House of Representatives

Trade Support Loans Amendment Bill 2023

Student Loans (Overseas Debtors Replacement Levy) Amendment Bill 2023

Student Loans (Overseas Debtors Replacement Levy) Amendment Act 2023

Explanatory Memorandum

(Circulated by the authority of the Minister for Skills and Training, the Hon Brendan O'Connor MP)

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Trade Support Loans Amendment Bill 2023

Student Loans (Overseas Debtors Replacement Levy) Amendment Bill 2023

The Trade Support Loans Amendment Bill 2023 (Bill) and the Student Loans (Overseas Debtors Replacement Levy) Amendment Bill 2023 (Levy Bill) are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Bills

The Trade Support Loans Act 2014 (Act) establishes the Trade Support Loans Program (Program). The Program helps people complete qualifying apprenticeships by offering them access to income-contingent loans.

For the purposes of the Act, a qualifying apprenticeship is, among other things, an apprenticeship through which a person is undertaking a qualification that leads to an occupation or qualification specified on the Trade Support Loan Priority List, a legislative instrument made under the Act. That list:

specifies occupations and qualifications for which, in the opinion of the Minister, skilled persons are a priority; and
because the program is about 'trade' support, has only ever specified priority occupations and qualifications in the Australian and New Zealand Standard Classification of Occupations (ANZSCO) 'technicians and trade workers' major group (as of May 2023, the ANZSCO could be accessed at: www.abs.gov.au/statistics/classifications/anzsco-australian-and-new-zealand-standard-classification-occupations).

The Bill, among other things:

causes the TSL Priority List to lapse;
amends the Act to empower the Minister to, by legislative instrument, determine, having had regard to any relevant advice given to the Minister by Jobs and Skills Australia, a new Australian Apprenticeships Priority List; and
amends the Act to provide that a qualifying apprenticeship is, among other things, an apprenticeship through which a person is undertaking a qualification that leads to an occupation or qualification specified on the Australian Apprenticeships Priority List.

These changes will mean the Minister can expand the Program's access to people who, through their apprenticeship or traineeship, are undertaking qualifications that lead to occupations experiencing skills shortages in other ANZSCO major groups, such as occupations in the aged care, disability care and childcare sectors. The Bill amends the Act's title and short title, as well as many terms used in the Act, to reflect this expansion.

The Bill also provides greater administrative flexibility by allowing the Secretary to extend the day by which an application for a particular payment instalment period may be made.

The Bill makes minor consequential amendments to several pieces of legislation to update references to the Act's short title and defined terms.

The Student Loans (Overseas Debtors Repayment Levy) Act 2015 (Levy Act) imposes a levy so, consistent with section 55 of the Constitution, the Levy Bill makes separate consequential amendments to the Levy Act to update a reference to the Act's short title.

The changes outlined above will mean that, amid rises in the cost of living, more people can access immediate financial support to help them complete apprenticeships or traineeships leading to occupations in Australian workforce sectors currently experiencing skills shortages. This will help to address those shortages, delivering skilled workers for a stronger Australian economy.

Human rights implications

The Levy Bill, in isolation, does not engage any of the applicable rights or freedoms. The Levy Bill proposes one minor amendment that is consequential to the amendments the Bill proposes. This consequential amendment is only included in the Levy Bill because section 55 of the Constitution requires laws imposing taxation to only deal with the imposition of taxation.

The Bill engages the following rights:

the right to education in Article 13, read with Article 2, of the International Covenant on Economic, Social and Cultural Rights (ICESCR); and
the right to work in Article 6, read with Article 2, of the ICESCR.

Right to education

Article 2(1) of the ICESCR states that each State Party undertakes to take steps to the maximum of its available resources, with a view to achieving progressively the full realisation of the rights recognised in the ICESCR by all appropriate means, including particularly the adoption of legislative measures.

Article 13(2)(b) of the ICESCR states that secondary education in its different forms, including technical and vocational secondary education, shall be made generally available and accessible to all by every appropriate means, and in particular by the progressive introduction of free education. Further, technical and vocational education as facilitated by State Parties should enable students to acquire knowledge and skills which contribute to their employability and enhance their productivity.

The Bill engages and promotes the right to education by empowering the Minister, having had regard to any relevant advice given by Jobs and Skills Australia, to expand the Program's access to people who, through their apprenticeship or traineeship, are undertaking qualifications that lead to occupations in all sectors of the Australian workforce (rather than just in the 'trade' sector) experiencing skills shortages. This furthers the availability and accessibility of technical and vocational secondary education.

Right to work

Article 6(1) of the ICESCR states that States Parties recognise the right to work (which includes the right of everyone to the opportunity to gain their living by work which they freely choose or accept) and take appropriate steps to safeguard this right.

Article 6(2) of the ICESCR sets out the steps States Parties must take to achieve the full realisation of the right to work, including providing technical and vocational guidance and training programs, policies, and techniques to achieve steady economic, social, and cultural development, and full and productive employment under conditions safeguarding fundamental political and economic freedom to the individual. The obligation to fulfil the right to work requires States Parties to, among other things, take positive measures to enable and assist individuals to enjoy the right to work and to implement technical and vocational education plans to facilitate access to employment.

The Bill engages the right to work by expanding the Program's access, meaning that, amid rises in the cost of living, more people can access immediate financial support to help them complete apprenticeships or traineeships in, and progress their careers in, Australian workforce sectors experiencing skills shortages.

Conclusion

The Bill is compatible with human rights because it promotes the protection of human rights and does not limit any human rights.


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