Accordingly, federal discrimination laws rely on the regulatory framework as it was in the 1980s to address the challenges of the 2020s. The modern approach to regulation has bypassed federal discrimination laws. The Commission’s proposed reforms in this area reflect the concept of ‘responsive regulation’. This envisages that different tools are required to achieve compliance with the law, depending on the willingness and capacity of individuals and organisations. It envisages capacity building for circumstances where there is an inability to comply, and more coercive powers for circumstances where there is an unwillingness to comply with discrimination legislation.16 The Commission concludes that its effectiveness as a regulatory agency can be enhanced by shifting from the current reliance solely on conciliation (ADR) and persuasion, to a broader suite of regulatory approaches, including co‑regulatory powers and inquiry powers. The proposed new co-regulatory powers are summarised in Figure 10. The mix of powers would assist in building greater predictability and confidence in the operation of federal discrimination laws, as well as greater understanding and awareness of rights and duties. Confidence and certainty are 2 foundational expectations of business and industry that the Commission has factored into its proposals to modernise the regulatory framework. The Commission considers that there are several measures that can be introduced to assist people and organisations to better understand their responsibilities under the law and to provide increased certainty to them when seeking to comply. Figure 10: Commission's powers under reform proposals Addressing non-compliance Co-regulatory Persuasion Inquiry function, with powers such as enforceable undertakings, compliance notices and the ability to seek civil penalties in court Standards (enforceable) Action plans (with active Commission role) Voluntary audits Code of practice Special measure certifications Temporary exemptions Alternative dispute resolution Complaints information Guidelines and resources Training and education 86 FREE & EQUAL: Revitalising Australia’s Commitment to Human Rights

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