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2008
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SKILLS AUSTRALIA BILL 2008
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Education, Employment and Workplace Relations
the Honourable Julia Gillard MP)
SKILLS AUSTRALIA BILL 2008
OUTLINE
The establishment of Skills Australia will enable the Government to receive high quality advice
about the current, emerging and future skills needs of Australia. Skills Australia will be an
independent statutory body comprised of seven members drawn from a range of backgrounds,
including economics, industry, academia, and training providers.
Skills Australia will provide advice to Government to assist the workforce of Australia to meet
future demands that will require workers to gain higher skill levels and qualifications to ensure
the deepening of the skills base. Skills Australia will provide advice on the causal factors and
impact of future and persistent skill shortages.
Skills Australia will help the Government to increase and deepen the skills capacity of the
Australian workforce and ensure demand for skills and skills training are aligned.
Skills Australia will advise Government on closing the skills gap - the gap between the demands
for and supply of skilled workers, while having regard for the competitiveness of the Australia
economy, achieving full employment, the promotion of innovation through skills acquisition and
providing sufficient numbers of appropriately qualified workers for industries of critical national
importance.
FINANCIAL IMPACT
Skills Australia will be allocated $14.6 million for the funding period 2007-08 to 2010-11
through the annual appropriations of the Department of Education, Employment and Workplace
Relations.
SKILLS AUSTRALIA BILL 2008
NOTES ON CLAUSES
Part 1-Preliminary
Clause 1 Short title
Provides for the Act to be cited as the Skills Australia Act 2008.
Clause 2 Commencement
Provides for the Act to commence on the day on which it receives the Royal Assent.
Clause 3 Definitions
Defines certain terms used in the Act.*
*Note: The clauses in the Bill will become sections of the Act on Royal Assent. In this
Explanatory Memorandum only the first reference to a clause or subclause uses that
terminology. Subsequent references use the terms "section" or "subsection" as appropriate.
Clause 4 Objects
Sets out the objects of the Act, which are to provide for expert and independent advice in
relation to Australia's workforce skills needs and workforce development needs, in order to:
· identify training priorities to respond to those needs; and
· increase workforce participation; and
· improve productivity and competitiveness; and
· identify and address skills shortages; and
· promote the development of a highly skilled workforce.
Part 2-Establishment and functions of Skills Australia
Clause 5 Establishment
Establishes the body Skills Australia.
Clause 6 Functions
Subclause 6(1) has the effect of providing that the primary function of Skills Australia is to
providing advice to the Minister on Australia's current, emerging and future workforce
development and skills needs.
Subclause 6(2) provides that Skills Australia is to provide advice under subsection 6(1) as it
thinks fit and when advice is requested by the Minister.
Subclause 6(3) has the effect of providing that, for the purposes of providing that advice to the
Minister, Skills Australia has the following additional functions:
· analysing current, emerging and future workforce skills needs across industry
sectors;
· assessing research relating to workforce development needs and information
from persons and bodies with an interest in workforce development needs;
· developing and maintaining relationships with the States and Territories
(including relevant authorities of the States and Territories) and other persons
and bodies with an interest in workforce development needs or workforce
skills needs.
Subclause 6(4) has the effect of providing that Skills Australia also has:
(a) the function of informing the public about matters relating to Australia's workforce
development needs and workforce skills needs; and
(b) any functions that the Minister gives Skills Australia a written direction to perform;
and
(c) any other functions conferred on it by this Act or any other law.
Subclause 6(5) provides that a direction made under paragraph 6(4)(b) is not a legislative
instrument. This provision is included to assist readers, as such a direction is not a legislative
instrument within the meaning of section 5 of the Legislative Instruments Act 2003.
Clause 7 Minister may give directions to Skills Australia
Subclause 7(1) provides that the Minister may give written directions to Skills Australia about
the performance of its functions.
Subclause 7(2) provides that directions given by the Minister under subsection 7(1) must be of a
general nature only.
Subclause 7(3) provides that the Minister must not give directions about the content of any
advice that may be given to the Minister by Skills Australia.
Subclause 7(4) provides that Skills Australia must comply with any direction given by the
Minister under subsection 7(1).
Subclause 7(5) provides that a direction given by the Minister under subsection 7(1) is not a
legislative instrument. This provision is included to assist readers, as such a direction is not a
legislative instrument within the meaning of section 5 of the Legislative Instruments Act 2003.
Part 3-Constitution and membership of Skills Australia
Clause 8 Constitution
Provides that Skills Australia is to consist of the Chair and 6 other members.
Section 18B of the Acts Interpretation Act 1901 deals with use of the title "the Chair".
Clause 9 Appointment of members
Subclause 9(1) provides that members (including the Chair) are to be appointed by the Minister
by written instrument.
Subclause 9(2) has the effect of providing that, in making appointments, the Minister must
ensure that the members of Skills Australia have, between them, experience in academia, the
provision of education or training, economics and industry.
Subclause 9(3) provides that a member is to be appointed on a part-time basis.
Clause 10 Term of appointment
Provides that a member holds office for the period specified in the instrument of appointment,
but that the period specified in the instrument must not exceed 3 years. Consistent with
subsection 33(4A) of the Acts Interpretation Act 1901, a member is eligible for reappointment.
Clause 11 Acting appointments
Subclause 11(1) has the effect of providing that the Minister may appoint a member to act as the
Chair:
· during a vacancy in the office of Chair, whether or not an appointment has
previously been made to the office; or
· during any period (or during all periods) when the Chair is absent from duty or
from Australia, or is, for any reason, unable to perform the duties of the office.
Subclause 11(2) has the effect of providing that the Minister may appoint a person to act as a
member:
· during a vacancy in the office of a member, whether or not an appointment has
previously been made to the office; or
· during any period (or during all periods) when a member is absent from duty or
from Australia, or is, for any reason, unable to perform the duties of the office.
A note to the subsection points out that section 33A of the Acts Interpretation Act 1901 has rules
that apply to acting appointments.
Subclause 11(3) has the effect of providing that anything done by or in relation to a person
purporting to act under an appointment is not invalid merely because:
· the occasion for the appointment had not arisen; or
· there was a defect or irregularity in connection with the appointment; or
· the appointment had ceased to have effect; or
· the occasion to act had not arisen or had ceased.
Clause 12 Members' remuneration
Subclause 12(1) provides that a member is to be paid the remuneration that is determined by the
Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation,
the member is to be paid the remuneration that is prescribed.
Subclause 12(2) provides that a member is to be paid the allowances that are prescribed.
Subclause 12(3) has the effect of providing that section 12 has effect subject to the
Remuneration Tribunal Act 1973.
Clause 13 Leave of absence
Subclause 13(1) provides that the Minister may grant leave of absence to the Chair on the terms
and conditions that the Minister determines.
Subclause 13(2) provides that the Chair may grant leave of absence to any other member on the
terms and conditions that the Chair determines.
Clause 14 Disclosure of interests to the Minister
Provides that a member must give written notice to the Minister of all interests (pecuniary or
otherwise) that the member has or acquires and that conflict (or could conflict) with the proper
performance of the member's functions.
Clause 15 Disclosure of interests to Skills Australia
Subclause 15(1) provides that a member who has an interest (pecuniary or otherwise) in a matter
being considered or about to be considered by Skills Australia must disclose the nature of the
interest to a meeting of Skills Australia.
Subclause 15(2) provides that the disclosure must be made as soon as possible after the relevant
facts have come to the member's knowledge.
Subclause 15(3) provides that the disclosure must be recorded in the minutes of the meeting of
Skills Australia.
Subclause 15(4) has the effect of providing that, unless Skills Australia otherwise determines,
the member must not be present during any deliberation by Skills Australia on the matter and
must not take part in any decision of Skills Australia with respect to the matter.
Subclause 15(5) has the effect of providing that, for the purposes of making a determination
under subsection 15(4), the member must not be present during any deliberation of Skills
Australia for the purpose of making the determination and must not take part in making the
determination.
Subclause 15(6) provides that a determination under subsection 15(4) must be recorded in the
minutes of the meeting of Skills Australia.
Clause 16 Other terms and conditions
Provides that a member holds office on the terms and conditions (if any) in relation to matters
not covered by this Act that are determined by the Minister.
Clause 17 Resignation
Subclause 17(1) provides that a member may resign his or her appointment by giving the
Minister a written resignation.
Subclause 17(2) provides that the resignation takes effect on the day it is received by the
Minister or, if a later day is specified in the resignation, on that later day.
Clause 18 Termination of appointment
Subclause 18(1) provides that the Minister may terminate the appointment of a member for
misbehaviour or physical or mental incapacity.
Subclause 18(2) has the effect of providing that the Minister may terminate the appointment of a
member if:
· the member becomes bankrupt, applies to take the benefit of any law for the relief
of bankrupt or insolvent debtors, compounds with his or her creditors or makes an
assignment of his or her remuneration for the benefit of his or her creditors; or
· the member is absent (except on leave of absence) from 3 consecutive meetings of
Skills Australia; or
· the member fails (without reasonable excuse) to comply with section 14 or 15
(disclosure of interests); or
· the Minister is satisfied that the performance of the member has been unsatisfactory
for a significant period.
Part 4-Meetings of Skills Australia
Clause 19 Convening meetings
Subclause 19(1) provides that Skills Australia must hold the meetings that are necessary for the
efficient performance of its functions.
Subclause 19(2) provides that meetings are to be held at the times and places that Skills
Australia determines. A note refers readers to section 33B of the Acts Interpretation Act 1901,
which contains extra rules about meetings by telephone etc.
Subclause 19(3) has the effect of providing that the Chair:
· may convene a meeting; and
· must convene a meeting if requested in writing by 3 or more other members or by
the Minister.
Clause 20 Presiding at meetings
Subclause 20(1) provides that the Chair must preside at all meetings at which he or she is
present.
Subclause 20(2) provides that if the Chair is not present at a meeting, the other members present
must appoint one of their number to preside.
Clause 21 Quorum
Subclause 21(1) provides that at a meeting of Skills Australia a quorum is constituted by a
majority of the current members.
However, subclause 21(2) has the effect of providing that, if section 15 prevents a member from
participating in the deliberations or decisions of Skills Australia with respect to a particular
matter and when the member leaves the meeting concerned there is no longer a quorum present,
then those remaining members constitute a quorum for the purpose of any deliberation or
decision at that meeting with respect to that matter.
Clause 22 Voting at meetings
Subclause 22(1) provides that a question arising at a meeting is to be determined by a majority of
the votes of the members present and voting.
Subclause 22(2) has the effect of providing that the person presiding at a meeting has a
deliberative vote and, in the event of an equality of votes, also has a casting vote.
Clause 23 Conduct of meetings
Subclause 23(1) provides that Skills Australia may regulate proceedings at its meetings as it
considers appropriate.
Subclause 23(2) provides that Skills Australia must ensure that minutes of its meetings are kept.
Clause 24 Decisions without meetings
Subclause 24(1) has the effect of providing that Skills Australia deemed to have made a decision
without a meeting if:
(a) without a meeting, a majority of the members entitled to vote on the proposed
decision indicate agreement with the decision; and
(b) that agreement is indicated in accordance with the method determined by Skills
Australia under subsection 24(2); and
(c) all the members were informed of the proposed decision, or reasonable efforts were
made to inform all the members of the proposed decision.
Subclause 24(2) has the effect of providing that subsection 24(1) applies only if Skills Australia
has determined that it may make decisions of that kind without meeting and has determined the
method by which members are to indicate agreement with proposed decisions.
Subclause 24(3) provides that, for the purposes of paragraph 24(1)(a), a member is not entitled to
vote on a proposed decision if the member would not have been entitled to vote on that proposal
if the matter had been considered at a meeting of Skills Australia.
Subclause 24(4) provides that Skills Australia must keep a record of decisions made in
accordance with this section.
Clause 25 Committees
Subclause 25(1) provides that Skills Australia may, by writing, establish committees to assist it
in performing any of its functions.
Subclause 25(2) provides that Skills Australia must not establish a committee without the
approval of the Minister.
Subclause 25(3) provides that a committee consists of such individuals as Skills Australia from
time to time appoints, by writing, to the committee. Subsection 33(4A) of the Acts
Interpretation Act 1901 provides that in any Act, a reference to "appoint" is to be interpreted as
including to reappoint.
Subclause 25(4) has the effect of providing that a committee may be constituted wholly by
members or partly by members and partly by other individuals.
Subclause 25(5) provides that the Chair of a committee must be a member.
Subclause 25(6) has the effect of providing that Skills Australia may give a committee written
directions as to:
· the way in which the committee is to carry out its task; and
· procedures to be followed in relation to its meetings; and
· the disclosure by members of the committee of interests in matters being
considered by the committee.
Subclause 25(7) provides that a member of a committee is to be paid the remuneration and
allowances (if any) that the Minister determines.
Subclause 25(8) provides that an appointment to a committee is not a public office within the
meaning of the Remuneration Tribunal Act 1973.
Subclause 25(9) has the effect of providing that an instrument under subsection 25(1), an
approval made in writing under subsection 25(2) or a direction under subsection 25(6) are not
legislative instruments. This provision is included to assist readers, as such instruments are not
legislative instruments within the meaning of section 5 of the Legislative Instruments Act 2003.
Part 5-Miscellaneous
Clause 26 Staff assisting Skills Australia
Provides that the staff assisting Skills Australia are to be persons engaged under the Public
Service Act 1999 and made available for the purpose by the Secretary of the Department.
Clause 27 Annual reports
Subclause 27(1) provides that Skills Australia must, as soon as practicable after the end of each
financial year, prepare and give to the Minister (for presentation to the Parliament) a report on
Skills Australia's operations during that year. A note refers readers to section 34C of the Acts
Interpretation Act 1901, which contains extra rules about annual reports.
Subclause 27(2) provides that Skills Australia must include in the report details of any directions
given to it by the Minister under paragraph 6(4)(b) or subsection 7(1) during the year.
Clause 28 Delegation
Subclause 28(1) provides that the Minister may, by writing, delegate any or all of his or her
functions and powers under this Act (other than a function or power under section 6, 7, 9, 11 or
18) to the Secretary of the Department or an SES employee or acting SES employee in the
Department.
Subclause 28(2) provides that, in exercising functions or powers delegated under subsection
28(1), the delegate must comply with any directions of the Minister.
Clause 29 Regulations
Has the effect of providing that the Governor-General may make regulations covering matters
required to be prescribed in the Act or matters that it would be convenient to prescribe for the
purposes of this Act.