[Index] [Search] [Download] [Bill] [Help]
2022-2023-2024-2025 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES Wellbeing of Future Generations Bill 2025 EXPLANATORY MEMORANDUM and STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Circulated by authority of Dr Sophie Scamps MP Member for MackellarWellbeing of Future Generations Bill 2025 BACKGROUND This Bill is for an Act to establish a framework for embedding consideration of the wellbeing of future generations into government decision-making. It will introduce intergenerational policymaking to Australia, which considers the rights and interests of current and future generations concurrently. There has never been a more critical time to rethink the Australian approach to governance, policymaking and national leadership. We are living through corresponding climate, environmental, economic and social crises. The intergenerational inequality gap is large and growing. RATIONALE FOR THE BILL Experts have identified six key drivers behind the growing intergenerational inequality in Australia.1 The first is Australia's political system, with its short-term electoral cycle which prioritises immediate political objectives over long-term prosperity planning. Australia's constitution requires federal parliamentary terms to be 3 years or shorter. As such, there is no incentive for leaders to implement a decision-making regime which considers the impacts of those decisions beyond that narrow window. This built-in short termism results in the interconnected, complex challenges of emerging climate, environmental, economic and social challenges are deprioritised at best, and ignored at worst. The increasing convergence of these complex challenges increases the risks associated with all of them. The next driver is increasing intergenerational economic inequality. For the first time in modern history, younger generations are worse off than their parents2, facing low wage growth, some of the least affordable housing in the world and a prolonged cost of living crisis. There is a significant risk that the impending generational wealth transfer will embed these inequalities and further entrench a class divide. Next, demographic changes are going to place ever more pressure on social safety nets. Over the next 40 years, the number of people aged over 65 in Australia will more than double and the number aged over 85 will more than triple.3 This will increase the burden on healthcare systems, the aged pension and superannuation. The ratio of working to non-working Australians will dramatically change, and young Australians will increasingly bear the responsibility of looking after the older generations, while simultaneously facing their own increasingly difficult economic circumstances. Fourthly, technological advancements are outpacing governments' ability to regulate them. There is increasing risk from data breaches, intrusions on privacy, addiction, scams and harmful social media 1 Foundations for Tomorrow, November 2024, For Our Future: The Australian Future Generations Policy Brief, accessed on 9 January 2025, For Our Future: The Australian Future Generations Policy Brief. 2 Danielle Woods, August 2023, The Grattan Institute: Creating a Better Australia for Generation Next, accessed on 9th January 2025, Grattan Institute: Creating a better Australia for Generation next. 3 Australian Government, 2023, Intergenerational Report 2023: Australia's Future to 2063, page viii, accessed on 9 January 2025, Intergenerational Report 2023.
content. If not effectively regulated, the socio-economic disruptions associated with these technologies have the potential to exacerbate labour market imbalances and contribute to growing inequality. 4 Effective governance in this area could also ensure Australians are the beneficiaries of this disruption. For example, policies that safely leverage the vast potential of artificial intelligence could jumpstart productivity, boost growth and raise incomes. Fifthly, the climate crisis and environmental degradation are predicted to exponentially worsen. Australia is uniquely vulnerable to both. Like other catastrophes, the impacts of the climate and environment crises are not felt equally - even now, they disproportionately impact low-income, rural and Indigenous communities. Current generations, already facing economic and social inequalities, will increasingly feel the impact of worsening living conditions, natural disasters and ecosystem collapse. The sixth driver of intergenerational inequality in Australia is social fragmentation and a loss of trust in the institutions of democracy. Social cohesion is at risk globally due to increasing differences in age, economic status and political ideology. Trust in public institutions in Australia remains relatively stable compared with other, similar countries, but social cohesion is worsening.5 As divisions deepen, trust in public institutions risks declining, complicating efforts to build consensus on critical long-term issues. INTERNATIONAL EXAMPLES The concept of legislating to ensure the security and prosperity of future generations is not new. In 2015, Wales passed the Well-being of Future Generations (Wales) Act 2015, which is considered international best practice for integrating long-term thinking into policy and law making. The Act requires public bodies to consider the long-term impact of their decisions on current and future generations, emphasising sustainability, wellbeing and social equity. Importantly, the Act established a Future Generations Commissioner. The Commissioner is an advocate and representative - independent from government - empowered to hold public bodies accountable and promote sustainable practices across the government. The European Union has recently appointed its inaugural Commissioner dedicated to Intergenerational Fairness. The EU has also initiated a Ministers for the Future network to support Ministers from EU Member states focusing on long-term policy planning to address the challenges which will be faced by future generations.6 Japan has a Children's Future Strategy Council7 to include the interests of children in policy-making, with a focus on future generations. And Malta has a 4 Kristalina Georgieva, 14 January 2024, AI will Transform the Global Economy. Let's Make Sure it Benefits Humanity, accessed on 9 January 2025, AI Will Transform the Global Economy. Let's Make Sure It Benefits Humanity. 5 The 2024 Scanlon-Monash Index of Social Cohesion found social cohesion in Australia to be at its equal lowest level since the Index began. James O'Donnell and Qing Guan with Trish Prentice, Mapping Social Cohesion, 2024, Scanlon Institute, page 7, accessed on 7 January 2025 at Mapping Social Cohesion - 2024 Report.pdf. 6 The European Commission, 2023, Strategic foresight, accessed on 10th January 2025, European Commission: Strategic foresight. 7 Prime Minister's Office of Japan, 11 December 2023, Children's Future Strategy Council, accessed 10 January 2025, Children's Future Strategy Council (The Prime Minister in Action) | Prime Minister's Office of Japan.
Guardian of Future Generations, an independent statutory body responsible for safeguarding intergenerational and intragenerational sustainable development.8 Further, the international community recognises the importance of taking measures to protect the rights of future generations. In 2023, the United Nations Office of the High Commissioner for Human Rights adopted the Maastricht Principles on the Human Rights of Future Generations. In doing so, the United Nations confirmed that states have an obligation to promote and protect the human rights of future generations under international law.9 In September 2024, the United Nations adopted the Declaration on Future Generations.10 The Declaration advances a global mandate to undertake "a whole-of-government approach to ... the assessment, development, implementation and evaluation of policies that safeguard the needs and interests of future generations."11 The international community has acted. Australia could be an early adopter of positive steps to ensure a better future for generations to come. There is global momentum to do so, and there has never been a more critical moment in time. OUTLINE OF THE BILL The Bill introduces four measures. 1. A federal legislative framework for the wellbeing of future generations. The framework established by the Bill is essential to protect long-term policy commitments from the shifting priorities of governments. The framework will advance intergenerational equity and wellbeing, requiring long-term considerations - the wellbeing and opportunities of current and future Australians - to be taken into account in parliamentary and governmental decision-making. 2. Impose a positive duty on public bodies to take into account the long-term impact of their decisions. Public bodies will be required to consider future impacts, work better with people, communities and each other, seek to prevent problems and take a more joined-up, less siloed approach. 3. Establish an independent, statutory Commissioner for Future Generations. The Commissioner will advocate for future Australians' long-term interests, ensuring the concept of intergenerational fairness is integrated in governmental decision-making processes. 8 Sustainable Development Directorate of Malta, Guardian of Future Generations, accessed 10 January 2025, Guardian of Future Generations - Sustainable Development. 9 United Nations Office of the Higher Commissioner for Human Rights, 26 June 2023, The Universal Declaration of Human Rights at 75: Looking to Future Generations, accessed 10 January 2025, The Universal Declaration of Human Rights at 75: Looking to Future Generations | OHCHR. 10 Pact for the Future, A/79/L.2, Resolution adopted by the General Assembly of the United Nations on 22 September 2024, accessed on 10 January 2025, General Assembly: The Pact for the Future. 11 United Nations, Summit of the Future Outcome Documents September 2024, Pact for the Future, Global Digital Compact and Declaration on Future Generations, page 23, accessed on 10 January 2025, Pact for the Future, Global Digital Compact and Declaration on Future Generations.
4. Require a National Conversation on Future Generations. Led by the Commissioner, this exercise in participatory democracy will engage the public as active co-creators of the vision for Australia's future, fostering inclusivity and building a sense of public ownership of long- term policies. FINANCIAL IMPACT The Parliamentary Budget Office (PBO) has provided a costing of the proposal to establish an Office for a Commissioner for Future Generations. The costing includes: a) the cost of standing up the Office; and b) the annual costs associated with running the Office, including the salaries of the Commissioner and 5 staff members.12 The PBO expects the funding required would be $4.7m over the forward estimates, comprising: a) $1.7m for the financial year 2025-26; b) $1.5m for the financial years 2026-27 and 2027-28; and c) A similar amount thereafter, indexed in accordance with the wage price index. Any costs associated with the implementation of the process outlined in the Bill will be cost effective when weighed against the cost of laws made with only short-term objectives, liable to be reversed in alignment with short-term parliamentary terms. Further, evidence shows that preventative, long- term policy interventions yield strong returns on investment.13 Funding will be sought to support the implementation of the Bill, if passed. NOTES ON CLAUSES 12 The staffing profile would be 1 x Executive Level 2, 2 x Executive Level 1 and 2 x Australian Public Service Level 6. 13 Every A$1 invested in preventative healthcare returns A$14 (Department of Health and Aged Care, Budget 2023-2024, accessed 6 February 2025, Health protection, preventive health and sport); in education, every A$1 invested in early childhood programmes returns A$2 per dollar spent (Victoria University, Every $1 spent on preschool will return $2, accessed 6 February 2025, Every $1 spent on preschool will return $2 | Victoria University); in youth work, every A$1 invested in community interventions delivers a return of A$3 per dollar (Deloitte, Youth Affairs Council Victoria, Youth Work Matters Social Return on Investment Study, August 2022, accessed 6 February 2025, PowerPoint Presentation); in climate investment, resilience measures can yield up to A$10 per dollar invested (Global Commission on Adaptation, 2019, Adapt Now: A Global Call for Leadership on Climate Resilience, accessed 6 February 2025, GlobalCommission_Report_FINAL.pdf).
Clause 1: Short title 1. This clause provides for the Act to be cited as the Wellbeing of Future Generations Act 2025. Clause 2: Commencement 2. This clause provides for each provision of the Bill to commence on the day after the Consolidated Revenue Fund is appropriated under an Act to the Department in which the Act will be administered. Clause 3: Objects 3. This clause provides that the objects of the Act are to promote progress towards a more healthy, secure, sustainable, cohesive and prosperous Australia, and the ways in which that is to be achieved. Clause 4: Crown to be bound 4. This clause makes the Act binding on the Crown and exempts the Crown from liability to a pecuniary penalty or prosecution. Clause 5: Application 5. This clause provides for the Act to apply both within and without Australia and it external territories. Clause 6: Definitions 6. This clause provides definitions for key words and phrases used in the Act. 7. Where a word is not defined, readers should rely on its ordinary meaning, when read in the context of the provisions for which it appears as well as the Bill more broadly. Clause 7: Wellbeing of Australia 8. This clause provides for the meaning of the 'wellbeing of Australians' to include the economic, social, environmental and cultural wellbeing of current and future generations of Australians. Clause 8: Public bodies must take wellbeing of Australia into account 9. This clause imposes a duty on public bodies to: a. consider the long-term impact of its decisions; b. how its decisions will affect the wellbeing of Australia; c. act in accordance with the future generations principle (see clause 10). Clause 9: Public bodies must act in pursuit of the wellbeing of Australia 10. Clause 9 imposes a duty on public bodies and the government to act in pursuit of the wellbeing of Australia when making decisions, and in accordance with the future generations principle (see clause 10). 11. Clause 9(2) and (4) provide for how the bodies are required to achieve that, including through the publication of q Wellbeing objectives statement. Clause 10: The future generations principle
12. Clause 10 provides that the 'future generations principle' is directed to ensuring that the needs of the present are met without compromising the ability of future generations to meet their own needs. 13. To act in accordance with the future generations principle means taking into account, at least: a. the balancing of short and long-term needs; b. the importance of collaboration, and diversity among collaborators seeking to achieve the wellbeing of Australia; c. that deploying resources preventatively may be necessary to meet wellbeing objectives. Clause 11: Commissioner for Future Generations 14. Clause 11 establishes a Commissioner for Future Generations. Clause 12: Functions 15. Clause 12 gives the Commissioner the power to do all things necessary in connection with the performance of his or her functions, and sets out what those functions are. 16. The Commissioner's functions include promoting a prosperous Australia, advocating for the long- term interests of current and future generations, ensuring intergenerational fairness is embedded in government decision-making, and monitoring and reporting on compliance with the duties on public bodies in clauses 7 - 10. Clause 13: Application of finance law 17. Clause 13 provides that the Commissioner is an official of the Department for the purposes of the finance law. Clause 14: Arrangements relating to staff of the Department 18. Clause 14 sets out the administrative arrangements for the employment of the Commissioner's staff. Clause 15: Delegation by Commissioner 19. Clause 15 gives the Commissioner discretion to delegate all or any of his or her functions to specified individuals. Clause 16: Appointment 20. Clause 16 provides for the way in which the Commissioner is to be appointed. 21. The appointment process is designed to ensure that the Commissioner is independent from government. The Minister makes the final decision about which candidate to select, from a shortlist of 3, which maintains Ministerial discretion while ensuring accountability and transparency in the appointment process. Clause 17: General terms and conditions of appointment 22. Clause 17 provides that the Commissioner is to be employed on a full-time basis and for a maximum period of 5 years. Clause 18: Remuneration 23. Clause 18 sets out how the Commissioner's remuneration is to be determined. Clause 19 - 22: Conditions of employment
24. Clause 19, 20, 21 and 22 set out other details of the Commissioner's employment conditions, including leaves of absence, other paid work, resignation and termination. Clause 23: Disclosure of interests 25. Clause 23 provides the circumstances in which the Commissioner must make disclosures under the Public Governance, Performance and Accountability Act 2013. Clause 24: Acting Appointments 26. Clause 24 gives the Minister the power to appoint a person to act as Commissioner in specified circumstances. Clause 25: Public Consultation 27. Clause 25 requires the Commissioner to a public consultation, to be called a National Conversation, in relation to the wellbeing of Australia, and the scope of that National Conversation. 28. Clause 25 further provides a process for submissions to be made and published as part of the National Conversation. Clause 26: Wellbeing for Australia insights report 29. Clause 26 requires the Commissioner to prepare and publish a wellbeing for Australia insights report and sets out the content required in the report. Clause 27: Rules 30. Clause 27 gives the Minister the power to make rules necessary to give effect to the Act.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. Wellbeing of Future Generations Bill 2025 This bill 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 bill This Bill is for an Act to establish a framework for embedding consideration of the wellbeing of future generations into government decision-making. It will achieve this by legislating four measures: 1. A federal framework for the wellbeing of future generations. The framework established by the Bill is essential to protect long-term policy commitments from the shifting priorities of governments. The framework will advance intergenerational equity and wellbeing, requiring long-term considerations - the wellbeing and opportunities of future Australians - to be taken into account in parliamentary and governmental decision-making. 2. Impose a positive duty on public bodies to take into account the long-term impact of their decisions. Public bodies will be required to consider future impacts, work better with people, communities and each other, seek to prevent problems and take a more joined-up, less siloed approach. 3. Establish an independent, statutory Commissioner for Future Generations. The Commissioner will advocate for future Australians' long-term interests, ensuring the concept of intergenerational fairness is integrated in governmental decision-making processes. 4. Require a National Conversation on Future Generations and ongoing public engagement. Led by the Commissioner, this exercise in participatory democracy will engage the public as active co-creators of the vision for Australia's future, fostering inclusivity and building a sense of public ownership of long-term policies. Human rights implications This Bill actively and positively seeks to advance the human rights of future generations through providing a framework for government decision-making that takes their interests into account. International law recognises future generations as holders of internationally recognised human rights.
Most fundamentally, the International Covenant on Civil and Political Rights (1966) establishes that human rights are universal and must be upheld for all individuals, including those not yet born.14 The UNESCO Declaration on the Responsibilities of the Present Generations Towards Future Generations (1997) outlines ethical responsibilities to ensure that future generations inherit a healthy environment and sustainable resources.15 The Maastricht Principles on the Human Rights of Future Generations16, adopted on 3 February 2023, clarify the present state of international law as it applies to the human rights of future generations. The Principles consolidate the developing legal framework and affirm binding obligations of States and other actors as prescribed under international and human rights law, and have been adopted by the United Nations Office of the High Commissioner for Human Rights. And in September 2024, the United Nations adopted the Pact for the Future, containing the Declaration on Future Generations. The Declaration on Future Generations. The Declaration affirms the collective responsibility of countries to protect the needs and interests of future generations. The Declaration serves as a global standard, calling on member states to safeguard the interests and needs of future generations through a "whole-of-government approach to ... the assessment, development, implementation and evaluation of policies that safeguard the needs and interests of future generations". 17 Conclusion This bill is compatible with human rights because it advances the protection of human rights. Dr Sophie Scamps MP, Member for Mackellar 14 United Nations Human Rights, Office of the High Commissioner, 16 December 1966, International Covenant on Civil and Political Rights, accessed 10 January 2025, International Covenant on Civil and Political Rights | OHCHR. 15 United Nations Educational, Scientific and Cultural Organisation, 12 November 1997, Declaration on the Responsibilities of the Present Generations Towards Future Generations, accessed on 10 January 2025, Declaration on the Responsibilities of the Present Generations Towards Future Generations - Legal Affairs. 16 July 2023, The Maastricht Principles on the Human Rights of Future Generations, accessed on 10 January 2025, Rights of Future Generations. 17 Pact for the Future, A/79/L.2, Resolution adopted by the General Assembly of the United Nations on 22 September 2024, accessed on 10 January 2025, General Assembly: The Pact for the Future.