Chapter 2 - Australian Government policies and initiatives

Chapter 2Australian Government policies and initiatives

2.1This chapter examines the Australian Government's policies and initiatives as they relate to workforce development in northern Australia.

The Northern Australian agenda

2.2In 2015, the previous Australian Government published Our North,Our Future White Paper on Developing Northern Australia (the White Paper). The White Paper provided the Government's long-term vision for the economic and social development of Northern Australia, with a view to significant developments occurring by 2035. In relation to workforce development, the White Paper outlined several strategies aimed at addressing labour shortages.[1]

2.3In 2023, the current Australian Government committed to refreshing the White Paper to take account of more recent changes including the pandemic, changing economic and cost of living challenges, and increasing natural disasters.[2] In evidence to the committee, the Department of Infrastructure, Transport, Regional Development, Communications and the Arts outlined priority areas that would inform the refresh of the White Paper:

… three particular priorities in the context of looking at the refresh of the white paper. Those three are: centring economic participation of First Nations people; achieving net zero by 2050 and supporting communities to transition to a low-carbon economy; and supporting the delivery of secure jobs.[3]

2.4Some priorities for Northern Australia were also identified by the Northern Australia Ministerial Forum, as follows:

(1)human capital—engagement with First Nations people, justice reinvestment, housing availability, migration and mobility, and workforce skills and training and development;

(2)enabling infrastructure—digital connectivity, roads, rail and ports, common-user infrastructure and water; and

(3)economic development and diversification—transformational projects, agriculture and biosecurity and data to support decision making and investment.[4]

2.5The release of the Northern Australia Action Plan 2024–2029 (the Action Plan) in August 2024 saw a refresh of the White Paper's Northern Australia policy agenda and outlined the Australian Government's recent actions. Relevantly, the Action Plan identified that 'the policy priorities identified in the 2015 White Paper, including those focused on infrastructure and workforce development, remain important today'.[5] However, despite the resources and minerals sector being a significant employer in the northern Australia economy, it was not discussed in the Action Plan.

Other Commonwealth policies and initiatives

2.6A range of other Australian Government policies and initiatives impact on the development of Northern Australia and its workforce, as follows:

Northern Australia Indigenous Development Accord review—the Accord, signed in 2019, is an agreement between the Australian, Queensland, Western Australian (WA) and Northern Territory (NT) Governments for 'progressing Indigenous economic development in Northern Australia' and mainstreaming the consideration of Indigenous interests in government policy and programs. Noting changes in the 'national First Nations policy landscape, including the National Agreement on Closing the Gap' the Australian Government has committed to undertake stakeholder engagement and review the agreement. The results of the review contributed to the development of the Action Plan;[6]

Northern Australia Indigenous Reference Group (IRG)—established in February 2022, the IRG 'is an expertise-based advisory group comprised of Indigenous people with experience in Indigenous economic development in Northern Australia'. The group 'advises the Australian Government on northern development, maximising benefits and implementation outcomes for Indigenous people in Northern Australia'. Its work is aligned with the National Agreement on Closing the Gap and the National Roadmap for Indigenous Skills, Jobs and Wealth Creation;[7]

Northern Australia Infrastructure Facility (NAIF)—the NAIF contributes to investment in economic and social infrastructure in the north through the provision of concessional loans to infrastructure projects and businesses. Key areas of focus for the NAIF are the resources, transport and logistics, agriculture and water, energy, social infrastructure and financing partnerships sectors. For further discussion on the NAIF, see Chapter 5;[8]

Remote Jobs and Economic Development Program—In 2022, the Australian Government committed to replacing the last iteration of successive welfare-payment-plus-mutual-obligation programs introduced by both Labor and Coalition governments following the removal of the Community Development Employment Projects program (CDEP). That iteration was called the Community Development Program (CDP) and commenced in 2015. As well as committing to replace CDP, the Australian Government has committed to funding a significant number of additional full-time jobs under the latest initiative called the Remote Jobs and Economic Development Program. The new arrangements will be informed by a number of pilot programs. For further discussion on the new jobs program, see Chapter 4;[9]

National Agreement on Closing the Gap—the objective of the National Agreement on Closing the Gap is to 'enable Aboriginal and Torres Strait Islander people and governments to work together to overcome the inequality experienced by Aboriginal and Torres Strait Islander people, and achieve life outcomes equal to all Australians'. Implementation plans have been developed with stakeholders and progress is reported annually;[10]

Cooperative Research Centre for Developing Northern Australia—was established in 2017:

… with a remit to invest $75m of Commonwealth funds over ten years to support industry-led, co-funded research collaborations across three program areas:

Agriculture and food (including aquaculture and forestry)

Northern Australia health service delivery and models of care

Traditional Owner-led business development.[11]

Its research programs are focused on the areas of policy harmonisation, water infrastructure and security, activating the Indigenous estate, and enabling infrastructure;[12] and

Innovation Hubs—Innovation Hubs were established to partner with relevant organisations to design innovative practices to support the agricultural sector. Of the eight hubs, two are based in Northern Australia.[13]

Tax benefit schemes

2.7In addition to the above, the Australian Government provides a range of tax initiatives aimed to stimulate growth and workforce development in Northern Australia, as outlined below.

Zone Tax Offset

2.8The Zone Tax Offset (ZTO) is a tax offset for people who are residents of specified remote areas or isolated areas of Australia. It reduces the tax residents pay on their taxable income.[14]

2.9Remote areas are either Zone A or Zone B, and there are also special areas within these zones which are more than 250 km from the nearest population centre of 2500 or more people. Residents must meet certain eligibility requirements to obtain the offset.[15]

2.10Current ZTO amounts are as follows, with additional base amounts for certain residents:

Table 2.1Zone Tax Offset amounts 2024

Offset

Amount

Zone A

$338

Zone B

$57

Special Area

$1,173

Source: Australian Taxation Office, Calculate a zone or overseas forces tax offset, 1 August 2022 (accessed 4 July 2024).

2.11Evidence on the need for tax reform to support liveability in Northern Australia has been provided to the different iterations of the Northern Australia committee over the past ten years. For example, the 2014 Final Report from the Joint Select Committee on Northern Australia flagged evidence arguing 'for taxation reform to provide incentives or remove disincentives for growth in Northern Australia'. This included proposals that the Zone Tax Offset be increased and eligibility be redesigned to address skills and labour shortages in Northern Australia.[16]

2.12The committee heard that ZTO amounts have not kept pace with the cost of living, with the NT Department of Industry, Tourism and Trade advising:

Historically, these [cost of living and isolation] factors have been mitigated by wage premiums and remote zone tax offsets (ZTO), but the relative size and impact of these premiums has eroded over time, and now they have minimal impact on relocation decisions.[17]

2.13Several witnesses advocated for the continuation and increase of this support to change people's behaviour and promote relocation to Northern Australia. Mr Rodney McComiskie from the NT Department of Industry, Tourism and Trade stated:

The cost of living is a key issue. The cost of living is higher. Something that we also mention in our submission is zone tax allowances and the like, which haven't changed for over 30 years and yet, as a proportion of income, have deteriorated in real terms. They're a long way from where they were when the policy was first implemented in, I think, the forties.[18]

2.14The NT Department's submission expanded:

Incentives such as the ZTO and regional area allowance schemes, need to be set at appropriate rates if they are to impact decision making 'at the margin', as they have become ineffective in meeting their original policy intent. This is due to the value of the incentives significantly decreasing over time in the absence of indexing, resulting in the three ZTO rates available having not increased since 1993, despite the impacts of inflation and wages growth. The ZTO now represents less than 1% of after-tax income for more than 80% of claimants, and is not sufficient to incentivise changed behaviours to attract people to live and work in regional and remote areas. The Australian Government has the policy levers to contemporise the ZTO and set it at rates sufficient to support the decision making processes of workers and encourage worker relocation within Australia.[19]

2.15The Local Government Association of the NT also supported 'the retention of Remote Area Tax Concessions and Payments as a recruitment and retention tool'.[20]

Remote Area Allowance

2.16People living in remote areas (as defined by the Australian tax offset zone list) may also be eligible for the Remote Area Allowance if they receive an income support payment or ABSTUDY living allowance, or have moved to a remote area and will stay longer than 12 months. Recipients receive from $15.60 per fortnight tax free, with their ZTO reduced dollar-for-dollar.[21]

Fringe Benefit Tax

2.17Another incentive to encourage Australians to live in rural and remote areas is the Fringe Benefits Tax (FBT), which provides exemptions and concessions for employers who provide benefits to employees (including those in remote areas), with exemptions predominantly around housing and transportation.[22]

2.18The Local Government Association of the Northern Territory highlighted the value of FBT arrangements to local councils in particular, noting:

Fringe Benefits Tax exemptions help councils offer non-cash benefits at a lower cost by making salary packaging more attractive for employees. From a corporate point of view this reduces cost and enables councils to provide (more) appealing employment packages than they would otherwise be able to.[23]

2.19The Central Desert Regional Council likewise acknowledged the value of FBT arrangements and argued for a review of FBT concession caps, recommending regional and remote councils:

… get the same cap as public benevolent institutions of $30,000 grossed up taxable value per employee … so that the local government sector can address the skills shortage by attracting and retaining staff without overly relying on operating grants to cover the gaps for staff cost and consequent service delivery impact.[24]

2.20The Chamber of Minerals and Energy WA recommended a review of FBT concessions (for example in relation to housing) and an extension to the FBT treatment of childcare to 'improve gender-based employment and equity outcomes and improving access to housing' in Northern Australia.[25]

2.21The Queensland Nurses and Midwives' Union also called for a review of FBT arrangements, to ensure they 'do not exacerbate recruitment difficulties in rural and remote areas'.[26]

Other incentives

2.22The Australian Government offers a range of other incentives to promote the development of the Northern Australian workforce, as follows:

reduction of Higher Education Loan Program (HELP) to provide assistance to teachers in very remote areas, and eligible doctors and nurse practitioners in rural, remote or very remote areas to reduce their HELP debt;[27]

Workforce Incentive Program aimed at improving access to medial, nursing and allied health services and promote careers in regional, rural and remote areas;[28]

Northern Australia Development Program provides grants of between $50 000 and $2 million and business advisory services for small to medium enterprises to 'create jobs and strengthen business capability and resilience';[29]

Aust Industry outreach network which 'facilitates easy access to information and assistance across all levels of government by providing an advisory and referral service' tailored to local businesses, including indigenous businesses;[30]

Department of Home Affairs' Business, Industry and Regional Outreach (BIRO) officers to provide information on migration to 'help employers fill vacant positions where Australian workers are unavailable';[31] and

a range of incentives and payments to help improve access to housing in Northern Australia.[32]

2.23A range of witnesses recommended further beneficial financial arrangements to support people to relocate to and live in Northern Australia. For example, the Central Desert Regional Council suggested, as an alternative to FBT changes, that tax relief or a national remote allowance be provided to people working in very remote areas 'to address the skills gap and consequential pressures on service delivery', while Regional Development Australia Greater Whitsundays suggested a 'one off payment incentive for people to location in Northern Australia' and 'concession on everyday living expenses'.[33]

2.24The Queensland Nurses and Midwives' Union also argued for a broad range of one-off payments, housing and professional development subsidies to help resolve workforce shortages, including the retention of the people who already live and work in Northern Australia.[34]

2.25The Northern Territory Government suggested a scheme similar to the Tasmanian Freight Equalisation Scheme, which allows producers, manufacturers, businesses and purchasers of goods to claim assistance with freight costs. It thought that such a scheme could 'incentivise migration, improve liveability, develop the local workforce and enhance the competitiveness' of the Northern Territory.[35]

Migration schemes

2.26Migration plays an important role in addressing Australia's labour challenges, including for unskilled, low-skilled, semi-skilled and skilled vacancies, particularly in Northern Australia. In the region, over the five years to 2021 around three per cent of the population had migrated from overseas. Several industries—such as agriculture, hospitality and tourism—rely on temporary migration to address fluctuating workforce requirements and difficulties sourcing Australian workers.[36]

2.27Professor Allan Dale, who works with the Cairns Institute, Northern Australia Universities Alliance, and Cooperative Research Centre for Developing Northern Australia, emphasised the importance of migration to workforce development, saying:

It's a targeted focus on getting the migration settings right and the appropriate migration tools to build population and to retain population within the north, as a key foundation for delivering the workforce capabilities that we need into the future. That is going to mean really targeting those parts of the migration system that will deliver capable and skilled people into northern Australia and retain people within the northern Australian context as well.[37]

2.28In addition to the Australian Government initiatives discussed below, state and territory governments offer a range of programs and incentives to attract both domestic and international migration to Northern Australia.[38]

Temporary migration

2.29The Australian Government offers a range of temporary visa programs relevant to regional Australia workforces. Migrants to Northern Australia are eligible for Category 3 regional incentives.[39] Programs relevant to Northern Australia include:

Temporary skilled program—including through employer sponsorship, labour agreements and Designated Migration Agreements (DAMAs);

Working holiday program;

Pacific Australia Labour Mobility (PALM) scheme; and

Student and graduate programs.[40]

2.30The pandemic 'significantly affected Australia's temporary migrant workforce', particularly in the horticulture sector. Ms Joanna Stanion from the Department of Agriculture, Fisheries and Forestry told the committee 'that obviously COVID had a big impact on the availability of workers in northern Australia. We saw a lot of people leaving the country, and our borders were closed. So that presented a number of problems'.[41] However, there are indications that numbers are growing and are now close to pre-COVID levels.[42]

Temporary skilled program

2.31The new temporary skilled visa system, as outlined in the December 2023 Migration Strategy, has three core streams:

Essential Skills Pathway;

Core Skills Pathway; and

Specialist Skills Pathway.[43]

Designated Area Migration Agreements

2.32There are currently 13 DAMAs between the Australian Government and states, territories or regional authorities. These agreements provide access to more overseas workers than the standard skilled migration program, and usually run for five years. DAMAs are available to a range of temporary and permanent migrants.[44]

2.33The Northern Territory Government suggested that the expansion of DAMAs to (at the time) 12 areas 'has created significant competition across the jurisdictions and diluted the impact of the policy in the Territory'. It called for 'targeted skilled migration programs to attract skilled workers to remote areas such as the Territory'.[45]

2.34Ms Jenny Lambert from Accommodation Australia was in favour of DAMAs but highlighted that favourable general migration settings were more important:

The primary purpose of labour agreements is to fill the gaps that the migration system would otherwise throw up. For the Northern Territory, it's great to have that, but most of the other states wouldn't have a whole-of-state solution. So you are really much better off having the basic settings of migration right, rather than relying on the DAMAs or labour agreements, which are administratively heavy and, at times, a bureaucratic nightmare. Relying on them as the main mechanism would not be advisable. But, obviously, if we end up with some of our key occupations not on the lists, then we'll have to look at labour agreements.[46]

Working holiday maker program

2.35The Working Holiday Maker program supports certain industries experiencing labour shortages in Northern Australia. These workers are primarily engaged in agriculture-related, food and accommodation and construction employment, with around one-third working in regional areas—predominantly in Queensland.[47]

2.36Ms Clare Smith from the East Kimberley Chamber of Commerce highlighted the value of migration programs, such as the Working Holiday Maker program, to the region:

… in agriculture and hospitality, both industries are completely reliant on unskilled migration programs such as the PALM scheme and the 88-day working holiday visa. Without those two schemes, not much would happen here through the peak seasons.[48]

2.37Mr Mark Olsen from Tourism Tropical North Queensland likewise drew the committee's attention to the value of working holiday makers to the region:

We can't afford to lose those working holiday-makers for two really important reasons. Yes, they are a workforce, but remember that 40 per cent of the people in the region at any given time come from another country. This region has the most international tourists in Australia. They speak every language on the planet, and Aussie kids, as great as they are, don't have the language that we need to service that population … They need to understand the instructions that they're being given, so we need language speakers. So working holiday-makers are more than just a workforce; they're actually a vital part of visitor safety and a really vital part of the economy and our economic growth. We're never going to have those skills only here in Australia.[49]

Pacific Australia Labour Mobility scheme

2.38According to the Department of Foreign Affairs (DFAT), the PALM scheme is 'the primary temporary migration program to address unskilled, low-skilled and semi-skilled workforce shortages in rural and regional Australia'.[50]

2.39The scheme provides unskilled, low-skilled and semi-skilled jobs for Pacific and Timor-Leste workers, develops links and relationships between Australia and neighbouring countries, and helps to fill labour gaps in regional and rural Australia. Workers under the scheme are protected by the same workplace rights and laws as Australian workers, with additional measures to support worker wellbeing.[51]

2.40As of June 2024, there were more than 34 200 workers and nearly 500 employers (including 96 labour hire employers), including around:

705 workers in the Northern Territory;

12 215 workers in Queensland; and

2975 workers in Western Australia.[52]

2.41DFAT indicated that it is continuing to work with state and territory governments and stakeholders to grow the PALM scheme in Northern Australia, noting that 'there is good scope for expanding the program in WA' in particular.[53]

2.42The majority of PALM workers (54 per cent) work in agriculture, 38 per cent work in meat processing, and the remainder work in accommodation, health care and social assistance, and other industries.[54]

2.43As a result of consultations with those impacted by the scheme over the previous two years, some changes to the PALM scheme have been implemented.[55] DFAT has also been 'considering options to improve accommodation availability and affordability in regional Australia, including ways to encourage investment in high quality accommodation'.[56] It advised a PALM Accommodation Working Group has also been established to improve accommodation for PALM scheme workers and to provide a forum for PALM scheme employers, community support organisations 'and other stakeholders to discuss accommodation issues and seek workable solutions'.[57]

2.44At the public hearing on 17 April 2024, the Mackays Group highlighted that recent changes to the PALM scheme requiring a minimum offer of 30 hours per week for short-term workers (from 1 July 2024) have removed flexibility essential to agricultural work, given weather and seasonable variability. It argued this means PALM workers are no longer casual, that this condition goes 'above and beyond the Horticulture Aware requirements for a casual employee', and the measure will significantly increase costs.[58]

2.45Some witnesses expressed other interconnecting factors that have diminished the attractiveness of the scheme, with the Bowen Gumlu Growers Association telling the committee that:

… producers and labour providers have expressed extensive concerns in relation to an increase in employment abandonment, on-farm noncompliance increasing risk and WHS [work health and safety] concerns, increase in domestic violence impacting upon local enforcement services, and an increase in health issues impacting upon local health services. As a result, there is a growing negative perception surrounding the reputation of the scheme, along with the perception of the workers themselves.[59]

2.46However, Mr Joe Moro from Far North Queensland Growers contended it was not PALM workers causing issues, rather it was ex-PALM workers and absconders, stating:

… the Australian public is starting to feel there's something wrong with the [PALM] program. Domestic violence is on the rise, and other antisocial behaviour increases. It's basically, from my understanding of the way it is, how absconders are dealt with. People are told they have to go back to their country of origin, they don't, and they remain within Australia, continuing to work and behave inappropriately over time. This will undermine the program in the long term and will add to political sentiment about whether or not the program continues. I think that's the other vulnerability, and I would think that dealing with the absconders and talking to the local police forces within the region …[60]

Student and graduate programs

2.47Some witnesses discussed the value of student and graduate migration programs to growing the Northern Australia workforce, and the development of the international education sector. Tourism Tropical North Queensland stated:

It's a great growth opportunity and provides pathways to employment. We want to bring international, highly qualified people here. Bringing them in as students is a great way to do that. But to do that we also need to provide a little bit more flexibility in their working arrangements so that they can work and study.[61]

Permanent migration

2.48The Australian Government offers a range of permanent visa programs relevant to regional Australia workforces, and Northern Australia in particular, including programs targeting employer sponsored, skilled, studying, and regional-based migrants.[62]

2.49The Department of Home Affairs noted that the number of permanent migration visas increased in 2022–23, and it pointed out the benefits of skilled migration to address skills shortages.[63]

2.50The Pacific Engagement Visa (PEV), established in July 2023, offers 'a permanent migration pathway for visa holders and their families to settle in Australia'. DFAT noted that 'Northern Australia has the potential to be a destination of choice for Pacific and Timorese PEV holders'. It suggested that there is a need to work closely with employers, local councils and churches in Northern Australia' to establish a strong sense of community where diversity is celebrated' and thereby encourage visa holders to choose to live in Northern Australia.[64]

Addressing migration issues

2.51The committee received a range of feedback on current migration programs, along with suggestions that could improve workforce development in Northern Australia, including:

streamlining procedures to support migrants to take up roles in Northern Australia;

ensuring supported occupation lists match with Northern Australia workforce needs;

retaining second and third year options for working holiday makers;

greater portability of migrant workers within companies to support international business;

easier adjustments to the length and timing of short-term visas stays to meet fluctuating and seasonal workforce demands; and

improving community support services and overall liveability factors to make Northern Australia a more attractive destination.[65]

2.52Several witnesses advocated for longer-term solutions including:

measures to encourage short-term and skilled migrants to stay on in regions on a permanent basis, including alternative employment opportunities and pathways to permanent residency; and

ensuring skills transfer from skilled migrants to the local workforce.[66]

2.53The Australian Government's recent Migration Strategy commits to an evaluation of regional migration settings, and this evaluation commenced in June 2024 with the release of a discussion paper Supporting strong and sustainable regions - Review of Regional Migration Settings.[67]

2.54The discussion paper considered that 'there is an opportunity to consider how regional employer sponsored visas can best co-exist alongside these streams and the permanent skilled program'.[68] It also foreshadows wider changes to Australia's migration programs in a range of areas—such as improved worker portability, reduction of red tape and accommodation improvements—to help ensure regional workforce needs are planned for and can be met quickly and as simply as possible.[69]

Recent budget measures

2.55The Australian Government announced several budget measures in its 2024–25 Budget to address the development of Northern Australia, including developing its workforce, including:

$519.1 million for the Future Drought Fund;

Over $11 billion towards the Future Made in Australia initiative, including investment in renewable energy and critical minerals processing projects, 'with a focus on investment in local communities, supply chains and skills, and promoting diverse workforces and secure jobs';

$174.6 million investment in water infrastructure from the National Water Grid Fund to 'enhance water security, boost agricultural production and help drought proof regional communities';

Over $7.1 billion in the critical minerals sector, including through the Critical Minerals Facility and the NAIF;

$24.6 million in building the medical workforce;

$30.2 million for the Remote Training Hubs Network;

$777.4 million for the Remote Jobs and Economic Development Program;

Over $1.3 million for defence, and infrastructure development and upgrades, including roads, airstrips and airports (including $440 million in the NT, and over $100 million to roads around Fitzroy Crossing); and

$1.9 million for an independent statutory review of the NAIF Act 2016, including whether financial assistance should be extended beyond 2026.[70]

2.56There has also been significant investment in Aboriginal and Torres Strait Islander communities, including $68 million to improve digital inclusion, including for remote communities, and $2.1 billion over 10 years for NT homelands and housing, including urgent repairs and maintenance as well as new housing construction. The NT Government has agreed to match funding, 'bringing the total investment in remote housing to $4.0 billion'.[71]

2.57Analysis by the Parliamentary Library noted a spending peak in 2024–25, before this declines over the forward estimates, and 'significant net increases in remote housing and programs in departments other than the National Indigenous Australians Agency'.[72] The Library also noted a changing role for the Australian Government, stating the '"Northern Territory homelands and housing" measure … in combination with measures providing water, power and other infrastructure in remote communities … may indicate that at least in the NT, the Australian Government is stepping back in to provide funding for maintenance and ongoing support'.[73]

2.58The 2024–25 Budget also provided for Charles Darwin University to establish a new NT medical school from 2026, as well as funding to increase the number of Aboriginal and Torres Strait Islander medical practitioners and specialists. Other health-related initiatives included the provision of menstrual hygiene products to rural and remote communities, culturally appropriate mental health and primary health services, and place-based mental-health supports for Aboriginal and Torres Strait Islander youths.[74]

2.59The Australian Government also announced $6.2 billion towards improving housing for all Australians, including in regional areas.[75]

Improving data

2.60Several submitters and witnesses flagged that more accurate and detailed data is needed about demographic, economic and other factors in Northern Australia to inform planning and appropriate decision-making for the region in the long term.

2.61In relation to the Northern Australia workforce, the NT Chamber of Commerce advised that there is limited data on workforce planning or monitoring of desired outcomes, including 'limited accurate data about the workforce skill demands, desired worker attributes, job roles and skills development needs identification'. Likewise, it noted that enterprise training needs and requirements are currently unknown. The Department of Foreign Affairs and Trade also observed that ' foreign firms want long term planning and better data and analytics to target policy interventions, including identifying sectors and regions impacted by skills and labour shortages'.[76]

2.62Mr Jengis Osman and Mr David Hayes from Unions NT discussed the need for better recordkeeping and data on who had been trained or had skills in particular areas so that they could be re-engaged, with Mr Hayes querying:

There is a lot of skill tucked away out there. How do we capture who's where and doing what? Have they been employed? … While the program is running, there might be something happening nearby. Those people are gainfully employed for a little while and then they're just back to the community with nothing to do, but they have those skills tucked away. How do we know what's where and how do we use it?[77]

2.63The Cooperative Research Centre for Developing Northern Australia advised improved socio-economic and socio-demographic data is needed to support the delivery of health services.[78]

2.64Similarly, in relation to biosecurity and people movements, the Department of Agriculture, Fisheries and Forestry told the committee 'it's about better access to data; better connections of data; responsiveness where we have known incursions; and surveillance, which gives us those incursions that we might be concerned about, as well as the absence data'. Ms Monica Collins from the Department went on to explain that it is trying to improve access to data through 'innovation and technology and connection with the industry, access to industry data as opposed to reinventing things that are already doing a good job out there'.[79]

2.65Access to reliable and informative data about Aboriginal and Torres Strait Islander peoples was a particular focus:

To better assess the challenges and opportunities of workforce development in Northern Australia compared to Australia as a whole, there is a need for more comprehensive place-based data on First Nations economic outcomes. The lack of data currently collected on First Nations businesses and economic activities more broadly has inhibited the development of fit-for-purpose policies and for securing private sector investment in First Nations economies, including in Northern Australia.[80]

2.66The National Indigenous Australians Agency noted that demographic 'and economic data on Northern Australia and the First Nations population in the North remains patchy'. Although some information is available from the Australian Census, 'it is often not of sufficient detail'. The agency proposed 'boosting the resources available to the Australian Bureau of Statistics, the Office of Northern Australia, and other agencies with relevant responsibilities for data collection and analysis in Northern Australia'.[81]

2.67Similarly, the Northern Australia Indigenous Reference Group commented that, for both the top 200 employers and the Australian Public Service, there is currently no standardised and public reporting on the numbers and levels of Aboriginal and Torres Strait Islander people in their employment. The reference group thought that reporting on these metrics would help government measure and increase local employment, and that 'without this reporting being publicly available such issues will continue to exist in the background with no real accountability'.[82]

Committee view

2.68The committee recognises the Australian Government's longstanding commitment to developing Northern Australia and its workforce, evidenced by over a decade of targeted programs, schemes and plans. However, despite these efforts, Northern Australia continues to face workforce limitations, skill shortages, and employment disparities.

2.69The unique conditions in Northern Australia mean that, unless policy initiatives are designed for Northern Australia, Australia-wide initiatives will not be able to address the needs of Northern Australia. Without targeted policies, including a better understanding of the needs of Northern Australia, the region will be left behind.

2.70Multifaceted problems require multifaceted solutions which are aimed at making Northern Australia more liveable, with appropriate services and infrastructure for its residents, and diversification of the economy to stimulate job creation and workforce development. However, there needs to be an overarching strategy that coordinates these solutions to ensure that the initiatives of different departments dovetail into each other and maximise outcomes.

2.71The Minister for Northern Australia, the Hon Madeleine King MP, recently identified growing the workforce as a key policy priority for the Australian Government in her annual statement to Parliament on developing Northern Australia. As the Minister noted, 'when the North does well, Australia does well'.[83]

2.72Given the Australian Government's commitment to workforce development in Northern Australia and the refresh of the Northern Australia agenda through the Northern Australia Action Plan 2024–29, the committee is hopeful that the above identified issues will be adequately addressed. The committee encourages the Office of Northern Australia to draw on the issues that this chapter has identified and the solutions proposed by stakeholders, in the implementation of the Action Plan.

Representation for Northern Australia

2.73As well as an independent body dedicated to Northern Australia, the committee is of the view that successful development of Northern Australia requires sustained political commitment.

2.74The committee's inquiry has coincided with White Paper refresh consultations, and the release of the Action Plan, both of which incorporate insights gained from this committee's work. This highlights the committee's significant role in shaping Australian Government policies concerning Northern Australia.

2.75The continuation of this committee would ensure that both new and ongoing initiatives in Northern Australia have the benefit of appropriate parliamentary oversight. For these reasons, the committee therefore strongly advocates for the reconstitution of a Joint Standing Committee on Northern Australia in future parliaments.

Recommendation 1

2.76The committee recommends that the House of Representatives and the Senate reconstitute a Joint Standing Committee on Northern Australia in the 48th Parliament.

Improving data on Northern Australia

2.77Gathering better information and data is essential to inform policy development and the design evidence-based solutions. However, the committee found that there is limited data on the population and activities of Northern Australia, and this is hampering the ability of agencies, businesses and service providers to plan for the future and deliver appropriate services.

2.78The committee notes that the Cooperative Research Centre for Developing Northern Australia, in collaboration with valuable regional stakeholders such as the Northern Australia Universities Alliance, publishes valuable data on its data portal about, for example, people, agriculture, health and the economics of Northern Australia. However, these organisations are restricted in what they can collate and publish because of funding limitations.

2.79Accordingly, the committee considers that a useful role for the Office of Northern Australia would be to consult with the Cooperative Research Centre for Developing Northern Australia and the Northern Australia Universities Alliance and advise on what additional data needs to be collected so that policy makers and organisations on the ground can be better informed. This focus would mean better coordination across departments that conduct data collection, leading to an approach that targets Northern Australia populations.

Recommendation 2

2.80The committee recommends that the Office of Northern Australia work with the Cooperative Research Centre for Developing Northern Australia and the Northern Australia Universities Alliance to collate, analyse and publish data about Northern Australia, and develop a data collection and implementation plan to assist with policy development.

Footnotes

[2]Office of Northern Australia, Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Refresh of Our North, Our Future: White paper on developing Northern Australia, p. 1 (accessed 12 August 2024); Office of Northern Australia, Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Developing the Northern Australia Action Plan, p. 1 (accessed 13 August 2024); The Hon Madeleine King MP and the Minister for Regional Development, Local Government and Territories, and the Hon Kristy McBain MP, 'Annual statement to Parliament on Northern Australia', Joint speech, 17 October 2023.

[3]Mr David Mackay, Deputy Secretary, Regions, Cities and Territories, Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Committee Hansard, 31 March 2023, p. 54.

[4]Mr David Mackay, Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Committee Hansard, 31 March 2023, p. 54.

[5]Australian Government, Northern Australia Action Plan 2024–2029, August 2024, p. 2.

[6]Office of Northern Australia, Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Review of the Northern Australia Indigenous Development Accord, p. 2 (accessed 12 August 2024); Department of Infrastructure, Transport, Regional Development, Communications and the Arts, What is the Accord?, p. 2 (accessed 13 August 2024).

[7]Northern Australia Indigenous Reference Group, Northern Australia Indigenous Reference Group Communiqué – February 2022, March 2022, p. 1; Northern Australia Indigenous Reference Group, Submission 62, p. 1; Northern Australia Indigenous Reference Group, Northern Australia Indigenous Reference Group (accessed 14 August 2024).

[8]Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Submission 41.1 Attachment A, p. 5; Northern Australia Infrastructure Facility, Understanding NAIF's Role in Infrastructure Financing(accessed 21 November 2024); Northern Australia Infrastructure Facility, NAIF - Investing in the infrastructure of northern Australia(accessed 21 November 2024).

[9]Thomas Rossiter and Dr James Haughton, Parliamentary Library, Budget Resources: First Nations budget measures, May 2024 (accessed 20 August 2024).

[10]Closing the Gap, National Agreement on Closing the Gap (accessed 14 August 2024); Coalition of Peaks, Submission 78, [p. 1]; Federal Financial Relations, The Treasury, Northern Territory remote Aboriginal investment (accessed 20 August 2024); Federal Financial Relations, The Treasury, Northern Territory Remote Aboriginal Investment (NTRAI) 2024-25 (accessed 20 August 2024).

[11]Cooperative Research Centre for Developing Northern Australia, Submission 10, p. 1.

[12]Cooperative Research Centre for Developing Northern Australia, Submission 10, p. 1.

[13]Office of Northern Australia, Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Our North, Our Future: 2021–26 Targeted growth, November 2021, p. 24.

[14]Australian Taxation Office, Zone and overseas forces tax offsets, 25 June 2024 (accessed 4 July 2024); Australian Taxation Office, About tax offsets, 25 June 2024 (accessed 4 July 2024).

[15]Australian Taxation Office, Australian zone list, 1 July 2024 (accessed 4 July 2024).

[16]Joint Select Committee on Northern Australia, Pivot North: Inquiry into the Development of Northern Australia – Final Report, September 2014, pp. 141, 144.

[17]Department of Industry, Tourism and Trade (Northern Territory Government), Submission 37, p. 10.

[18]Mr Rodney McComiskie, Executive Director, Strategic Policy & Reform, Department of Industry, Tourism and Trade (Northern Territory Government), Committee Hansard, 31 March 2023, p. 19; Regional Development Australia: Greater Whitsundays, Submission 69, p. 3; Mr Lui Ned David, Executive Chairperson, Gur A Baradharaw Kod Torres Strait Sea and Land Council Torres Strait Islander and Aboriginal Corporation (GBK), Committee Hansard, 18 April 2024, pp. 33 and 35.

[19]Department of Industry, Tourism and Trade (Northern Territory Government), Submission 37, p. 10; Regional Development Australia: Greater Whitsundays, Submission 69, p. 3; Mr Danial Rochford, Chief Executive Officer, Tourism Central Australia, Committee Hansard, 23 June 2023, p. 36; Local Government Association of the NT, Submission 38, [p. 3].

[20]Local Government Association Northern Territory, Submission 38, [p. 8].

[21]Services Australia, Who can get Remote Area Allowance, 23 April 2024 (accessed 4 July 2024); Services Australia, How much Remote Area Allowance you can get, 4 April 2024 (accessed 4 July 2024).

[22]Joint Select Committee on Northern Australia, Pivot North: Inquiry into the Development of Northern Australia – Final Report, September 2014, p. 146.

[23]Local Government Association Northern Territory, Submission 38, [p. 8].

[24]Central Desert Regional Council, Submission 73, pp. 2–3; Mr Leslie Manda, Chief Executive Officer, Central Desert Regional Council, Committee Hansard, 27 June 2023, p. 15.

[25]Chamber of Minerals and Energy WA, Submission 39, p. 6; Regional Development Australia: Greater Whitsundays, Submission 69, p. 3.

[26]Queensland Nurses and Midwives' Union, Submission 15, p. 9

[27]The Treasury, answers to written questions on notice, 11 April 2023 (received 9 August 2023), p. 2; Department of Education, Reduction of Higher Education Loan Program (HELP) debts for teachers in very remote areas, 7 July 2023 (accessed 22 July 2024); Department of Health and Aged Care, HELP for Rural Doctors and Nurse Practitioners, 29 February 2024 (accessed 22 July 2024).

[28]The Treasury, answers to written questions on notice, 11 April 2023 (received 9 August 2023), p. 2; Department of Health and Aged Care, Workforce Incentive Program, 18 December 2023 (accessed 22 July 2024).

[29]Business.gov.au, Northern Australia Development Program – Business Development Grant Opportunity, 7 May 2024 (accessed 22 July 2024); Department of Industry, Science and Resources, Submission 40, p. 6.

[30]Department of Industry, Science and Resources, Submission 40, p. 6; Business.gov.au, AusIndustry(accessed 6 August 2024).

[31]Department of Home Affairs, Submission 27, pp. 10–11; Department of Home Affairs, Business, industry and regional outreach, 23 June 2023 (accessed 8 August 2024).

[32]As outlined in the committee's first report: Joint Select Committee on Northern Australia, Northern Australia workforce development: First report, November 2023, pp. 7–10.

[33]Central Desert Regional Council, Submission 73, p. 3; Regional Development Australia: Greater Whitsundays, Submission 69, p. 3.

[34]Queensland Nurses and Midwives' Union, Submission 15, p. 9.

[35]Northern Territory Government, answers to questions on notice from the public hearing on 31 March 2023 and written questions on notice, 11 April 2023 (received 12 May 2023), p. 4; Services Australia, Tasmanian Freight Equalisation Scheme – About the Scheme, 5 July 2022 (accessed 6 August 2024); Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Tasmanian Freight Equalisation Scheme (accessed 6 August 2024).

[36]Parliamentary Library, Department of Parliamentary Services, Advice: Northern Australia workforce and characteristics: Table 4, 29 August 2024; Department of Foreign Affairs and Trade, Submission 11, p. 4; Department of Agriculture, Fisheries and Forestry, Submission 44, pp. 7–8; Austrade, Submission 48, p. 6; Department of Agriculture, Fisheries and Forestry, answers to questions on notice, 11 April 2023 (received 21 April 2023), p. 3; Shire of Wyndham-East Kimberley, Submission 13, p. 2; Australian Government, Our North, Our Future: White Paper on Developing Northern Australia, June 2015, p. 10; Department of Home Affairs, Designated Area Migration Agreements: Nominating a Position (accessed 6 August 2024).

[37]Professor Allan Dale, Cairns Institute, James Cook University, Committee Hansard, 17 April 2024, p. 1.

[38]See, for example: Northern Territory Government, answers to questions on notice from the public hearing on 31 March 2023 and written questions on notice, 11 April 2023 (received 12 May 2023), pp. 2–4; The Hon Glenn Butcher MP, Queensland Minister for Regional Development and Manufacturing, Minister for Water, answers to written questions on notice, 21 April 2023 (received 2 June 2023), pp. 7–8.

[39]Department of Home Affairs, Submission 27, p. 7.

[40]Department of Home Affairs, Submission 27, pp. 7–8; Australian Government, Supporting strong and sustainable regions: review of Regional Migration Settings Discussion Paper – June 2024, p. 20.

[41]Ms Joanna Stanion, First Assistant Secretary, Agricultural Policy Division, Department of Agriculture, Fisheries and Forestry Committee Hansard, 31 March 2023, p. 40; Department of Training and Workforce Development (Western Australian Government), answers to questions on notice, 11 April 2023 (received 5 May 2023), p. 16.

[42]Department of Foreign Affairs and Trade, Submission 11, p. 4; Department of Agriculture, Fisheries and Forestry, Submission 44, pp. 7–8; Department of Agriculture, Fisheries and Forestry, answers to questions on notice, 11 April 2023 (received 21 April 2023), pp. 3–4; Shire of Wyndham-East Kimberley, Submission 13, p. 2; Australian Government, Our North, Our Future: White Paper on Developing Northern Australia, June 2015, p. 10; Department of Home Affairs, Designated Area Migration Agreements: Nominating a Position (accessed 6 August 2024).

[43]Australian Government, Supporting strong and sustainable regions: review of Regional Migration Settings Discussion Paper – June 2024, p. 9.

[44]Department of Home Affairs, Submission 27, p. 6; Department of Home Affairs, Designated Area Migration Agreements, 1 July 2024 (accessed 6 August 2024).

[45]Northern Territory Government, answers to questions on notice from the public hearing on 31 March 2023 and written questions on notice, 11 April 2023 (received 12 May 2023), pp. 2–3, 7.

[46]Ms Jenny Lambert, Director of Policy, Accommodation Australia, Committee Hansard, 17 April 2024, p. 45.

[47]Department of Home Affairs, Submission 27, pp. 6–7; Australian Government, Supporting strong and sustainable regions: review of Regional Migration Settings Discussion Paper – June 2024, pp. 24–25.

[48]Ms Clare Smith, Chief Executive Officer, Eastern Kimberley Chamber of Commerce and Industry, Committee Hansard, 24 August 2023, p. 15.

[49]Mr Mark Olsen, Chief Executive Officer, Tourism Tropical North Queensland, Committee Hansard, 18 April 2024, pp. 21–22.

[50]Department of Foreign Affairs and Trade, Submission 11, p. 10.

[51]Department of Foreign Affairs and Trade, Submission 11, p. 6; Department of Foreign Affairs and Trade, Pacific Labour Mobility (accessed 7 August 2024).

[52]Department of Foreign Affairs and Trade, Submission 11, pp. 4, 5and 7; PALM, Budget 2023–24: expanding and improving the Pacific Australia Labour Mobility scheme: factsheet, p. 1 (accessed 7 August 2024); PALM, PALM scheme data, June 2024 (accessed 7 August 2024).

[53]Department of Foreign Affairs and Trade, Submission 11, pp. 7–8; PALM, Budget 2023–24: expanding and improving the Pacific Australia Labour Mobility scheme: factsheet, p. 1); PALM, PALM scheme data, June 2024.

[54]PALM, PALM scheme data, June 2024.

[55]Department of Foreign Affairs and Trade, Submission 11, pp. 5, 7 and 12; Department of Home Affairs, Submission 27, p. 10; PALM, Budget 2023–24: expanding and improving the Pacific Australia Labour Mobility scheme: factsheet; PALM, PALM scheme family accompaniment pilot: fact sheet(accessed 26 November 2024); PALM, Frequently asked questions(accessed 7 August 2024).

[56]Department of Foreign Affairs and Trade, Submission 11, p. 11.

[57]Department of Foreign Affairs and Trade, Submission 11, p. 11; House of Representatives, Hansard, 22 May 2023, pp. 3191–3192.

[58]Mackays Group, answers to questions on notice, 17 April 2024 (received 14 May 2024). See also: Mr Joe Moro, President, Far North Queensland Growers, Committee Hansard, 17 April 2024, p. 23.

[59]Mr Joe Moro, President, Far North Queensland Growers, Committee Hansard, 17 April 2024, p. 23; Bowen Gumlu Growers Association, Submission 2, p. 2.

[60]Mr Joe Moro, President, Far North Queensland Growers, Committee Hansard, 17 April 2024, p. 23. See also Ms Ashleagh Bergmann, Seasonal Workforce Coordinator, Rock Ridge Farming, Committee Hansard, 17 April 2024, pp. 23–24; Ms Marie Piccone, Managing Director, Manbulloo Ltd, Committee Hansard, 17 April 2024, p. 24.

[61]Mr Mark Olsen, Chief Executive Officer, Tourism Tropical North Queensland, Committee Hansard, 18 April 2024, p. 21.

[62]Australian Government, Supporting strong and sustainable regions: review of Regional Migration Settings Discussion Paper – June 2024, p. 19.

[63]Department of Home Affairs, Submission 27, pp. 3–4.

[64]Department of Foreign Affairs and Trade, Submission 11, pp. 12–13.

[65]Australian Government, Supporting strong and sustainable regions: review of Regional Migration Settings Discussion Paper – June 2024, p. 9; Austrade, Submission 48, pp. 6–7; Local Government Association Northern Territory, Submission 38, [p. 2]; NT Farmers Association, Submission 26, p. [4]; Mr Mark Olsen, Chief Executive Officer, Tourism Tropical North Queensland, Committee Hansard, 18 April 2024, p. 22; Bowen Gumlu Growers Association, Submission 2, p. 2; Ms Carolyn Conner, Head of Investment Strategy, Insights and Performance, Austrade, Committee Hansard, 31 March 2023, p. 46.

[66]See, for example: Mr Terry Lawler, Project Officer, Northern Territory Chamber of Commerce and Industry, Committee Hansard, 29 June 2023, p. 9; Ms Clare Smith, Chief Executive Officer, Eastern Kimberley Chamber of Commerce and Industry, Committee Hansard, 24 August 2023, pp. 19 and 22; Austrade, Submission 48, pp. 5–6.

[67]Department of Home Affairs, Submission 27, p. 3; Department of Home Affairs, Designated Area Migration Agreements, 1 July 2024; Australian Government, Supporting strong and sustainable regions: review of Regional Migration Settings Discussion Paper – June 2024, pp. 1, 3, 5–6 and 8.

[68]Australian Government, Supporting strong and sustainable regions: review of Regional Migration Settings Discussion Paper – June 2024, p. 9.

[69]Department of Foreign Affairs and Trade, Submission 11, p. 11; Department of Home Affairs, Designated Area Migration Agreements, 1 July 2024; Australian Government, Supporting strong and sustainable regions: review of Regional Migration Settings Discussion Paper – June 2024, pp. 1, 3, 5–6 and 8.

[71]Australian Government, Budget 2024–25: Regional Ministerial Budget Statement 2024–25, pp. 71, 74, 76, 78 and 80; Thomas Rossiter and Dr James Haughton, Parliamentary Library, Budget Resources: First Nations budget measures May 2024; Paige Taylor, 'Call to ante up on remote housing', The Australian, 10 May 2024, p. 6.

[72]Australian Government, Budget 2024–25: Regional Ministerial Budget Statement 2024–25, pp. 71, 74, 76, 78 and 80; Thomas Rossiter and Dr James Haughton, Parliamentary Library, Budget Resources: First Nations budget measures.

[73]Thomas Rossiter and Dr James Haughton, Parliamentary Library, Budget Resources: First Nations budget measures, May 2024.

[74]Thomas Rossiter and Dr James Haughton, Parliamentary Library, Budget Resources: First Nations budget measures, May 2024.

[75]Australian Government, Budget 2024–25: Regional Ministerial Budget Statement 2024–25, p. 72.

[76]NT Chamber of Commerce, answers to questions on notice from the public hearing on 29 June 2023 in Darwin (received 23 August 2023), pp. 15–17; Department of Foreign Affairs and Trade, Submission 11, p. 12.

[77]Mr Jengis Osman, Senior Vice President, and Mr David Hayes, President, Unions NT, Committee Hansard, 29 June 2023, p. 21.

[78]Cooperative Centre for Developing Northern Australia, Submission 10, p. 6. See also: Dr Wendy Page, Founding Member, Strongyloides Australia, Committee Hansard, 18 April 2024, p. 5; Associate Professor Richard Bradbury, Associate Professor of Public Health and Tropical Medicine, School of Public Health and Tropical Medicine, James Cook University, Committee Hansard, 18 April 2024, p. 5.

[79]Ms Monica Collins, Acting First Assistant Secretary, Biosecurity Plant and Science Services Division, Department of Agriculture, Fisheries and Forestry, Committee Hansard, 31 March 2023, pp. 44–45.

[80]National Indigenous Australians Agency - answers to questions on notice from the public hearing on 31 March 2023 in Canberra (received 18 July 2023), [p. 43].

[81]National Indigenous Australians Agency, Submission 16, p. 2.

[82]Northern Australia Indigenous Reference Group, Submission 62, p. 15.

[83]The Hon Madeleine King MP, Minister for Northern Australia, '2024 Annual Statement to Parliament on Developing Northern Australia', Speeches, 19 November 2024 (accessed 21 November 2024).