Social and Community Services Pay Equity Special Account (Additional Program) Specification 2013

Administered by Department of Social Services

Legislation au F2013L00179 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Social and Community Services Pay Equity Special Account (Additional Program) Specification 2013

The Social and Community Services Pay Equity Special Account (Additional Program) Specification 2013 (the Specification) is made under paragraph 7(4)(a) of the Social and Community Services Pay Equity Special Account Act 2012 (the Act).

Background

The Act establishes the Social and Community Services Pay Equity Special Account (the Account), which is a special account under section 21 of the Financial Management and Accountability Act 1997.  The Account underpins the Commonwealth contribution to pay increases for social and community services sector workers in Commonwealth‑funded programs.  This extends to programs funded under agreements with and payments to States and Territories, such as National Partnership Payments and National Specific Purpose Payments.

 

Commonwealth supplementation is delivered through funding drawn down from the Account by eight Commonwealth Agencies.  The supplementation is then paid to assist employers:

-          who are covered by a pay equity order or to whom a pay equity order applies; and

-          who receive funding, directly or indirectly, from the Commonwealth for the purposes of a program prescribed under the Act.

 

All of the programs within the scope of the Act, and therefore qualified to receive funds from the Account, are listed in Schedules 1, 2 and 3 to the Act.  Subsections 7(4) and 8(8) of the Act provide flexibility to ensure that the Schedules accurately reflect the programs under which employers are able to receive assistance from the Act, and therefore are within the scope of the Act.

Purpose and operation

The purpose of the Specification is to add a further program to Schedule 1 to the Act, in accordance with paragraph 7(4)(a).  Schedules 1 and 2 provide an exhaustive list of the Commonwealth programs that are within the scope of the Act.

The Specification adds Early Intervention Services for Children with Disability (the program) into the list of programs in Part 1 of Schedule 1 to the Act, under the heading Department of Families, Housing, Community Services and Indigenous Affairs. 


The program was previously appropriated under Services and Support for People with Disability, which is listed in Part 1 of Schedule 1 to the Act. The program provides funding for significant early intervention measures for children with disability.

This Specification ensures that organisations funded under the Early Intervention Services for Children with Disability program, with employees who are covered by a pay equity order or to whom a pay equity order applies, will be eligible to receive funds from the Account. 

The Specification will commence the day after registration.  However, in accordance with subsection 9(3) of the Act, the Specification will not take effect until the end of the disallowance period.  The disallowance period is specified as 5 sitting days by subsection 9(2) of the Act.

The Specification is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Consultation

Consultation on the Specification was undertaken with Department of Prime Minister and Cabinet and Department of Finance and Deregulation.

Regulatory Impact Analysis

The Specification is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.

 

 

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

This Legislative Instrument is the Social and Community Services Pay Equity Special Account (Additional Program) Specification 2013

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Overview of the Legislative Instrument

The Social and Community Services Pay Equity Special Account Act 2012 (the Act) establishes the Social and Community Services Pay Equity Special Account (the Account) which is a special account under section 21 of the Financial Management and Accountability Act 1997.  The Account underpins the Commonwealth contribution to pay increases for social and community services sector workers in Commonwealth‑funded programs.  This extends to programs funded under agreements with and payments to States and Territories, such as National Partnership Payments and National Specific Purpose Payments.

 

Commonwealth supplementation is delivered through funding drawn down from the Account by eight Commonwealth Agencies.  The supplementation is then paid to assist employers:

-          who are covered by a pay equity order or to whom a pay equity order applies; and

-          who receive funding, directly or indirectly, from the Commonwealth for the purposes of a program prescribed under the Act.

 

All of the programs within the scope of the Act, and therefore qualified to receive funds from the Account, are listed in Schedules 1, 2 and 3 to the Act.  Subsections 7(4) and 8(8) of the Act provide flexibility to ensure that the Schedules accurately reflect the programs under which employers are able to receive assistance from the Act, and therefore are within the scope of the Act.

 

Human rights implications

 

This Specification engages and promotes the human right to just and favourable conditions of work, as set out in Article 7 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).  This extends to ensuring that remuneration provides all workers, as a minimum standard, with fair wages.  It also includes ensuring equal remuneration for work of equal value without distinction of any kind – in particular, women being guaranteed conditions of work not inferior to those enjoyed by men.

 

Fair Work Australia determined that Social and Community Services Sector workers currently receive significantly less remuneration for performing comparable work to public sector employees.  The Account facilitates funding to organisations with employees who are covered by a pay equity order or to whom a pay equity order applies, and who receive funding, directly or indirectly, from the Commonwealth. It will also ensure greater transparency of government.

 

Subsection 7(2) of the Act sets out that a purpose of the Account is to assist employers meet the costs of payments required to be made to employees as a result of the pay equity orders.  In accordance with subsection 7(4) of the Act, the addition of the Early Intervention Services for Children with Disability program to the list of programs in Part 1 of Schedule 1 to the Act, ensures that employers providing social and community services under this program are also able to receive assistance from the Account. 

 

This promotes their human right to just and favourable conditions of work.

 

Conclusion

 

This Specification is compatible with human rights.

 

 

 

 

 

 

The Hon Julie Collins MP, Minister for Community Services, Minister for Indigenous Employment and Economic Development, Minister for the Status of Women

Overview

The Social and Community Services Pay Equity Special Account Act 2012 was enacted to address the issue of pay inequity among workers in the social and community services sector. This legislation establishes a special account, under the Financial Management and Accountability Act 1997, that facilitates Commonwealth funding to support pay increases for these workers in programs funded by the Commonwealth, including agreements and payments to states and territories. The Account aims to ensure fair wages and equal remuneration for work of equal value, promoting just and favourable conditions of work as per the International Covenant on Economic, Social and Cultural Rights. The Act was introduced by the Parliament of Australia, with the objective of addressing the identified gap in equitable remuneration for sector workers, as determined by Fair Work Australia, who found that these workers currently earn significantly less than their public sector counterparts for comparable work. The Social and Community Services Pay Equity Special Account (Additional Program) Specification 2013, made under the Act, further extends the scope of the Account by including the Early Intervention Services for Children with Disability program, ensuring that employers in this sector can also receive assistance from the Account.

Scope and Application

The Social and Community Services Pay Equity Special Account (Additional Program) Specification 2013 operates under the framework established by the Social and Community Services Pay Equity Special Account Act 2012. It applies to employers who are covered by a pay equity order or to whom such an order applies, and who receive funding, directly or indirectly, from the Commonwealth for programs prescribed under the Act. This includes programs funded under agreements with and payments to States and Territories, such as National Partnership Payments and National Specific Purpose Payments. The Specification aims to add the Early Intervention Services for Children with Disability program to the list of eligible programs, ensuring that employers providing these services can also receive assistance from the Social and Community Services Pay Equity Special Account. The Specification's reach is nationwide, as it involves Commonwealth funding and compliance with Commonwealth-funded programs. There are no stated exclusions, exemptions, or thresholds in the Specification itself; however, eligibility for funding is contingent on compliance with the pay equity orders and the specific criteria outlined in the Act and its Schedules. The Act allows for the addition of programs through subordinate instruments, providing flexibility to update the list of eligible programs as needed.

Key Provisions

The Social and Community Services Pay Equity Special Account (Additional Program) Specification 2013 amends the Social and Community Services Pay Equity Special Account Act 2012 by adding the Early Intervention Services for Children with Disability program to the list of eligible programs under Schedule 1 (subsection 7(4)(a)). This addition allows employers in the early intervention services sector to access funding from the Account if they are covered by a pay equity order or to whom such an order applies (section 1). This provision is intended to ensure that these employers can meet the costs of pay increases mandated by pay equity orders, thereby promoting fair wages and equal remuneration for work of equal value (section 7(2)). Entities and employers within the scope of this legislation, particularly those covered by a pay equity order and receiving Commonwealth funding, have specific obligations. They must ensure compliance with pay equity orders, which may require them to adjust remuneration to meet the mandated pay increases (section 7). Furthermore, these entities must accurately report their funding needs and usage of funds from the Account to the relevant Commonwealth agencies responsible for disbursing the supplementation (section 8). The legislation also mandates that these agencies draw down funds from the Account and distribute them to eligible employers according to the requirements set out in the Act (section 8). Breaches of the requirements outlined in the Social and Community Services Pay Equity Special Account Act 2012 and its associated specifications may result in various civil or criminal consequences. While the Act does not explicitly detail the penalties for non-compliance, general provisions under the Financial Management and Accountability Act 1997 might apply. This could include fines or other sanctions for misuse of funds or failure to comply with reporting obligations. Additionally, employers who do not adhere to the pay equity orders may face legal action from employees or oversight by Fair Work Australia, potentially leading to further financial penalties or corrective measures (section 7(2)).

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.