Mrs PHILLIPS (Gilmore) (17:42): I am pleased today to speak in support of the Jobs and Skills Australia Amendment Bill 2023. This bill will allow the Australian government to establish Jobs and Skills Australia as a statutory body.
I am so lucky to live where I live, on the South Coast of New South Wales. It is an absolute joy, and I wouldn't want to be anywhere else—fresh air, bushland, beaches and wonderful communities.
But there are challenges that come with living regionally. One is skill shortages. I spend a lot of time visiting businesses in Gilmore, and one of the main things that I frequently talk with business owners about is how difficult it is to find workers and appropriate skills. Whether it's a bulk-billing medical practice looking to recruit another GP, or a window manufacturer or a hair salon looking to add another apprentice to their team, people can't get the staff they need. And there isn't a simple fix. A myriad of factors influence skill shortages and the inability for businesses to find staff.
The Albanese Labor government is not wasting any time addressing skill shortages; after a wasted decade, we're not going to waste a second. We take this very seriously. That is why I'm so excited to speak on this bill, because this bill illustrates the Australian government's dedication to addressing the skills crisis and building a skilled workforce for the future. And how is it going to do this? Well, as I have said, we will finalise Jobs and Skills Australia as a statutory body—a body that will provide independent advice, in partnership with various stakeholders.
Last year in July, the government took swift action by introducing the first tranche of legislation to establish the interim Jobs and Skills Australia, and it has been very successful. The interim body began crucial work by providing independent advice on workforce, skills and training issues—advice that could then be swiftly acted on. During this interim phase, Jobs and Skills Australia initiated a foundation skills study. Furthermore, JSA conducted its first capacity study on the clean energy industry. These studies were commissioned to ensure the permanent establishment of Jobs and Skills Australia would align with what people and businesses need.
The legislation to establish Jobs and Skills Australia has been introduced in two phases. This bill will establish the ongoing governance structure and functions of Jobs and Skills Australia. This bill will support the expanded and clarified functions as well as the governance model of the organisation. The design of Jobs and Skills Australia has been shaped through extensive stakeholder engagement, including but not limited to the Jobs and Skills Summit, the Senate committee inquiry, public comment on the discussion paper and targeted engagement sessions. With the implementation of this bill, Jobs and Skills Australia will work hand-in-hand with state and territory governments, business and industry leaders, unions and education and training providers. Together, they will provide advice to effectively address the skills crisis in our country and develop the skilled workforce that Australia needs for a prosperous future.
The current state of Australia's labour market highlights the urgency of addressing the skills crisis. Among all OECD countries, Australia ranks second highest in labour supply shortages. Shockingly, three million Australians lack the essential skills necessary to participate in training and secure employment. I hear this when I visit businesses on the south coast. There are businesses that want to employ people but cannot find workers and/or people with the right skill sets. It is a terrible situation for them to be in. As we look to the future, it is projected that nine out of 10 new jobs will require post-secondary education, with four requiring vocational education and training, or VET, qualifications.
Numerous critical industries in Australia are currently grappling with skill shortages. Out of the top 20 occupations in demand, seven are facing shortages, primarily due to a lack of skilled individuals. This emphasises the crucial role of our skill system in addressing these shortages. However, this tightness in the labour market poses challenges for employers, which is something that we are going to work on.
Moreover, the impact of natural disasters and the COVID-19 pandemic, combined with a reduction in migration, has worsened workforce shortages in many industries that rely on VET graduates. It is imperative that we take urgent action to address these skills gaps and align training participation with the current and future demands of the labour market. I'm excited to work on these challenges.
We have already started addressing the skills shortages in my electorate on the south coast. I visited the TAFE Nowra campus a couple of weeks ago to see and hear firsthand how our fee-free TAFE was working in Gilmore. The staff were beaming. Fee-free TAFE is making a real difference right now. First I went to a hospitality class, where I spoke with a Bawley Point local named Zoe. Zoe told me she wanted to retrain and work in kitchens, because she had seen that hospitality venues were hiring in her area and she wanted to work close to home. Zoe has taken up a fee-free TAFE spot. Luckily it was available, because she told me point-blank, 'I would not be doing this if it weren't for fee-free TAFE.' That's amazing. The south coast of New South Wales will soon have another person who is fully trained to work in commercial cookery and wanting to work where businesses are hiring. She wouldn't have done it without fee-free TAFE. These are the things that our measured approach to jobs and skills can achieve.
Similarly, I met with a carpentry class. There were similar stories to Zoe's. Many people said that they wouldn't be retraining if there wasn't a free option. Which is crazy, considering the shortage of carpenters right across Australia. Many people I spoke to told me point-blank that they would not be studying if there were not a fee-free option.
These fee-free TAFE courses help to alleviate our skills shortages, but they also provide vital cost-of-living relief for those who want to retrain. These are the types of things that a body like Jobs and Skills Australia can and will address: where people should train, fees and what should be supported. As a former TAFE teacher, I know the importance of vocational education. As someone who is married to a carpenter, I understand the value of vocational education. Jobs and Skills Australia will help us get vocational education right, because right now there are challenges we need to overcome.
Underemployment is another issue of concern, with a rate of 6.1 per cent in January 2023. Underemployment occurs when skills held by workers and jobseekers do not match the skills demanded by businesses; when business affordability or requirements limit job availability; or when caring responsibilities prevent employees from taking on additional work. In light of these challenges, Jobs and Skills Australia's advice to the government will play a vital role in informing policies and programs that ensure our training and education systems deliver the skilled workers that industries require. By addressing the skills crisis and building a robust workforce, we can pave the way for a prosperous and resilient future for Australia.
The development of this Jobs and Skills Australia model has been guided by extensive stakeholder consultation with state and territory governments, business and industry leaders, unions and education providers. It will include a Jobs and Skills Australia Commissioner supported by deputy commissioners and a ministerial advisory board. Under the proposed permanent arrangements outlined in this bill, Jobs and Skills Australia will undertake an expanded set of functions. These include identifying labour market imbalances and analysing the impact of skills supply and demand; building an evidence base on the economic and social consequences of various workplace arrangements, such as insecure work; and analysing workforce and skills needs for informed decision-making on Australia's migration program and in regional, rural and remote areas. All are very dear to employers in my area.
Identifying and addressing skills shortages is something that I've worked hard on in Gilmore. Just last week I visited the Vincentia Medical Centre to meet with GPs, nurses and health workers. The visit was actually to thank me and the government for listening to their concerns about getting more doctors into the practice. In fact, just this morning I received another call from the practice. But the visit I attended last week was to acknowledge how beneficial the government's policies have been. They have made a huge difference and they're making a huge difference on the South Coast. In the past few years some simple changes have allowed and encouraged 13 new doctors to be added to the staff across the four Shoalhaven Family Medical Centres. At one point the owner of the practice, Annette, told me that patients were having to wait six weeks to see a doctor, while some had closed their books. This wait has now dropped to a week. Annette also said that there were more overseas trained doctors and even specialists who were employed at their practice and this was thanks to the streamlining of the hiring process.
Make no mistake: there is still work to be done. But this shows how important it is to have dedicated professionals who can help communicate with the government what is going on in their sector. This is why it is so important to have a statutory body like Jobs and Skills Australia to help relay information back to government so that we are able to quickly and effectively address areas where there are skills shortages or issues arising in the labour market. Jobs and Skills Australia will conduct studies to improve employment outcomes, vocational education and training outcomes and higher education outcomes for marginalised groups, such as women, individuals over the age of 55, people with disabilities, youth, unpaid carers and First Nations Australians. This will be a practical, well-run body that will effectively address our skills shortages and address imbalances in the labour market.
To ensure the effectiveness of Jobs and Skills Australia, the bill includes a provision for a statutory review of the program that will commence two years after it's brought in. This will be a vital check and balance. This review will assess whether the organisation is operating as intended, making any necessary adjustments or improvements. By establishing a permanent Jobs and Skills Australia with an expanded scope of functions, we can effectively address the skills crisis, promote tripartite collaboration and empower individuals from diverse backgrounds to thrive in the labour market. Jobs and Skills Australia will continue to provide valuable skills and workforce data, contributing to a more detailed national evidence base. It will focus on providing critical insights into disadvantaged cohorts, conducting regional analysis and supporting workforce planning.
Workforce planning plays a crucial role in addressing the needs of industries facing skills shortages. This bill expands the workforce planning function of Jobs and Skills Australia, enabling an assessment of how skills and workforce issues can be addressed across the entire economy. For example, skilled STEM graduates from both higher education and the VET system possess adaptable skills that can be applied to emerging and critical industries like technology and clean energy. It is so important that we streamline people into the industries of the future. Being able to adapt to people's skills is so important for regional areas like the South Coast. There are many talented people who work in certain industries who would only need small changes to make them completely able to work effectively in another sector. This expanded function will complement the sector-specific workforce planning carried out by jobs and skills councils.
To ensure that the comprehensive range of ongoing functions and products delivered by Jobs and Skills Australia aligns with stakeholder input, the government has conducted those consultations. Feedback received has informed the inclusion of additional functions for Jobs and Skills Australia. These include: improved identification of skills and labour imbalances across the economy; explicit analysis of both VET and higher education with an economy-wide approach; analysis of skills and workforce needs in regional and remote Australia; studies to enhance the analysis of marginalised groups; building an evidence base on the impact of various workplace arrangements; and contributing to industry consultation forums. This collaborative approach will strengthen the national evidence base and foster effective workforce planning.
The government's commitment to investing in VET and addressing skills shortages is evident in the budget allocations. A significant investment of $6.3 billion has been allocated to VET in the 2022-23 financial year, including funding transfers to state and territory governments. Additionally, $921.7 million over five years has been allocated to strengthen the VET system, provide fee-free TAFE and vocational education places and establish a TAFE technology fund for infrastructure modernisation. Immediate actions include the delivery of fee-free TAFE places in 2023, particularly in areas of high-skills needs, as part of the $1 billion 12-month skills agreement. As I said earlier, fee-free TAFE is such an important and effective way to address skills shortages and at the same time address cost-of-living pressures. The government is committed to investing in VET and addressing skills shortages, and I am excited to see what Jobs and Skills Australia will bring to the South Coast into the future. Let me just say that, if Jobs and Skills Australia makes decisions like fee-free TAFE, well, we're onto a winner. I commend the bill to the House.
