Senate Education and Employment Legislation Committee

Senate Estimates hearing, 28 Oct 2026

Searchable transcript of the Senate Education and Employment Legislation Committee, 28 Oct 2026 Senate Estimates hearing, with chapters: Opening Statement and Employment Services Reform, Departmental Workforce Strategy and Staffing Levels, Analysis of Departmental Operating Deficit, Software Asset…

Chapters

Opening Statement and Employment Services Reform (16:33)
The Secretary provides an update on returning the Targeted Compliance Framework (TCF) to lawful administration, including compensation for unlawful payment cancellations and the resumption of certain compliance provisions.
Departmental Workforce Strategy and Staffing Levels (24:31)
Discussion on aligning the department's workforce with government priorities, focusing on frontline employment services and the use of voluntary redundancies to manage staffing mismatches.
Analysis of Departmental Operating Deficit (26:33)
Senators question the Secretary regarding a $25 million operating loss, which exceeded the approved $15 million deficit, and the role of asset impairments in this outcome.
Software Asset Write-downs and Impairments (30:05)
Detailed inquiry into the $20.1 million write-down for computer software, focusing on the accounting standards and indicators that led to the assessment of obsolescence.
Property Consolidation and Lease Impairments (33:26)
Examination of the $6.4 million impairment related to vacated leased buildings in Canberra as part of a broader strategy to consolidate the department's property footprint.
Employee Costs and Budget Overruns (36:38)
Examination of why employee costs exceeded the original budget by a significant margin despite a decrease in overall departmental headcount.
Redundancy Payments and Executive Benefits (39:04)
Discussion on the costs associated with voluntary redundancies, incentives to retire for Senior Executive Service officers, and the termination benefit paid to the former Secretary.
Progress on Closing the Gap Initiatives (42:33)
The department outlines its new strategic framework for embedding Closing the Gap priorities across its operations and provides updates on socioeconomic outcome targets.
First Nations Employment and Vocational Training (47:12)
Discussion focuses on First Nations participation in employment services like Parent Pathways and the impact of the National Skills Agreement.
Establishment of the Portfolio Strategy Division (50:35)
The Secretary explains the creation of the Portfolio Strategy Division to centralize governance, planning, and cross-portfolio strategic policy.
SES Recruitment and Workforce Management Strategies (1:00:17)
Senators question the department on SES workforce management, specifically the recruitment of new officers following several voluntary retirements.
Internal Budget Reprioritization and Efficiency Measures (1:07:01)
The department details how Strategy 2026 informed internal budget allocations and the reprioritization of resources toward high-priority government areas.
Oversight of Overtly Political Media Release Errors (1:11:02)
Officials address the accidental publication of an 'overtly political' media release on the department website and subsequent changes to oversight protocols.
Conclusion of Corporate and General Matters (1:20:00)
The committee concludes questions on corporate services, including staff counselling and media monitoring effectiveness, before suspending to transition to workplace relations.
Policy Chronology for New Fair Work Court (1:24:01)
Officials discuss the timeline of policy development and briefings provided to the Minister leading up to the July 2026 announcement of a new Fair Work Court.
Small Claims Review and FOI Disclosures (1:28:59)
Examination of FOI releases regarding briefings from 2024 and 2025, focusing on the review of small claims procedures and previous task force recommendations.
Court Performance Data and Delay Analysis (1:33:34)
Discussion on median resolution times for court disputes versus the Minister's public claims of two-year delays, and liaison with the Attorney-General's Department.
Legal Costs and Access to Justice (1:43:06)
Inquiry into the financial burden on workers pursuing small claims and the objective of making the new court faster and cheaper.
Establishment of the Joint Task Force (1:45:47)
Details on the interdepartmental task force co-led by DEWR and AGD, including staffing levels, governance, and initial stakeholder consultations.
Stakeholder Consultation and Agency Coordination (1:51:51)
Review of meetings with unions, employer groups, and the Law Council, and the coordination of portfolio responsibilities between departments.
Implementation Timeline and Budgetary Estimates (1:58:32)
Discussion on the legislative process, the potential for exposure drafts, and the complexities of costing the new court's registry and premises.
Cost Estimates and Design of the New Court (2:04:02)
Discussion shifts to the estimated costs of setting up the new court, including premises and judicial officers, with the department noting that precise design choices are still being finalized.
Data and Alternatives to a Standalone Court (2:06:45)
The committee examines the data used to justify a new court, focusing on the timeliness of small claims and whether increasing resources for existing courts was considered as an alternative.
Constitutional Issues and Dual Appointments (2:09:40)
Officials discuss legal advice sought from the Solicitor General regarding constitutional constraints on dual appointments between the Fair Work Commission and the new court.
Merit-Based Judicial Appointment Processes (2:13:21)
Senators inquire about the selection process for the new court's judicial officers, emphasizing the need for independence, merit-based criteria, and a balance of stakeholder backgrounds.
Jurisdiction and Implementation Timing (2:33:11)
Following a break, the hearing resumes with questions on whether the court's jurisdiction will extend beyond underpayment claims and the feasibility of a 2026 launch.
Secure Australian Jobs Framework and Procurement (2:35:18)
The committee discusses the Secure Australian Jobs Code, focusing on how Commonwealth procurement will assess workplace practices and enterprise agreement coverage without mandatory requirements.
Construction Standards and Enterprise Agreement Preferences (2:44:15)
Officials address whether new construction standards will require or preference union-covered enterprise agreements. The department cites ministerial statements asserting that the standards will not mandate EAs as a condition for receiving Commonwealth funding.
Consultation Process for Construction Industry Standards (2:48:33)
The committee reviews the consultation process for the construction industry discussion paper. Discussion covers the number of submissions received, the themes of productivity and labor hire, and the government's discretion regarding the publication of confidential submissions.
Scope and Implementation of Construction Standards (2:52:32)
Senators question the scope of the proposed standards, including their application to state-delivered projects and defense works. Officials explain that no decisions have been made regarding whether the standards will be mandatory or how they will be enforced.
Regulatory Burden and Industry Impact Concerns (2:59:18)
The hearing addresses concerns from the Master Builders and HIA regarding regulatory duplication and the burden on small residential builders. The department discusses the interplay between different procurement codes and the goal of proportionality in regulation.
CFMEU Administration and Five-Year Ban Limits (3:03:34)
Discussion shifts to the CFMEU administration, specifically the administrator's comments on the five-year limit for banning officials. Officials explain the interaction between the scheme of administration and the Fair Work Act regarding the suspension of members.
Legislative Framework for Disqualified Union Officers (3:10:51)
The committee examines the Fair Work Amendment (Disqualified Officers) Bill and the departmental advice provided to the Minister. Senators probe the Minister's power to vary the scheme of administration and the legal risks associated with further challenges.
Removed Persons Framework and Union Loopholes (3:17:54)
Officials provide data on the number of office holders removed from the CFMEU. Senators raise concerns about individuals resigning voluntarily to move to other unions, potentially evading the 'removed persons' framework and exporting cultural issues to other sectors.
Intimidation and Violence in Construction (3:26:40)
Examination of allegations involving "Future Form," including mafia-style intimidation and violence in the construction industry.
Inter-agency Response to Construction Misconduct (3:38:27)
Overview of inter-agency cooperation through the Commonwealth Senior Officials Forum to tackle unlawful behavior in construction.
Building Cooperative Workplaces Bill and Union Preferences (3:44:32)
Debate over whether the Building Cooperative Workplaces Bill creates a preference for union-endorsed enterprise agreements.
Ministerial Advice on Legislative Timing (3:53:38)
Questioning regarding the department's advice to the Minister on the timing and introduction of the Building Cooperative Workplaces Bill.
Right of Entry Permits for Removed Persons (3:58:12)
Inquiry into whether removed CFMEU officials can hold right of entry permits and the criteria for fit and proper person certificates.
Monitoring Disqualified Persons in Unions (4:01:43)
The department explains its ad hoc monitoring of disqualified persons and the challenges of tracking individuals removed from office under the administration scheme.
Eligibility of John Setka for Office (4:04:55)
Discussion regarding the timeframe and requirements for John Setka to potentially return to a senior official role within the CFMEU under current rules and administration.
Departmental Role in Non-Compete Reforms (4:06:57)
Officials outline the department's collaboration with Treasury in drafting amendments to the Fair Work Act related to non-compete clause reforms.
Non-Solicitation Clauses and High Earners (4:08:35)
Inquiry into the decision to extend non-solicitation bans to employees earning above the high-income threshold and the analysis supporting this policy change.
Legal Definitions and Civil Penalties (4:10:32)
Examination of the use of undefined terms such as "co-worker" and "unwritten arrangements" as the basis for significant civil penalties in the draft legislation.
Consultation with Small Business Stakeholders (4:13:15)
Discussion on the consultation process for non-compete reforms, specifically regarding the involvement of small business peak bodies and the Small Business Ombudsman.
Impact Analysis and Outcome Conclusion (4:15:09)
Questions regarding Treasury's impact analysis for non-compete reforms before the session concludes and the committee adjourns for lunch.
Introduction of Fair Work Commission Officers (5:16:40)
The Chair introduces officers from the Fair Work Commission, including General Manager Murray Furlong, to begin the session.
Procedural Discussion on Witness Attendance Rules (5:16:53)
Senator Kovacic raises procedural points regarding the attendance of administrators and officers at Senate Estimates hearings.
Consultation on Technical Amendments Draft Bill (5:18:12)
Senator Hume questions the Fair Work Commission on when they first saw the draft of the technical amendments bill prior to its introduction.
Review of Technical Amendments Tabled Document (5:24:30)
Senator Hume requests the tabling of a technical amendments document previously circulated at a workplace relations council meeting.
Proposals for Paid Agents and AI Disclosures (5:24:31)
Examination of recommendations regarding the regulation of paid agents and potential disclosures for artificial intelligence in commission proceedings.
General Protections and Vexatious Litigant Provisions (5:25:49)
Review of jurisdictional changes for general protections cases and the implementation of new provisions to manage vexatious litigants.
Fair Work Commission Caseload and Backlog (5:31:45)
Analysis of current case lodgement statistics, clearance rates, and the impact of recent reforms on the Commission's backlog.
Authority of Commissioners to Vary Awards (5:45:21)
Clarification on the statutory authority of individual commissioners versus full benches in interpreting and varying modern awards.
Casual Employment in Black Coal Mining (5:48:18)
Debate over the inclusion of casual employment classifications in enterprise agreements within the black coal mining industry.
CFMEU Administration and Progress Tracking (5:54:12)
Inquiry into the monitoring of the CFMEU administration's progress and the development of a formal tracker for reform milestones.
Demarcation Disputes and Union Reform (6:03:50)
Update on the resolution of long-standing demarcation disputes between the AWU and CFMEU as part of the union's administration process.
Reform Efforts in the CFMEU Victorian Branch (6:06:47)
Examination of reform work in Victoria, including the weaponisation of WHS matters and legal representation policies for former officials.
Workplace Protocols at the Fair Work Commission (6:10:13)
Inquiry into the safety and respectful workplace protocols established for Commissioner Hunt and Vice President Asbury, including work-from-home arrangements.
AFP Engagement on Construction Industry Investigations (6:14:02)
Discussion on the Fair Work Commission's engagement with the AFP regarding referrals, corrupting benefits, and the progress of construction industry investigations.
Law Enforcement Cooperation in CFMEU Administration (6:20:11)
Review of the Joint Agency Working Group's role in deconflicting matters and the necessity of law enforcement support for the CFMEU administrator's work.
Debate Over Senate Inquiry Into Construction (6:25:39)
Senators and the Minister debate the necessity of a Senate Select Committee into corruption within the construction industry versus current administration efforts.
Tracking Removed Persons from the CFMEU (6:34:03)
Examination of how the Fair Work Commission tracks individuals removed from the CFMEU to prevent their re-employment in other unions or as permit holders.
Right of Entry Permit Verification Process (6:44:40)
Officials explain the process for cross-checking right of entry permit applications against the list of removed persons and mention a current investigation involving Michael Ravbar.
Allegations Concerning CFMEU NSW and Unite Recruit (7:02:09)
The committee discusses reports of an investigation into a CFMEU New South Wales organizer regarding dealings with a labor hire company called Unite Recruit.
Assessing Undue Influence in Labor Hire (7:04:01)
Senators explore hypothetical scenarios where union organizers recommend specific labor hire companies to contractors and whether such actions constitute corrupting benefits or undue influence.
CFMEU Delegate Retraining and Code Practice (7:08:35)
Discussion on the review of the code of practice for CFMEU organizers and delegates, focusing on behavioral change and retraining efforts under the administration.
Information Gaps in Misconduct Reporting (7:11:38)
Senator Kovacic expresses concern over a "black hole" of information regarding employee misconduct that may not be reported to the Commission by the CFMEU administrator.
Preventing Phoenixing in Registered Organizations (7:16:00)
The Commission clarifies its role in tracking staff who leave the CFMEU, noting they do not proactively monitor all 150 departed staff unless credible information of a breach arises.
Legislative Record on Construction Industry Corruption (7:19:32)
A debate ensues regarding the government's historical voting record on construction industry legislation and the current effectiveness of the CFMEU administration.
Commonwealth Construction Standards and Union Coercion (7:28:28)
Discussion regarding proposed Commonwealth construction standards and whether they will prohibit union officials from pressuring contractors to use specific labor hire companies.
Transparency and the Building Cooperative Workplaces Bill (7:34:35)
Senators question the government's transparency regarding the introduction of the Building Cooperative Workplaces Bill and the timing of legislative announcements.
Late Tabling of the FWC Annual Report (7:37:30)
A heated exchange occurs over the timing of the Fair Work Commission's annual report tabling, which occurred just as the agency was appearing before the committee.
FWC Annual Report Performance and Investigations (7:43:26)
Senators scrutinize the Fair Work Commission's annual report, noting a lack of new investigations and infringement notices during the reporting period.
FWC Regulatory Actions and CFMEU Oversight (7:54:24)
The General Manager of the Fair Work Commission details ongoing regulatory activities, including investigations into former CFMEU officials and civil penalty proceedings.
Same Job Same Pay and Mining Sector Wages (8:01:12)
The Fair Work Ombudsman discusses the impact of 'same job, same pay' legislation on workers in the black coal mining sector and historical underpayment issues.
Claims of Historical Wage Theft in Mining (8:02:44)
Discussion regarding allegations of historical underpayments and 'wage theft' in the black coal mining industry and the government's response.
FWO Investigation into Black Coal Sector (8:10:42)
The Fair Work Ombudsman discusses its investigation into casual coal miners' pay and the application of the Better Off Overall Test.
Review of CFMEU Big Build Agreements (8:17:06)
The Fair Work Ombudsman provides an update on its review of CFMEU agreements related to Victorian 'Big Build' infrastructure projects.
Briefing the Minister on CFMEU Findings (8:24:34)
Discussion on the Fair Work Ombudsman's communication with the Minister regarding findings from the review of construction sector agreements.
Referrals from the CFMEU Administrator (8:28:39)
Details on referrals received by the Fair Work Ombudsman from the court-appointed administrator of the CFMEU across different states.
Criminal Wage Theft and CDPP Referrals (8:31:03)
Inquiry into the status of criminal wage theft investigations and the process for referring cases to the Director of Public Prosecutions.
Superannuation Enforcement and Coal Legalities (8:33:04)
Discussion on the Fair Work Ombudsman's role in enforcing superannuation entitlements and a follow-up on coal mining award legalities.
CFMEU Administration and Right of Entry Permits (8:46:39)
The committee examines the Fair Work Ombudsman's oversight of the CFMEU, including oppositions to right-of-entry permits, investigations into site shutdowns, and awareness of corruption findings in the ACT.
Resumption of the Targeted Compliance Framework (8:53:30)
Departmental officials discuss the resumption of social security payment suspensions and cancellations under the Targeted Compliance Framework, detailing the assurance processes and legal compliance measures taken.