Net Zero Economy Authority Bill 2024

The majority voted in favour of a motion to read the bill for a second time. In other words, they voted to agree with the main idea of the bill.

What is the bill's main idea?

According to the bills digest:

The [Net Zero Economy Authority Bill 2024 (NZEA Bill)] will establish the Net Zero Economy Authority (NZEA), which will provide advice, education, and coordination relating to Australia’s transition to a net zero emissions economy.

The Bill does not include any power to order the closure of coal- or gas-fired power stations.

The Bills’ most substantive provision is the Energy Industry Jobs Plan (the Plan) in Part 5, which is a structural adjustment framework for the workforce transition that occurs after an owner/operator announces their intention to close a coal-fired or gas-fired power station. The Plan also covers the workforce of ‘dependent employers’ such as coal mines (if they provide coal to generate electricity at a coal-fired power station that is closing), and other suppliers.

The NZEA’s CEO and the Fair Work Commission (FWC) have pre-eminent roles in the Plan.

The mechanisms for the Plan will include:

• consultations with relevant employers, employees and employee organisations

• carrots and sticks (grants, and FWC determinations and orders) and

• advice at various junctures from a Stakeholder Panel and an Energy Industry Worker Redeployment Advisory Group (EIWRAG).

The Explanatory Memorandum indicates that costs associated with the Plan have not been fully identified at this stage.

The Explanatory Memorandum provides information about the NZEA’s likely running costs but also notes that ‘departmental and administered costs associated with the Plan’s implementation and operation’ are not available at this stage. The NZEA Bill foreshadows the provision of funding or grants to workers and/or their employers, but the Bill and Explanatory Memorandum are silent on specific mechanisms and likely costs.

The NZEA Bill will give the FWC additional responsibilities in relation to the Plan but will not make any changes to the Fair Work Act 2009 as the Plan is intended to work within the existing industrial relations framework. However, the Explanatory Memorandum is silent on funding implications for the FWC of these additional responsibilities.