Motions

Labour Hire Regulations

The Hon. K.J. MAHER (Leader of the Opposition) (17:05): I move:

That regulations made under the Labour Hire Licensing Act 2017 concerning fees, made on 21 June 2018 and laid on the table of this council on 3 July 2018, be disallowed.

Legislation to regulate the labour hire industry under the Labour Hire Licensing Act 2017 came into effect on 1 March 2018. There was a six-month period before the licensing enforcements were to start on 1 September of this year. The Treasurer and the Minister for Industrial Relations laid regulations on this table, I think, on 3 May 2018. Those regulations included the start date of 1 September 2018, which I understand is also in the act as the start date.

A new set of regulations was made on 21 June 2018 and laid on the table on 3 July 2018 that had some minor variances in the fines in relation to the scheme—some were up, some were down slightly—but had completely removed mention of the start date. It would be thought that, if the legislation refers to a start date, it is irrelevant whether the regulations, subordinate legislation, mentions a start date or not, given that the legislation had the start date as 1 September 2018.

In addition, Consumer and Business Services have issued a media release saying they will not be enforcing these important licensing requirements for some time to come. The reason for the disallowance motion is to allow an explanation to be given as to what the hold-up is. What is the reason that this scheme has been held up? This scheme is exceptionally important and was due to start only days ago, on 1 September 2018, but is apparently now not due to start until sometime next year.

I think we need to know why many vulnerable workers who work in the labour hire industry are not being afforded the protection that this scheme would allow them, a scheme that passed this chamber last year. Oddly enough, this scheme in force will actually help with government revenue. From just one industry sector where labour hire operates, the food production industry, ReturnToWorkSA uncovered undeclared remuneration discrepancies in excess of $100 million that premiums were owed on. In doing that same audit, RevenueSA identified unpaid tax liabilities of some $650,000.

It was summarised during last year's and the previous parliament's Economic and Finance Committee hearings that if a labour hire provider had just 200 workers on the books and they skimmed $2 or $3 an hour from every worker's pay, over a period of time that would add up to a massive amount of income. The disallowance motion provides an opportunity for a debate in this chamber about the start date of this scheme, why this scheme has not started, why vulnerable workers are not being protected and why we cannot start this scheme immediately.

Debate adjourned on motion of Hon. T.J. Stephens.