COAG’S RESPONSES TO COAG REFORM COUNCIL REPORTS
PROVIDED TO COAG ON 28 SEPTEMBER 2012
7 December 2012
SKILLS AND WORKFORCE DEVELOPMENT 2011: COMPARING PERFORMANCE
ACROSS AUSTRALIA
Response to key findings
COAG welcomes the CRC’s finding that Australia is on track to meet the COAG target to double
the number of diploma and advanced diploma completions by 2020.
COAG also welcomes the CRC’s finding that the proportion of the working age population with,
or studying toward, a non-school qualification increased from 63.9 per cent to 66.9 per cent
between 2008 and 2011. Given the barriers to skill attainment faced by disadvantaged groups,
it is particularly gratifying that the CRC has found that people living in the most disadvantaged
areas had the largest percentage increase against this measure.
COAG notes the CRC’s finding that the reduction in the proportion of working age Australians
without a higher level qualification is too slow to meet COAG’s 2020 target. COAG also notes
that it agreed in April 2012 to long-term reforms to the national VET system that have a strong
focus on training outcomes.
COAG recognises the need for governments to work together through the NASWD to achieve
continued improvements.
COAG responds to the specific recommendations of the report as follows:
Recommendation
COAG Response
Recommendation 1
COAG notes this finding but considers that
reforms to skills acquisition and youth
attainment, combined with reforms to
funding arrangements for Higher Education,
may see improvements beyond what the
current trends suggest. In particular, these
reforms include those undertaken through
the Skills Reform National Partnership
Agreement and the move to a demanddriven funding system for Higher Education
from 2013. COAG looks forward to further
reports from the CRC on progress to meet
this target.
The COAG Reform Council recommends that
COAG note that current trends suggest that
Australia will not meet the 2020 target to
halve the proportion of working age
Australians without qualifications at
Certificate III and above.
Recommendation
COAG Response
Recommendation 2
Noted.
The COAG Reform Council recommends that
COAG note that Australia is on track to
achieve the target to double the number of
diplomas and advanced diplomas between
2009 and 2020.
Recommendation 3
Noted.
The COAG Reform Council recommends that
COAG note that the council will work with
data suppliers to provide additional data
disaggregation to improve performance
reporting.
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EDUCATION 2011: COMPARING PERFORMANCE ACROSS AUSTRALIA
Response to key findings
COAG welcomes the CRC’s finding that the proportion of 20-24 years olds with a Year 12 or
equivalent qualification has risen significantly from 79.1 per cent to 84.1 per cent between
2001 and 2011.
COAG notes the CRC’s finding that the proportion of young people (18 to 24 years) who are
fully engaged in education, training or work after school remains below the level in 2008.
COAG also notes the apparent decline in the Year 12 attainment rate from 2010 to 2011, but
welcomes the CRC’s finding that there have been promising increases in school and vocational
education and training participation by 15–19 year olds over 2010 to 2011. Further
improvements can be expected as the current school-age cohort, which has benefited from
recent COAG reforms, moves into the 18 to 24 year old age group.
COAG responds to the specific recommendations of the report as follows:
Recommendation
COAG Response
Recommendation 1
Noted.
The COAG Reform Council recommends
COAG note that improvements in
NAPLAN results are mainly in Year 3 for
reading and in Year 5 for numeracy.
Recommendation 2
Noted.
The COAG Reform Council recommends
COAG note the following disappointing
outcomes for young people:

the Year 12 or equivalent attainment
rate needs to increase faster than
the 2001 to 2011 trend to meet the
COAG target of 90% by 2015

the proportion of young people (18
to 24 years) who are fully engaged in
education, training or work after
school remains below the level in
2008
o falls in full-time employment
account for the lack of
improvement
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Recent Labour Force Survey data1 (which show a
substantial increase in the proportion of young
people participating full-time in education and
training) suggest that the proportion of young
people with a Year 12 or equivalent qualification
will further increase in the lead up to 2015.
It is anticipated that the proportion of young
people (18 to 24 years) fully engaged in
education, training or work after school will
improve as the current school-age cohort, which
has benefited from recent COAG reforms, moves
into this age group. Results may also be impacted
by labour market conditions.
ABS, 2012, Labour Force, Australia, Detailed - Electronic Delivery (May), Cat. No. 6291.0.55.001
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Recommendation

COAG Response
the decline in engagement has been
particularly severe for young people
from low socio-economic areas.
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COAG REFORM AGENDA: REPORT ON PROGRESS 2012
General Comments
The Council of Australian Governments (COAG) welcomes this annual review of COAG’s
aggregate pace of reform. This report provides COAG with an opportunity to reflect on
governments’ progress in implementing COAG’s 2008 framework which aims to improve the
well-being of all Australians through better federal financial relations and continuous
improvement in pursuit of shared national objectives.
Both in 2008 and through subsequent commitments, COAG has agreed to an ambitious set of
reforms which span a range of economic, social and environmental challenges. A number of
reforms are complex and have proved challenging to achieve – especially some of those aimed
at creating a seamless national economy and reforms relating to closing the gap in Indigenous
disadvantage.
COAG acknowledges that progress on some of the reforms assessed in this report has not been
as fast as originally planned, for various reasons. COAG remains, however, committed to
completing the reforms.
COAG notes that the 30 reforms assessed in the report are a selection of initiatives under
COAG’s reform agenda, and do not fully reflect progress of COAG’s reforms as a whole. For
example, 17 of the 27 deregulation priorities under the National Partnership Agreement to
Deliver a Seamless National Economy have been completed, and others are expected to be
completed by the end of 2012.
COAG welcomes the report’s finding that COAG’s recent improvements to the performance
reporting frameworks in National Agreements will strengthen public accountability.
COAG agrees with the COAG Reform Council’s assessment that measuring success involves a
long-term commitment and that the understanding of trends in performance is likely to
become clearer over time as the amount and quality of available data improves. Likewise,
COAG notes the report’s discussion of the limitations of the available performance measures,
and that as a result the productivity impacts of the current reform agenda are likely to become
apparent in the measures only over time.
COAG responds to the specific recommendations of the report as follows:
Recommendations
COAG Response
Recommendation 1 (p.xiii, 37)
Noted.
The COAG Reform Council recommends that
COAG note that National Agreements are
now more consistent with the IGA principles
whereas National Partnerships are becoming
increasingly inconsistent with the IGA
principles.
COAG on 25 July 2012 committed to ensuring
that only matters of truly national
significance will be progressed as new
multilateral National Partnership
Agreements, with consideration of existing or
alternative funding mechanisms before any
new funding agreements are entered into.
Furthermore, at its 7 December 2012
meeting, COAG agreed that there should be
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Recommendations
COAG Response
early consultation between the
Commonwealth and the States and
Territories on new agreements, including
National Partnership Agreements, which
should assist in ensuring that development of
future agreements is informed by the
principles of the Intergovernmental
Agreement on Federal Financial Relations
(IGA FFR).
Recommendation 2 (p.xiii, 37)
Agreed.
The COAG Reform Council recommends that
COAG ensure that new National Partnerships
and other intergovernmental agreements are
consistent with the IGA principles,
particularly by avoiding input controls or
prescriptions on service delivery, and
reducing administrative and compliance
overheads.
The IGA FFR provides the framework for
development of new National Partnership
Agreements.
The IGA FFR principles were developed to
guide agreements involving mutually agreed
national objectives and intergovernmental
financial transfers between Australian
governments, such as National Agreements
and National Partnerships.
COAG notes that the IGA FFR principles do
not directly apply to all ‘other
intergovernmental agreements’, many of
which do not relate to federal financial
relations.
However, in light of the CRC’s observations,
and recognising that these principles and
provisions themselves reflect good strategic
policy discipline, COAG expects that the
IGA FFR principles will continue to inform
relevant intergovernmental negotiations and
shared decision-making for agreements
other than National Agreements and
National Partnerships.
In some circumstances the application of
some of the IGA FFR principles is appropriate
for ‘other intergovernmental agreements’,
such as the National Health Reform
Agreement, and these agreements can
specifically provide for the application of
relevant IGA FFR principles.
COAG agrees that administrative and
compliance burden in intergovernmental
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Recommendations
COAG Response
agreements should be kept to a minimum.
In February 2011 COAG introduced Project
Agreements as a simpler form of agreement
for low-value, low-risk, time-limited projects,
to reduce administrative and compliance
costs.
Recommendation 3 (p.xiii, 37)
Agreed in principle.
The COAG Reform Council recommends that
COAG ensure that governments better
uphold the principles that drive ambitious
reforms in all new or revised reward National
Partnerships by:
[1]- developing guidance or processes to
ensure that performance benchmarks will
drive ambitious reforms
COAG agrees that all reward NPs should
contain appropriately ambitious
performance benchmarks where these are
appropriate in accordance with clause E19(c)
of the IGAFFR. This is already reflected in
guidance for drafters of agreements, in
particular Federal Finances Circular 2011/02
which is publicly available on the internet at
www.federalfinancialrelations.gov.au
[2]- publishing, in the agreements, the basis
for how partial payments will be calculated
and when they will be paid.
This general guidance is supplemented with
the specific advice of central agencies when
agreements are being drafted.
Where agreements contain partial payment
arrangements, COAG agrees that the basis
for how partial payments will be calculated
and when they will be paid should be set out
in the agreement. While partial payments
may not be appropriate in the case of all
reward NPs, COAG notes that the payment
structure of agreements should be designed
to drive improvements in service delivery,
and promote innovation and flexibility.
Recommendation 4 (p.xvi, 54)
Noted.
The COAG Reform Council recommends that
COAG note that, of the 30 reforms assessed
in this report, three have been completed
and another twelve are on track to be
completed on time.
As previously mentioned, it should be noted
that the 30 reforms assessed in the report
are a selection of initiatives under COAG’s
reform agenda, and do not fully encompass
the breadth of COAG’s reform activities.
17 of the 27 deregulation priorities under the
National Partnership Agreement to Deliver a
Seamless National Economy have been
completed, including national harmonisation
of payroll tax, trade measurement, product
safety, trustee companies, consumer credit
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Recommendations
COAG Response
(phase 1), registering business names, food
regulation and standard business reporting.
Other reforms are expected to be completed
by the end of 2012.
Recommendation 5 (p.xvi, 54)
The COAG Reform Council recommends that
COAG take steps to remedy the two cases
where the intended reform output is at risk:
- occupational health and safety
- energy reform.
COAG notes the Council’s assessment that
intended reform output is at risk for two
reforms.
Occupational health and safety: It should be
noted that the national occupational health
and safety law has commenced in five
jurisdictions and is expected to commence
soon in two more.
Energy market reform: In its April 2012
response to the CRC’s 2010-11 performance
report on the National Partnership
Agreement to Deliver a Seamless National
Economy, COAG noted that the Standing
Council on Energy and Resources was
monitoring the progress of current energy
reforms.
COAG on 25 July 2012 agreed to consider at
its December 2012 meeting a reinvigorated
energy market reform agenda, aimed in
particular at addressing electricity price
increases.
Recommendation 6 (p.xvi, 54)
The COAG Reform Council recommends that
COAG take steps where possible to address
the causes of delays to the twelve reforms
that are behind schedule.
COAG acknowledges that progress on some
of the reforms assessed in this report has not
been as fast as originally planned, for various
reasons. COAG remains, however,
committed to completing the reforms.
COAG comments further on the progress of
some reforms as follows:
National Occupational Licensing System: On
13 April 2012, COAG agreed that the National
Occupational Licensing System will
commence from 2013. While the reform has
experienced delays (due to complexities
associated with finalising the occupationspecific policy), progress is being made.
Consultation Regulation Impact Statements
(RISs) on all four first tranche occupations
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Recommendations
COAG Response
were released in July and August 2012, and
consultation drafts of the amendment bill
and regulations were released for
consultation on 14 September 2012.
Consultation on the RISs, legislation and
regulations closed on 12 October 2012,
following which final Decision RISs,
legislation and regulations will be finalised
for agreement by COAG in 2013.
National Water Market System (NWMS): A
review of the NWMS Project was undertaken
in 2011 which delayed the release of the
tender for the development of the Common
Registry System and the commencement of
this work. After completion of the review,
the tender was let and a contract awarded in
August 2012. Changes to milestone dates for
the NWMS Project are under review.
Energy efficiency: While many measures
under the National Strategy on Energy
Efficiency (NSEE) are progressing well, some
have been delayed due to complexity,
regulatory procedures and changing
jurisdictional priorities.
The Select Council on Climate Change (SCCC)
is undertaking a review of NSEE measures,
with respect to their effectiveness and
complementarity to a carbon price. In
addition, the SCCC is separately reviewing
the NSEE to assess and prioritise the
implementation of measures.
Indigenous reforms: It will be important that
COAG continues to monitor progress in
resolving the underlying issues that are
causing delays in a number of Indigenousrelated National Partnerships. The Working
Group on Indigenous Reform has included a
number of these underlying issues for
consideration in its agenda over the next six
months.
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