Domestic policy

Domestic policy covers a wide range of issues – economic, environmental and social – that impact on the lives of all Australians.

Following machinery of government changes the Office for Women, the Office of Best Practice Regulation, and the Office of Deregulation were added to the Domestic Policy Group (DPG).

Five divisions comprise the DPG. These are:

• Social Policy Division, including the Office for Women
• Industry, Infrastructure and Environment Division
• Economic Division
• Office of Best Practice Regulation
• Office of Deregulation

The Project Office, the Renewable Energy Target (RET) Review Secretariat, the Industry Investment and Competitiveness Agenda Secretariat, and taskforces preparing white papers on Developing Northern Australia, Agricultural Competitiveness, and the Reform of the Federation, are all separate units within the Group.

Highlights 2013–14

This year the Domestic Policy Group advised the Prime Minister and the Cabinet and worked with key stakeholders to progress critical, high-profile policy initiatives, including:

• assisting with the introduction of carbon tax repeal legislation as the first order of the Government’s legislative business
• providing advice to the Prime Minister and the National Infrastructure Committee of Cabinet on issues such as reform of Infrastructure Australia, the delivery of infrastructure for the 21st century, and on the Asset Recycling Initiative
• supporting the Prime Minister to chair two Council of Australian Governments (COAG) meetings and working to cut COAG red tape by streamlining funding agreements between the Commonwealth and the states and streamlining COAG ministerial councils
• advising and coordinating support to help deliver the Economic Statement 2013, 2013–14 Mid-Year Economic and Fiscal Outlook and 2014–15 Budget
• coordinating the implementation of a whole of government deregulation agenda across all portfolios to drive delivery of the Government’s target to reduce the costs of regulation on business, individuals and the community by $1 billion per year, including through the Government’s first Repeal Day in March 2014
• developing The Australian Government Guide to Regulation, released by the Prime Minister in March 2014, and implementing new regulation impact statement processes and costings
• establishing and supporting a Strategic Partnership on Northern Australia, a Northern Australia Advisory Group, and producing a Green Paper on Developing Northern Australia
• releasing an Agricultural Competitiveness Issues Paper and subsequently conducting meetings in 34 regional and metropolitan centres across Australia with about 950 people and processing 675 submissions to inform preparation of the Agricultural Competitiveness Green Paper
• establishing an Industry Investment and Competitiveness Secretariat to provide high-quality and timely advice to the Prime Minister’s Industry Investment and Competitiveness Taskforce and to the Prime Minister’s Business Advisory Council
• providing secretariat support to the expert panel conducting the 2014 review of the Renewable Energy Target by assisting with the preparation of a call for submissions paper and processing around 24,000 submissions received; and coordinating over 90 consultation meetings with stakeholders
• establishing a taskforce to develop a White Paper on the Reform of the Federation
• working with the Department of Social Services to negotiate bilateral agreements with Western Australia for trials of the National Disability Insurance Scheme and the My Way individualised disability support scheme that commenced in July 2014
• undertaking two joint foresighting projects with international partners – one with Policy Horizons Canada on the future of Asia and another with the Centre for Strategic Futures (Singapore) on the future of the state-society relationship.

Figure 2.1 KPIs for the Domestic Policy Group

Domestic Policy	Met
High-quality, relevant and timely advice and support to the Prime Minister, the Cabinet and Cabinet committee chairs, Portfolio Ministers and Parliamentary Secretaries based on an objective and thorough understanding of issues and whole of government perspective.	✓
Regular, timely and collaborative communication and cooperation with other central agencies, portfolio departments and other key stakeholders.	✓
Successful coordination and support for COAG meetings and ensuring a well-coordinated delivery of the broad COAG agenda.	✓
Successfully advance Australia’s interests through the G20.	✓
Lead the implementation of government reforms including portfolio targets, repeal days and Ministerial Advisory Bodies.	✓
Respond to drafts of regulation impact statements consistent with the requirements of the Government’s Best Practice Regulation Handbook and the Council of Australian Governments Principles of Best Practice Regulation.	✓

Social Policy Division

The Social Policy Division provides advice and support to the Prime Minister, Portfolio Ministers, and Parliamentary Secretaries on education, health, social services, immigration, arts, sport, women’s policy and disaster recovery assistance. Prior to the machinery of government changes in September 2013 the Division also provided advice on social inclusion and reform of the not-for-profit sector.

In 2013–14 our work focused on supporting the Government to implement its election commitments and to deliver its first Budget.

National Disability Insurance Scheme

We provided regular reports to the Prime Minister on the progress of NDIS trial sites. In 2014, agreements have been negotiated with Western Australia and the Northern Territory allowing trial sites to commence from July 2014. The Department supported the Prime Minister in getting COAG’s agreement on additional work to be undertaken to support the financial sustainability of the scheme.

Higher and International Education

From March 2014 we worked with the Department of Immigration and Border Protection to assist the Government to extend streamlined student visa arrangements to non-university degree students, and Advanced Diploma vocational education and training students from 1 January 2015. We supported implementation of recommendations from the Review of Higher Education Regulation and the Review of Reporting Requirements for Universities. We advised the Prime Minister on the Review of the Demand-Driven Funding System to give higher education providers more scope to compete, innovate and strive for excellence.

Health Policy

We provided advice on public hospital funding arrangements, the Personally Controlled Electronic Health Record system review, Medicare patient contributions, the review of Medicare Locals and the review of mental health services. This work supports the Government’s commitment to put health spending on a sustainable path.

Australian Victims of Terrorism Overseas Payment (AVTOP) and Natural Disaster Recovery

We played a significant role in implementing the Prime Minister’s commitment to expand the scope of terrorist acts covered by the AVTOP scheme. During the year, $27 million was paid to victims and their close family members for nine terrorist acts between 2001 and 2013. We also supported Commonwealth efforts to help communities recover after the October 2013 Blue Mountains bushfires and the February 2014 Hazelwood Mine Fire.

Proposed Paid Parental Leave Scheme

Over the year we contributed to the design and implementation arrangements for the proposed Paid Parental Leave (PPL) scheme and co-chaired an interdepartmental committee that provides strategic direction and coordination for the development and implementation of the scheme. We supported negotiations at COAG on how states and territories would contribute financially to the proposed scheme. In December 2013 COAG agreed that state public sector employees will be covered by the proposed scheme. In May 2014 COAG agreed that states and territories would continue to work with the Commonwealth on interactions between the proposed PPL scheme and existing state and territory schemes.

Supporting Sports and Arts Events

We assisted the Prime Minister to ensure Australia’s hosting commitments are met for several upcoming major sporting events, including the 2015 Asian Football Confederation Asian Cup, the 2015 Cricket World Cup and the 2018 Gold Coast Commonwealth Games. This work is led by the Office of Sport in the Department of Health, and involves several agencies from across government. We also provided advice on the commemoration of the 200th anniversary of Governor Arthur Phillip’s death, and on a number of arts issues and events such as the Prime Minister’s Literary Awards.

Social Inclusion and Not-for-profit reform agendas

In 2013 we worked with the Australian Social Inclusion Board to oversight delivery of integrated services to designated disadvantaged locations in Australia. We organised an Australian Social Inclusion Board meeting in Playford, South Australia on 25–26 July 2013, which included site visits with local enterprises and community organisations.

We also worked with the Not-For-Profit Reform Council to develop the Code of Best Practice for Engagement with the not-for-profit sector and the National Compact in Action report, which were publicly released in early August 2013.

Reform of Australia’s Protection Status Determination System

In 2013 we worked with the Department of Immigration to identify reforms to the way protection claims made by asylum seekers are processed.

Office for Women

The Office for Women supports the Prime Minister and the Minister Assisting the Prime Minister for Women on the Government’s priorities for gender equality and the empowerment of women.

Working with the Department of Social Services we contributed to the development of the Second Action Plan under the National Plan to Reduce Violence against Women and their Children 2010–2022. This included facilitating community consultation by the Minister, Senator the Hon Michaelia Cash, and hosting a Women’s Safety Inter-departmental Committee.

We provided advice to the Government on the value of women’s economic and social participation to the Australian economy, engaging in work associated with the Paid Parental Leave scheme, child care and the Workplace Gender Equality Act 2012.

Working with the business sector and National Women’s Alliances we encouraged and supported women into leadership roles, including through the Australian Mines and Metals Association’s e‑Mentoring Programme for women in the resources sector.

We supported Minister Cash as she led the Australian Delegation in March to the 58th UN Commission on the Status of Women. We also worked across government to address the issue of sexual violence in situations of armed conflict, and promote women’s involvement in conflict prevention, resolution and peace-building.

Industry, Infrastructure and Environment Division

Industry, Infrastructure and Environment Division advises on matters relating to industry, innovation, energy, resources, climate action, the environment, water, agriculture, fisheries, forestry, skills, science, infrastructure, transport, regional development and communications.

Industry and Communications

We supported the Prime Minister on matters relating to the automotive manufacturing industry, and worked across Government to support the delivery of a $155 million Industry Growth Fund to support new jobs, investment and economic growth in South Australia and Victoria. Working with the Department of Industry we supported the Government’s delivery of better support for Australian Apprentices through the implementation of Trade Support Loans. We assisted the Government’s efforts to establish the Entrepreneurs’ Infrastructure Programme and to implement a new approach to industry policy.

We provided advice to the Prime Minister on the rollout of the National Broadband Network (NBN), and worked with the Department of Communications to implement the findings of NBN Co’s Strategic Review and supported the Cost Benefit Analysis and Regulatory Review of the NBN. We have been involved in the early development of the Mobile Black-Spot Programme and the Online Safety for Children programmes as well as providing advice on Australia Post and broadcasting policy, including the Australian Broadcasting Corporation and the Special Broadcasting Service.

Agriculture and Environment

We supported the Government’s delivery of its agriculture, regional development and environmental policy priorities. This included the development of a $320 million package of measures offering financial, social and mental health support to farmers and regional communities suffering from drought.

We supported the Government’s Economic Growth Plan for Tasmania and the Prime Minister’s participation in the Joint Commonwealth and Tasmanian Economic Council. We also provided advice to the Prime Minister on biosecurity reform, natural resource management, implementation arrangements for the Murray–Darling Basin Plan, the establishment of the Government’s Green Army initiative and a One-Stop Shop for environmental approvals.

Infrastructure, Climate and Energy

We provided advice to the Prime Minister on major infrastructure and transport matters such as the Government’s decision on Badgerys Creek as the site for a new airport in Western Sydney and the $11.6 billion of additional infrastructure investment announced in the Budget, including the $5 billion Asset Recycling Initiative.

We worked closely with the Department of the Environment on implementing the Government’s policy to repeal the carbon tax and the design and implementation of the Emissions Reduction Fund. We provided advice to the Prime Minister on the Renewable Energy Target Review, the development of an Energy White Paper, the resources sector, and the electricity and gas markets.

Economic Division

The Economic Division provides advice on a range of economic issues affecting Australia, including the Budget, taxation, the financial sector, competition and consumer policy, employment, the international economy, and Commonwealth-State relations.

Economic Policy

We provided the Prime Minister with advice on the economic outlook and conditions for the Australian and international economies, as well as participating in the Joint Economic Forecasting Group. We also provided advice on fiscal, monetary and competition policy.

Secretariat support was provided to the Prime Minister’s Business Advisory Council, as well as support for broader business engagement. We also advised on the Government’s broader economic reform agenda, including the Productivity Commission’s forward work programme.

Fiscal

We worked with Treasury and the Department of Finance to ensure effective coordination and support for senior Ministers’ consideration of expenditure policy proposals, during the Budget process and throughout the year. We also advised the Prime Minister on the fiscal outlook and associated fiscal strategy.

We worked extensively within the Department to ensure policy areas were able to assess expenditure proposals. We also provided guidance on expenditure accounting and presentation of financial information, and contributed to the assessment of new policy proposals against other competing Government priorities.

Taxation, Financial Sector and Employment

Working with Treasury, the Department of Finance and the Department of Employment, we advised the Prime Minister on a range of taxation, financial sector, employment and workplace relations policy issues, including supporting the implementation of the Government’s election commitments and 2014–15 Budget measures.

We worked closely with relevant agencies and provided advice to the Prime Minister on the structure and design of the Government’s new employment service arrangements, scheduled to commence from 1 July 2015, and also provided advice on small business and foreign investment issues. Working closely with Treasury we provided advice to the Prime Minister on the Government’s commitment to deliver the Tax Reform White Paper and the Financial System Inquiry. We also provided advice to the Prime Minister in relation to the APS Bargaining Framework and interim recruitment arrangements.

Commonwealth-State Relations

The Council of Australian Governments (COAG) is the peak intergovernmental forum in Australia, with membership comprising the Prime Minister, State and Territory Premiers and Chief Ministers, and the President of the Australian Local Government Association. We supported the Prime Minister at the COAG meetings on 13 December 2013 and 2 May 2014, and ten Senior Officials Meetings chaired by the Secretary of PM&C.

We provided advice on and supported COAG streamlining its system. There are now eight COAG Councils focusing on the areas of Federal Financial Relations; Disability Reform; Transport and Infrastructure; Energy; Industry and Skills; Law, Crime and Community Safety; Education; and Health.

We chaired a multi-jurisdictional working group to rationalise funding agreements with the States and Territories and reduce their reporting burden. We assisted the development of a number of National Partnership Agreements including Asset Recycling.

COAG Reform Council

As part of the 2014–15 Budget, the Commonwealth announced funding for the COAG Reform Council (CRC) would cease from 30 June 2014.

In 2013–14, the CRC presented 11 reports to COAG, including reports on the five years of performance across four National Agreements, four reports on National Partnership Agreements with reward payments, a cross-cutting report on outcomes for women and girls across Australia and a report on lessons learned with the reform agenda.

Office of Best Practice Regulation

The Office of Best Practice Regulation (OBPR) promotes effective and efficient regulation by administering the Australian Government’s best practice regulation requirements and COAG’s best practice regulation requirements.

Following machinery of government changes in September 2013 OBPR moved from the Department of Finance to PM&C to support the Government’s deregulation agenda. We have assisted in implementing changes to regulation impact statement (RIS) requirements to include regulatory costing impacts on businesses, community organisations and individuals and to identify offsetting regulatory costs. All Cabinet Submissions now require a RIS.

OBPR also assisted in the production of The Australian Government Guide to Regulation, which was released by the Prime Minister on 19 March 2014. We have continued to out-post officers to assist agencies to prepare regulation impact statements and post-implementation reviews. There were seven out-postings to a variety of government agencies throughout the year.

Office of Deregulation

Following machinery of government changes in September 2013, the Office of Deregulation transferred from the Department of Finance to PM&C to support the Government’s deregulation agenda. In 2013–14 we advised the Prime Minister and the Parliamentary Secretary to the Prime Minister on the Red Tape Reduction Programme and coordinated the Government’s first Repeal Day on 26 March 2014.

We supported the establishment of deregulation units in every portfolio and met fortnightly with unit heads to discuss deregulation developments and drive reform. We also assisted portfolios to undertake audits of existing Commonwealth regulation to identify their current level of regulatory burden.

We worked to minimise the burden of regulation by establishing a community of practice to allow Commonwealth regulators to exchange information and innovative ideas to minimise the impact of the regulation they administer. We also worked toward building a framework to assess regulator performance.

Within government we coordinated the provision by ministers of clear statements of expectations on the manner in which regulators should administer their regulatory function. We also worked with the OBPR to develop mechanisms to assist agencies to embed the deregulation agenda including a Regulatory Burden Measurement Framework.

We supported the Prime Minister at COAG meetings to identify priority areas of deregulation with the States and Territories to improve regulatory coherence and reduce burden. We also contributed to the work of the Organisation for Economic Co-operation and Development (OECD) Regulatory Policy Committee in developing regulatory policy frameworks.

The Project Office

The Project Office provides policy advice to the Prime Minister and the Cabinet, developed by dedicated project teams working collaboratively with other areas of PM&C and with other departments and agencies. The Office also contributes to urgent and unexpected tasks.

Throughout 2013–14 the Project Office contributed to long term strategic initiatives including the Government’s Industry Investment and Competitiveness Agenda, a strategic deregulatory review and development of white papers on Agricultural Competitiveness and Northern Australia.

Northern Australia Taskforce

The cross-agency Northern Australia Taskforce was established in October 2013 to support the Government’s election commitment for a White Paper on Developing Northern Australia. The White Paper will include a plan for implementing policies over the next two, five, 10 and 20 years.

A Green Paper was released for comment and debate by the Deputy Prime Minister in Townsville on 10 June 2014. The paper identifies six possible policy directions in the areas of economic infrastructure; land use and access; water access and management; trade, investment and business; education, research and innovation; and governance.

We supported the establishment of a Strategic Partnership including the Prime Minister, the Deputy Prime Minister, the Premiers of Queensland and Western Australia and the Chief Minister of the Northern Territory. We also established the Northern Australian Advisory Group, chaired by the Hon Shane Stone AC QC. The Group includes prominent business, community and Indigenous people from across the north.

Taskforce members have attended Parliamentary Joint Select Committee on Northern Australia hearings across Australia and reviewed submissions to the committee. We have conducted consultation across Northern Australia with the business community, academia, civil society and all levels of government. We have travelled to Cairns, Brisbane, Darwin, Perth, Karratha, Townsville, Mount Isa and Cooktown to discuss northern Australia development issues.

The Taskforce supported a Secretaries Committee comprising departmental secretaries from PM&C, Infrastructure and Regional Development, Treasury, Finance, Foreign Affairs and Trade, Agriculture, Industry, and the Environment to provide strategic oversight into the Northern Australia White Paper. The Committee met five times during the year.

The White Paper on Agricultural Competitiveness Taskforce

A cross-agency Agricultural Competitiveness Taskforce was established in PM&C in October 2013 to assist the Government in developing the Agricultural Competitiveness White Paper. The development of a White Paper on the competitiveness of the agriculture sector was an election commitment set out in The Coalition’s Policy for a Competitive Agriculture Sector.

The Terms of Reference for the white paper were released on 9 December 2013. The White Paper will look at ways to boost agriculture’s contribution to economic growth, trade, innovation and productivity. It is scheduled to be released around the end of 2014.

The Taskforce developed the issues paper, released on 6 February 2014 by the Minister for Agriculture, the Hon Barnaby Joyce MP. The issues paper provided an overview of some of the key issues expected to be covered in the White Paper.

We also undertook a consultation process in response to the issues paper, during which the views of more than 1,000 farmers, other individuals and businesses throughout Australia were listened to on the opportunities, issues and challenges faced by Australia’s agriculture sector. Consultation included face-to-face meetings in February, March and April 2014 in 34 regional and metropolitan centres across Australia with about 950 people. Some 675 submissions were received on the issues paper.

The Green Paper is currently under development and due for completion in 2014–15. It will be informed by the issues paper consultations and submissions.

The White Paper on the Reform of the Federation Taskforce

A Taskforce has been established to develop a White Paper on the Reform of the Federation. The White Paper will review the allocation of roles and responsibilities between the Commonwealth and the States and Territories to ensure that, as far as possible, the States and Territories are sovereign in their own sphere.

The Terms of Reference for the White Paper were announced by the Prime Minister on 28 June 2014. The White Paper is due to be released before the end of 2015.

The Renewable Energy Target (RET) Review Secretariat

In February 2014 the Government announced a review into the Renewable Energy Target scheme.

The independent expert panel established to conduct the review, provided its report to the Government on 15 August 2014.

The panel was supported by a PM&C secretariat which brought together expertise from the Department of Industry, the Department of the Environment, the Treasury and the Clean Energy Regulator.

The secretariat provided support for the panel, including coordinating consultation meetings, assisting the preparation and release of a ‘Call for Submissions’ paper and the panel’s report, managing a consultancy for electricity market modelling, and processing written submissions.

The Industry Investment and Competitiveness Agenda Secretariat

The Industry Investment and Competitiveness Agenda Secretariat was established in January 2014 to advise the Government on the Industry Investment and Competitiveness Agenda. The secretariat provides support to a ministerial taskforce, chaired by the Prime Minister, to explore ways to encourage investment and make Australian businesses more competitive.

We also supported the Prime Minister’s commitment to consult closely with the Business Advisory Council in the development of the Agenda.

We undertook extensive consultation with relevant line agencies to ensure high quality, coordinated and whole of government advice and contributed to G20 policy development.

The Agenda is to be finalised in late 2014.