Amid rorts, Coalition to boost Fair Work regulator

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By Leith van Onselen

The joint Fairfax-Four Corners investigation uncovering that around two-thirds of 7-Eleven stores across Australia had ruthlessly exploited foreign workers has forced the Federal Government into action, with Employment Minister, Michaelia Cash, set to unveil a new policy package to clamp-down on wages fraud across the country. From The Age:

A ten-fold increase in fines alongside a $20 million funding boost and new powers for the workplace watchdog are at the heart of a Coalition election policy to clamp down on wage fraud across the country…

The new policies would apply to all businesses across the economy…

The election policy package also features the appointment of former head of the Australian Competition & Consumer Commission Allan Fels as the head of a new Migrant Worker Taskforce within Fair Work…

The government, if re-elected, will also give FWO evidence-gathering power akin to those currently held by the ACCC, the Australian Securities and Investments Commission and the Australian Taxation Office.

The government will also introduce a new penalty for obstructing Fair Work inspectors and/or providing false or misleading information.

This is great news. Although it must be pointed out that the Coalition has axed some 25 staff (2.4% of workforce) from the Fair Work Commission and the Office of the Fair Work Ombudsman since it came to office (see below):

ScreenHunter_12807 May. 05 10.19
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Still, better late than never.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.