The Department of Employment and Workplace Relations (DEWR or the department) commenced planning in 2018 for the delivery of a New Employment Services Model (NESM). This arrangement was to replace the previous employment services program, jobactive, which had been in place from 1 July 2015. The planning process included the establishment of an Employment Services Expert Advisory Panel (the expert panel), which provided 11 recommendations in October 2018 around improving outcomes for job seekers through the employment services system.

In September 2021, the department undertook the NESM procurement process to establish a panel of service providers to deliver employment services to at-risk job seekers. The department evaluated proposals between October 2021 and February 2022, and notified providers of the outcomes in March 2022. Work orders were executed in July 2022 for the commencement of the new program — Workforce Australia — from 1 July 2022. The Workforce Australia Services Panel was established through this procurement process.

This audit was conducted to provide independent assurance to the Australian Parliament on the design and establishment of the panel arrangements for the program, including whether the procurement process conducted was effective.

Key findings:

• The department’s establishment of the Workforce Australia Services Panel was largely effective.
• The design of the procurement process was largely consistent with the Australian Government’s policy objectives for the New Employment Services Model (NESM). Four key ‘transformational’ changes were to be implemented, including a new regulatory licensing framework for employment services through legislative amendments.
• Financial viability analysis was undertaken by KPMG in 2020 and 2021 to provide advice to the department on whether providers would be viable under the new policy settings, including operating with a target caseload to staff ratio of 80:1 to provide these more intensive services. The analysis indicated that there remained at least two and up to 12 employment regions that were unlikely to be able to support a single provider under the final policy settings for the new model.