Outcome 2: Performance measures

Objective 1—The Fair Entitlement Guarantee Program functions effectively

Table 8. Objective 1 – The Fair Entitlement Guarantee Program functions effectively
Indicator Target Result
Percentage of claims processed within 16 weeks of receiving an effective claim 80% 91.6%
Average processing time for all claims 14 weeks 8.3 weeks
Claim payments that are correct 95% 96.88%
Claimants satisfied with the department’s administration of the Fair Entitlements Guarantee 80% 86.2%
Insolvency practitioners satisfied with the department’s administration of the Fair Entitlements Guarantee 80% 91.1%

Fair Entitlement Guarantee

The Fair Entitlements Guarantee met or exceeded all of its key performance measures for 2017–18.

Average processing time for claims was 8.3 weeks, an improvement from 10.1 weeks in 2016–17. A total of 91.6 per cent of claims were processed within 16 weeks, an improvement on 85.9 per cent in 2016–17. The two timeliness indicators are calculated using data from the Fair Entitlements Guarantee claims assessment database. This data is collected continuously in administering the Fair Entitlements Guarantee.

Accuracy of claim decisions is calculated from a monthly internal audit of a statistically significant random sample of claim decisions. The result is the proportion of decisions found to be accurate against the sample tested. This year, 96.88 per cent were found to be accurate against a target of 95 per cent. This is an improvement from 95.8 per cent in 2016–17.

Stakeholder satisfaction is measured through electronic surveys of stakeholders. Claimants are surveyed six weeks after they receive an outcome on their claim; insolvency practitioners who have been involved with the Fair Entitlements Guarantee throughout the year are surveyed annually towards the end of the financial year. Results are calculated as the percentage of respondents who indicate they are ‘satisfied’ or ‘very satisfied’ with the Fair Entitlements Guarantee. Nil responses are excluded. Claimant satisfaction increased slightly to 86.2 per cent from 85.8 per cent in 2016–17. Claimant satisfaction is highly correlated with claimant outcomes: 98 per cent of people who received what they expected were satisfied, whereas only 18.3 per cent of people who did not receive a payment stated they were satisfied. A total of 91.1 per cent of insolvency practitioners were satisfied with the department’s administration of the Fair Entitlements Guarantee. This was an improvement on the 87 per cent in 2016–17.

Table 9. Objective 2 – Commonwealth-funded projects are undertaken by builders accredited by the Office of the Federal Safety Commissioner
Indicator Target Result
Percentage of accreditation applications assessed and applicants contacted within 10 working days. 90% Exceeded: over 2017–18
99% of applications assessed
within 10 working days
Satisfaction of accredited companies with the service provided
by the Office of the Federal Safety Commissioner. Results are
calculated as the percentage of respondents rating the service
as satisfactory or better.
50% Exceeded: 95% of
companies were satisfied
with the level of service
provided by the OFSC in
2017–18
Companies consider that workplace safety accreditation has
improved their safety performance. Results are calculated as the
percentage of respondents indicating accreditation has improved their
safety performance.
50% Exceeded: 87% of newly
accredited companies
consider that their workplace
safety practices have
improved as a result of
accreditation

Office of the Federal Safety Commissioner

The Office of the Federal Safety Commissioner (OFSC) works closely with industry to encourage companies to seek and maintain accreditation. This collaborative approach provides companies with the best opportunity to meet the required high standards and ensures the greatest impact in improving workplace health and safety across sections of the construction industry.

In 2017–18, the OFSC continued to refine its interaction with and management of accredited companies. Additional information technology enhancements to further streamline reporting continued to reduce red tape for companies. Companies are now able to submit all required reports through their online accounts, ensuring accuracy and quality through built in validation checks. The online application continues to expedite the assessment process with 99 per cent of applications assessed within 10 working days, which exceeds OFSC’s 90 per cent target.

The annual survey of accredited companies was undertaken in May 2018 and provides an opportunity for companies to anonymously rate the scheme and the OFSC’s services. Accredited companies reaffirmed the positive benefits of accreditation with 87 per cent of newly accredited companies stating that the scheme had improved safety practices in their company, and approximately 85 per cent indicating that they would recommend accreditation to non-accredited companies. The survey results show that accredited companies also continued to be satisfied with the OFSC’s management of the scheme. Nearly all survey respondents (95 per cent) were satisfied with the OFSC’s service and more than 80 per cent found the guidance material to be clear and easy to understand.

Accredited companies are subject to regular compliance audits and must also provide work health and safety reports to the OFSC twice a year. Information gathered through these processes allows the Federal Safety Commissioner to monitor the performance of accredited companies and the scheme’s effectiveness. At 30 June 2018, 446 companies were accredited under the scheme. These companies are currently undertaking Commonwealth funded construction work valued at over $40 billion.

The OFSC operates under the Australian Government’s Regulator Performance Framework. Self-assessment against the framework’s six key performance indicators is undertaken annually and reported at www.fsc.gov.au

Table 10. Objective 3 – The workplace relations system contributes to the productivity agenda by encouraging the adoption of flexible and modern workplace relations
Indicator Target Result
Evidence that the national workplace relations system supports improved
productivity outcomes.
Increase in productivity
and growth in the ABS wage price index.
Productivity increased by 0.7% over the year to the June quarter 2018, compared with 0.8% over the year to June 2017(subject to ABS revision).
Wage Price Index was 2.1% over the year to the June quarter 2018, compared with 1.9% over the year to June 2017.
Evidence that industrial action
is minimised.
Maintenance of the number
of working days lost per
thousand employees.
9.9 working days lost per thousand employees over the year to the June 2018 quarter, compared with 12.7 over the year to June 2017.
Evidence that enterprise bargaining
is used by employers and employees
to negotiate pay and conditions.
Increase in the number and
coverage of enterprise
agreements.
12,832 current agreements at 30 June 2018 covering around 2.0 million employees compared to 14,492 agreements covering around 1.9 million employees at 30 June 2017.

Workplace relations

Data sourced from the Australian Bureau of Statistics (ABS) indicates that productivity growth fell slightly from 0.8 per cent over the year to the June quarter 2017, to 0.7 per cent over the year to the June quarter 2018. Latest available data shows that growth in the wage price index increased from 1.9 per cent over the year to the June quarter 2017, to 2.1 per cent over the year to the June quarter 2018.

ABS data shows that the rate of industrial disputes for the June quarter 2018 decreased to 9.9 working days lost per thousand employees, compared to 12.7 working days lost per thousand employees for the year to June quarter 2017. The rate of industrial disputes remains at near historical lows.

The department maintains a workplace agreement database which contains information on all known federal enterprise agreements in operation since the introduction of the Enterprise Bargaining Principle in October 1991. Analysis of the database indicates there were 12,832 agreements covering around 2.0 million employees at 30 June 2018, a decrease from 14,492 agreements covering around 1.9 million employees at 30 June 2017.