FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (JOBS AND SMALL BUSINESS MEASURES NO. 1) REGULATIONS 2018 (F2018L00269) EXPLANATORY STATEMENT

Details of the Financial Framework (Supplementary Powers) Amendment (Jobs and Small Business Measures No. 1) Regulations 2018

Section 1 - Name

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Jobs and Small Business Measures No. 1) Regulations 2018.

Section 2 - Commencement

This section provides that the Regulations commence on the day after the instrument is registered on the Federal Register of Legislation.

Section 3 - Authority

This section provides that the Regulations are made under the Financial Framework (Supplementary Powers) Act 1997.

Section 4 - Schedules

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedule to the Regulations.

Schedule 1 - Amendments

Item 1 - In the appropriate position in Part 3 of Schedule 1AB (table)

This item adds a new table item to Part 3 of Schedule 1AB to establish legislative authority for government spending on an initiative that will be administered by the Department of Jobs and Small Business (the department).

New table item 27 establishes legislative authority for the Government to provide a grant to the Brotherhood of St Laurence to establish a youth employment body which will bring together knowledge and expertise on youth employment issues, disseminate that knowledge and expertise more broadly, and coordinate the development and implementation of strategies to get young people into work.

The youth employment body, which is expected to operate for two years commencing in April 2018, will act as a forum to bring together industry, government, service providers, researchers, local communities and young people to share knowledge and expertise on youth employment issues. Specifically, this organisation will:

share research findings with all levels of government to inform policy development and service delivery to young people;
translate research into service delivery design for service providers;
provide training to build the capacity of service providers;
work with employers and young people to identify what is working well in current service delivery approaches; and
examine how local solutions to youth unemployment can be replicated nationally.

The organisation will focus on five key priority areas:

practice and service design;
research and policy development;
building service provider capacity;
mobilising employer effort and expertise; and
linking local, regional and national solutions.

In the practice and service design area, the organisation will:

develop consistent, best practice service models and tools through co-production with key stakeholders;
translate research and evidence into service design and delivery; and
document and expand local service delivery models nationally, where appropriate.

In the research and policy development area, the organisation will:

develop a comprehensive knowledge base of what works well in youth employment policy, programs and practice;
undertake research on existing local and international youth employment policies;
seek to improve current evaluation methodologies;
disseminate information to service providers and government to inform policy and program development; and
provide advice about data to drive service improvement.

In the building service provider capacity area, the organisation will:

increase capacity of small and/or local organisations to develop, monitor and roll out innovative ideas more broadly;
establish regional communities of practice which will include employers, service providers, industry groups and other key stakeholders;
disseminate good practice approaches and training materials in accessible formats (for example, webinars, locally run forums, and training packages); and
develop evidence-based service models and practice.

In the mobilising employer effort and expertise area, the organisation will:

bring together local, state and national industry networks and stakeholders from existing groups; and
document best practice approaches to employer partnerships through co-production with employers and industry.

In the linking local, regional and national solutions area, the organisation will:

develop models and strategies to integrate the efforts of service providers, employers, education providers and government at the local level; and
develop local data sets to provide real-time information on local labour market issues.

The youth employment body will be established using a staged approach. Initially, this organisation will be hosted by the Brotherhood of St Laurence and will be overseen by an independent advisory board with a chairperson from the business sector. The board will include representatives from key sectors: the vocational education and training sector; employment peak bodies; all levels of government; and the community sector. The independent advisory board will:

oversee the research, program and service delivery undertaken by the organisation;
bring together the expertise and contributions from a range of sectors and programs; and
support the expansion of best practice approaches to youth employment.

In its role as host, the Brotherhood of St Laurence will recruit and manage three key staff members, manage and coordinate key partners, and provide infrastructure support including business development, communications, IT, facilities, and human resources administration. The Brotherhood of St Laurence has:

extensive expertise in policy, programs and service delivery for young people;
strong governance structures in place; and
relevant existing linkages and presence within the employment services and youth sectors.

In the first year, the organisation will formalise its governance structure and membership of the advisory board. It will also confirm four priority regions as demonstration sites where research and examination of service delivery approaches will be undertaken. The department will work with the organisation to determine priority areas for research and policy development.

In the second year, the organisation will continue research and bring together lessons learned from the first year. It will also examine elements of service delivery that were successful in the four demonstration sites for application nationally.

Grant funding will be spent on:

the project administration costs including staffing, board meeting costs, and associated travel and accommodation;
the production and dissemination of research reports, policy proposals, discussion papers, practice approaches, and training materials;
the delivery of training and capacity building for service providers, including the development of an accreditation process for service models and best practice; and
the research and evaluation work.

Funding of $700,000 in 2017-18 for this item will come from Program 1.1: Employment Services, which is part of Outcome 1. Program details are set out in the Portfolio Budget Statements 2017-18, Budget Related Paper No. 1.6, Employment Portfolio at page 22.

Funding will be provided in the form of a non-competitive grant. The grant process will be conducted in accordance with the Commonwealth Grants Rules and Guidelines 2017. Details of the grant will be published on the GrantConnect website at www.grants.gov.au and the departmental website at www.jobs.gov.au.

A departmental official as a delegate for the Secretary of the department will approve grant expenditure. The department will enter into a funding agreement with the Brotherhood of St Laurence. The funding agreement will contain the conditions of the grant, key project deliverables and formal reporting mechanisms to measure performance, including the collection of qualitative and quantitative data to track progress against the deliverables. Under the funding agreement, the Brotherhood of St Laurence will also be required to undertake an evaluation of the grant program.

The grant decision will not be subject to independent review as it is a one-off grant to a service provider with special expertise.

If the Brotherhood of St Laurence is not satisfied with a decision by the department, it may raise this matter with the Commonwealth Ombudsman or the department. Given the availability of this review, and noting that funding decisions are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 does not apply.

Noting that it is not a comprehensive statement of relevant constitutional considerations, the purpose of the item references the following powers of the Constitution:

the external affairs power (section 51(xxix));
the communications power (section 51(v)); and
the Commonwealth's executive power (section 61).

External affairs power

The youth employment body, through the co-creation of national solutions to youth employment, gives effect to Australia's obligations under the following international conventions:

the International Covenant on Economic, Social and Cultural Rights (ICESCR), particularly Article 6; and
the International Labour Organization's Convention concerning Employment Policy (ILO Convention 122), particularly Articles 1 and 2.

Article 6 of the ICESCR provides that States Parties recognise the right to work and will take appropriate steps to achieve the realisation of this right including through 'technical and vocational guidance and training programmes, policies and techniques'.

Article 1 of the ILO Convention 122 provides that Members shall pursue 'an active policy designed to promote full, productive and freely chosen employment' that aims to ensure, among other things, that 'there is work for all who are available for and seeking work' and 'freedom of choice of employment'.

Article 2 of the ILO Convention 122 requires that the measures adopted for the purpose of Article 1 are kept 'under review within the framework of a co-ordinated economic and social policy' and that, where needed, programs be established to promote the objectives in Article 1.

The youth employment body forms part of a suite of broader policy measures with the objective of full, productive and freely chosen employment.

Communications power

Section 51(v) of the Constitution empowers the Parliament to make laws with respect to 'postal, telegraphic, telephonic, and other like services', including telecommunications networks and the internet.

Some coordination, integration and capability building activities of the youth employment body will be undertaken through online communications mediums.

Executive power

The Commonwealth's executive power in section 61 of the Constitution supports activities that form part of the ordinary and well-recognised functions of government. The research conducted by the youth employment body will contribute to policy development.

Item 2 - Part 4 of Schedule 1AB (table item 127)

This item amends table item 127 in Part 4 of Schedule 1AB by repealing and substituting a new table item 127. This table item establishes legislative authority for government spending on the New Enterprise Incentive Scheme (NEIS) administered by the department.

NEIS provides accredited small business training, assistance to develop a business plan, and business mentoring and support during the first year of the participant's new business. The scheme, which is delivered by a network of 21 contracted providers in metropolitan and regional areas, assists up to 8,600 participants each financial year to start their own business.

To participate in NEIS, participants must meet a range of personal and business eligibility criteria including having a viable business idea. To be eligible for NEIS, a person must:

be at least 18 years old when they start receiving assistance under the scheme;
be available to participate in NEIS training, if relevant, and work full-time in the proposed NEIS business;
not be prohibited by law from working in Australia;
not be an overseas visitor on a working holiday visa or an overseas student studying in Australia;
not have participated in NEIS in the past year; and
not be an undischarged bankrupt.

If a person is eligible, the NEIS providers will assess the business idea to make sure it meets the business eligibility criteria. This means the proposed NEIS business:

is not currently operating on a commercial basis;
has an independent business structure;
is lawful and capable of withstanding public scrutiny;
has been assessed as commercially viable by the NEIS providers;
will be established, located and operated solely within Australia; and
will be structured so that the person has and will maintain a controlling interest over the NEIS business for the duration of the person's time in NEIS.

NEIS participants may also be eligible for NEIS allowance for up to the first 39 weeks of their business and rental assistance for up to the first 26 weeks of their business. To be eligible for these payments, NEIS participants must generally be in receipt of an eligible Department of Human Services or Department of Veterans' Affairs income support payment and/or rental assistance immediately prior to transferring to the NEIS allowance and/or rental assistance.

The amendment to table item 127 removes the reference to the unemployed status of persons receiving small business training, mentoring and assistance under NEIS. This will clarify the legislative authority for providing access to NEIS for workers prior to their retrenchment.

The extension of access to NEIS for the workers in industries and regions significantly impacted by structural change prior to their retrenchment is part of the Government's Stronger Transitions package of measures which was announced on 13 November 2017 by the then Minister for Employment and acting Minister for Industry, Innovation and Science, Senator the Hon Michaelia Cash, and the Member for Leichhardt, the Hon Warren Entsch MP.

The Stronger Transitions package supports individuals to improve their transition to future jobs. The measures are mainly targeted at regions experiencing challenging labour market conditions such as Melbourne North/West, Adelaide, North Queensland, North/North West Tasmania, and Mandurah. The package includes funding for skills and training support; employment support; better connecting employers with skilled workers; increasing labour mobility; and increasing access to small business opportunities. This assistance will be available to workers shortly before and following their separation from employment. Further information about the Stronger Transitions package is available at www.jobs.gov.au/stronger-transitions.

From 1 July 2018, the retrenched workers in the five selected regions will be able to access the scheme, including NEIS training and assistance to develop their business plan, up to three months prior to their retrenchment. Following the retrenchment, they will be able to transition into self-employment by starting their own NEIS business. Under the existing arrangements, retrenched workers were not able to access NEIS until they were no longer in employment except when they were covered by a Structural Adjustment Package (SAP).

The SAPs provide assistance to employees in several regions where expectations of future employment opportunities for workers in the industry are low or where large-scale closures may impact on the local labour market, for example in the automotive manufacturing industry. The SAPs have been implemented on a case-by-case basis to assist retrenched workers to transition into new employment as quickly as possible.

The extended access to NEIS will not affect the current scheme cap of 8,600 places. Existing NEIS providers will deliver services to redundant workers in the five selected regions as they become eligible for NEIS. Further information about NEIS is available at

www.jobs.gov.au/NEIS.

The early access to NEIS for retrenched workers in the five selected regions was included in the 2017-18 Mid-Year Economic and Fiscal Outlook under the measure 'Stronger Transitions - transition of retrenched workers into future jobs'. Details are set out in the Mid-Year Economic and Fiscal Outlook 2017-18, Appendix A: Policy decisions taken since the 2017-18 Budget at page 149.

The department currently contracts 21 providers to deliver NEIS services under the jobactive Deed 2015-2020. The extension of access to retrenched workers will be delivered in accordance with this Deed which is available at www.jobs.gov.au/jobactive-deeds-and-deed-variations.

The NEIS providers are responsible for assessing participant eligibility and managing their participation in the scheme. The NEIS participants will receive notification of any decisions affecting their participation in the scheme.

Decisions made by the NEIS providers in relation to participant eligibility and their participation in the scheme are subject to independent review. If a participant is not satisfied with a decision made by their NEIS provider, they can request a one-off independent review of the decision by the department. An independent departmental official will conduct the review of the decision and notify the participant of the outcome. Participants can also raise the matter with the Commonwealth Ombudsman.

Given the availability of such review and noting that the above decisions are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 does not apply.

NEIS funding of $469 million over four years from 2017-18 comes from Program 1.1: Employment Services, which is part of Outcome 1. Program details are set out in the Portfolio Additional Estimates Statements 2017-18, Jobs and Small Business (Part of the Jobs and Innovation Portfolio) at page 19.

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

the social welfare power (section 51(xxiiiA));
the external affairs power (section 51(xxix)); and
the territories power (section 122).

Social welfare power

The social welfare power in section 51(xxiiiA) of the Constitution empowers the Parliament to make laws with respect to the provision of various social welfare benefits and services

including unemployment benefits.

NEIS will support participants, including persons who are unemployed or underemployed, through the provision of benefits such as training, assistance with business planning, business mentoring and support during the first year of the participant's new business.

External affairs power

Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to 'external affairs'. The external affairs power supports legislation implementing Australia's obligations under international treaties to which it is a party. The extension of NEIS gives effect to Australia's obligations under the following international conventions by helping workers undergoing retrenchment become self-employed business owners:

the International Covenant on Economic, Social and Cultural Rights (ICESCR), particularly Articles 6 and 13(2)(b);
the International Labour Organization's Convention concerning Employment Policy (ILO Convention 122), particularly Articles 1 and 2; and
the International Labour Organization's Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO Convention 142), particularly Articles 1, 2, 3 and 4.

Articles 6 and 13(2)(b) of the ICESCR require States Parties to recognise the right to work and take steps to achieve the full realisation of this right including through providing technical and vocational guidance and training.

Article 1 of the ILO Convention 122 provides that each Member shall pursue 'an active policy designed to promote full, productive and freely chosen employment' that aims to ensure, among other things, that 'there is work for all who are available for and seeking work' and 'freedom of choice of employment'. Article 2 of the ILO Convention 122 requires that the measures adopted for the purposes of Article 1 are kept 'under review within the framework of a co-ordinated economic and social policy' and that, where needed, programs be established to promote the objectives in Article 1.

Article 1 of the ILO Convention 142 requires each Member to adopt and develop policies and programs of technical and vocational guidance and training, closely linked with employment, taking into account regional and national employment needs, opportunities and problems. Article 2 provides that each Member shall establish and develop 'open, flexible and complementary systems of general, technical and vocational education', guidance and training. Articles 3 and 4 provide further detail on the scope of these vocational training systems.

Territories power

The provision of funding for activities in or in relation to a Territory is supported by section 122 of the Constitution. The extension of NEIS supports people living in the territories through its delivery in the territories.

Item 3 - Part 4 of Schedule 1AB (table item 139)

This item amends table item 139 in Part 4 of Schedule 1AB by repealing and substituting a new table item 139. This table item establishes legislative authority for government spending on the ParentsNext program administered by the department.

ParentsNext is a pre-employment program that provides early intervention assistance to parents by helping them identify their education and employment goals and referring them to local activities and service providers who will help them achieve these goals.

Following trials of two similar programs, ParentsNext has operated in 10 designated locations across Australia since April 2016 helping connect parents to services in their local community to support their transition into employment, including education and training, literacy and numeracy programs, and child care services. These locations were selected for socioeconomic reasons such as high unemployment, high proportion of the population on income support, and low educational attainment. To participate in the program, a parent must be a Parenting Payment recipient.

The amendment to table item 139 will provide legislative authority for the expanded participation of parents in the program which will be delivered in two streams providing different levels of support across specific locations.

From 1 July 2018, the program will be expanded to all non-remote areas of Australia. Tailored support to assist parents meet their employment and education goals will be provided to eligible parents in 51 jobactive employment regions throughout Australia, excluding Yarrabah. More intensive support with additional financial assistance, including relocation assistance to take up a job and employer wage subsidies, will be made available to eligible parents in the 10 existing ParentsNext locations, as well as 20 new locations with a high proportion of Parenting Payment recipients who are Indigenous.

ParentsNext services will be delivered by third party providers which may include jobactive service providers. These providers will be engaged by the department through a competitive tender process. The Department of Human Services (DHS) will refer compulsory program participants to service providers.

The three broad objectives of the ParentsNext program are to:

target early intervention assistance to parents at risk of long-term welfare dependency;
help parents identify and reach their education and employment goals through participation in activities; and
connect parents to local services that can help prepare them for employment.

To meet those objectives, the expanded ParentsNext program will provide:

tailored assistance to help participants identify their education and employment goals, taking into account current and anticipated employment opportunities in their community;
assistance to participants to plan for and participate in activities to help them progress towards their goals, while considering their caring responsibilities and family circumstances;
regular contact, at least once every three months (up from six months under the current program), with a ParentsNext provider to build a rapport with participants to determine their individual education and employment goals and to understand any vocational or non-vocational barriers to achieving those goals faced by the participant (for example, lack of confidence, domestic violence, family breakdowns, mental and physical health issues, and/or access to affordable housing);
a welcoming environment that caters to the needs of participants and their children, including by providing space for children at appointments;
information about existing resources in participants' local communities, including local Indigenous services and the Vocational Training and Employment Centres;
assistance to connect participants with child care providers, including accessing financial assistance for child care and identifying alternative child minding options; and
opportunities for participants to become involved in the delivery of the local ParentsNext service they are being assisted by.

The expanded ParentsNext program will be delivered in two streams providing different levels of support across specific locations: a targeted stream and an intensive stream. Participation in ParentsNext will be compulsory for those who:

have a child under six years of age;
have received Parenting Payment for six months;
have had no reported earnings for six months; and
meet criteria for a targeted or an intensive stream.

Compulsory participants in the targeted stream will be:

early school leavers aged under 22 years with a youngest child at least one year of age; or
assessed as highly disadvantaged with a youngest child at least three years of age; or
from a jobless family with a youngest child aged five years.

Other Parenting Payment recipients cannot participate in the targeted stream voluntarily.

Compulsory participants in the intensive stream will be:

early school leavers aged under 22 years with a youngest child at least six months of age; or
assessed as highly disadvantaged with a youngest child at least six months of age; or
those with a youngest child aged five years.

Parenting Payment recipients with a child aged five years or under will be able to participate in the intensive stream voluntarily.

Participation in the program is a condition of Parenting Payment receipt for compulsory participants. Failure to participate may affect their Parenting Payment, unless an exemption from participation applies. Examples of circumstances where an exemption may apply include a person experiencing domestic violence or illness, having recently given or is about to give birth, or caring for a large family.

Targeted stream

Under the targeted stream, assistance will be provided to disadvantaged parents who are at risk of long-term welfare dependency in all areas of the 51 employment regions that are not part of the intensive stream. Participants in the targeted stream will receive all key program services to improve their work readiness by the time their children start school. ParentsNext providers will generally refer targeted stream participants to activities and existing services in their local community, as currently done under the program, but may choose to use the funding available per participant for additional activities and referrals. ParentsNext providers in both streams will receive a service fee of $1,200 a year per participant.

Funding of $150.1 million for the targeted stream was included in the 2017-18 Budget under the measure 'ParentsNext - national expansion' for a period of four years commencing in 2017-18. Details are set out in Budget 2017-18, Budget Measures, Budget Paper No. 2 2017-18 at page 93.

Intensive stream

This stream will provide intensive support to ParentsNext participants in 30 locations where a high number of Parenting Payment recipients are Indigenous, including 10 existing locations and 20 new locations. Expanding the program to these locations will help increase the participation of Indigenous parents in the labour market and help achieve the Closing the Gap employment target.

Participants in the intensive stream will benefit from increased financial support including:

the Participation Fund for providers to help pay for services such as mentoring, training, vocational and non-vocational assistance, and post-placement support (a one-off credit of $1,200 per participant);
outcome payments for providers when a participant completes a suitable education course or gains sustainable employment ($300 per outcome); and
reimbursements to providers for wage subsidies paid to employers and the relocation assistance to take up a job which are funded through the jobactive program.

Funding of $113 million for the intensive stream was included in the 2017-18 Budget under the measure 'ParentsNext - national expansion' for a period of four years commencing in 2017-18. This funding is in addition to the previously allocated program funding of $60.6 million over three years from 2017-18.

Funding for the ParentsNext program comes from Program 1.1: Employment Services, which is part of Outcome 1. Details are set out in the Portfolio Budget Statements 2017-18, Budget Related Paper No. 1.6, Employment Portfolio at page 22.

Further information about the program is available at www.jobs.gov.au/parents-next.

The department will select organisations to provide expanded ParentsNext services through a competitive procurement process conducted in accordance with the Commonwealth Procurement Rules. A Request for Tender was released on 13 November 2017, and applications closed on 18 December 2017. Information about this procurement opportunity, including selection criteria, was published on AusTender at www.tenders.gov.au and the department's 360Pro System website at https://360providers.apetsoftware.com.au/Public/PublicJobs.aspx?Code=DeptEmploy%20Production.

A delegate of the Secretary of the department will make decisions in relation to successful tenderer/s and expenditure in accordance with the Public Governance, Performance and Accountability Act 2013, taking into account recommendations from departmental officials who have assessed tender applications.

The final procurement decision will be published on AusTender and the departmental website at www.jobs.gov.au/employment-services-procurement-information.

Procurement decisions will be subject to independent review. In accordance with the Commonwealth Procurement Rules, tenderers will be provided with general feedback as to how their tender was evaluated against the selection criteria and, as part of the tender process, informed about the department's complaints handling process.

Where a tenderer makes a complaint about the tender process, the department will acknowledge the receipt of a complaint and contact the relevant tenderer with a view to resolving the complaint as soon as practicable. If the complaint remains unresolved, the contact officer in the department will refer the complaint to the complaints officer for the Request for Tender, who is independent of the tender process, for independent review. A dissatisfied tenderer could also raise their concerns with the Commonwealth Ombudsman.

Most eligibility decisions for the program will be made by DHS. ParentsNext providers will be responsible for spending decisions in relation to individual program participants. The providers will also be responsible for determining whether exemptions from participation in the program apply and checking the eligibility for voluntary participation.

Decisions made by ParentsNext providers will be subject to independent review. A participant dissatisfied with a decision by a ParentsNext provider is encouraged to discuss the issue with, and may complain to, their provider in the first instance. Where this is not appropriate, or the person is dissatisfied with their provider's response, the participant may raise the issue with the department by contacting its Employment Services National Customer Service Line (contact information is available at www.jobs.gov.au/contact-department) or the Commonwealth Ombudsman at www.ombudsman.gov.au.

Where a participant contacts the Employment Services National Customer Service Line, the department will check whether the participant gives permission to contact the provider. The department will independently review the issue and work with the provider to address it where needed.

Decisions made by DHS or the department which may affect a participant's social security payments are subject to independent review. The participant, who is dissatisfied with a decision made under the ParentsNext program which may affect their receipt of Parenting Payment, would generally have the ability to seek a review of the decision for the purpose of social security law including by DHS (www.humanservices.gov.au/individuals/enablers/reviews-and-appeals).

If decisions relate to exemptions from participation in the program, a participant may contact the department for review of the decision for the purpose of social security law (www.jobs.gov.au/contact-department). A participant may also contact the department for independent review of a decision made by a ParentsNext provider which does not relate to exemptions from participation in the program, as noted above.

A person dissatisfied with the outcome of such a review could seek a review by the Administrative Appeals Tribunal (AAT). Further, a person dissatisfied with a decision made by the AAT could, on questions of law, appeal to courts if the person had also sought a review by DHS or, as relevant, the department before proceeding to the AAT.

Noting that decisions are not made under an enactment except as indicated above, the Administrative Decisions (Judicial Review) Act 1977 does not apply.

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

the social welfare power (section 51(xxiiiA)); and
the external affairs power (section 51(xxix)).

Social welfare power

The social welfare power in section 51(xxiiiA) of the Constitution empowers the Parliament to make laws with respect to the provision of various social welfare benefits and services including unemployment benefits. Some participants will take part in the program to satisfy a condition on their Parenting Payment or to receive other benefits related to their unemployment.

External affairs power

Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to 'external affairs'. The external affairs power supports legislation implementing Australia's obligations under international treaties to which it is a party. The national expansion of the ParentsNext program gives effect to Australia's obligations under the following international conventions:

the International Covenant on Economic, Social and Cultural Rights (ICESCR), particularly Articles 2, 6 and 12;
the International Labour Organization's Convention concerning Employment Policy (ILO Convention 122), particularly Articles 1 and 2;
the International Labour Organization's Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO Convention 142), particularly Articles 1 and 2; and
the Convention on the Rights of the Child (CRC), particularly Articles 18 and 27.

Article 2 of the ICESCR requires States Parties to undertake steps to fully realise the rights recognised in the Convention and to enable their exercise 'without discrimination as to race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status'. Article 6 of the ICESCR provides that States Parties recognise the right to work and will take appropriate steps to achieve the realisation of this right including through 'technical and vocational guidance and training programmes, policies and techniques’. Article 12 of the ICESCR recognises the right 'to the enjoyment of the highest attainable standard of physical and mental health' and requires States Parties to take steps to achieve the realisation of this right.

Article 1 of the ILO Convention 122 provides that each Member shall pursue 'an active policy designed to promote full, productive and freely chosen employment' that aims to ensure, among other things, that 'there is work for all who are available for and seeking work' and 'freedom of choice of employment'. Article 2 of the ILO Convention 122 requires that the measures adopted for the purpose of Article 1 are kept 'under review within the framework of a co-ordinated economic and social policy' and that, where needed, programs be established to promote the objectives in Article 1.

Article 1 of the ILO Convention 142 requires the adoption and development of 'policies and programmes of vocational guidance and vocational training, closely linked with employment', taking into account matters including 'regional and national employment needs, opportunities and problems' and enabling persons 'to develop and use their capabilities for work in their own interests and in accordance with their own aspirations'. Article 2 of the ILO Convention 142 provides that each Member shall establish and develop 'open, flexible and complementary systems of general, technical and vocational education', guidance and training which includes the provision of continuing employment information and guidance.

Article 18(2) requires States Parties to 'render appropriate assistance to parents and legal guardians in the performance of their child-rearing responsibilities' for the purposes of guaranteeing and promoting the rights set out in the CRC. Article 27(1) of the CRC provides that States Parties recognise 'the right of every child to a standard of living adequate for the child's mental, spiritual, moral and social development'.

ParentsNext seeks to implement these obligations by supporting parents to develop and implement a plan, involving both vocational and non-vocational activities, for securing paid employment, including by identifying barriers to achieving individual educational and employment goals.

Item 4 - In the appropriate position in Part 4 of Schedule 1AB (table)

This item adds a new table item to Part 4 of Schedule 1AB to establish legislative authority for government spending on an initiative that will be administered by the department.

New table item 268 establishes legislative authority for government spending on early intervention services to assist workers to transition into new employment prior to and post retrenchment. These transition support services are part of the Government's Stronger Transitions package of measures. More information about the package is provided as part of the description of amendments to table item 127 (New Enterprise Incentive Scheme) - item 2 of Schedule 1 to the Regulations.

The transition support services, which are expected to commence on 1 July 2018, will include pre-retrenchment skills and training support and post-retrenchment employment support.

Pre-retrenchment skills and training support

This program will support workers primarily prior to their separation from employment. The department will work with specific businesses that have announced job losses in the five selected regions to assist in the provision of early intervention services for workers being retrenched. Employer participation in the program will be voluntary.

The pre-retrenchment services may include:

outplacement services including advice on future career options and skills in demand, and assessment of current and future skills and training needs;
resilience, health and wellbeing support;
access to language, literacy and numeracy skills training;
support towards recognition of prior learning and training;
small business support;
financial education; and
digital literacy and online job search training.

Access to these services will be dependent on businesses agreeing to participate in the program. The services will be provided by a panel of service providers which will be engaged by the department and paid on a fee-for-service basis. Participating employers will contribute to the cost of services on a sliding scale, dependent on the size of the business. Following negotiations with stakeholders including the local Employment Facilitator, the department will enter into a funding agreement with an employer and, where appropriate, the relevant state government. The agreement will set out the costs to be met by each party.

Commonwealth funding will be capped over the life of the program. The available funding would allow for the provision of services to approximately 2,000 workers, with skills and training support continuing for up to six months after their retrenchment date.

This program will be open to new entrants from 1 July 2018 until 30 June 2020. The program guidelines will be released in advance of the start date and will be available at www.docs.jobs.gov.au/collections/jobactive-guidelines.

Funding of $4.8 million for pre-retrenchment skills and training support was included in the 2017-18 Mid-Year Economic and Fiscal Outlook under the measure 'Stronger Transitions - transition of retrenched workers into future jobs' for a period of three years commencing in 2018-19. Details are set out in the Mid-Year Economic and Fiscal Outlook 2017-18, Appendix A: Policy decisions taken since the 2017-18 Budget at pages 125 and 149.

Participants still seeking work upon the completion of pre-retrenchment support will be eligible for participation in the post-retrenchment support program described below.

Post-retrenchment employment support

This program will provide retrenched workers with employment support following their separation from employment. Eligible workers will include participants in the pre-retrenchment support program upon the completion of that support and other retrenched workers in the five selected regions. These workers will need to register with a jobactive provider no later than six months after the date of their redundancy and provide a letter of redundancy to confirm their eligibility. The eligibility requirements will be set out in the program guidelines at www.docs.jobs.gov.au/collections/jobactive-guidelines.

The program will provide participants with immediate access to the jobactive employment services program at the Stream B level. The Stream B level job seekers need their jobactive providers to play a greater role in helping them become job ready. They receive case management support after registration with a jobactive provider so that issues that are preventing them from getting a job can be proactively addressed. In addition to the personalised, intensive case management support, the Stream B level job seekers receive additional support such as access to the Relocation Assistance to Take Up a Job Program and the Employment Fund. More information about jobactive is available at www.jobactive.gov.au.

A key program feature is an Employment Fund credit of $550, which is in addition to the regular fund credit of $850 available to each Stream B participant. This additional credit can be used for a skills assessment to provide workers with an understanding of their employability skills and gaps; identify language, literacy or numeracy barriers; and highlight transferable skills.

Funding will be capped over the life of the program. The available funding would allow for the provision of services to approximately 2,000 workers. The program will be open to new entrants from 1 July 2018 until 30 June 2020.

Funding of $2 million for post-retrenchment employment support was included in the 2017-18 Mid-Year Economic and Fiscal Outlook for a period of three years commencing in 2018-19.

The department will select a panel of service providers through a competitive tender process conducted in the first half of 2018 in accordance with the Commonwealth Procurement Rules. Information about this procurement opportunity, including the selection criteria for prospective panel service providers, will be available on AusTender at www.tenders.gov.au. Applications will be assessed by departmental officials, with final procurement decisions made by a delegate of the Secretary of the department in accordance with the Commonwealth Procurement Rules and the Public Governance, Performance and Accountability Act 2013. After entering into a contract with the preferred panel service providers, contract notices will be published on AusTender. Payments to the panel service providers will be made in accordance with the program guidelines which will be published at www.docs.jobs.gov.au/collections/jobactive-guidelines.

Procurement decisions will be subject to independent review. In accordance with the Commonwealth Procurement Rules, tenderers will be provided with general feedback as to why they were unsuccessful against the selection criteria and, as part of the tender process, informed about the department's complaints handling process.

Given the availability of such review and noting that the procurement decisions will not be made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 does not apply.

The panel service providers will deliver core skills and training support services including job preparation, advanced job hunting skills, career development assessment, and interview skills. In addition, the providers will support retrenched workers' understanding of the current labour market to assist in the identification of new employment opportunities and work with employers and the local Employment Facilitators to deliver services targeted to workers' individual needs. The providers will not be required to make spending decisions, with the provision of services subject to contractual arrangements with the department.�

Decisions by providers in relation to the provision of services will be subject to independent review. If a job seeker is not satisfied with a provider's decision, the job seeker may request a review of the decision by the provider or raise the matter with the department. The department will acknowledge the receipt of the complaint and contact the job seeker with a view to resolving the complaint as soon as practicable. If the complaint remains unresolved, the contact officer in the department will refer the complaint to the complaints officer, who is independent of the program, for independent review. The job seeker could also raise the matter with the Commonwealth Ombudsman.

Given the availability of such review and noting that decisions in relation to the provision of services are not made under an enactment, the Administrative Decisions (Judicial Review) Act 1977 does not apply.

Funding for the transition support services will come from Program 1.1: Employment Services, which is part of Outcome 1. Details are set out in the Portfolio Additional Estimates Statements 2017-18, Jobs and Small Business (Part of the Jobs and Innovation Portfolio) at pages 13 and 15.

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

the social welfare power (section 51(xxiiiA)); and
the external affairs power (section 51(xxix)).

Social welfare power

The social welfare power in section 51(xxiiiA) of the Constitution empowers the Parliament to make laws with respect to the provision of various social welfare benefits and services including unemployment benefits. The transition support services benefit unemployed people by providing access to services to improve their transition to future jobs.

External affairs power

Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to 'external affairs'. The external affairs power supports legislation implementing Australia's obligations under international treaties to which it is a party. The transition support services give effect to Australia's obligations under the following international conventions:

the International Covenant on Economic, Social and Cultural Rights (ICESCR), particularly Articles 6 and 13(2)(b);
the International Labour Organization's Convention concerning Employment Policy (ILO Convention 122), particularly Articles 1 and 2; and
the International Labour Organization's Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO Convention 142), particularly Articles 1, 2, 3 and 4.

The transition support services for workers undergoing retrenchment contribute to fulfilling the obligations under these conventions as part of a broader program promoting full, productive and freely chosen employment, which responds to regional economic conditions and promotes employment through technical and vocational guidance and training, giving effect to the right to work.

Commonwealth Numbered Regulations - Explanatory Statements