Chapter 16 - Implementation and transition arrangements

Implementation and transition arrangements

Chapters 4 to 15 of this report include 72 recommendations to underpin an ambitious blueprint for a rebuilt Commonwealth Employment Services System. This chapter sets out indicative timeframes for implementing those reforms. Implementing the measures necessary to rebuild the employment services system will be a multi-year project and require sustained political leadership, a major change in culture led by the bureaucracy and ongoing engagement by all levels of government. Bureaucratic intelligence and buy-in from central agencies and the broader public service will be critical to ensure that the reform process does not lose momentum over multiple terms of Parliament and terms of government.

Successful reform also requires genuine partnerships between stakeholders, including unemployed people, service users, multiple levels of government, employers, service partners and communities, informed by the lived experience of unemployed people and service users. That does not necessarily mean consensus and not everything can or should be co-designed. Government needs to lead and take bold decisions in response to this report and set the parameters and culture for reform within which co-design, experiments and trials can occur.

The inquiry received compelling evidence that many of the reforms proposed in this report can be funded by better targeting expenditure within the existing funding envelope for employment services. However, even as better value for money is achieved, it is critical that government not shy away from additional targeted investment, to reduce long-term unemployment and address disadvantage, noting that Australia spends only around half the average of Organisation for Economic Co-operation and Development (OECD) member countries on employment services and Active Labour Market Programs (ALMPs). The benefits to society and to governments of reducing long-term unemployment are significant.

Many of the reforms recommended in this report will take time to implement, and the Committee appreciates that a staged approach to change will be required given the complexity of some of the reforms and the costs and trade-offs involved. Nevertheless, there several reforms that must be implemented within the first 12 months of the tabling of this report to address critical issues and obvious pain points. These include:

urgent interim changes to mutual obligations and upgrades to inefficient IT systems, pending more significant reforms to occur over the longer term;
measures to reframe how government and system actors engage with clients;
the development of a new regulatory culture and a more relational contracting model, focused on partnerships and quality services;
implementing service improvement trials, the creation of communities of practice, and the implementation of measures to require the sharing of information among service partners and with government, with a view to starting building a culture of learning, innovation, and experimentation as soon as possible. is also critical if employment services are to realise their full potential; and
implementing arrangements to enable public release of data, with the first tranche of data to be released to the public within 12 months of this report being tabled.

In the short term, Government should also partner with States and Territories that deliver employment services—particularly Victoria and Tasmania—to align effort, support good practice, and inform the design of the rebuilt national system.

Many recommendations will take longer to implement and should form part of the medium-term outlook. These include:

the establishment of Employment Services Australia (ESA) and the Employment Services Quality Commission. Subject to government accepting the relevant recommendations, the Quality Commission should be established as soon as possible, while decisions regarding ESA and its regional hubs may be made on an iterative basis and informed by trials in some jurisdictions and service regions;
changes to commissioning arrangements, with a view to avoiding re-tendering in the short to medium term while ensuring that reforms are bedded down by the time existing contracts expire, which may include reforming the system in partnership with existing providers using license and contract management processes, such as:

a collaborative process with State, Territory and local Governments informed by Jobs and Skills Australia (JSA) to identify and map prospective employment regions over the next 12 months;
government using existing license or contract extension processes to transition the system to the proposed less competitive model;
government identifying a small number of regions in which the public sector may lead direct service delivery; and

engaging additional specialist providers, particularly for areas with a high proportion of First Nations and culturally and linguistically diverse clients, which may require re‑tendering to bring more Aboriginal Community Controlled Organisations (ACCOs) into the system sooner rather than later, and re-tendering or re-negotiation with CALDservice partners.

It is proposed that within 12months of this report being tabled, government create and publish a Roadmap to a rebuilt the Commonwealth Employment Services System. This should be a comprehensive response to the recommendations in this report and a clear outline of changes to be made in the short, medium and longer term. Recommendations that cannot be committed to or cannot be made until a new system is in place should also be clearly defined. The Roadmap should be periodically reviewed and updated.

Leadership, engagement, and co-design

16.1In Chapters 4 to 15 of this report, the Committee has set out an ambitious blueprint for a rebuilt Commonwealth Employment Services System. The Committee is not naïve and understands the complexity and ambition of what is proposed. This is not a science experiment and government does not have the luxury of building something from scratch in a lab. The government is being asked to ‘rebuild the plane while flying the plane’ which is a fiendishly difficult thing to do in any human services system.

16.2Implementing the measures will be a multi-year project requiring sustained political leadership, major changes in culture led by the bureaucracy, and ongoing engagement by all levels of government. Bureaucratic intelligence and buy-in from central agencies will also be necessary to ensure the reform process does not lose momentum over multiple terms of Parliament and terms of government.

16.3Numerous experts, academics, former senior public servants, and practitioners have cautioned the Committee that the biggest obstacle to system reform is likely to be entrenched resistance–even hostility–in parts of the Australian Public Service (APS) given a decades long belief in full marketisation, a lack of experience in service delivery and the sheer convenience of being able to blame contractors for systemic failures. As outlined in this report, successive governments and senior bureaucrats have remained detached from the messy reality of communities, regional labour markets, and service delivery. As with other privatisations, bureaucrats and politicians avoided direct accountability for systemic failures and public discontent by blaming contracted providers. The shift proposed in this report is significant, and challenging orthodoxy brings risk. However, change is essential as the current system simply does not and cannot work.

16.4Successful reform will also require genuine partnerships between government, employers, service partners and communities, informed by the lived experience of unemployed people and service users. That does not necessarily mean consensus and not everything can or should be co-designed. Government needs to lead and take bold decisions in response to this report and set the parameters and culture for reform within which co-design, experiments and trials can occur.

16.5Despite genuine best efforts underpinning numerous and detailed findings and recommendations, the Committee directly acknowledges that some of its conclusions and recommendations will be contested and may be overtaken by changes in labour markets and society or adjusted with new evidence. That is to be expected in a dynamic system. Some of the Committee’s most important findings and recommendations speak directly to the need to redevelop an ongoing culture of learning, innovation, experimentation, and evaluation. That new things will be learnt and refined beyond our proposals is appropriate and indeed may be inevitable. The core contentions though should be accepted. For example, it must be a question of how, not if, a public sector core to the system is rebuilt, with more active government involvement in communities and service delivery.

16.6Central to any serious effort to reform the system and improve outcomes for long term unemployed and disadvantaged Australians will be a fundamental change in both political and community attitudes to unemployed people and recipients of income support. Most Australians want to work. Most Australians do not cheat the system. Those who do cheat the system or are otherwise persistently or deliberately noncompliant should be dealt with via social security compliance mechanisms. However, it is absolutely critical that not everyone is lumped into that paradigm. The words of the Royal Commissioner Catherine Holmes AC SC are apt in this regard:

…politicians need to lead a change in social attitudes to people receiving welfare payments. The evidence before the Commission was that fraud in the welfare system was miniscule, but that is not the impression one would get from what ministers responsible for social security payments have said over the years. Anti-welfare rhetoric is easy populism, useful for campaign purposes. It is not recent, nor is it confined to one side of politics, as some of the quoted material in this report demonstrates. It may be that the evidence in this Royal Commission has gone some way to changing public perceptions. But largely, those attitudes are set by politicians, who need to abandon for good (in every sense) the narrative of taxpayer versus welfare recipient.[1]

16.7The Committee is convinced that there are significant resources that can be freed up within the current funding envelopes and system for more productive uses and that better value for money can be achieved. This will take time and it is likely that transitional resources will be required to rebuild the system. Extra and freed up investment should be targeted to priority areas as reform progresses and an evidence base is re-established regarding the true cost of quality services. However, governments should also not shy away from targeted additional investments given Australia now spends half the average of Organisation for Economic Co‑operation and Development (OECD) member countries on all aspects of the employment services system combined (see Chapter 2). The benefits to society and governments of reducing long term unemployment are significant.

Implementation of reforms

16.8The Committee has made many detailed recommendations to underpin a rebuilt Commonwealth Employment Services System. The Committee appreciates it will take time to implement these reforms, and that a staged approach to change will be required given the complexity of some of the changes and the various costs and trade-offs involved.

16.9Table 16.1 outlines the Committee’s broad sense as to the phasing and priority for implementation of its recommendations on the assumption that the government agrees to all proposals in the report (which of course it may not).

16.10Several reforms are proposed as urgent or to be undertaken in the short term during the current financial year. For all other recommendations, it is proposed that within 12months of this report being tabled the Australian Government create and publish a Roadmap to a rebuilt the Commonwealth Employment Services System. This should be a comprehensive response to the Committee’s recommendations and outline the changes to be made in the short, medium, and longer term. Recommendations that cannot be committed to or cannot be implemented until a new system is in place should be clearly defined. A Roadmap should be periodically reviewed and updated.

Short-term reforms

16.11The Committee has recommended several urgent changes that should implemented within 12 months of the tabling of this report. These are largely to address critical issues and obvious pain points.

16.12Urgent changes include the recommendations in relation to mutual obligations and compliance arrangements and to upgrade inefficient IT systems which are choking the system in red tape and killing the productivity of providers. Further changes to mutual obligation requirements and compliance arrangements would occur over the longer term, informed by trials and evaluations and necessary changes to IT and legislation.

16.13Measures to reframe how the government and other system actors engage with clients should also be progressed quickly. These include ensuring communications with clients are clear and unambiguous, ensuring that clients can obtain advice and support, and avoiding conduct or language which reinforces shame associated with accessing income or employment support.

16.14Another urgent short-term task will be to progress recommendations to develop and implement a new regulatory culture and a more relational contracting model, focused on partnerships and quality services. This is a critical and separate piece of reform work that need to be done before a system can be recommissioned.

16.15A key feature of a rebuilt Commonwealth Employment Services System should be to more easily allow State and Territory Governments and philanthropists to partner with the Commonwealth in areas and places of mutual interest. This should include being able to co‑invest, adopt place-based or cohort-based partnerships focused on breaking cycles of disadvantage or trialling innovative service models.

16.16As a tangible step the Committee proposes the Commonwealth consider partnering with states and territories which already deliver employment services to align effort, support good practice, to learn about partnering, and to inform the design of a rebuilt national system.

16.17Jobs Victoria has had the most comprehensive state labour market program for many years, delivering tailored, person-centred support to clients. The program has also been successful in engaging community-based organisations to deliver place-based solutions, working with the social enterprise sector and efficiently establishing prices for outcomes via a reverse tender mechanism.

16.18The recent announcement of post-COVID funding changes for Jobs Victoria and an associated refocus on a smaller number of heavily disadvantaged places provides a short window of opportunity for the Commonwealth to decide to partner with the Victorian Government in the delivery of that program: a decision will be required by the next Commonwealth Budget. Failing this, Jobs Victoria may cease. This would result in the loss of an enormous amount of rich data and local service capacity. The Commonwealth should co-invest and integrate elements of Jobs Victoria into the national system and experiment with alternatives to current provider-led services in those regions in fulfilment of mutual obligations.

16.19The Jobs Hubs program administered by the Tasmanian Government is a good example of a place-based, employer-focused service which is trusted by local communities. The Committee considered the Hubs program in developing its views and recommendations for the employer-focused service delivered by regional hubs set out in Chapter 12. The Committee supports an intergovernmental partnership in relation to the Jobs Hubs program. Integrating or aligning the program with the national system provides an opportunity to trial the kinds of place-based supports that the Committee envisages would be delivered by regional hubs in a rebuilt Commonwealth Employment Services System.

16.20Both the Victorian and Tasmanian Governments have expressed an interest in partnering with the Commonwealth in relation to their respective programs and have outlined key elements of such partnerships. The Commonwealth should work closely with those jurisdictions to develop agreements to underpin partnerships. For Victoria, this should be done in advance of the next Victorian and Commonwealth Budgets, while for Tasmania this should be done as soon as possible.

16.21A culture of learning, innovation, and experimentation is also critical if employment services are to realise their full potential. Creating such a culture should commence in the immediate term with service improvement trials, the creation of communities of practice, and measures to require sharing of information among service partners and by service partners with government. Arrangements to enable public release of data should also be progressed as a matter of priority, with the first tranche of data released to the public within 12 months of this report being tabled.

Medium-term reforms

16.22Several recommendations cannot feasibly be implemented in the short term but should be committed to as soon as possible and implemented in the medium term. These include the establishment of Employment Services Australia (ESA) and the Employment Services Quality Commission.

16.23Establishment of ESA will require the Department of Employment and Workplace Relations (DEWR), Department of Social Services (DSS) and Services Australia to redesign and rearrange their service models. Establishment of the Quality Commission will require a model to be finalised via consultation, legislative change, and transfer of some functions from DEWR.

16.24A decision about the Quality Commission is a threshold decision—either Government commits to establishing a Quality Commission of it does not. Assuming government commits to establishing a Quality Commission, the new entity should be established sooner rather than later as it is key to enabling other reforms. In contrast, decisions regarding the ESA and its regional hubs may be more iterative and informed by trials in some jurisdictions or regions. However, the Committee is strongly of the view that whatever the detail and form adopted, the case to re-establish a public sector core to the system, including regional stewardship, enabling services, and some experience in direct service delivery, is overwhelming. The critical question must be how—not if—to implement such measures.

16.25Changes to commissioning arrangements should also be implemented in the medium term, with planning starting as soon as possible. The Committee strongly suggests that Government minimise the need to retender services in the short to medium term in line with the philosophy expressed in this report. As a general approach to be refined in the Roadmap even while the public sector stewardship and enabling functions are being developed or trialled, government should seek to reform the system in partnership with existing providers using the license and contract extension processes. For generalist case management services, this may involve:

a collaborative process with State, Territory, and local Governments informed by Jobs and Skills Australia (JSA) to identify and map an increased number of (smaller) employment regions over the next 12 months that better reflect labour markets and communities of interest;
government using the license or contract extension processes to transition the system to the less competitive model proposed in this report. This would see the highest-performing providers in each region extended with one per place within a region; and
government identify a small number of regions in which the public sector may lead direct service delivery for the reasons outlined in this report, including priority consideration of the Australian Capital Territory.
1. Additional specialist providers should be engaged in the medium term, particularly for areas with a high proportion of First Nations and culturally and linguistically diverse (CALD) clients. This may require re-tendering to bring more Aboriginal Community Controlled Organisations (ACCOs) into the system sooner rather than later, and re‑tendering or re-negotiation with CALD service partners. This may provide opportunities to also explore alternative commissioning approaches, including the reverse auction grant approach used in other jurisdictions.

Recommendation 73

16.27The Committee recommends that the Australian Government urgently explore (in advance of the next Victorian and Commonwealth Budgets) the striking of an agreement with Victoria for a demonstration partnership for the delivery of the Jobs Victoria program and the integration of that program into the Commonwealth system on a fixed-term basis in regions of high disadvantage. This should include governance arrangements, measures to enable sharing of information and labour market insights, a robust monitoring and evaluation framework, and arrangements for co-investment.

Recommendation 74

16.28The Committee recommends that the Australian Government seek to negotiate an agreement with Tasmania for a demonstration partnership in relation to the Jobs Hubs program. This should include funding arrangements, measures to enable sharing of information and labour market insights, a robust monitoring and evaluation framework, and arrangements for co-investment.

Recommendation 75

16.29The Committee recommends that the Australian Government develop and publish a transition plan for the rebuilt Commonwealth Employment Services System by the end of 2024. The plan should be reviewed and updated on a regular basis to reflect the progress of implementation of recommendations in this report.

Table 16.1: Implementation of recommendations

No.	Recommendation	Short term	Medium term	Longer term	Comment
Chapter 4: Foundation principles for a future Australian system
1	Rebuild a Commonwealth Employment Services System underpinned by intergovernmental agreement(s)				Design and negotiations to commence relatively quickly in relation to a rebuilt Commonwealth Employment Services System, with a view to having agreement(s) signed in the medium-term to inform design and implementation.
2	Guiding vision and principles for a rebuilt Commonwealth Employment Services System and adjustments to service eligibility				The vision and principles to be finalised well before the rebuilt system is in place. Trials of changes to service eligibility to commence as soon as possible (subject to resourcing and legislative constraints), with eligibility for services finalised before the rebuilt system is in place.
3	Establish Client Council(s) and Employment Services Coordinating Council to help advise on issues impacting clients’ experiences and ensure expert and stakeholder input				Consultation on a policy framework for Client Councils to occur early on, with a view of having the councils established in the medium term. Councils should have input into the rebuild of the Commonwealth Employment Services System. Employment Services Coordinating Council to be established to provide ongoing expert and stakeholder guidance.
4	Establish Employment Services Australia and network of regional hubs and service gateways				Preliminary work to establish Employment Services Australia within the Department of Employment and Workplace Relations (DEWR) should commence right away, with the new entity established before the rebuilt Commonwealth Employment Services System is in place. Establishment of delivery roles and transfer of existing functions to Employment Services Australia to occur on a progressive basis, with the transfer of functions from the Digital Services Contact Centre (DSCC) prioritised.
5	Commonwealth Social Procurement Framework				The Social Procurement Framework could be developed concurrently with the Social Enterprise Strategy outlined in Recommendation 50.
6	Government strategies to provide long-term unemployed people with work and training opportunities				Target to be implemented in the medium term. Development of these targets is linked to but not dependent on the rebuild of the Commonwealth Employment Services System.
7	Administrative traineeships for disadvantaged jobseekers in the electorate office of each Commonwealth Member of Parliament				Creation of administrative traineeship could be achieved in the short term (potentially next Budget) to create more opportunities for jobseekers and enhance parliamentarians’ understanding of the challenges facing disadvantaged people.
Chapter 5: Supporting jobseekers and employers
8	Core service model for the Commonwealth Employment Services System				Consultation on the service model to occur as soon as possible following signing of relevant agreement(s), with the model forming part of a rebuilt Commonwealth Employment Services System.
9	Develop, trial, and implement measures to embed pre-employment and vocational support within a person’s primary human service				The identification of the primary human services that clients’ access that would be appropriate to trial embedding pre-employment and vocational support could commence relatively early with the aim for arrangement to support, and implement, trials to occur in the medium term.
10	Government consider the lessons of former Australian services and international services in designing higher intensity supports for those furthest from the labour market				DEWR to review prior services and international evidence of services delivered to those furthest from the labour market, to inform the design of the higher intensity case management service for those furthest from the labour market. This naturally would feed into the achievement of the relevant part of Recommendation 8.
11	Youth-specific employment services assistance				Consultation on the service model to occur as soon as possible following signing of the relevant agreement(s). Ideally trial an integrated youth service in some regions to build the evidence base. Final model forming part of a rebuilt Commonwealth Employment Services System.
12	Improving attitudes to the employment of mature age persons				Engagement and development of training and education material to address attitudes towards the employment of mature age persons to be achieved over the short to medium-term, with its full rollout achieved in the medium term.
13	Establish specialist service for people with experience of the criminal justice system				Paper to go to State and Territory Employment and Corrections Ministers to seek agreement for a reform piece of work. Consultation on the service model to occur as soon as possible following signing of the relevant agreement(s), with the service model implemented in the medium term and retained under a rebuilt Commonwealth Employment Services System.
Chapter 6: Workforce and service capability
14	Actions to help stabilise the employment services sector workforce				As part of the rebuilt Commonwealth Employment Services System and the implementation of the Committee’s recommendations, appropriate regard should be had medium-and longer-term arrangements for pay and conditions to help stabilise the workforce.
15	Professional competencies and qualifications framework for frontline staff				Consultation on a professional competencies and qualification framework to occur early on, with implementation of the framework completed in the medium term.
16	Supporting ongoing capability development for frontline staff, including an Employment Services Capability Fund				Consultation on a framework to commence in a timely manner, with the framework—including the establishment of a Capability Fund—implemented in the longer term.
Chapter 7: Regulation, accreditation, and oversight
17	Urgently resolve issues impacting the functionality of IT systems and implement a program and fund for the continuous improvement of IT systems				Key IT issues to be resolved as a matter of priority. Further enhancements to the IT system, including the implementation of the continuous improvement program and fund, to be progressed as the Commonwealth Employment Services System is rebuilt.
18	Adoption of ‘tell government once’ principle				The key pain points being experienced by clients in needing to retell government information to be identified, with a view to identifying and implementing necessary arrangements to support the sharing of that information across government in the medium term, with the appropriate privacy and data security safeguards in place.
19	Enhancing the use of Single Touch Payroll				DEWR and the Australian Taxation Office (ATO) to reach agreement regarding the use of Single Touch Payroll (STP) data in the administration of employment services as soon as possible. If legislative changes are needed, government to consider a narrow legislative amendment allow STP data to be used in the administration of employment services program. Legislative and policy changes should be finalised in the medium term, and before a rebuilt Commonwealth Employment Services System is in place.
20	Improved communication channels and collaboration between service partners and government agencies				The implementation of the dedicated service line in Services Australia should be able to be actioned in the short term, as it was recommended in the Committee’s interim report (Recommendation 24). Similarly, arrangements improve collaboration between Services Australia, DEWR and service partners should be implemented in the short term, as there are previous arrangements that could form the basis of such arrangements.
21	Streamline and simplify assurance and accreditation arrangements				The current assurance and accreditation approach should be reviewed, and consultation should occur with key stakeholders in a streamlined system. Measures to streamline and simplify assurance and accreditation should be implemented in the medium term.
22	Establish an Employment Services Quality Commission				Preliminary work to establish the Quality Commission should commence in a timely manner on signing relevant agreement(s), with the new entity established as the Commonwealth Employment Services System is rebuilt. Transfer of functions to the Commission should occur on a progressive basis.
Chapter 8: Innovation, continuous learning, experimentation, research, and evaluation
23	Adoption of data transparency principles and implementation of a program of data release				DEWR should develop and publish its data release strategy and release the first tranche of data in the short term. The release of additional data items and implementation of other components of the data release strategy should occur on a progressive basis.
24	New employment services evaluation framework				The Evaluation Strategy for Workforce Australia Employment Services 2022–2028 should be revised in the short term to ensure it incorporates broader measures of performance.
25	Establish a co-operative evaluation and research unit with the Employment Services Quality Commission				Government should begin work to establish the unit, including identifying academics, practitioners, and other experts who may be engaged and in place in the medium term. A unit should be established before a rebuilt system is in place.
26	Access to data for service partners				Providing access to data should be progressed concurrently with other measures to resolve key IT system issues.
27	Operational capacity to support trialling and innovative service delivery				Identification and implementation of rule changes to support testing and experimentation should occur in the short term, to ensure that service trials can be conducted as the new system is developed.
Chapter 9: Gateway to services
28	Reframe government’s initial contact with clients				Reframing of government’s initial contact with clients should be completed in the short term. Ongoing efforts should also be made to ensure that no government information uses language that creates shame or stigma for people accessing income support or employment assistance. This should occur concurrently with the implementation of recommendations of the Robodebt Royal Commission.
29	New client assessment framework				Trialling of amendments to the Job Seeker Snapshot to ensure the Snapshot effectively identifies those who would be suitable for online services to commence early on. Broader reforms to the assessment framework should be implemented in the medium term.
30	Streamlined reassessment and transfer processes				Consultation on reforms to the reassessment and transfer processes to occur to inform the implementation of the agreed measures in the medium term.
31	Review interaction between Community Development Program (CDP) and mainstream employment services for those who move in and out of remote locations				Implementation of simplified arrangements for clients who move between remote and non-remote services should occur over the medium term and be timed to align with reforms to the CDP.
32	Consider reinstatement of the Sickness Allowance				Changes to employment services exemption policy to be implemented early to give effect to the intent of the recommendation, with legislative, IT and policy changes to support the reintroduction of the Sickness Allowance implemented in the medium term.
33	Consider possible adjustments to identify extremely long-term unemployed people eligible for a Disability Support Pension (DSP)				The circumstances of extremely long-term unemployed persons can be assessed to identify those who could more appropriately be on the DSP and identify what arrangements might need to be implemented to grant access to that benefit. These potential changes to be considered and possibly implemented by Government in the medium term.
34	Measures to reduce cost of obtaining medical evidence				Consultation to identify potential approaches to reduce the cost of accessing medical evidence to inform measures to be implemented in the medium term
Chapter 10: Service provision and program design: Digital or hybrid services
35	Access to training and support to improve digital literacy				Measures to improve digital literary should be implemented in the short term and subject to ongoing enhancements in line with government’s skills reform agenda.
36	Ensure tools and assistance are available in multiple languages and accessible to key cohorts and develop a Digital Protections Framework				Measures to be implemented in the medium term to ensure that the Workforce Australia app and key government websites are available in at least those languages in which the Centrelink Express Plus app are available. Digital Protections Framework to be implemented in the medium term. Further enhancements to accessibility to be implemented on an ongoing basis, supported by an implementation strategy.
37	Properly resource the Department of Employment and Workplace Relations (DEWR) to support its transition to a hybrid provider. Conduct service improvement trials, including proactive outreach				Additional resources to be provided in the short term. Service improvement trials should commence in the short term and be subject to monitoring and evaluation.
38	Trial different default timeframes for online-hybrid services, and provide the Department of Employment and Workplace Relations (DEWR) with the ability to mandate referral to face-to-face services				DEWR to be given the ability to mandate referrals to face-to-face services as soon as possible. Trials of different ‘default’ times to commence in the short term.
39	Government seriously consider implementing an integrated online jobs marketplace				Consultation with commercial jobs marketplaces and other relevant stakeholders may commence in the medium term, with agreed changes implemented in the longer term.
Chapter 11: Service provision and program design: For jobseekers
40	Design and implement a new policy framework to underpin enhanced employment pathway planning, including the development of a new Participation and Jobs Plan				Consultation on the new framework to start early with a new employment pathway planning approach implemented in the medium term—including any necessary IT, policy, and legislative changes.
41	Develop and articulate guiding principles for job quality and metrics to evaluate the success of the system in supporting clients to obtain quality employment				Jobs and Skills Australia to consult with other experts on possible approaches to develop a job quality measure and associated metrics, with the measure and metrics to be implemented in the longer term. The measure and metrics would be updated as needed to reflect new indicators of job quality.
42	Develop, trial, and implement a career progression service for those in lower-paid, entry-level, and insecure jobs				Consultation to occur on a career progression service, with the service to be trialled before being rolled out nationally (subject to outcomes of the trial) in the medium term. Implementation of the career progression service will be impacted by implementation of a new measure of job quality (Recommendation 41).
43	Review governance arrangements for the Employment Fund, with a view to enhancing clarity and flexibility. Give consideration to annual credits to the Fund for very long-term unemployed clients				Key measures to increase the flexibility of the Employment Fund implemented in the short term. Review of governance arrangements to be ongoing, consistent with a focus on continuous improvement in the system.
44	Default principles prohibiting referral to in-house and third-party services, and use of the Employment Fund for those services, without pre-approval				Measures to be implemented in the short term, noting that the Committee recommended a very similar measure in its interim report.
Chapter 12: Service provision and program design: For employers
45	Establishment of an employer-focused service delivered through regional hubs				Consultation to occur on services for employers to be delivered by Employment Services Australia and service model to be finalised and implemented as the regional hubs are established (see Recommendation 4). Development of the employer-focused service to be informed by learnings of a partnership with the Tasmanian Government in relation to the Tasmanian Jobs Hubs Network (see Recommendation 74) and trials of the regional hub service in target regions.
46	Greater and more targeted use of intermediaries and bridging services				Arrangements to support easier and more seamless use of intermediaries and bridging services such as not-for-profit labour hire firms, social enterprises, or sector / industry bodies, to be implemented in the medium term, and actioned in concert with other relevant recommendations, such as Recommendation 5 for the Social Procurement Framework.
Chapter 13: Active labour market and complementary programs
47	Streamline and simplify complementary programs				Consultation on complementary and facilitation programs to occur with measures to consolidate programs implemented progressively over the medium term.
48	Refocus Work for the Dole and ensure that participants receive a supplement that realistically covers their costs				Work for the Dole to be refocused over the medium term in line with the recommendations and findings.
49	Codesign and trialling of a ‘Work in the Community’ community employment program in a limited number of regional areas and places with entrenched disadvantage				Consultation with key stakeholders to occur, with the program to be implemented in the medium term.
50	Develop and implement a Commonwealth Social Enterprise Strategy				Consultation with stakeholders on the development of a strategy to occur as soon as possible, with a strategy finalised in the medium term. Social Enterprise Strategy to be developed concurrently with the Social Procurement Framework outlined in Recommendation5.
51	Direct funding to social enterprises, including trialling of complementary funding measures				Consultation on approaches to directly fund social enterprises, including review of various funding measures, to occur in the short term. Trialling of complementary funding measures to occur as soon as possible. Full implementation of proposed funding mechanisms expected in the medium term, informed by the trials.
52	Centralise administration of wage subsidies (and other ALMPs), with funding de-linked from the Employment Fund				To be implemented in the medium term, noting that wage subsidies previously were funded separately from the Employment Fund.
53	Review wage subsidies to ensure they are efficiently and effectively priced and targeted				Review to commence early on, with measures to address identified issues to be implemented in the medium term. Wage subsidies should also be subject to ongoing review, consistent with a focus on continuous improvement in the system.
54	Simplify access to and administration of wage subsidies across jurisdictions				Engagement between the Commonwealth, States, and Territories to identify the various wage subsidy programs in place and negotiate an agreement for the development of a single national portal should start early. Portal to be implemented in the longer term.
55	Consider properly designed paid work experience				Consultation to occur on a paid work experience program, with the service to be trialled before being rolled out nationally (subject to outcomes of the trial) in the medium term.
Chapter 14: Mutual obligation, activation, compliance, and enforcement
56	Broaden mutual obligation requirements and tailor requirements to the individual				Consultation on new a framework to cut red tape, stop driving employers away from the system and be more effective in supporting jobseekers into work. Framework to broaden and tailor the range of mutual obligations to the individual and determine ‘meaningful participation’.
57	Urgently implement changes to the current compliance framework and Points Based Activation System while a new framework is developed				Measures to update the Points Based Activation System and to reduce the impact of sanctions to be implemented in the short term, noting that they aim to reduce pressures on jobseekers while other reforms are progressed. IT and other system changes to implement this recommendation should be prioritised. Interim framework to be replaced with a new Shared Accountability Framework (Recommendation 62) over the longer term.
58	Monitor impacts of the proposed extension to the income support nil rate period, and review eligibility for the nil rate to ensure criteria take account of people impacted by seasonal work				The Employment White Paper extended the income support nil rate period. The impact of this policy change should be monitored. Subject to the experience with the changes contemplated by the White Paper. Government may need to consider a further extension in the medium term. Review of eligibility criteria and any potential changes to be undertaken in the medium term.
59	Remove automatic exemption from mutual obligation for people exiting the criminal justice system and update participation options for people in medical treatments				Review and implementation of changes to occur in the short term.
60	Replace default mandatory activation requirement with a new availability test framework				Consultation on a new framework to occur, with the framework implemented in the medium term. Implementation of the framework should occur concurrently with the new framework for mutual obligations set out in Recommendation 57.
61	Implement a partial income support holdback as alternative to payment suspension				Implementation should occur in the short to medium term and should inform the development of the new Shared Accountability Framework (Recommendation 62).
62	Replace the Targeted Compliance Framework with a Shared Accountability Framework				Consultation on a new Shared Accountability Framework to occur as soon as possible, with the new more efficient and effective framework implemented in the medium term.
63	Trial incentives for engagement with employment services				Trials to commence in the medium term, subject to any legal constraints. Trials to continue over the longer term, with improvements to the national system implemented as appropriate, subject to evaluations of the trials.
64	Consider options to simplify income reporting requirements for those not intending to work and those who are participating in self-employment programs				Implementation could be informed by implementation of a similar measure in the Committee’s interim report. This may allow a shorter implementation timeframe.
Chapter 15: Commissioning, funding, and regulatory culture
65	New model for regulatory culture and relational contracting				Engagement with key stakeholders and experts, and development and implementation to be achieved over the 9-12 months following the tabling of this report. New model for regulatory culture and relational contracting in place before new approaches to commissioning are trialled or determined.
66	Revised commissioning approach to reduce barriers to entry and support greater stability				Consultation on and trialling of commissioning arrangements to occur, with some changes implemented in the medium term (such as longer license terms) and others implemented as the new system reaches maturity. Commissioning arrangements will be dependent on the service model for the rebuilt Commonwealth Employment Services System.
67	Streamline business transmission arrangements				Consultation on key business transition requirements to occur, with changes to contracts made in the medium term.
68	Commission more specialist providers including Aboriginal Community Controlled Organisations (ACCOs) and CALD service partners				Identification of locations and necessary contract or license changes to occur in the short term, with providers engaged and operational in target areas in the medium term. First Nations ACCOs should be the priority.
69	Implement trial arrangements to rebuilt public sector understanding of and capacity to deliver high-quality employment services				Arrangements to be implemented in the medium term, with options for ongoing delivery assessed as the rebuilt Commonwealth Employment Services System matures.
70	Co-design and implement funding arrangements based on a more relational contracting model				Consultation on changes to the funding model to occur early on. A new funding model to be in place before the rebuilt Commonwealth Employment Services System matures. Funding models to be reviewed on an ongoing basis, consistent with a focus on continuous improvements to the employment services system.
71	Consider a second service fee for those who reach 12 months in employment services				Arrangements for providing a second service fee for clients who have reached 12 or more months in employment services to be considered in the short term. The arrangements would be balanced by a corresponding reduction in outcome fees so as not to increase the overall cost to the Budget.
72	Review the Provider Performance Framework				Assessment of providers under the current performance framework may be paused or deferred while a review of the framework is completed. A new performance framework should be in place within 12 months of the tabling of this report. Poor performance can still be identified via standard contract management processes.
Chapter 16: Implementation and transition arrangements
73	Demonstration partnership with Victoria				Partnership agreement to be finalised in the short term. Services delivered under the partnership between the Commonwealth and Victoria to be monitored to inform reforms to a rebuilt Commonwealth Employment Services System.
74	Demonstration partnership with Tasmania				Partnership agreement to be finalised in the short term. Services delivered under the partnership between the Commonwealth and Tasmania to be monitored to inform reforms to rebuild the Commonwealth Employment Services System.
75	Develop and publish Roadmap				Roadmap for reform to be published within 12 months of the tabling of this report. Roadmap to be updated periodically to reflect the progress of reforms.

Mr Julian Hill MP Committee Chair

27 November 2023

Footnotes

[1]Robodebt Royal Commission (2023), Report of the Royal Commission into the Robodebt Scheme, p. iii.