Document 1
From:
s 22(1)
To:
s 22(1)
Subject:
FW: Options for MO consideration - payslips and provider pressure [s 22(1)
Date:
Friday, 5 July 2024 9:35:20 AM
Attachments:
Option - Reducing Payslip Verified Outcomes.docx
image001.jpg
s 22(1)
s 22(1)
From: s 22(1)
Sent: Monday, April 29, 2024 2:08 PM
To: s 22(1)
Cc:s 22(1)
s 22(1)
Subject: RE: Options for MO consideration - payslips and provider pressure
s 22(1)
Please see some background information on payslips and some options we have identified. Happy to progress further advice post MO review.
Thank you s 22(1)
s22(1)
First Assistant Secretary
Workforce Australia for Individuals Division
Employment and Workforce Group
Australian Government Department of Employment and Workplace Relations
s 22(1)
dewr.gov.au
The Department of Employment and Workplace Relations acknowledges the traditional owners and custodians of country throughout Australia and their continuing connection to land, waters and
community. We pay our respects to them and their cultures, and Elders past, present and emerging.
From: s 22(1)
Sent: Monday, April 29, 2024 9:56 AM
To: s 22(1)
Cc: s 22(1)
Subject: Options for MO consideration - payslips and provider pressure
s 22(1)
Good morning all,
In light of media reporting over the weekend, the office has requested the department prepare initial options (in addition to the already
agreed Budget measure) to mitigate providers inappropriately pressuring clients to provide payslips.
Grateful if options (including for action under provider contracts) could be provided to the office by
2:30pm today (hard deadline). Appreciate
that anything that could be provided within that timeframe will be very rough and heavily caveated.
I understand this request has come following the Minister raising this with his team this morning.
s 22(1) or I are happy to chat.
Cheers,
s 22(1)
Departmental Liaison Officer – Employment and Workforce
Office of the Hon Tony Burke MP
s 22(1)
Department of Employment and Workplace Relations
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Document released under FOI - LEX 1358
Document 1
The Department of Employment and Workplace Relations acknowledges the traditional owners and custodians of country throughout Australia and their continuing connection to land, waters and
community. We pay our respects to them and their cultures, and Elders past, present and emerging.
s 22(1)
Department of Employment and Workplace Relations
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Document released under FOI - LEX 1358
s 22(1)
Document 1
OPTIONS: REDUCING PAY SLIP VERIFED OUTCOMES
Context
• Workforce Australia Services providers may claim Outcome Payments when clients achieve 4, 12 and 26 weeks in employment, regardless of
whether the client or provider found the job. Outcome Payments recognise the work that providers do in ensuring clients are equipped with the
skills to find work and remain employed.
• The vast majority of Outcome Payments (75 per cent) are verified by the department’s IT system using hours and/or earnings declared by clients to
Services Australia. Based on the data received from Services Australia, the IT system will automatically determine whether the provider is eligible
for a partial or full outcome payment. Pay slips are not required for outcomes verified through information provided to Services Australia.
• Only 25 per cent of Outcome Payments are verified using pay slips or employer payroll summary information.
• The provider may ask the participant for this evidence or contact the employer if they have the participant’s permission to do so. Participants are
under no obligation to supply pay slip evidence to providers.
• It is inappropriate for any Workforce Australia Services provider to be harassing, bullying or threatening clients into handing over information about
their employment. Providers must not utilise the Targeted Compliance Framework to obtain pay slips by creating Provider Appointments or other
compellable requirements for the sole purpose to ask for evidence of employment.
• The Department on 8 April 2024 issued guidance to providers reminding them of their obligations and not to harass, bully or threaten clients into
handing over information about their employment. A copy of the Provider Portal Notice is at Attachment A.
• Individuals who are experiencing any pressure or harassment from their Workforce Australia Services provider can report this by contacting the
National Customer Service Line on 1800 805 250 and the Department will thoroughly investigate these claims and take action as appropriate.
• The Department will review existing complaint data to identify any trends with specific Workforce Australia Services Providers and reinforce the
requirements and expectations under the Workforce Australia Services Deed.
• Outcome Payments are a significant revenue stream and financial viability driver for Workforce Australia Service providers. Any changes to
Outcome Payment settings will have significant financial viability implications for providers. Given the need for future Outcome Payment settings to
be considered alongside any changes to the broader Performance Framework, any re-weighting of the payment model could be considered as part
of developing and designing the new employment services system.
• Workforce Australia Service providers are also required to provide pay slips as evidence to demonstrate that an individual was employed by the
employer to support a placement involving a wage subsidy.
Department of Employment and Workplace Relations
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s 22(1)
Document released under FOI - LEX 1358
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Department of Employment and Workplace Relations
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verified Outcome the providers to claim through the Workforce for Australia online
Obligation Requirements and any individual who is not
Payments
system.
required to report to Services Australia.
Not
This change would result in Workforce Australia Service
recommended
providers will not being able to claim around 25 per cent of
Outcome Payments for which they are currently eligible
(around $100-120 million per year). A reduction of this
magnitude would significantly impact their viability and risk
further consolidation of the market.
The IT system often fails after an individual has changed their
income support payment type. In these circumstances,
providers can currently provide the dept with documentary
evidence to support the outcome claim. There are also other
instances where IT system issues prevent Outcome Payments
being claimed by providers, even where the participant has
declared to Services Australia. Providers would no longer be
able to claim these valid Outcome Payments.
This change would also have implications for Disability
Employment Services and the Community Development
Program who both use pay slips and employer summaries in
the verification for some outcome payments. Any changes to
those programs would need to be agreed with the Minister for
Social Services and Minister for Indigenous Australians.
Utilise Single
Utilising Single Touch Payroll (STP) information collected by the
As part of the 2024–25 Budget a measure has been agreed to
Touch Payroll to
Australian Taxation Office (ATO) to verify Outcome Payments.
test the capacity of STP data to verify Outcome Payments.
verify Outcome
This measure is due to commence from July 2024 and help
Payments
determine whether STP information can be used in the
verification of Outcome Payments.
Underway
Department of Employment and Workplace Relations
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s 22(1)
Document released under FOI - LEX 1358
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Document 1
Under existing STP data collection arrangements. Services
Australia verification would still be required, as STP can only
provide earnings information but not hours worked. STP is not
suitable for those Outcome Payments which are payable
based on hours work (for example – hours-based outcomes
for participants with a partial work capacity, principal carer
parents, Parenting Payment and individuals not on income
support).
However, STP can provide a safety net in instances where the
Services Australia system fails to provide earnings information.
To derive the fully benefit from STP data the department
would need to work with the ATO to expand STP data to
include information on hours worked.
Department of Employment and Workplace Relations
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Document released under FOI - LEX 1358
s 22(1)
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Attachment A
Provider Portal Notice - Outcome Payments - Requesting Payslips from Clients
When claiming Pay Slip Verified Outcomes (PSVOs), providers are reminded that while they may ask
clients for pay slips, clients are under no obligation to provide them. In addition, providers must seek
the client’s permission to contact their employer directly for pay slips.
It is inappropriate for any Workforce Australia Services provider to harass, bully or threaten clients
into handing over information about their employment. This includes threatening or applying
payment suspensions or demerits under the Targeted Compliance Framework, compelling clients to
supply payslips or evidence of employment.
Should the Department become aware of specific instances where providers harass, bully or threaten
clients to hand over information about their employment (through channels such as the National
Customer Services Line), these will be thoroughly investigated and raised directly with providers.
Providers are reminded that it is a contractual requirement to act in good faith towards clients at all
times and provide services in a manner that does not bring the program, provider or department
into disrepute.
Department of Employment and Workplace Relations
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