Purpose 1: Creating economic growth and jobs

Australia as a leading digital economy and society by 2030

The growing global digital economy is changing the way people all over the world live and do business. Over coming decades it will transform important sectors of the world economy, including banking, retail and education. The Government aims to ensure that Australia can participate in this expansion to the fullest extent and become a leading digital economy and society by 2030.

For this reason, in November 2019, the Prime Minister established a Digital Technology Taskforce within and led by PM&C. The Taskforce brought together the Attorney-General’s Department; Department of Education, Skills and Employment; Department of Home Affairs; Department of Industry, Science, Energy and Resources; Department of Infrastructure, Transport, Regional Development and Communications; and Department of the Treasury—agencies that have a significant role in developing the digital economy for Australia.

The Prime Minister asked the Taskforce to advise on a range of issues, including:

• how the digital landscape is changing
• what trade opportunities are available to Australia as a result of the digital economy
• how to encourage the uptake of digital technology across the Australian economy
• what skills Australians will need and how those skills can be developed
• what online safety issues are at play
• what infrastructure will support the use of digital technology.

The Taskforce consulted with Government and private sector stakeholders to coordinate the approach to digital policy development.

Digital technology policy is part of the work of most, if not all, Australian Government agencies. The Taskforce brought together agencies to provide an APS-enterprise approach and to push on strategies and initiatives to embed the uptake of digital technology. The approach aimed to build businesses and support learning and community engagement across the Australian economy.

The COVID-19 pandemic further highlighted the importance, and risks, of digital technology as an economic enabler. The COVID-19 quarantine measures resulted in rapid, widespread and increased use of digital tools by households and businesses.

The Taskforce sought to build on this momentum and accelerate the Australian economy’s digital transformation, while emphasising cyber-safety, to ensure resilience, recovery, job creation and longer term prosperity for individuals and businesses in Australia.

As part of its work, the Taskforce supported the Prime Minister and other relevant ministers by providing high-quality briefings, coordinating advice and proposals, and working across with other agencies to deliver whole-of-government strategic approaches to digital technology policy and proposals.

Faster and safer transport—connecting people, goods and services

Infrastructure investment is central to the Government’s strategy to reduce road congestion, improve road safety, meet the national freight challenge and transform Australia’s economy. Better infrastructure improves national connectivity, creates jobs and increases economic growth.

The Government is investing more than $100 billion in its Infrastructure Investment Program—a 10-year investment in transport infrastructure. The Government’s transport investments span everything from major projects, such as the construction of the Western Sydney International (Nancy-Bird Walton) Airport and the associated metro link, to small road safety projects that protect and save lives.

Substantial progress was made this year towards key projects such as completing Pacific Highway upgrades and delivering Inland Rail and Perth’s MetroNet.

Major earthworks commenced on the Western Sydney International (Nancy-Bird Walton) Airport; and the Prime Minister and New South Wales Premier reached an agreement to deliver the accompanying metro link in 2026.

In addition, since 2019-20 MYEFO, the Prime Minister announced the accelerated delivery of $9.3 billion in projects that will support the Australian economy’s recovery from the COVID-19 pandemic. This coordinated and targeted infrastructure investment will boost economic recovery by creating jobs and strengthening economic confidence.

The Cabinet played a critical role in selecting projects the Commonwealth will invest in, along with the states and territories; and PM&C supported both the Cabinet and the Prime Minister in their decision making.

The Government’s $100 billion Infrastructure Investment Program can only be realised with constructive collaboration between Commonwealth agencies and jurisdictions. PM&C worked closely with the Department and relevant statutory agencies to support delivery and acceleration of the Government’s infrastructure commitments; and we played a central role in bringing together public and private sector perspectives in support of the Prime Minister’s infrastructure agenda.

Skills reform

In August 2019, the Council of Australian Governments (COAG) agreed on a National Vision for Vocational Education and Training (National Vision) as a ‘responsive, dynamic and trusted’ sector.

Skills reform that delivers on the National Vision will ensure that Australians have access to education and training that meets industry needs and enables them to secure in-demand jobs. The Australian Government is working with the states and territories to achieve this vision, including through the National Cabinet.

PM&C provided timely, whole-of-government briefings to the Prime Minister and the Cabinet to support the delivery of skills reform. This included providing advice:

• to support the Prime Minister at the COAG meetings in August 2019, when the National Vision was agreed; and in March 2020, when leaders agreed on reform priorities
• on establishing the National Skills Commission and National Careers Institute as key features of a reformed vocational education and training (VET) system
• on new skills funding agreements with the states and territories to support the COVID-19 recovery and prepare the ground for revised VET funding arrangements.

Our advice enabled the Prime Minister to work with the states and territories on an ambitious skills reform agenda, initially through COAG and later through the National Cabinet.

The $80 million Infection Control Training Fund (which all jurisdictions signed up to in June 2020) is an example of how national collaboration on a responsive skills system can benefit the community. The fund is delivering around 80,000 subsidised short courses to support the safe reopening of businesses in a post-COVID-19 environment.

The Government has laid the groundwork for reform with the establishment of the National Skills Commission and National Careers Institute. Initial consensus on skills reform at the then COAG laid the foundation for further progress through National Cabinet.

Skills reform is a key part of the Government’s JobMaker plan—it will ensure Australia has a trained workforce ready with skills matched to industry needs. A VET system that is responsive, dynamic and trusted will be critical in supporting Australia to recover from the economic impacts of the COVID-19 pandemic.

Implementing the recommendations of the Financial Services Royal Commission

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Financial Services Royal Commission) was established in December 2017 to investigate misconduct in the banking, superannuation and financial services industry. It found that industry participants had engaged in often illegal conduct that caused substantial loss to many customers but yielded substantial profit to those in the industry. The Royal Commission’s final report was presented to the Governor-General on 1 February 2019.

The Royal Commission identified serious shortcomings in the banking, superannuation and financial services industry. Timely implementation of the Government’s response is important for restoring trust in Australia’s financial sector and ensuring vulnerable consumers will not be exploited.

On 4 February 2019, the Government announced its response to the Royal Commission’s report. In August 2019, it established an ambitious implementation roadmap to progress reforms arising from the Royal Commission’s recommendations.

PM&C supported the Government to implement its response to the Royal Commission. The Government has now implemented 24 commitments it made in its response and has substantially progressed a further 35 through consultation and the preparation of draft legislation. The COVID-19 pandemic has caused an unavoidable six-month delay to implementation, but work is progressing and we are currently on track to meet these new time frames.

PM&C’s work included responding to policy authority questions in a timely and accurate manner, seconding staff to Treasury to coordinate our approach to policy development, and continuously engaging across the broader public service to ensure reforms were on track. PM&C reviewed draft legislation prior to introduction, to ensure that the measures were being implemented in a way that was consistent with the agreed Government position.

The reforms will deliver a financial system that better serves the needs of the public and protects vulnerable consumers. Ultimately, it will lead to restored trust in Australia’s financial sector, which is essential to people’s wellbeing and a productive economy. The timely implementation of the Royal Commission’s recommendations demonstrates the commitment the Prime Minister and the Government have made to reform the sector.

Engaging with states and territories in response to the 2019–2020 bushfires

The 2019–2020 bushfires had exceptionally severe impacts on communities across Australia.

The National Bushfire Recovery Agency (NBRA) was established within PM&C in early January 2020 in response to the sheer scope of the devastation across multiple states and the scale of recovery effort needed. The role of the NBRA was to help people to access support across governments and recover from these devastating fires; and to coordinate a national bushfire recovery response.

Between January and March 2020, PM&C convened a number of high-level meetings between Commonwealth, state and territory senior officials to coordinate the bushfire response. At the meetings, senior officials closely monitored the bushfire crisis and the evolving needs of governments and communities. They were briefed directly by operational experts and staff from the newly established NBRA.

As a result of the meetings and other ad-hoc bilateral engagement, senior officials were able to exchange information regularly and narrow the range of matters to be considered by First Ministers at a COAG meeting on 13 March 2020.

First Ministers considered the recovery from the bushfires as a matter of priority. They agreed that the NBRA would work with all jurisdictions to coordinate the delivery of a national plan for bushfire recovery, complement state recovery plans, and support locally led efforts consistent with the National Principles for Disaster Recovery. They also agreed that local economic recovery for the regions most affected by the bushfires would be part of a national approach and that this would be jointly led by impacted states and the NBRA.

Recognising that consultation and collaboration with stakeholders and affected communities is critical to successful and enduring recovery, the NBRA collaborates with all levels of government, the private sector and charities.

The NBRA established a range of forums to facilitate coordination, consultation and collaboration. For example, it set up state and federal bushfire recovery groups to coordinate and optimise recovery efforts between state, territory and federal recovery agencies.

PM&C successfully leveraged existing relationships and forums to coordinate APS-enterprise and Commonwealth–State efforts in a crisis. The step-up in engagement was pivotal to the handling of the COVID-19 pandemic when it arose later in 2020.

Extraordinary G20 Leaders’ Statement on COVID-19

On 26 March 2020, G20 leaders convened for a virtual Extraordinary G20 Leaders’ Summit to agree on a coordinated response to the COVID-19 pandemic. A G20 Leaders’ Statement was successfully negotiated and released following the Summit. The statement committed leaders to unite against the COVID-19 twin health and economic crises.

PM&C had an important role in negotiating Australia’s position during the Summit so that it would be strongly reflected in the resulting Leaders’ Statement. PM&C’s negotiations helped deliver the Government’s intent, which was to have the Leaders’ Statement reflect Australia’s international health and economic COVID-19 response priorities, including support for vulnerable countries in our region and for a strong multilateral system.

We began by identifying Australia’s strategic priorities and then using them as an anchor for our negotiating position in a highly fluid and fast-moving environment. PM&C’s negotiation on the Leaders’ Statement supported the Prime Minister’s influential participation in the virtual Summit and helped to progress his COVID-19 priorities.

The agreed outcomes in the Leaders’ Statement reinforced support for multilateralism, open markets and the rules-based order—all things that underpin Australia’s national prosperity. Language in the Leaders’ Statement on supporting small island states demonstrated Australia’s commitment to our Indo-Pacific family and regional stability.

PM&C’s part in the virtual negotiation process included:

• coordinating Australian Government positions (within PM&C and across government agencies)
• consulting other member countries to identify and advance areas of mutual interest
• commenting on presidency drafts to shape the outcomes
• participating in a virtual sherpa meeting.

The G20 Leaders’ Statement helped advance Australia’s national interests and drive international cooperation in the midst of the pandemic, signalling that the Prime Minister and global leaders were united and willing to do whatever it took to combat COVID-19.