MEDIA RELEASE – Albanese Budget Kneecaps Fair Work Ombudsman

Senator the Hon Michaelia Cash

Shadow Attorney-General

Shadow Minister for Employment and Workplace Relations

Deputy Leader of the Opposition in the Senate

Senator for Western Australia

MEDIA RELEASE

11 MAY 2023

ALBANESE BUDGET KNEECAPS FAIR WORK OMBUDSMAN

The Albanese Government has effectively kneecapped the Fair Work Ombudsman at a time of the biggest changes to the country’s industrial relations system in over a decade.

This week’s Budget reveals a 2.5% cut to the operating funding of the Office of the Fair Work Ombudsman, despite it being tasked with taking over some of the former responsibilities of the now abolished Australian Building and Construction Commission.

Shadow Minister for Employment and Workplace Relations, Senator the Hon. Michaelia Cash said: “The Government has also caved into the CFMEU’s demands for a review of the FWO. The building industry should be extremely concerned about what is going on here.”

“We are going back to the bad old days when the CFMEU rode roughshod over the industry,’’ Senator Cash said.

“This is bad for everyone involved, particularly women in the industry and will cost taxpayers dearly when building costs for vital infrastructure skyrocket,” she said.

The cuts to the FWO were announced as part of $212.9 million of cuts over 5 years from 2022-23 across the Employment and Workplace Relations portfolio.

These cuts included:

• $111.6 million over 4 years from 2023–24 by reducing place allocations for the Self-Employment Assistance Small Business Coaching program.
• $27.5 million over 4 years from 2023–24 by temporarily reducing Industry Workforce Training program funding.
• $22.8 million over 4 years from 2023–24 by ceasing the Entrepreneurship Facilitators Program from 1 July 2023.
• $15.8 million over 4 years from 2023–24 by reducing the departmental operating funding of the Office of the Fair Work Ombudsman by 2.5 per cent.
• $1.1 million in 2023–24 by ceasing the Career Revive program on 30 June 2023.

“The reduction in places for the Self-Employment Assistance Small Business Coaching program is extremely disappointing and comes at a time when most advanced economies are increasing investment in self-employment,’’ Senator Cash said.

The Government has also abolished the ParentsNext program which was designed to help young parents, particularly mothers, remain connected to the workforce.

The program helps participants develop skills, undertake training or work experience, and can help arrange financial support for job preparation skills, training and other work-related expenses.”

“By abolishing ParentsNext, the Albanese Government is punishing some of Australia’s most vulnerable people and will destroy their connection to the workforce. It is disappointing that Labor is giving up on helping these young Australians find work and consigning many of them to a lifetime of welfare.” Senator Cash said.

Senator Cash highlighted that the abolition of ParentsNext demonstrates that the Albanese Government is slowly dismantling the system of mutual obligations.

ENDS