1.1
On 19 October 2017 the Senate referred the provisions of the Fair Work Laws Amendment (Proper Use of Worker Benefits) Bill 2017 (the bill) to the Senate Education and Employment Legislation Committee (the committee) for inquiry and report by 10 November 2017.
1.2
Details of the inquiry were made available on the committee's website. The committee also contacted a number of organisations inviting submissions to the inquiry. Submissions were received from 18 individuals and organisations, as detailed at Appendix 1.
1.3
A public hearing was held in Melbourne on 30 October 2017. The witness list for the hearing can be found at Appendix 2.
1.4
The Royal Commission into Trade Union Governance and Corruption (the royal commission) was established on 13 March 2014 by the former Governor-General of the Commonwealth of Australia, Her Excellency the Hon Quentin Bryce AC CVO. According to the explanatory memorandum, the objectives of the bill are consistent with recommendations made by the royal commission.
1.5
The royal commission publicly investigated some 75 case studies and conducted 189 days of hearings, 155 of which were public hearings. Its final report was tabled in Parliament on 30 December 2015, highlighting that "despite their size [collectively accounting for approximately $2 billion in assets under management], worker entitlement funds, unlike superannuation funds, have very little specific legislation regulating their activities."
1.6
This bill will implement, in part or in full, a series of recommendations made by the royal commission. These include recommendations 9, 10, 17, 39, 43, 45, 46, 47, 49 and 50, as set out in chapter two of this report.
1.7
The bill seeks to amend the Fair Work (Registered Organisations) Act 2009 (the RO Act) and the Fair Work Act 2009 (the FW Act) to protect workers by improving governance and transparency of worker entitlement funds. The bill would achieve this by applying clear governance, financial reporting and disclosure requirements to worker entitlement funds.
1.8
The bill would also make consequential amendments to the Fringe Benefits Tax Assessment Act 1986, the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953.
1.9
The explanatory memorandum states that the bill is compatible with human rights because, to the extent that some human rights may be limited, those limitations are reasonable, necessary and proportionate.
1.10
At the time of writing, the Scrutiny of Bills Committee had not reported on the bill.
1.11
The explanatory memorandum states that the bill will have a minor financial impact.
1.12
The committee thanks those individuals and organisations who contributed to this inquiry by preparing written submissions and giving evidence at the public hearing, particularly given the short timeframe for this inquiry.
1.13
References in this report to the Hansard for the public hearing are to the Proof Hansard. Page numbers may vary between the proof and official transcripts.