisions of the SRC Act.

39,503

31,766

Asbestos

- related Claims (Management of

Commonwealth Liabilities) Act 2005

(Administered)

Unlimited Amount

An Act to assign responsibility for the management of certain liabilities relating to asbestos-related claims, and for related purposes.

26,356

17,968

Total special appropriations applied

532,356

322,003

62

158 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

61 

 

Note 27:  Reporting of Outcomes  The 

department

 has two outcomes and details of each outcome are provided in the front of the 2014-15 Annual Report.  The department uses a cost allocation model to determine the attribution of  its shared items.      

Note 27A: Net Cost of Outcome Delivery 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Outcome 1 

Outcome 2 

Payments to corporate Commonwealth entities* 

Total 

  

2015 

2014 

2015 

2014 

2015 

2014 

2015 

2014 

  

$'000 

$'000 

$'000 

$'000 

$'000 

$'000 

$'000 

$'000 

Departmental

 

  

  

  

  

  

  

  

  

Expenses

 

252,959 

231,015 

83,100 

98,111 

 â€ 

 â€ 

336,059 

329,126  

Own‐source income 

23,490 

10,872 

4,431 

4,618 

 â€ 

 â€ 

27,921 

15,490  

Administered

 

  

  

  

  

  

  

  

  

Expenses

 

       1,367,249 

       1,414,696 

          576,851 

          330,992 

              7,563 

              1,433 

       1,951,663 

       1,747,121  

Income 

                 276 

              2,577 

          188,066 

          151,909 

                    â€   

                    â€   

          188,342 

          154,486  

Net cost of outcome delivery 

1,596,442 

1,632,262 

467,454 

272,576 

7,563 

1,433 

2,071,459 

1,906,271 

  Outcomes

 are described in Note 1.1. Net costs shown include intra‐government costs that are eliminated in calculating the actual Budget Outcome. Refer to Appendix 2 of this annual report for 

Agency

 resource statements and resources.      *  Payments

 to corporate Commonwealth entities are not related to outcomes. They are included here so the total agrees to the resourcing table.     

TEMENTS ART OF THE FINANCIAL STA

Department of Employment NOTES TO AND FORMING P

FINANCIAL ST ATEMENTS | 159

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

    62  Note 27B: Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome    

Outcome 1 

Outcome 2 

Not attributed

Total 

  

2015 

2014 

2015 

2014 

2015 

2014 

2015 

2014 

  

$'000 

$'000 

$'000 

$'000 

$'000 

$'000 

$'000 

$'000 

Expenses

 

  

  

  

  

  

  

  

  

Employee

 benefits 

147,938 

121,208 

33,773  

50,340 

 â€ 

 â€ 

181,711 

171,548  

Suppliers

 

81,381 

64,744 

42,107  

26,890 

 â€ 

 â€ 

123,488 

91,634  

Grants 

589 

461 

850  

1,464 

 â€ 

 â€ 

1,439 

1,925  

Depreciation

 and amortisation 

21,891 

30,007 

5,984  

13,355 

 â€ 

 â€ 

27,875 

43,362  

Other 

1,160 

14,595 

386  

6,062 

 â€ 

 â€ 

1,546 

20,657  

Total expenses 

252,959 

231,015 

83,100 

98,111 

‐ 

‐ 

336,059 

329,126 

Income

 

  

  

  

  

  

  

  

  

Sales of goods and rendering of services 

22,582 

9,985 

3,978  

4,248 

 â€ 

 â€ 

26,560 

14,233  

Income from government 

203,254 

199,432 

92,735  

88,763 

 â€ 

 â€ 

295,989 

288,195  

Other 

908 

887 

453  

370 

 â€ 

 â€ 

1,361 

1,257  

Total income 

226,744 

210,304 

97,166 

93,381 

‐ 

‐ 

323,910 

303,685 

Assets

 

  

  

  

  

  

  

  

  

Cash and cash equivalents 

 â€ 

 â€ 

 â€ 

 â€ 

6,321 

5,669 

6,321 

5,669  

Trade and other receivables 

5,206 

4,851 

1,718  

2,159 

109,207 

66,444 

116,131 

73,454  

Other financial assets 

2,808 

1,918 

1,286  

686 

 â€ 

 â€ 

4,094 

2,604  

Leaseholds

 

15,977 

14,545 

4,283  

6,472 

 â€ 

 â€ 

20,260 

21,017  

Infrastructure,

 plant and equipment 

9,928 

9,067 

3,311  

4,035 

 â€ 

 â€ 

13,239 

13,102  

Intangibles

 

55,897 

34,009 

9,864  

6,002 

 â€ 

 â€ 

65,761 

40,011  

Other non‐financial assets 

9,031 

13,524 

2,980  

2,526 

 â€ 

 â€ 

12,011 

16,050  

Total assets 

98,847 

77,914 

23,442 

21,880 

115,528 

72,113 

237,817 

171,907 

Liabilities

 

  

  

  

  

  

  

  

  

Suppliers

 

13,130 

4,253 

3,590  

1,893 

 â€ 

 â€ 

16,720 

6,146  

Other payables 

27,436 

21,071 

7,500  

9,376 

 â€ 

 â€ 

34,936 

30,447  

Employee

 provisions 

49,157 

41,219 

13,439  

18,341 

 â€ 

 â€ 

62,596 

59,560  

Other provisions 

4,919 

910 

1,345  

405 

 â€ 

 â€ 

6,264 

1,315  

Total liabilities 

94,642 

67,453 

25,874 

30,015 

‐ 

‐ 

120,516 

97,468 

Outcomes

 are described in Note 1.1. Net costs shown include intra‐government costs that are eliminated in calculating the actual Budget Outcome. Refer to Appendix 2 of this annual report  for Agency resource statements and resources.  

# Assets and liabilities that could not be reliably attributed to outcomes.

 

160 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

  Note 27C: Major Classes of Administered Expenses, Income, Assets, and Liabilities by Outcome   

Outcome 1 

Outcome 2 

Payments to corporate  Commonwealth entities 

Total 

2015

2014

2015

2014

2015

2014

2015

2014 

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000 

Expenses

 

Suppliers

 

1,280,720 

1,325,612 

17,648 

7,974 

 â€ 

 â€ 

1,298,369 

1,333,586  

Subsidies

 

11,443 

28,206 

159,401 

133,578 

 â€ 

 â€ 

170,844 

161,784  

Personal

 benefits 

72,530 

56,812 

312,429 

156,024 

 â€ 

 â€ 

384,959 

212,836  

Grants 

2,411 

3,873 

87,362 

33,406 

 â€ 

 â€ 

89,773 

37,279  

Other 

145 

193 

10 

10 

7,563 

1,433 

7,718 

1,636  

Total expenses 

1,367,249 

1,414,696 

576,851 

330,992 

7,563 

1,433 

1,951,663 

1,747,121 

Income

 

Taxation

 

 â€ 

 â€ 

159,401 

133,578 

 â€ 

 â€ 

159,401 

133,578  

Non‐taxation revenue 

276 

2,422 

28,665 

18,331 

 â€ 

 â€ 

28,941 

20,753  

Gains 

 â€ 

155 

 â€ 

 â€ 

 â€ 

 â€ 

 â€ 

155  

Total income 

276 

2,577 

188,066 

151,909 

‐ 

‐ 

188,342 

154,486 

Assets

 

Cash and cash equivalents 

86 

 â€ 

18 

 â€ 

 â€ 

 â€ 

104 

 â€ 

Receivables

 

17,754 

10,186 

14,411 

13,154 

 â€ 

 â€ 

32,165 

23,340  

Investments

 

 â€ 

 â€ 

224,658 

145,477 

 â€ 

 â€ 

224,658 

145,477  

Other non‐financial assets 

34 

 â€ 

4,980 

4,968 

 â€ 

 â€ 

5,014 

4,968  

Total assets 

17,874 

10,186 

244,067 

163,599 

‐ 

‐ 

261,941 

173,785 

Liabilities

 

Suppliers

 

126,153 

21,539 

923 

102 

 â€ 

 â€ 

127,076 

21,641  

Subsidies

 

10,971 

1,604 

14,002 

13,206 

 â€ 

 â€ 

24,973 

14,810  

Personal

 benefits 

2,221 

2,240 

4,471 

7,201 

 â€ 

 â€ 

6,692 

9,441  

Grants 

 â€ 

459 

 â€ 

 â€ 

 â€ 

 â€ 

 â€ 

459  

Other payables 

7,541 

14,752 

2,786,905 

2,769,251 

 â€ 

 â€ 

2,794,446 

2,784,003  

Total liabilities 

146,886 

40,594 

2,806,301 

2,789,760 

‐ 

‐ 

2,953,187 

2,830,354 

Outcomes

 are described in Note 1.1. Net costs shown include intra‐government costs that are eliminated in calculating the actual Budget Outcome. Refer to Appendix 2 of this annual report  for Agency resource statements and resources.   

 

TEMENTS ART OF THE FINANCIAL STA

Department of Employment NOTES TO AND FORMING P

FINANCIAL S TATEMENTS | 161

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

64 

 

Note 28:  Budgetary Reports and Explanations of Major Variances  The following tables provide a comparison between the 2014-15 Portfolio Budget Statements (PBS) budget and the final financial  outcome in the 2014-15 financial statements.  The Budget and Revised Budget is not audited and does not reflect budget estimates  provided as part of the 2015-16 Portfolio Budget Statements (PBS). However, major changes in budget have been explained as part  of the variance analysis where relevant.  Note 28A: Departmental Budgetary Reports             

                          

Statement of Comprehensive income                   

for the period ended 30 June 2015                      

      Actual  Budget estimate  Revised 

         Original

1   Variance

2   budget3 

      2015  2015  2015  2015 

      $'000  $'000  $'000  $'000 

NET COST OF SERVICES                

EXPENSES                

Employee benefits     181,711  192,604  (10,893)  211,414 

Suppliers     123,488  80,601  42,887  104,957 

Grants      1,439  200  1,239  200 

Depreciation and amortisation     27,875  37,102  (9,227)  30,349 

Finance costs     474   â€  474   â€ 

Write‐down and impairment of assets     848   â€  848   â€ 

Losses from asset sales     224   â€  224   â€ 

Total expenses     336,059  310,507  25,552  346,920 

                 

OWN‐SOURCE INCOME                

Own‐source revenue                

Sale of goods and rendering of services     26,100  17,454  8,646  20,182 

Other Revenue     460  400  60  400 

Total own‐source revenue     26,560  17,854  8,706  20,582 

                 

Gains                

Other gains     1,361  620  741   â€ 

Total gains     1,361  620  741  ‐ 

Total own‐source income     27,921  18,474  9,447  20,582 

                 

Net cost of services      308,138     292,033     16,105     326,338 

                          

Revenue from Government     295,989     254,931     41,058     295,989 

Deficit attributable to the Australian  Government     (12,149)     (37,102)     24,953     (30,349) 

                          

Total comprehensive loss     (12,149)     (37,102)     24,953     (30,349) 

                       

1. Employment’s original budgeted financial statement that was first presented to parliament in respect of the reporting period  was the Portfolio Budget Statements 2014-15.  2. Between the actual and original budgeted amounts for 2015.  Explanations of major variances are provided further below. 3. Employment’s revised budgeted financial statement that was presented to parliament in respect of the reporting period was  the Portfolio Additional Estimates Statements 2014-15. Employee and Supplier budgets have been amended from the revised  budget to align budget with actuals. The total expense budget did not change.       

162 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment  NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 

65 

 

Statement of Financial Position                      

as at 30 June 2015                         

      Actual  Budget estimate  Revised 

         Original

1   Variance

2   budget3 

      2015  2015  2015  2015 

      $'000  $'000  $'000  $'000 

              

ASSETS                

Financial Assets                

Cash and cash equivalents     6,321  2,768  3,553  2,768 

Trade and other receivables     116,131  71,137  44,994  67,921 

Other financial assets     4,094  4,111  (17)  4,111 

Total financial assets     126,546  78,016  48,530  74,800 

                 

Non‐financial Assets                

Leasehold improvements     20,260  38,263  (18,003)  21,344 

Infrastructure, plant and equipment  13,239  20,318  (7,079)  13,770 

Intangibles     65,761  75,371  (9,610)  63,678 

Other non‐financial assets     12,011  15,941  (3,930)  10,252 

Total non‐financial assets     111,271  149,893  (38,622)  109,044 

                 

Total assets     237,817  227,909  9,908  183,844 

                 

LIABILITIES                

Payables                

Suppliers     16,720  8,019  8,701  6,146 

Other payables     34,936  26,902  8,034  11,690 

Total payables     51,656  34,921  16,735  17,836 

                 

Provisions                

Employee provisions     62,596     60,380     2,216     65,592 

Other provisions     6,264     1,235     5,029     1,315 

Total provisions     68,860     61,615     7,245     66,907 

                          

Total liabilities     120,516     96,536     23,980     84,743 

                          

Net assets     117,301     131,373     (14,072)     99,101 

                          

EQUITY                         

Contributed equity     151,515     197,066     (45,551)     151,515 

Reserves     3,376      â€     3,376     3,376 

Accumulated deficit     (37,590)     (65,693)     28,103     (55,790) 

Total equity     117,301  131,373     (14,072)     99,101 

                          

1. Employment’s original budgeted financial statement that was first presented to parliament in respect of the reporting period  was the Portfolio Budget Statements 2014-15. Contributed equity and Reserves budgets have been amended from the original  budget to align budget with actuals. The total equity budget did not change.  2. Between the actual and original budgeted amounts for 2015.  Explanations of major variances are provided further below. 3. Employment’s revised budgeted financial statement that was presented to parliament in respect of the reporting period was  the Portfolio Additional Estimates Statements 2014-15. Trade and other receivables and Other financial assets budgets have been  amended from the revised budget to align budget with actuals. The total assets budget did not change.   

FINANCIAL S TATEMENTS | 163

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Statement of Changes in Equity

for the period ended 30 June 2015

Retained earnings

Asset revaluation surplus

Contributed equity

Total

Budget estimate

Budget estimate

Budget estimate

Budget estimate

Actual

Original

1

Variance

2

Revised Budget

3

Actual

Original

1

Variance

2

Revised Budget

3

Actual

Original

1

Variance

2

Revised Budget

3

Actual

Original

1

Variance

2

Revised Budget

3

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

Opening balance

Balance carried forward from previous period

(25,441)

(28,591)

3,150

(25,441)

3,376

-

3,376

3,376

96,504

163,965

(67,461)

96,504

74,439

135,374

(60,935)

74,439

Adjustment for errors

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Adjustment for changes in accounting policies

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Adjusted opening balance

(25,441)

(28,591)

3,150

(25,441)

3,376

-

3,376

3,376

96,504

163,965

(67,461)

96,504

74,439

135,374

(60,935)

74,439

Comprehensive income

Other comprehensive income

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Adjustment to

provision for

restoration

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Deficit for the period

(12,149)

(37,102)

24,953

(30,349)

-

-

-

-

-

-

-

-

(12,149)

(37,102)

24,953

(30,349)

Total comprehensive income

(12,149)

(37,102)

24,953

(30,349)

-

-

-

-

-

-

-

-

(12,149)

(37,102)

24,953

(30,349)

Contributions by owners

Equity injection

-

Appropriation

-

-

-

-

-

-

-

-

23,987

5,926

18,061

23,987

23,987

5,926

18,061

23,987

Departmental capital budget

-

-

-

-

-

-

-

-

31,024

27,174

3,850

31,024

31,024

27,174

3,850

31,024

Return of Unspent Appropriation

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Restructuring (Note 10)

-

-

-

-

-

-

-

-

-

1

(1)

-

-

1

(1)

-

Sub

- total transactions with

owners

-

-

-

-

-

-

-

-

55,011

33,101

21,910

55,011

55,011

33,101

21,910

55,011

Closing balance attributable to Australian Government

(37,590)

(65,693)

28,103

(55,790)

3,376

-

3,376

3,376

151,515

197,066

(45,551)

151,515

117,301

131,373

(14,072)

99,101

1. Employment’s original budgeted financial statement that was first presented to parliament in respect of the reporting peri

od was the Portfolio Budget Statements 2014

- 15. Contributed

equity and Reserves budgets have been amended from the

original budget to align budget with actuals. The total equity budget did not change.

2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

3. Employment’s revised budgeted financial st

atement that was presented to parliament in respect of the reporting period was the Portfolio Additional Estimates Statements

2014

- 15.

58 Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

164 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Cash Flow Statement

for the period ended 30 June 2015

Actual Budget estimate Revised

Original1 Variance2 budget3

2015 2015 2015 2015

$'000 $'000 $'000 $'000

OPERATING ACTIVITIES

Cash received

Appropriations 281,233 254,861 26,372 292,803

Sale of goods and rendering of services 28,130 17,454 10,676 22,996

Net GST received 13,559 - 13,559 9,236

Total cash received 322,922 272,315 50,607 325,035

Cash used

Employees 182,157 192,534 (10,377) 216,986

Suppliers 110,617 79,781 30,836 110,950

Grants 1,439 - 1,439 -

Section 74 receipts transferred to the OPA 26,198 - 26,198 -

Total cash used 320,411 272,315 48,096 327,936

Net cash from operating activities 2,511 - 2,511 (2,901)

INVESTING ACTIVITIES

Cash received

Proceeds from sales of leasehold improvements 54 - 54 -

Total cash received 54 - 54 -

Cash used

Purchase of infrastructure, plant and equipment 4,591 6,000 (1,409) 5,410

Purchase / development of intangibles 41,634 25,600 16,034 41,799

Purchase of leasehold improvements 7,526 1,500 6,026 7,802

Total cash used 53,751 33,100 20,651 55,011

Net cash used by investing activities (53,697) (33,100) (20,597) (55,011)

FINANCING ACTIVITIES

Cash received

Contributed equity - capital budget 51,838 33,100 18,738 55,011

Total cash received 51,838 33,100 18,738 55,011

Net cash from financing activities 51,838 33,100 18,738 55,011

Net increase in cash held 652 - 652 (2,901)

Cash and cash equivalents at the beginning of the reporting period 5,669 2,768 2,901 5,669

Cash and cash equivalents at the end of the reporting period 6,321 2,768 3,553 2,768

1. Employment’s original budgeted financial statement that was first presented to parliament in respect of the reporting period was the Portfolio Budget Statements 2014-15. Purchase of infrastructure, plant and equipment, Purchase of/development of Intangibles and Purchase of leasehold improvements budgets have been amended from the original budget to align budget with actuals. The total Investing Cash used budget did not change. 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below. 3. Employment’s revised budgeted financial statement that was presented to parliament in respect of the reporting period was the Portfolio Additional Estimates Statements 2014-15. Employee and Supplier budgets have been amended from the revised budget to align budget with actuals. The total Operating Cash used budget did not change.

FINANCIAL S TATEMENTS | 165

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Variances are considered to be ‘major’ based on the following criteria: • the variance between budget and actual is greater than 10% • an item below this threshold but is considered important for the reader’s understanding or is relevant to an assessment of the discharge of accountability and to an analysis of performance of an entity.

Note 28B: Departmental Major Budget Variances for 2015 Explanations of major variances Affected line items (and schedule)

The Machinery of Government changes of 18 September 2013 were not finalised until June 2014. The 2014-15 Portfolio Budget Statements reported the best estimate based on information available. This contributed to variances for Expenses, Assets, Liabilities and Equity to varying degrees.

Employee Benefits, Suppliers (Statement of Comprehensive Income) Trade and other receivables Non-Financial Assets, Contributed Equity, Reserves and Accumulated Deficit (Statement of Financial Position)

Lower than planned staffing numbers and higher capitalisation of employee costs associated with the development of software to support the implementation of jobactive reduced Employee Benefits by $10.9m against the original budget.

Employee Benefits (Statement of Comprehensive Income), Employees (Cash Flow Statement)

Suppliers were $42.9m higher against budget primarily due to the use of contractors to support the implementation of jobactive, additional legal costs, recognition of surplus lease, additional staff training. An additional, $24.2m in suppliers budget was provided in the revised budget from the finalisation of the Machinery of Government changes and jobactive bringing the spend above budget down to $18.7m.

Suppliers (Statement of Comprehensive Income) Suppliers (Cash Flow Statement)

During the year, the department provided funding for several non-reciprocal research projects that directly support the strategic priorities of the portfolio, which increased Grants by $1.2m against the original budget.

Grants (Statement of Comprehensive Income) Grants (Cash Flow Statement)

Write-down and impairment of assets primarily relates to the fit out of properties that had surplus lease provisioned in 2014-15, for which the department does not budget. Write-down and impairment of assets (Statement of Comprehensive Income)

The department received funding that was not in the original budget from other departments to assist with the coordination of the G20 Labour and Employment Ministerial meeting in Melbourne and higher than planned funding from other departments for tender and IT services and revenue from the Shared Services Centre for property sub-leases and fees for service.

Own-source revenue (Statement of Comprehensive Income) Sale of goods and rendering of services (Cash Flow Statement)

The first time recognition of assets, the disposal of make-good from a terminated lease increased Other Gains. These are all one off revenues and not budgeted for. Other gains (Statement of Comprehensive Income)

Operating and capital surpluses, higher than planned payables and the finalisation of the Machinery of Government changes increased the Appropriation Receivable by $44.2m against the original budget.

Trade and other receivables (Statement of Financial Position)

When the original budget was set, asset balances were not settled due to the Machinery of Government changes. This was addressed in the revised budget. Leasehold Improvements, Infrastructure, Plant and Equipment and Intangibles

(Statement of Financial Position)

Software licences required to maintain replaced systems reduced, as such decreasing prepayments against the original budget. Other non-financial assets (Statement of Financial Position)

Higher than planned creditor payables increased Supplier Payables against the budget due to higher than planned supplier expenses. Supplier payables (Statement of Financial Position)

Higher than planned accrued expenses and revenue received in advance and a lease incentive associated with the department’s national office increased Other Payables against the original budget. The lease incentive is amortised over the life of the lease.

Other payables (Statement of Financial Position)

The department has recognised a provision for surplus lease on nine properties. Three of these properties have lease end dates in 2015-16. Five properties have a lease end date within two years. One property has a lease end date greater than two years.

Other provisions (Statement of Financial Position)

As the Machinery of Government changes were not finalised this significantly impacted the variance against the original budget. The Department also received an additional $21.9m in Capital and Equity injections associated with new measures.

Contributed Equity (Statement of Financial Position) Equity injection - appropriation, Departmental capital budget (Statement of Changes in Equity)

The assets of the department were revalued as at 30 June 2014. This reserve value was not known at the time of preparing the original budget. Reserves (Statement of Financial Position) Asset Revaluation Surplus (Statement of

Changes in Equity)

A capital and operating surplus in 2014-15 reduced the Accumulated Deficit by $28.9m against the original budget. The variance against the revised budget is $18.2m. Accumulated deficit (Statement of Financial Position)

Retained Earnings (Statement of Changes in Equity)

GST received from the ATO was $4.3m higher than the revised budget due to higher than planned supplier expenses. Net GST received (Cash Flow Statement)

There is no budget for the transfer of cash to the OPA from revenue received under Section 74 of the Public Governance, Performance and Accountability Act 2013. Section 74 transfers to the OPA (Cash Flow Statement)

A later than planned transfer to a new data centre reduced Purchase of Infrastructure Plant and Equipment by $0.8m against the revised budget. Purchase of Infrastructure Plant and Equipment (Cash Flow Statement)

166 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 28C: Administered Budgetary Reports

Administered Statement of Comprehensive income

for the period ended 30 June 2015

Actual Budget estimate Revised

Original

1 Variance2 budget3

2015 2015 2015 2015

$'000 $'000 $'000 $'000

NET COST OF SERVICES

EXPENSES

Suppliers 1,298,369 1,344,198 (45,829) 1,414,647

Subsidies 170,844 225,882 (55,038) 226,091

Personal benefits 384,959 284,958 100,001 288,346

Grants 89,773 72,208 17,565 66,451

Write-down and impairment of assets 155 - 155 -

Payments to corporate Commonwealth entities 7,563 7,563 - 7,563

Total expenses 1,951,663 1,934,809 16,854 2,003,098

INCOME

Revenue

Taxation revenue

Other taxes 159,401 174,618 (15,217) 174,618

Total taxation revenue 159,401 174,618 (15,217) 174,618

Non-taxation revenue

Interest 20 - 20 -

Commonwealth asset recoveries 23,278 14,732 8,546 14,732

Other revenue 5,643 3,993 1,650 3,993

Total non-taxation revenue 28,941 18,725 10,216 18,725

Total revenue 188,342 193,343 (5,001) 193,343

Total income 188,342 193,343 (5,001) 193,343

Net cost of services (1,763,321) (1,741,466) (21,855) (1,809,755)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus 79,181 - 79,181 -

Total other comprehensive income 79,181 - 79,181 -

Total comprehensive loss (1,684,140) (1,741,466) 57,326 (1,809,755)

1. Employment’s original budgeted financial statement that was first presented to parliament in respect of the reporting period was the Portfolio Budget Statements 2014-15. Suppliers, Subsidies, Personal Benefits, and Grants have been amended from the original budget to align budget with actuals. The total expense budget did not change. 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below. 3. Employment’s revised budgeted financial statement that was presented to parliament in respect of the reporting period was the Portfolio Additional Estimates Statements 2014-15. Suppliers, Subsidies, Personal Benefits, and Grants have been amended from the revised budget to align budget with actuals. The total expense budget did not change.

FINANCIAL S TATEMENTS | 167

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Administered Statement of Financial Position

as at 30 June 2015

Actual Budget estimate Revised

Original

1 Variance2 budget3

2015 2015 2015 2015

$'000 $'000 $'000 $'000

ASSETS

Financial assets

Cash and cash equivalents 104 - 104 -

Trade and other receivables 32,165 41,406 (9,241) 23,336

Other investments 224,658 - 224,658 145,477

Total financial assets 256,927 41,406 215,521 168,813

Non-financial assets

Other non-financial assets 5,014 4,957 57 4,980

Total non-financial assets 5,014 4,957 57 4,980

Total assets administered on behalf of Government 261,941 46,363 215,578 173,793

LIABILITIES

Payables

Suppliers 127,076 42,435 84,641 21,642

Subsidies 24,973 28,427 (3,454) 14,810

Personal benefits 6,692 3,352 3,340 9,441

Grants - - - 459

Other payables 2,794,446 2,797,472 (3,026) 2,791,124

Total payables 2,953,187 2,871,686 81,501 2,837,476

Interest bearing liabilities

Loans - - - -

Total interest bearing liabilities - - - -

Total liabilities administered on behalf of Government 2,953,187 2,871,686 81,501 2,837,476

Net liabilities (2,691,246) (2,825,323) 134,077 (2,663,683)

1. Employment’s original budgeted financial statement that was first presented to parliament in respect of the reporting period was the Portfolio Budget Statements 2014-15. 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

3. Employment’s revised budgeted financial statement that was presented to parliament in respect of the reporting period was the Portfolio Additional Estimates Statements 2014-15.

168 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Department of Employment NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Variances are considered to be ‘major’ based on the following criteria: • the variance between budget and actual is greater than 10%; and • an item below this threshold but is considered important for the reader’s understanding or is relevant to an assessment of the discharge of accountability and to an analysis of performance of an entity.

Note 28D: Administered Major Budget Variances for 2015

Explanations of major variances

Affected line items (and schedule)

Lower than planned commencements in Job Services Australia and a new measure to pro-rata service fees for Job Services Australia providers in the final quarter of 2014-15 to account for the commencement of jobactive on 1 July 2015, reduced Suppliers by $45.8m against the original budget.

Suppliers (Administered Schedule of Comprehensive Income)

Monthly levy collections under the Coal Mining Industry (LSL) Act 1992 (CMIC) programme have averaged $12.3m since December 2014 against the original budget estimate of $15.0m, reducing Subsidies, Other Taxes and Subsidies Payable.

Subsidies (Administered Schedule of Comprehensive Income), Subsidies Payable (Administered Schedule of Assets and Liabilities)

The continued pause of the Wage Connect wage subsidy programme since December 2013 and lower than planned take-up of the Restart wage subsidy programme owing to the static labour market, reduced Subsidies by $39.5m against the original budget.

Subsidies (Administered Schedule of Comprehensive Income)

Higher than planned Personal Benefits primarily relates to the Fair Entitlements Guarantee programme. Under the programme, the department processed 21,808 claims against the original budget estimate of 15,988 claims. Additionally, anticipated savings from a 2014 Budget measure to reduce the redundancy cap to 16 weeks from 1 January 2015 was factored into the original budget. This measure has not yet passed the Parliament which has impacted on the average claim costs.

Personal Benefits (Administered Schedule of Comprehensive Income), Personal Benefits Payable (Administered Schedule of Assets and Liabilities)

Monthly levy collections under the Coal Mining Industry (LSL) Act 1992 (CMIC) programme have averaged $12.3m since December 2014 against the original budget estimate of $15.0m, reducing Subsidies, Other Taxes and Subsidies Payable.

Other Taxes (Administered Schedule of Comprehensive Income) Trade and other receivables (Administered Schedule of Assets and Liabilities)

Higher than planned Commonwealth Asset Recoveries relates to the Fair Entitlements Guarantee programme. Under the programme, funding is recovered through insolvency processes for the Commonwealth. The original budget was based on prior year outcomes, however by their nature, the recoveries vary from year to year.

Commonwealth Asset Recoveries (Administered Schedule of Comprehensive Income)

Higher than planned Other Revenue relates to recoveries of asbestos settlement claims from Employers for costs paid by the Commonwealth under the Asbestos Related Claims Act 2005. The original budget was based on prior year outcomes, however by their nature, the recoveries vary from year to year.

Other Revenue (Administered Schedule of Comprehensive Income)

Higher than planned Other Investments relates to the Government’s holdings in the Coal Mining Industry (Long Service Leave Funding) Corporation. The budget was revised at the 2014-15 Portfolio Additional Estimates Statements to $145.5m. CMICs financial position increased $79.2m in the last financial year.

Other Investments (Administered Schedule of Assets and Liabilities)

Suppliers Payables were higher than planned due to accruals for the Job Services Australia programme for the Employment Pathway Fund and Outcome Fees to account for the programme ending on 30 June 2015.

Suppliers Payable (Administered Schedule of Assets and Liabilities)

APPENDIxES | 169

APPENDIXES

1: ECOLOGICALLY SUSTAINABLE DEVELOPMENT The department is committed to improving its ecologically sustainable development and reports on its activities under section 516A of the Environment Protection and Biodiversity Conservation Act 1999.

The department’s environmental management activities were focused on reducing impacts from energy, water and paper consumption, waste, travel, transport and procurement policies and practices. We continue to evaluate and improve our operational efficiency to ensure that our activities contribute to successful long-term outcomes and to increase our understanding of sustainability beyond the environmental scope.

The department’s activities are consistent with the ecologically sustainable development principles (section 3A of the Act) that state ‘decision making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations’. More information on the environmentally sustainable development principles can be found at www.environment.gov.au/esd.

ICT Sustainability Plan The Australian Government’s ICT Sustainability Plan 2010-2015 is a five-year plan that will assist Commonwealth agencies to better align their use of ICT with the government’s overall sustainability agenda.

Under this plan, we have targets, actions and reporting obligations for our ICT operations. More information on the sustainability plan is available at www.environment.gov.au.

Environmental performance The environmental performance of the department is managed on its behalf by the Shared Services Centre. Due to the accommodation and operations of the department not being fully separated from the Department of Education and Training, an aggregated report for both departments is provided for 2014-15.

Environmental management is focused on reducing impacts from energy consumption, waste, water consumption, vehicle fleet, air travel, paper consumption and procurement policies and practices. The department’s progress is summarised in Tables 22 to 27.

170 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Office and building energy use The department constantly monitors and works to improve its performance in energy and resource efficiency. In 2014-15, the department again surpassed the Energy Efficiency in Government Operations Policy target of 7500 megajoules per person per year at 6876 megajoules per person for the year.

Improvement in the energy efficiency of data centre operations is expected through the data centre transition process that began in 2014-15. Moving departmental applications and systems out of older data centres, off legacy hardware and onto new platforms hosted at more efficient facilities, consistent with the directions set out in the Australian Government Data Centre Strategy 2010-2025, will help achieve this.

Continuing improvements to the energy efficiency of the department’s property portfolio, particularly the tenancy at 14 Mort Street, Canberra, are expected to achieve improvements in energy intensity in 2015-16.

Table 22 Summary of office and building energy use, 2013-14 and 2014-15

Indicator 2013-14 Change (%) 2014-15

Total office tenant light and power electricity consumption (kWh) 6,863,055 -3.17% 6,652,138

Total office tenant light and power energy consumption (MJ) 24,706,998 -3.17% 23,947,696

Office tenant light and power energy use per full-time equivalent (MJ/FTE) 6432.44 +6.89% 6,875.59

Office tenant light and power energy use per square metre (MJ/m 2) 222.68 -0.93% 220.61

Greenhouse emissions attributed to office tenant light and power energy use (tonnes/CO2-e) 6087.30 -14.07% 5,230.90

Green power purchased, as a percentage of total electricity consumption 6.09% +50.90% 9.19%

kWh = kilowatt hours MJ = mega joules FTE = full-time equivalent CO2-e = carbon dioxide equivalent.

Information and communications technology Since the 2010 release of the Australian Government ICT Sustainability Plan 2010-2015, the department has reduced the running costs, resource consumption and environmental impacts of ICT operations through initiatives including the use of energy efficient monitors, virtual servers and print-on-demand for

multifunction devices that default to duplex and black-and-white printing.

In 2014-15 there was a slight increase in desktop energy per end user (up from 213 kilowatt hours in 2013-14 to 287 in 2014-15), a slight increase in the number of desktop devices per end user (up from 1.82 in 2013-14 to 1.95 in 2014-15), and a decrease in the ratio of desktop computers to printers (from 13:1 in 2013-14 to 12:1 in 2014-15). These results are attributed to approved business demand for

additional dual-monitor configurations, additional computers for users and the provision of additional printers for senior executives. The exemption of more desktop computers from power management has reduced the proportion of these devices that are powered off after hours from 93 per cent to 86 per cent.

APPENDIxES | 171

Table 23 Summary of ICT sustainability, 2013-14 and 2014-15

Indicator 2013-14 Change (%) 2014-15

Desktop devices per end user (including laptops) 1.84 +6.0% 1.95

Desktop computers to printer ratio 13:1 -7.7% 12:1

Desktop computers off (or sleeping) after hours 93% -7.5% 86%

Desktop energy per end user (kWh per annum, averaged across agency) 231 +24.2% 287

Vehicle fleet and air travel The average Green Vehicle Guide rating of the departments’ combined vehicle fleet improved slightly from last financial year, and the size of the fleet has significantly decreased. This led to a significant reduction in fuel consumption proportional to the reduction in the fleet size. Overall, the department maintained

previous standards of fleet efficiency.

Total air kilometres travelled in 2014-15 were very similar to 2013-14, demonstrating that the significant reductions achieved in previous years are being maintained.

Table 24 Summary of vehicle fleet use, 2013-14 and 2014-15

Indicator 2013-14 Change (%) 2014-15

Total number of fleet vehicles 140 -49.3% 71

Average green vehicle rating of fleet 13.3 -1.5% 13.1

Total fuel purchased (kilolitres) 86.73 -57.70% 36.69

Total distance travelled (kilometres) 900,520 -59.99% 360,284

Average fuel consumption of vehicle fleet (litres/100 kilometres) 9.63 +5.71% 10.18

Total direct greenhouse emissions of fleet (tonnes CO 2-e) 201.62 -65.19% 70.18

CO2-e = carbon dioxide equivalent.

Table 25 Summary of greenhouse emissions, 2013-14 and 2014-15

Indicator 2013-14 Change (%) 2014-15

Total greenhouse emissions (tonnes CO2-e) 6,288.92 -15.71% 5,301.08

Total greenhouse emissions per FTE (tonnes CO2-e/FTE) 1.64 -7.32% 1.52

CO2-e = carbon dioxide equivalent FTE = full time equivalent.

Table 26 Summary of air travel, 2013-14 and 2014-15

Indicator 2013-14 Change (%) 2014-15

Total number of flights 12,746 +8.15% 13,785

Total distance of flights (kilometres) 10,026,378 +5.44% 10,571,562

172 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Resource efficiency and waste Paper use fell by 21.52 per cent in 2014-15, from 7.9 reams per person per annum in 2013-14 to 6.2, reflecting the department’s efforts in increasing the use of electronic filing. Usage is now significantly below the Australian Government ICT Sustainability Plan 2010-2015 target of 9 reams per person per annum by July 2015.

The department continued to purchase recycled stock for all standard A4 and A3 paper. In 2014-15 82.49 per cent of all paper purchased had some recycled content and 64.53 per cent was either carbon neutral or 100 per cent post-consumer recycled stock.

The waste management system in Canberra continued to achieve very good results, with 25.8 tonnes of organic material diverted from landfill to vermiculture—reducing emissions and producing beneficial worm castings and compost.

Table 27 Summary of resource efficiency and waste, 2013-14 and 2014-15

Indicator 2013-14 Change (%) 2014-15

Office paper purchased by FTE (A4 reams/FTE) 7.9 -21.52% 6.2

Percentage of paper purchased with recycled content 97.90% -15.74% 82.49%

Office paper recycled (tonnes) 122.12 +51.65% 185.20

Total landfill waste produced (tonnes) 115.00 +10.99% 127.64

Total comingled recycling (tonnes) 61.43 -5.66% 57.95

Total organic recycling (tonnes) 25.10 +2.71% 25.80

FTE = full time equivalent.

APPENDIxES | 173

2: AGENCY RESOURCE STATEMENTS

Table 28 Agency resource statement, 2014-15

Actual available appropriation for 2014-15

Payments made 2014-15

Balance remaining 2014-15

$’000 (a)

$’000 (b)

$’000 (a) - (b)

Ordinary annual services1        

Departmental appropriation2   327,013 281,798 45,215

Section 74 receipts collected by non-corporate entities   26,198 26,198 -

Total   353,211 307,996 45,215

Administered expenses        

Outcome 1   1,524,317 1,264,426 - 

Outcome 2   28,235 25,836 - 

Payments to non-corporate entities   7,563 7,563 - 

Total   1,560,115 1,297,825 - 

Total ordinary annual services A 1,913,326 1,605,821 -

Departmental non-operating        

Equity injections3   23,987 26,114 (2,127)

Total   23,987 26,114 (2,127)

Total other services B 23,987 26,114 (2,127)

Total available annual appropriations and payments   1,937,313 1,631,935 -

174 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Table 28 Agency resource statements, 2014-15 (continued)

Actual available appropriation for 2014-15

Payments made 2014-15

Balance remaining 2014-15

$’000 (a)

$’000 (b)

$’000 (a) - (b)

Special appropriations        

Special appropriations limited by criteria/entitlement    

Fair Work Entitlement Guarantee Act 2012    307,890 307,890  -

Coal Mining Industry (LSL) Funding Act 1992   158,607 158,607  -

Safety, Rehabilitation and Compensation Act 1988    39,503 39,503  -

Asbestos-related Claims (Management of Commonwealth Liabilities Act) 2005    26,356 26,356  -

Total special appropriations C  532,356 532,356  -

Special accounts        

 Opening balance   - - -

Total special account D - - -

Total resourcing and payments (A+B+C+D)   2,469,669 2,164,291 - 

 Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or non-corporate entities through annual appropriations

7,563 7,563  -

Total net resourcing and payments for Employment 2,462,106 2,156,728 -

1 Includes sec tion 75 transfers and Appropriation Bill (No. 3) 2014-15; also includes prior year departmental appropriation. 2 Includes an amoun t of $31.0m for the 2014-15 departmental capital budget. For accounting purposes this amount has been designated as ‘contributions by owners’. 3 A ppropriation Bill (Nos. 2 and 4) 2014-15.

APPENDIxES | 175

Table 29 Expenses for Outcome 1

Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.

Budget1 2014-15

Actual Expenses 2014-15 Variation

2014-15

$’000 (a)

$’000 (b)

$’000 (a) - (b)

Programme 1.1: Employment services

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,435,833 1,367,249 68,584

Total for Programme 1.1 1,435,833 1,367,249 68,584

Outcome 1 totals by appropriation type

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,435,833 1,367,249 68,584

Departmental expenses

Departmental appropriation2 254,739 228,805 25,934

Expenses not requiring appropriation in the budget year 26,638 24,154 2,484

Total for Outcome 1 1,717,210 1,620,208 97,002

Average staffing level (number) 1,212 1,182 30

1 F ull-year budget being the expected actual expenditure from the 2015-16 Portfolio Budget Statements. 2 D epartmental appropriation combines ordinary annual services (Appropriation Bill No. 1) and receipts collected by non-corporate Commonwealth entities (section 74).

176 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Table 30 Expenses for Outcome 2

Outcome 2: Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

Budget1 2014-15

Actual Expenses 2014-15 Variation

2014-15

$’000 (a)

$’000 (b)

$’000 (a) - (b)

Programme 2.1: Employee assistance

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 13,317 11,665 1,652

Special appropriations 438,123 466,450 (28,327)

Total for Programme 2.1 451,440 478,115 (26,675)

Programme 2.2: Workplace assistance

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 14,643 14,437 206

Total for Programme 2.2 14,643 14,437 206

Programme 2.3: Workers’ compensation payments

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 7,563 7,563 -

Special appropriations 72,956 84,299 (11,343)

Total for Programme 2.3 80,519 91,862 (11,343)

Outcome 2 totals by appropriation type

Administered expenses

Ordinary annual services (Appropriation Bill No 1) 35,523 33,665 1,858

Special appropriations 511,079 550,749 (39,670)

Departmental expenses

Departmental appropriation2 60,783 78,919 (18,136)

Expenses not requiring appropriation in the budget year 4,312 4,181 131

Total for Outcome 2 611,697 667,514 (55,817)

Average staffing level (number) 483 481 2

1 F ull-year budget being the expected actual expenditure from the 2015-16 Portfolio Budget Statements. 2 D epartmental appropriation combines ordinary annual services (Appropriation Bill No. 1) and receipts collected by non-corporate Commonwealth entities (section 74).

APPENDIxES | 177

3: ADVERTISING AND MARKET RESEARCH Details of payments made to advertising, market research, polling, media advertising and direct mail organisations by the department in 2014-15 are provided in Tables 31-34. Payments of less than $12,565 (inclusive of GST) are excluded, consistent with section 311A of the Commonwealth Electoral Act 1918.

During 2014-15, the department conducted advertising campaigns for Restart and mature-age employment programmes, and began developing the jobactive campaign. Further information is available at www.employment.gov.au and in the reports on Australian Government advertising prepared by the

Department of Finance. These reports are available at www.finance.gov.au/advertising/index.html.

Table 31 Advertising agencies

Organisation Service provided

Total $ paid 2014-15

Mitchell & Partners Australia Pty Ltd Advertising for Restart and mature-age employment programmes communication campaign 1,801,036.67

Table 32 Market research and polling organisations

Organisation Service provided

Total $ paid 2014-15

Hall & Partners I Open Mind Pty Ltd Services to deliver benchmarking, tracking and evaluation research for the Experience+ mature-age employment programme’s communication campaign

87,230.00

Cultural Perspectives Pty Ltd Market research and advice to support the department to become an employer of choice for Indigenous Australians 78,045.00

Lighthouse Data Collection Provision of fieldwork services for 2014 survey of capital cities 75,460.00

Taylor Nelson Sofres Australia Pty Ltd Developmental research, brand and creative concept testing and refinement services for the jobactive communication campaign 527,230.00

DBM Consultants Pty Ltd Benchmark, tracking and evaluation research for the jobactive communication campaign 100,000.00

Table 33 Media advertising organisations

Organisation Service provided

Total $ paid 2014-15

J Walter Thompson Australia Creative development pitch and travel fees for the jobactive communication campaign 17,355.80

Ogilvy and Mather (Melbourne) Creative development pitch and travel fees for the jobactive communication campaign 18,454.68

Adcorp Advertising for Request for Tender for the provision of Work for the

Dole Coordinator services 2014-15

16,196.08

178 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Table 34 Direct mail organisations

Organisation Service provided

Total $ paid 2014-15

Fuji Xerox Business Force Pty Ltd Personalisation and mailing services 179,763.93

Blue Star Group Personalisation and mailing services 38,583.56

APPENDIxES | 179

4: CORRECTIONS The following error was identified in our 2013-14 annual report.

Table 20, as printed on page 58, contains figures for employees by classification at 30 June 2014. The corrected table is shown below.

Table 35 Correction to employees by classification at 30 June 2014

Classification Female Male Total

Cadets 1 1 2

Indigenous Australian Government Development Programme Trainees 1 3 4

Graduates 12 11 23

APS Level 1 0 0 0

APS Level 2 2 1 3

APS Level 3 40 31 71

APS Level 4 118 92 210

APS Level 5 175 130 305

APS Level 6 237 200 437

Executive Level 1 253 239 492

Executive Level 2 91 94 75 76 170

Information Technology Specialist 2 14 16

Government Lawyer 7 2 9

Senior Government Lawyer 11 8 19

Principal Government Lawyer 16 6 22

SES Band 1 19 25 22 41

SES Band 2 11 8 6 8 16

SES Band 3 2 0 2

Secretary 1 0 1

Total 999 844 1843

180 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

ACRONYMS

ABS Australian Bureau of Statistics

ANAO Australian National Audit Office

APEC Asia-Pacific Economic Cooperation

APS Australian Public Service

COAG Council of Australian Governments

DEEWR Department of Education, Employment and Workplace Relations (former)

DSS Department of Social Services

EL Executive Level

FEG Fair Entitlements Guarantee

ILO International Labour Organization

IT information technology

NEIS New Enterprise Incentive Scheme

OECD Organisation for Economic Co-operation and Development

PAES Portfolio Additional Estimates

PBS Portfolio Budget Statements

PGPA Public Governance, Performance and Accountability Act 2013

PSM Public Service Medal

RAP Reconciliation Action Plan

SEE Skills for Education and Employment

SES Senior Executive Service

SSC Shared Services Centre

WHS work health and safety

GLOSSARY | 181

GLOSSARY

administered item Revenues, expenses, assets and liabilities that the government controls, but which an agency or authority manages on the Commonwealth’s behalf.

appropriation An amount of public monies parliament authorises for spending for a particular purpose.

AusTender The Australian Government’s web-based procurement system, which provides centralised access to all publicly available approaches to market, multi-use lists, annual procurement plans and reported contracts.

budget measure A decision by Cabinet or ministers that has resulted in a cost or savings to outlays.

effectiveness indicators Measures of the joint or independent contribution of outputs and administered items to the achievement of their specified outcome.

jobactive Employment services arrangements from 1 July 2015.

Job Services Australia Employment services until 30 June 2015.

performance indicators Financial and non-financial measures used to help define and evaluate an organisation’s success. An indicator is usually selected on the basis of relevance as a measure of some aspect of a specific project or operation.

outcomes The government’s objectives in each portfolio area. Outcomes are desired results, impacts or consequences for the Australian community as influenced by the actions of the government. Actual outcomes are assessments of the end results or impacts actually achieved.

Portfolio Budget Statements

Budget-related paper detailing budget initiatives and explanations of appropriations specified by outcome and programme by each agency within a portfolio.

Programmes Government programmes deliver benefits, services or transfer payments to individuals, industry, business or the community as a whole and are the primary vehicles for government agencies to achieve the intended results of their outcome statements.

sustainable development Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

182 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

LIST OF FIGURES AND TABLES

Title Page

Figures

Figure 1 Organisational structure at 30 June 2015 2

Figure 2 Number of Job Services Australia job placements versus internet vacancy index, 2009 to 2015 25

Figure 3 Labour force participation rate and employment-to-population ratio, people aged 15-64 years, trend data, June, 1978 to 2014 30

Figure 4 Average duration of unemployment per labour force member, June, 2001 to 2015 30

Figure 5 Governance structure 58

Tables

Table 1 Programme 1.1 deliverable 25

Table 2 Cost per employment outcome for employment services delivered by Job Services Australia 26

Table 3 Proportion of job seekers in employment three months following participation in employment services  26

Table 4 Proportion of job seekers in education or training three months following participation in employment services 27

Table 5 Proportion of job seekers off benefit three months following participation in employment services 27

Table 6 Proportion of job seekers off benefit 12 months following participation in employment services 27

Table 7 Unemployment rates for disadvantaged groups, 2010-11 to 2014-15 29

Table 8 Breakdown of feedback by type, 2014-15 39

Table 9 Outcome 1 departmental outputs—client satisfaction 39

Table 10 Programme 2.3 performance indicators 46

Table 11 The federal workplace relations system supports improved productivity outcomes 52

Table 12 Low incidence of industrial action (allowing for variations in the bargaining cycle) 52

Table 13 Collective bargaining is widely used by employers and employees to negotiate pay and conditions 52

Table 14 Departmental outputs for Outcome 2 54

Table 15 Ongoing employees by employment status, 30 June 2014 and 2015 66

Table 16 Non-ongoing employees by employment status, 30 June 2014 and 2015 66

Table 17 Employees by location, 30 June 2014 and 2015 66

Table 18 Employees by classification, 30 June 2014 and 2015 67

Table 19 Salary ranges by classification, 2013-14 and 2014-15 70

Table 20 Employment agreement statistics at 30 June 2014 and 2015 70

LIST OF FIGURES AND TABLES | 183

Title Page

Table 21 Work health and safety incidents by type, 2013-14 and 2014-15 78

Table 22 Summary of office and building energy use, 2013-14 and 2014-15 170

Table 23 Summary of ICT sustainability, 2013-14 and 2014-15 171

Table 24 Summary of vehicle fleet use, 2013-14 and 2014-15 171

Table 25 Summary of greenhouse emissions, 2013-14 and 2014-15 171

Table 26 Summary of air travel, 2013-14 and 2014-15 171

Table 27 Summary of resource efficiency and waste, 2013-14 and 2014-15 172

Table 28 Agency resource statement, 2014-15 173

Table 29 Expenses for Outcome 1 175

Table 30 Expenses for Outcome 2 176

Table 31 Advertising agencies 177

Table 32 Market research and polling organisations 177

Table 33 Media advertising organisations 177

Table 34 Direct mail organisations 178

Table 35 Correction to employees by classification at 30 June 2014 179

Table 36 Annual report requirements 184

184 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

LIST OF REQUIREMENTS This annual report has been prepared in accordance with the Department of the Prime Minister and Cabinet’s Requirements for annual reports for departments, executive agencies and other non-corporate Commonwealth entities.

Table 36 Annual report requirements

Part of report Description Requirement Page

Letter of transmittal Mandatory ii

Table of contents Mandatory iii

Index Mandatory 188-196

Glossary Mandatory 181

Contact officer(s) Mandatory Inside back

cover

Internet home page address and internet address for report Mandatory Inside back cover

Review by secretary Review by departmental secretary Mandatory 3-5

Summary of significant issues and developments Suggested 3-5

Overview of department’s performance and financial results Suggested 3-5; 93-34

Outlook for following year Suggested 5

Significant issues and developments—portfolio Portfolio

departments— suggested

3-5

Departmental overview

Role and functions Mandatory 1

Organisational structure Mandatory 2

Outcome and programme structure Mandatory 7

Where outcome and programme structures differ from Portfolio Budget Statements, Portfolio Additional Estimates Statements or other portfolio statements accompanying any other additional appropriation Bills (other portfolio statements), details of variation and reasons for change

Mandatory Not applicable

Portfolio structure Portfolio

departments— mandatory

iv

LIST OF REQUIREMENTS | 185

Part of report Description Requirement Page

Report on performance

Review of performance during the year in relation to programmes and contribution to outcomes Mandatory 8-55

Actual performance in relation to deliverables and key performance indicators set out in Portfolio Budget Statements, Portfolio Additional Estimates Statements or other portfolio statements

Mandatory 8-55

Where performance targets differ from the Portfolio Budget Statements or Portfolio Additional Estimates Statements, details of both former and new targets, and reasons for the change

Mandatory 8-55

Narrative discussion and analysis of performance Mandatory 8-55

Trend information Mandatory 8-55

Significant changes in nature of principal functions or services Suggested Not applicable

Performance of purchaser-provider arrangements If applicable, suggested 86-87

Factors, events or trends influencing departmental performance Suggested 8-55

Contribution of risk management in achieving objectives Suggested 63

Performance against service charter customer service standards, complaints data, and the department’s response to complaints If applicable, mandatory

65

Discussion and analysis of the department’s financial performance Mandatory 93-94

Discussion of any significant changes in financial results from the prior year, from budget or anticipated to have a significant impact on future operations

Mandatory 93-168

Agency resource statement and summary resource tables by outcomes Mandatory 173-176

Management and accountability

Corporate governance

Agency heads are required to certify their agency’s actions in dealing with fraud Mandatory ii

Statement of the main corporate governance practices in place Mandatory 57-59

Names of the senior executive and their responsibilities Suggested 6

Senior management committees and their roles Suggested 58-59

Table 36 Annual report requirements (continued)

186 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Part of report Description Requirement Page

Corporate and operational plans and associated performance reporting and review Suggested 60-62

Internal audit arrangements including approach adopted to identifying areas of significant financial or operational risk and arrangements to manage those risks

Suggested 63-64

Policy and practices on the establishment and maintenance of appropriate ethical standards Suggested 64

How nature and amount of remuneration for SES officers is determined Suggested 69-70

External scrutiny Significant developments in external scrutiny Mandatory 88-91

Judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner Mandatory 88-89

Reports by the Auditor-General, a parliamentary committee, the Commonwealth Ombudsman or an agency capability review Mandatory 43, 90

Management of human resources Assessment of effectiveness in managing and developing human resources to achieve departmental objectives

Mandatory 65, 68-69

Workforce planning, staff retention and turnover Suggested 71

Impact and features of enterprise or collective agreements, individual flexibility arrangements, determinations, common law contracts and Australian workplace agreements

Suggested 69-70

Training and development undertaken and its impact Suggested 68-69

Work health and safety performance Suggested 77-78

Productivity gains Suggested 65-79

Statistics on staffing Mandatory 66-70

Statistics on employees who identify as Indigenous Mandatory 75

Enterprise or collective agreements, individual flexibility arrangements, determinations, common law contracts and Australian workplace agreements

Mandatory 69-70

Performance pay Mandatory 71

Assets management Assessment of effectiveness of assets management If applicable, mandatory 86

Purchasing Assessment of purchasing against core policies and principles Mandatory 86

Table 36 Annual report requirements (continued)

LIST OF REQUIREMENTS 187

Part of report Description Requirement Page

Consultants The annual report must include a summary statement detailing the number of new consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website.

Mandatory 87

Australian National Audit Office access clauses

Absence of provisions in contracts allowing access by the Auditor-General Mandatory Nil to report

Exempt contracts Contracts exempted from publication in AusTender Mandatory 86

Small business Procurement initiatives to support small business Mandatory 86-87

Financial statements Financial statements Mandatory 95-168

Other mandatory information Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011)

Mandatory 77-78

Advertising and market research (section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns

Mandatory 177-178

Ecologically sustainable development and environmental performance (section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Mandatory 169-172

Compliance with the agency’s obligations under the Carer Recognition Act 2010 If applicable, mandatory

Not applicable

Grant programmes Mandatory 87

Disability reporting—explicit and transparent reference to agency-level information available through other reporting mechanisms

Mandatory 73-74

Information Publication Scheme statement Mandatory 91

Correction of material errors in previous annual report If applicable, mandatory 179

Agency resource statements and resources for outcomes Mandatory 173-176

List of requirements Mandatory 184-187

Table 36 Annual report requirements (continued)

188 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

INDEX

A Aboriginal and Torres Strait Islander businesses purchasing from, 86 Aboriginal and Torres Strait Islander employee workshop,

75

Aboriginal and Torres Strait Islander employees, 24, 74-5 Administrative Appeals Tribunal and Fair Entitlements Guarantee claimants, 43 advertising and market research, 79-80, 177-8 Agency Multicultural Plan 2014-15, 73, 74

agency resource statements, 173-6 agreement making, 53 air travel see vehicle fleet and air travel Alcoa

retrenched workers, 33 Annual Deregulation Report, 81 annual leave, 47 APS Disability Champions Network, 74 APS Diversity Awards, 85 APS employee census, 65, 69, 71 Armistead, Sean, 24 Asbestos-related Claims (Management of Commonwealth

Liabilities) Act 2005, 46 asbestos-related workers’ compensation claims, 46, 94 Asia-Pacific Economic Cooperation (APEC) forum (6th), 37

Human Resources Development Ministerial Meeting, 37 Labour and Social Protection Network, 37 Asmar v Fair Work Commission, 89

asset management, 86 attendance, 79 Audit Committee, 59 and internal audit, 64

Auditor-General reports see under Australian National Audit Office (ANAO) AusTender, 86 Australian Association of Graduate Employers’ survey, 72 Australian Bureau of Statistics, 27

wage price index, 53 Australian Chamber of Commerce and Industry and Forced Labour Protocol of 2014 to the Forced Labour Convention 1930 (P029), 92

and International Labour Organization, 49, 91, 92 and Productivity Education and Training Fund, 45

Australian Council of Trade Unions and F orced Labour Protocol of 2014 to the Forced

Labour Convention 1930 (P029), 92 and International Labour Organization, 49, 91, 92 Australian Government advertising, 177 Australian Government Building and Construction WHS

Accreditation Scheme, 41, 51, 81 review of, 42, 51 Australian Government Data Centre Strategy 2010-2025, 170 Australian Government Development Programme

Indigenous recruits from, 4 Australian Government guidelines on information and advertising campaigns, 79 Australian Government ICT Sustainability Plan 2010-2015,

170, 172

Australian Government Investigations Standards and fraud investigations, 64 Australian Industry Group and Productivity Education and Training Fund, 45 Australian Jobs 2015, 36 Australian JobSearch website, 12

development, 13 and Launceston jobs fair and workshop, 33 Australian National Audit Office (ANAO) Audit Report No. 16 2014-15: Audits of the Financial

Statements of Australian Government Entities for the Period Ended 30 June 2014, 90 Audit Report No. 32 2014-15: Administration of the Fair Entitlements Guarantee, 44, 90 audit reports, 64

better practice guide on public sector governance, 59 Australian Public Service and prevention of workplace injuries and assistance

for injured workers in returning to work, 42 Australian Public Service Commission and capability review, 5 series for graduates, 72

State of the Service Report and APS Statistical Bulletin, 91 Australian Public Service Values and Code of Conduct, 65 automotive industry

and retrenched automotive workers, 33 Automotive Industry Structural Adjustment Programme, 33

INDEx | 189

B Bangalow RSL Branch hall restoration under Work for the Dole programme, 15 behavioural economics, 39 BlueScope Steel Labour Adjustment Programme, 33 Building and Construction Industry (Fair and Lawful

Building Sites) Code 2013, 81 building industry, 50, 51 Bundaberg, Queensland local waterways restoration under Work for the Dole

programme, 16

business planning, 60-1

C capability development priorities, 69 capability review, 5 Casson, Glen, 93 Centre for Workplace Leadership, 47, 94 ‘Change It Up’, 24

Charles, Lisa and Reconciliation Week, 76 Chassis Brakes International Castings Pty Ltd and Fair Entitlements Guarantee, 44 Chief Financial Officer

overview of financial performance, 93-4 client service charter, 65 Clifton Fine Furniture and Tasmanian Jobs Programme and Restart

programme, 19

Clout, Jamie, 6 Coal Mining Industry (Long Service Leave) Administration Act 1992, 94

Coal Mining Industry (Long Service Leave Funding) Corporation, 94 coastal shipping reforms, 48 collaboration, 4

see also cross-outcome work; industry and cross-agency collaboration Comcare, 46, 50-1, 55, 94 notification of incidents to, 77 Comcover

and risk appetite and tolerance statements, 63 Comcover Benchmarking Survey, 63 committee structure review, 59-60 committees, 58-9 Commonwealth Disability Strategy, 91 Commonwealth Electoral Act 1918

and advertising, 177 Commonwealth Fraud Control Framework 2014, 64 Commonwealth Ombudsman

and Fair Entitlements Guarantee assistance, 43

Commonwealth performance framework, 61 Commonwealth Procurement Rules, 86 Commonwealth resource management framework, 59 Commonwealth Risk Management Policy, 63 Commonwealth Seacare scheme, 42, 55 communication, 79-80, 85 Communication Branch, 79-80 conditions of employment see remuneration and

conditions of employment construction industry, 50, 51 Construction Industry Amendment (Protecting Witnesses) Act 2015, 50 Construction Industry Amendment (Protecting

Witnesses) Bill 2015, 90 consultants, 87 methods of selection, 87 Cook Islands

application for ILO membership, 49 Corporate Champions employers, 23 Corporate Champions programme, 9, 22-3 corporate plan, 61, 62 corporate support services, 83

see also Shared Services Centre (SSC) corrections to 2013-14 annual report, 179 Court, Dave and New Enterprise Incentive Scheme, 17 cross-agency collaboration see industry and cross-

agency collaboration cross-outcome work, 39-40, 55 Crown Group, 24 Crown Perth

and Reconciliation Week forum, 76 cultural awareness and cultural protocols Indigenous culture, 75 customer service statistics, 39

D data centre relocation project, 88 DEEWR Enterprise Agreement 2012-2014, 69 Deloitte

and risk appetite and tolerance statements, 63 Department of Education and Training and environmental performance, 169

and Indigenous Australian Government Development Programme, 73 and retrenched automotive workers, 33 and Shared Services Centre, 4, 83 Department of Finance

and Australian Government advertising, 177 Department of Human Services and Job Commitment Bonus, 19

and retrenched automotive workers, 33

190 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Department of Industry and Science and skills shortage in Darwin’s building and construction industry, 31 Department of Infrastructure and Regional Development

and Shipping Legislation Amendment Bill 2015, 48 Department of Social Services and Disability Employment Services, 34

and investment approach to welfare, 40 and OECD projects, 37 Department of the Prime Minister and Cabinet and Shared Services Centre, 4 Department of the Treasury

and Fair Work Commission annual wage review, 42, 46 deregulation, 81-2 see also red tape reduction deregulation performance indicators, 82 deregulation unit, 82

Disability Action Plan, 73-4 Disability Champion, 74 disability employee network, 74 Disability Employment Services, 34

and National Customer Service Line, 24 and Relocation Assistance to Take Up a Job programme, 18 Disability Employment Taskforce, 34 disability reporting mechanisms, 91 diversity and inclusion, 73-6 Diversity Strategy, 73

E ecologically sustainable development, 169-72 economic conditions, 28 economic policy, 55

Economic Strategy group, 55 employee costs, 93 employee retention see workforce planning and employee retention

Employer jobactive app, 13 Employment Cluster and Workplace Relations and Economic Strategy Cluster steering committees, 59

Employment Graduate Programme, 71, 72 employment growth, 28 Employment ICT Internship Programme, 71, 73 employment services, 8, 9

and pre-release prisoners, 40 see also Job Services Australia; jobactive; Programme 1.1: Employment Services Employment Services Information Hotline, 14 Employment Services Information Line, 39, 65 employment-to-population ratio, 29-30

energy efficiency data centre operations, 170 energy use, 170 enterprise agreement (departmental), 69

see also DEEWR Enterprise Agreement 2012-2014 enterprise agreements, 53 quashing of, 89 variation of, 89 enterprise bargaining, 50 enterprise workforce plan, 71 entry permits, 89 entry-level recruitment programmes, 71-3 Environment Protection and Biodiversity Conservation Act

1999, 169

environmental management, 169 environmental performance, 169-72 Evaluation, Research and Evidence Branch, 62 and jobactive servicing for prisoners in Victoria, 40

Evaluation Research and Evidence Framework 2015-2020, 62 Executive, 6 and bargaining principles, 6

and workforce planning, 71 Executive meeting, 58 external scrutiny, 88-90

F Fair Entitlements Guarantee, 41, 42, 43-4, 94 ANAO audit, 44, 90 Fair Entitlements Guarantee Act 2012, 43, 50 Fair Entitlements Guarantee Amendment Bill 2014, 50, 90 Fair Entitlements Guarantee recovery programme, 55 Fair Work Act 2009

amendments to, 50 and entry permits, 89 and ‘no extra claims’ clause in enterprise agreement, 89

and protected industrial action, 44 section 90: Payment for annual leave, 47 Fair Work Amendment (Bargaining Processes) Bill 2014, 50, 90 Fair Work Amendment Bill 2014, 47, 50 Fair Work Amendment (Textile, Clothing and Footwear

Industry) Act 2012 post-implementation review of, 48 Fair Work Amendment (Transfer of Business) Act 2012 post-implementation review of, 48 Fair Work (Building Industry) Act 2012, 50, 51 Fair Work Building Industry Inspectorate, 50 Fair Work (Building Industry—Accreditation Scheme)

Amendment Regulation 2014, 51

INDEx | 191

Fair Work Commission annual wage review, 3, 39, 42, 46-7, 88-9 Asmar v Fair Work Commission, 89 and enterprise agreements, 53

four-yearly review of modern awards, 42, 47 superannuation, 47 and Teys Australia Beenleigh Pty Ltd v Australasian Meat Industry Employees Union, 89 Fair Work (Registered Organisations) Act 2009, 50 Fair Work (Registered Organisations) Amendment Bill

2014, 48, 50

Fair Work (Registered Organisations) Amendment Bill 2014 [No. 2], 48, 50, 90 Federal Court of Australia Asmar v Fair Work Commission, 89

Samson Maritime Pty Ltd v Aucote, 42, 50 Teys Australia Beenleigh Pty Ltd v Australasian Meat Industry Employees Union, 89 Toyota Motor Corporation Australia Ltd v Mamara, 89

Federal Safety Commissioner, 52 see also Office of the Federal Safety Commissioner Federal Safety Officers, 52 Fiji

and Seasonal Worker Programme, 21 Finance and Business Services Committee, 59 changes to, 59 financial performance—administered, 94 financial performance—departmental, 93 financial statements, 93-168 flexible working arrangements, 71 Forced Labour Protocol of 2014 to the Forced Labour

Convention 1930 (P029) [ILO], 92 Ford Australia retrenched workers, 33 Forestry Industry in Tasmania Structural Adjustment

Programme, 33

fraud awareness, 64 fraud control, 63-4 free trade agreements, 34 Freedom of Information Act 1982, 65, 90, 91 freedom of information request, 90 FSC Online, 52 Future of Work: People, Place, Technology

Centre for Workplace Leadership conference, 47

G G20 Employment Plans, 38 G20 Employment Working Group, 40 G20 Labour and Employment Ministerial Meeting, 3, 9, 38,

80, 85

G20 Leaders’ Summit, 38 G20 Taskforce on Employment meetings, 38

Geelong area assistance for retrenched workers in, 33 gender equality reporting changes to, 45, 81 General Employee Entitlements and Redundancy

Scheme, 43-4

Get Skilled, 31 governance, 57-65 governance and assurance framework, 64 governance structure, 4, 58

Graduate Programme—ICT Discipline, 73 graduate recruitment, 84 grants, 87, 94

Growing Jobs and Small Business package, 9, 20, 40

H Hanks, Peter, QC and review of Safety, Rehabilitation and Compensation Act 1988, 51 HarmonE choir

and Reconciliation Week, 76 Harvest Labour Services, 11, 18 Hawke, Dr Allan, AC

and review of Safety, Rehabilitation and Compensation Act 1988, 51 health and safety representatives, 77 Hehir, Martin, 6

and jobactive procurement, 14 multicultural champion, 74 Helping Young Parents, 20 Housing Industry Association

and skills shortage in Darwin’s building and construction industry, 31

I ICT Sustainability Plan, 169 ILO - Australian Government Partnership Agreement 2010-2015

and Pacific Growth and Employment Project, 49 Indigenous Australian Government Development Programme, 71, 73, 84

and APS Diversity Award, 85 Indigenous Cadetship Programme, 71, 73 Indigenous Champion, 4, 75, 76 Indigenous job seekers, 18, 24 Indigenous Leader, 4, 24, 75, 76 Indigenous mentoring pilot, 18 Indigenous Opportunities Policy, 86 Indigenous recruits, 4 Indigenous staff, 24, 74-5 Indigenous Staff Committee, 4, 75, 76

192 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Indigenous Staff Network, 76 industrial disputes, 53 industry and cross-agency collaboration, 31-4 information and communication technology (ICT)

sustainability, 170-1 Information Publication Scheme, 91 information technology (IT), 87-8, 93 Information Technology Committee, 59 injured workers

assistance in returning to work, 42 innovation, 63 Innovative Youth Trials, 20 Intergovernmental Agreement for Regulatory and

Operational Reform in Occupational Health and Safety review of, 42 internal audit, 64 internal audit team, 64 international delegations, 37 international engagement, 37-8, 48-9 International Labour Affairs Committee, 91 International Labour Conference, 48, 49 International Labour Organization (ILO), 91-2

Committee on Labour Protection, 48 Constitution, 92 questions arising out of reports made under Article 22 of, 92

Governing Body, 48, 49 reports on ratified conventions, 92 unratified conventions and recommendations, 92 international labour standards, 91 internet vacancy index, 25 investment approach to welfare, 40 IT Strategic Plan 2014-2017, 61

J Job Commitment Bonus, 19 job creation and local economic development workshop, 33

job placements, 25 job seeker attendance rates, 10 Job Seeker Classification Instrument, 13 Job Seeker JobSearch app, 13 Job Seeker Programmes Branch

and jobactive servicing for prisoners in Victoria, 40 job seekers with disability support for, 34

Indigenous, 18 and Job Services Australia streams, 26 mutual obligation, 12

vulnerable/disadvantaged pre-employment training for, 32 support for, 20 Job Services Australia, 8, 9, 10, 13, 94

and job placements, 25 job seeker streams, 26 and National Customer Service Line, 24, 39 and Relocation Assistance to Take Up a Job

programme, 18 and Restart, 22 and skills shortage in Darwin’s building and construction industry, 31 and star ratings, 12 transition to jobactive, 14, 23 Job Services Australia providers, 10, 15

survey of, 34 job vacancies, 25 jobactive, 3, 8, 9, 10-14, 40, 71, 93 advertising campaign, 80, 177

evaluation of, 35 and Harvest Labour Services, 18 procurement process, 14 replaces Job Services Australia, 10 services, 11 transition from Job Services Australia, 14, 23 and Work for the Dole Coordinators, 15 jobactive Deed 2015-2020, 9 jobactive performance framework, 11 jobactive providers, 11, 13

quality assurance framework for, 9, 12 service delivery plans, 12 jobactive service guarantee, 12 JobSearch website development, 13

see also Australian JobSearch website judicial and administrative tribunal decisions, 88-9

L labour force participation, 29-30, 39 labour market conditions, 28-30, 40 and job placements, 25

and job seekers, 9 see also Australian Jobs 2015 labour productivity, 53 Launceston jobs fair and workshop, 33 leadership, 68-9 Leading Indicator of Employment (monthly), 37 learning and development, 69 Leon, Renée, 6

see also Secretary’s review

INDEx | 193

M machinery-of-government changes and internal audit, 64 management development programme, 69 maritime industry, 50 market research see advertising and market research market sector real gross value added, 53 mature-age employment programmes, 94

advertising campaign, 177 see also Corporate Champions programme; Restart programme mature-age employment, 21-3

Medibank Private Ltd, 51 multicultural champion, 74 mutual obligation framework for job seekers, 12 myGov

and JobSearch, 13

N NAIDOC Week, 4, 75 National Customer Service Line, 24, 39, 65 National Disability Strategy 2010-2020, 91 National Harvest Labour Information Service, 11 National Labour Consultative Council Act 1977, 91 National Leadership Team, 59 National Reconciliation Week, 75, 76 National Workplace Education Programme, 45 National Workplace Relations Consultative Council, 91 New Enterprise Incentive Scheme, 11, 16-17, 94 New South Wales Government

and pre-employment training for disadvantaged job seekers, 32 Newstart, 19, 26 non-salary benefits, 71

North West Rail Link and pre-employment training for disadvantaged job seekers, 32 Northern Territory Government

and skills shortage in Darwin’s building and construction industry, 31

O Occupational Health and Safety (Maritime Industry) Act 1993, 50 office and building energy use, 170

Office of Best Practice Regulation and post-implementation review of Fair Work Amendment (Textile, Clothing and Footwear Industry) Act 2012, 48 and post-implementation review of Fair Work

Amendment (Transfer of Business) Act 2012, 48

Office of Parliamentary Counsel and Shipping Legislation Amendment Bill 2015, 48 Office of the Australian Information Commissioner finding in relation to department freedom of

information request, 90 Office of the Federal Safety Commissioner, 51-2 review of, 51 Organisation for Economic Co-operation and

Development (OECD), 29, 37 and job creation and local economic development workshop, 33 Outcome 1, 7, 8-40

aims, 8 cross-outcome work, 39 expenses, 175 Outcome 2, 7, 41-55

aims, 41 cross-outcome work, 55 departmental outputs, 54 effectiveness indicators, 52 expenses, 176 outcome and programme structure, 7

P Pacific Growth and Employment Project, 49 paper use, 172 Papua New Guinea

and Pacific Growth and Employment Project, 49 Parker, Sandra, 6 parliamentary committee inquiries, 90 parliamentary document management system, 81 parliamentary services, 81 parliamentary team, 81 people, 4, 65-76

People and Capability Committee, 59, 68 and disability employee network, 74 and Reconciliation Action Plan, 75 and workforce planning, 71

People and Capability Strategy, 65, 68, 73 performance pay, 71 planning, 60-1

Post-Programme Monitoring Survey, 35 pre-employment training for disadvantaged job seekers, 32 pre-release prisoners

and employment services, 40 Privacy Act 1998, 65 private sector wages, 53 procurement

jobactive, 14 productivity, 53

194 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Productivity Commission review of the workplace relations framework, 42, 47, 55 Productivity Education and Training Fund, 45 Programme 1.1: Employment services, 7, 10-40

deliverable, 25 expenses, 175 key performance indicators, 26-7 performance, 25-7 Programme 2.1: Employee assistance, 7, 43-4

expenses, 176 Programme 2.2: Workplace assistance, 7, 44-5 expenses, 176 Programme 2.3: Workers’ compensation payments, 7, 46

expenses, 176 protected action ballots scheme, 44 protected industrial action, 44 Public Governance, Performance and Accountability Act

2013 (PGPA Act), 14, 62 and committee structure, 59 and corporate plan, 61 and engagement of consultants, 87 and internal audit, 64 and risk management, 63, 64 public sector wages, 53 Public Service Act 1999

section 24(1) determinations, 69, 70 section 24(3) determinations, 69 purchasing and grants, 86-7

Q quality assurance framework, 12 for jobactive providers, 9, 12

R Reconciliation Action Plan, 4, 73, 74-5 Reconciliation Action Plan Working Group, 75 Reconciliation Week, 76

‘Change It Up’, 24 recruitment, 84 recruitment conditions, 9 recycling, 172 red tape reduction, 81, 82

work health and safety, 3, 42 see also deregulation redundancy pay, 50 redundant workers, 42, 44

see also Fair Entitlements Guarantee; General Employee Entitlements and Redundancy Scheme

registered organisations, 50 transparency and accountability of, 48 regulator performance framework, 82 regulators’ self-assessments, 82

Relocation Assistance to Take Up a Job programme, 18 Remote Jobs and Communities Programme and National Customer Service Line, 24 remuneration and conditions of employment, 69-71 research and evaluation, 34-7 resource efficiency and waste, 172 Restart programme, 19, 21, 22, 23

advertising campaign, 79, 177 retrenched workers, 33 right of entry permits, 89 Risk and Implementation Committee, 59, 63

changes to, 59 risk management, 63 Royal Commission into Trade Union Governance and Corruption, 55

Rundle, Vicki, 6 and Reconciliation Week, 76

S Safe Work Australia, 3, 42 Safety, Rehabilitation and Compensation Act 1988, 46, 50 amendments to, 42

review of, 51 Safety, Rehabilitation and Compensation Amendment (Improving the Comcare Scheme) Bill 2015 [Provisions], 90 Safety, Rehabilitation and Compensation Legislation

Amendment Bill 2014, 90 Safety, Rehabilitation and Compensation Legislation Amendment (Exit Arrangements) Bill 2015, 50, 90 Safety, Rehabilitation and Compensation Legislation

Amendment (Improving the Comcare Scheme) Bill 2015, 51 salary ranges, 70 Saltwater Creek Rehabilitation Project, 16 Samson Maritime Pty Ltd v Aucote, 42, 50

SAS Visual Analytics, 88 Seacare scheme see Commonwealth Seacare scheme Seafarers Rehabilitation and Compensation Act 1992, 50 Seafarers Rehabilitation and Compensation and Other

Legislation Amendment Act 2015, 42 Seafarers Rehabilitation and Compensation and Other Legislation Amendment Bill 2015, 50 Seafarers Rehabilitation and Compensation and Other

Legislation Amendment Bill 2015 [Provisions], 90 Seasonal Worker Programme, 21, 81 Secretary’s Achievement Awards, 4

INDEx | 195

Secretary’s review, 3-5 section 24(1) determinations, 69, 70 section 24(3) determinations, 69

Senate Education and Employment Legislation Committee, 90 Senate Education and Employment References Committee, 90 Senate Estimates, 81, 90 Senate inquiry into labour market impact of temporary

work visa programmes, 34 senior leadership development, 69 Senior Management Meeting, 59 service delivery, 3-4 service delivery plans

jobactive providers, 12 Shared Services Centre (SSC), 4, 59, 83-8 and environmental performance, 169 governance, 83-4

governance board, 83, 84 and Indigenous Australian Government Development Programme, 73 and internal audit, 64 priorities/strategic goals, 84 revenue, 93 services for Department of Employment see asset

management; communication; consultants; information technology (IT); purchasing and grants; recruitment vision statement, 83 Shared Services Centre Chief Executive Officer, 83 Shared Services Centre Partners Forum, 59 Shipping Legislation Amendment Bill 2015, 48 skilled migration programme, 36 Skilled Occupation List, 36 small business

purchasing from, 86-7 see also Growing Jobs and Small Business package; New Enterprise Incentive Scheme Social Security Legislation Amendment (Strengthening

the Job Seeker Compliance Framework) Bill 2014 [Provisions], 90 South Australia office National Reconciliation breakfast, 76 SSC IT Strategy, 83 SSC Marketing and Growth Strategy, 83 SSC Strategic Plan 2015-2017, 83 staff, 65-78 staff costs, 93 staff development strategies, 69 staff recruitment, 71

see also entry-level recruitment programmes staffing statistics, 66-7 star ratings, 12 Star Track Express Pty Ltd, 51

state network, 4, 23-4 functions, 23 and National Customer Service Line, 24 and National Leadership Team, 59 and pre-employment training for disadvantaged job

seekers, 32 and Reconciliation Week, 76 and transition from Job Services Australia to jobactive, 23 and Work for the Dole, 23 and Work for the Dole Coordinators, 23 STEPS Education and Training

and skills shortage in Darwin’s building and construction industry, 31 Strategic Plan 2014-2017, 3, 60, 62, 65, 73 Strategy Committee, 59, 62

and Evaluation Research and Evidence Framework 2015-2020, 62 structural adjustment programmes, 33 superannuation, 47 Supply Nation

and Aboriginal and Torres Strait Islander businesses, 86 Supporting Jobless Families, 20 Supporting Parents to Plan and Prepare for Employment

programme, 20

Survey of Australian Government Payments to Small Business, 86 Survey of Employers, 35 Survey of Employers’ Recruitment Experiences, 9, 35-6 Survey of Employers Who Have Recently Advertised, 36 Survey of Employment Services Providers, 34

T TAFE Western Sydney Institute and pre-employment training for disadvantaged job seekers, 32 Tasmanian Cask Company

and Tasmanian Jobs Programme, 19 Tasmanian Government and job creation and local economic development workshop, 33 Tasmanian Jobs Programme, 18-19, 33 Tax White Paper process, 39

temporary work visa programmes, 34, 90 Textile, Clothing and Footwear Structural Adjustment Programme, 33 Teys Australia Beenleigh Pty Ltd v Australasian Meat Industry

Employees Union, 89 Timor-Leste and Seasonal Worker Programme, 21 Toyota Motor Corporation Australia Ltd v Mamara, 89 Transition Hotline, 14

196 | DEPARTMENT OF EMPLOYMENT ANNUAL REPORT 2014-15

Treasury see Department of the Treasury Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144) [ILO], 91

U unemployment, 28, 29 average duration of, 30 Union Education Foundation, 45

and Productivity Education and Training Fund, 45 University of Melbourne and Centre for Workplace Leadership, 47 unscheduled absence, 79

V Vanuatu and Pacific Growth and Employment Project, 49 vehicle fleet and air travel, 171 Victorian State Department of Justice

and jobactive servicing for prisoners in Victoria, 40

W wage subsidy pool, 40 wages and earnings, 53 waste management system, 172 website, 85, 88

see also Australian JobSearch website welfare costs and investment approach to welfare, 40 Western Australia office

and National Reconciliation Week, 76 Work for the Dole Coordinators, 9, 11, 14, 15, 23 Work for the Dole forums, 23 Work for the Dole programme, 3, 9, 11, 15-16, 23, 40, 85 work health and safety, 77-8 Work Health and Safety Act 2011, 77

Work Health and Safety Amendment (Public Authorities) Regulation 2014, 51 Work Health and Safety Amendment Regulation 2015 (No. 1), 51 Work Health and Safety Committee, 77 work health and safety incident reporting, 77-8 work health and safety laws

red tape reduction, 3, 42 Work Health and Safety Regulations 2011, 51 work visas and migration programmes, 34 workers’ compensation, 42, 50-1, 94

see also Programme 2.3: Workers’ compensation payments workforce participation policy, 34

workforce planning and employee retention, 71 workplace bargaining policy, 69 Workplace Gender and Equality Strategy Project Centre for Workplace Leadership, 47

Workplace Gender Equality Act 2012, 45, 81 Workplace Gender Equality Agency, 45 workplace injuries prevention, 42 workplace relations framework

review of the, 42, 47, 55 workplace relations legal advice, 50-1 primary legislation, 50-1

regulations, 51 Workplace Relations Legal Group, 88 workplace relations policy advice, 46-9 workplace safety, 51-2 Workskills Incorporated, 19

Y Youth Allowance, 19, 26 Youth Employment Strategy—Transition to Work programme, 9, 20

youth labour market conditions, 28

Celebrating the department’s first birthday, September 2014.

Acknowledgments This report reflects the efforts of many people. Special thanks go to the department employees involved in contributing, coordinating and clearing material as well as:

Editing: Wilton Hanford Hanover Printing: CanPrint Communications Pty Ltd

This report has been printed on uncoated Precision paper. Australian made and using fibre sourced from responsibly managed forests, Precision has ISO 14001 Environmental certification.

Contact information This report is available in hard copy or online at http://annualreport2015.employment.gov.au

If you have any questions about this report or to request a copy, please contact:

Annual report team Assurance and Business Services Branch Department of Employment GPO Box 9880 CANBERRA ACT 2601

Phone: 1300 488 064

Copyright With the exception of the Commonwealth Coat of Arms and all photographs and where otherwise noted, all material in this document is licensed under a Creative Commons Attribution 3.0 Australia licence (http:/creativecommons.org/ licenses/by/3.0/au/).

The details of the relevant licence conditions are available on the Creative Commons website, accessible using the link provided, as is the full legal code for the CC BY 3.0 AU licence (http:// creativecommons.org.licences/by/3.0/au/ legalcode).

The document must be attributed as the Department of Employment Annual Report 2014-15.

ISSN 2203-5613 (print) ISSN 2206-5621 (online)

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