Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (2015 MEASURES NO. 4) REGULATION 2015 (SLI NO 60 OF 2015)

EXPLANATORY STATEMENT

 

Select Legislative Instrument No. 60, 2015

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(2015 Measures No. 4) Regulation 2015

 

The Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) confers on the Commonwealth, in certain circumstances, powers to: make arrangements under which money can be spent; or to make grants of financial assistance; and to form, or otherwise be involved in, companies.  The arrangements, grants, programmes and companies (or classes of arrangements or grants in relation to which the powers are conferred) are specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations).  The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013

 

Section 65 of the FF(SP) Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

 

Section 32B of the FF(SP) Act authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Principal Regulations.  Section 32B also authorises the Commonwealth to make, vary and administer arrangements for the purposes of programmes specified in the Principal Regulations.  Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programmes. 

 

Schedule 1 to the Regulation amends the Principal Regulations to establish legislative authority in Schedule 1AB for spending by the Government to provide:

*         a contribution to the Bathurst 200 Commemorative Flagstaff Project, part of the commemorations for Bathurst's bicentenary (Infrastructure and Regional Development portfolio)

*         funding to the Duke of Edinburgh's International Awards - Australia to support increased access to, and participation in, the Award by young people under the age of 18 who are disadvantaged and those between the ages of 18 and 24 who have a disability (Education and Training portfolio)

*         funding under the Grants in Aid sub-programme for selected national organisations to conduct research on proposed government education policies and education policy areas; provide research information to the Government to inform education policy; and develop and disseminate resources and information relating to education policy and the engagement of parents in the education of their children (Education and Training portfolio)

*         funding to the Australian Research Alliance for Children and Youth Limited, a national non-profit organisation, to undertake targeted research in relation to parent engagement and child and youth wellbeing to inform the Government; and to disseminate information about government research, policies and programmes, including those relating to Indigenous parents, children and youth (Education and Training portfolio)

*         funding to Financial Counselling Australia to support vulnerable individuals, families and communities to improve their financial capability, resilience and wellbeing by: providing online website tools and information; supporting the management of the national financial counselling Helpline; supporting attendance by Helpline and Indigenous financial counsellors at the annual national financial counselling conference; and supporting specific sessions at those conferences (Social Services portfolio).

 

Details of the Regulation are set out at Attachment A.  A Statement of Compatibility with Human Rights is at Attachment B

 

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003. 

 

The Regulation commences on the day after registration on the Federal Register of Legislative Instruments. 

 

Consultation

 

In accordance with section 17 of the Legislative Instruments Act 2003, consultation has taken place with the Department of Education and Training, the Department of Infrastructure and Regional Development and the Department of Social Services.

 

A regulation impact statement is not required as the Regulation only applies to non-corporate Commonwealth entities and does not adversely affect the private sector. 

 

 


Details of the Financial Framework (Supplementary Powers) Amendment (2015 Measures No. 4) Regulation 2015

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (2015 Measures No. 4) Regulation 2015.

 

Section 2 - Commencement

 

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislative Instruments. 

 

Section 3 - Authority

 

This section provides that the Regulation is made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 - Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedules to the Regulation.

 

Schedule 1 - Amendments

 

Item 1 - Part 4 of Schedule 1AB (at the end of the table)

 

This item adds five new items to Part 4 of Schedule 1AB to establish legislative authority for Government spending for certain activities administered by the Department of Infrastructure and Regional Development, the Department of Education and Training and the Department of Social Services.

 

New table item 79 would establish legislative authority for the Government to provide a contribution to the Bathurst 200 Commemorative Flagstaff Project.  The project involves the installation of a permanent memorial, including the reinstatement of a flagstaff at the location where one was erected by Governor Macquarie on 7 May 1815, and the construction of a viewing platform and public concourse overlooking the Macquarie River and Bathurst Plains in New South Wales. 

 

The project, which is part of Bathurst's bicentennial celebrations, is expected to generate ongoing interest for the local tourism economy in Bathurst, along with associated direct and indirect regional development benefits during the construction phase. 

 

Total funding of $250,000 is being contributed by the Government in 2014-15, with the remaining funding for the project being provided by the Bathurst Regional Council and community partnership contributions.  The Department of Infrastructure and Regional Development will administer the Government's contribution.  Funding will be made in line with the Commonwealth Grants Rules and Guidelines and the Public Governance, Performance and Accountability Act 2013

 

The Assistant Minister for Infrastructure and Regional Development will be the decision-maker for spending decisions for the Government's contribution to the project.  Decisions will be based on the need to achieve value with relevant money following assessments provided by the Department of Infrastructure and Regional Development.

 

In accordance with the Commonwealth Grants Rules and Guidelines, information about the grant will be published on the Department of Infrastructure and Regional Development's website http://www.infrastructure.gov.au/department/grants/index.aspx

 

The Government is providing one-off grant funding for the project, subject to it achieving value with relevant money.  Given the targeted, non-competitive, nature of the funding, merits review is not applicable. 

 

Funding will come from Programme 3.1: Regional development.  Programme 3.1 is part of Outcome 3: Strengthening the sustainability, capacity and diversity of regional economies including through facilitating local partnerships between all levels of government and local communities; and providing grants and financial assistance.  Funding details are described at page 39 of the Portfolio Additional Estimates Statements 2014-15, Infrastructure and Regional Development Portfolio.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         interstate and international trade and commerce power (sections 51(i)); and

*         Commonwealth executive power and the express incidental power (sections 61 and 51(xxxix)).

 

New table item 80 establishes legislative authority for the Government to provide funding to the Duke of Edinburgh's International Awards - Australia (the Award).  The programme will be administered by the Department of Education and Training.

 

The Minister for Education and Training, the Hon Christopher Pyne MP, and the then Minister for Health, the Hon Peter Dutton MP, announced on 6 November 2014 that the Government would provide $1.4 million to the Award in 2014-15.

 

The Award encourages young people aged from 14 to 24 to volunteer their time in their communities, participate in sport and recreational activities, develop their teamwork and leadership competence, and develop their personal interests and social skills.  The Award is supported by around 80,000 volunteers and around 22,000 young people a year commence the Award, with nearly 40,000 undertaking the Award at any time.

 

The funding will be used to support increased access to, and representation in, the Award nationally by young people:

*         under the age of 18 who are disadvantaged (including where they have a mental or physical disability, are disengaged, are from low socio-economic circumstances, or are from regional or remote communities) to contribute to their development and enjoyment of a full and decent life

*         between the ages of 18 and 24 with a disability, with the aim of helping them to maintain maximum independence, full physical, mental, social and vocational ability, and full inclusion and participation in all aspects of life.

 

In meeting this objective, funding will be provided to the Duke of Edinburgh's International Award - Australia, the organisation that conducts the Award in Australia, to support registration and participation in, and completion of, the Award by young people identified above.  This may include the provision of funds to a young person's 'Award Unit' (for example, their high school, club, or community organisation through which they are participating in the Award), and subsidising support workers to work directly with young people identified above who are participating in the Award.

 

Expenditure for this programme will be made in accordance with the Commonwealth Grants Rules and Guidelines, the Department's Secretary Instructions and delegations on the expenditure of relevant monies, in accordance with the Public Governance, Performance and Accountability Act 2013.

 

Given the targeted, non-competitive, nature of the funding to be provided for the Award, merits review is not applicable.

 

Funding will be provided under Programme 2.7: Youth Support, as set out at page 36 of the Portfolio Additional Estimates Statements 2014-15: Education and Training Portfolio.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the external affairs power (section 51(xxix)) of the Constitution.

 

New table item 81 establishes legislative authority for the Government to fund the Grants in Aid sub-programme which will be administered by the Department of Education and Training.

 

Funding will be provided to certain selected national organisations in order that those organisations may:

*         provide research-based input to the Department on proposed government policies and actions in the education policy area

*         conduct research and publish reports, resources and materials on education policy issues

*         provide an interactive information service to the Government, schools and school communities on education policy and issues (including the implementation of, and improvements to, education policy)

*         develop and manage a range of projects to improve the effective involvement of parents and families in student learning and development, and engagement with government education policies and actions

*         enhance parental engagement by acting as a conduit to parents from across all school sectors on education policy and issues, particularly with parents who are hard to engage

*         develop and disseminate resources to parents and families to assist in understanding government education policy, for example, the National Assessment Program - Literacy and Numeracy (NAPLAN) and the My School website

*         develop and encourage effective partnerships between schools, families and the broader community.  This work aims to improve students' learning experiences and outcomes, and research and examine ways in which schools can be made more welcoming and inclusive, especially for those families who are currently disengaged from their child's school

*         undertake other activities in accordance with the parameters of the Grants in Aid sub-programme.

 

Expenditure will be in accordance with the Commonwealth Grants Rules and Guidelines, the Department's Secretary Instructions and delegations on the expenditure of relevant monies, in accordance with the Public Governance, Performance and Accountability Act 2013.

 

Guidelines will be developed to be included in the current Grants and Awards Programme Guidelines, which will be made available on the Department's website (www.education.gov.au).  However, given the targeted, non-competitive, discretionary nature of the funding to be provided for the selected organisations under this sub-programme, merits review is not applicable for any funding decisions.

 

Grants in Aid is a sub-programme of the Grants and Awards Programme which comes under Programme 2.3 Schools Support.  Programme 2.3 is part of Outcome 2: Improved learning, and literacy, numeracy and educational attainment for school students, through funding for quality teaching and learning environments, workplace learning and career advices.  Details are set out at page 54 of the Portfolio Budget Statements 2014-15, Budget Related Paper No.1.5, Education Portfolio.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         communications power (section 51(v))

*         Commonwealth executive power and the express incidental power (sections 61 and 51(xxxix)).

 

New table item 82 establishes legislative authority for the Government to provide funding to the Australian Research Alliance for Children and Youth Limited (ARACY).  The Department of Education and Training will administer this activity.

 

ARACY is a national non-profit organisation that brings together researchers, policy makers and practitioners to work on issues affecting the health, development and wellbeing of young Australians.  The Government will provide $1.0 million per annum for four years to ARACY from 2014-15. 

 

The funding will enable ARACY to:

*         undertake targeted research, and provide information to the Government, on strategies to help parents better engage in their child's school education and to inform government education policy

*         undertake targeted research projects for the purpose of informing the Government, for example, on education policy and issues, children and youth

*         develop and disseminate information, including online, on education policy and issues, and research undertaken for the Government

*         undertake targeted research, and inform government policy and programme development, relating to Aboriginal and Torres Strait Islander parents, children and youth

*         develop and disseminate resources to teachers, education institutions, parents and families to assist in understanding government education policy

*         undertake other activities within the parameters of the programme.

 

Expenditure will be in accordance with the Commonwealth Grants Rules and Guidelines, the Department's Secretary Instructions and delegations on the expenditure of relevant monies, in accordance with the Public Governance, Performance and Accountability Act 2013.

 

Guidelines for this programme will be developed to be included in the current Student Resilience and Wellbeing Programme Guidelines, which will be made available on the Department's website (www.education.gov.au).  However, given the targeted, non-competitive, discretionary nature of the funding to be provided for ARACY, merits review is not applicable for any funding decisions.

 

Funding for ARACY comes under Programme 2.3: Schools Support, which is part of Outcome 2: Improved learning, and literacy, numeracy and educational attainment for school students, through funding for quality teaching and learning environments, workplace learning and career advices.  Details are set out at pages 53 to 54 of the Portfolio Budget Statements 2014-15, Budget Related Paper No 1.5, Education Portfolio.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         communications power (section 51(v))

*         races power (section 51(xxvi))

*         Commonwealth executive power and the express incidental power (sections 61 and 51(xxxix)).

 

New table item 83 establishes legislative authority for the Government to provide funding to Financial Counselling Australia Incorporated (FCA), as part of the Commonwealth Financial Counselling and Financial Capability - Capability Building activity, within the Financial Wellbeing and Capability (FWC) programme.  The FWC programme is administered by the Department of Social Services (DSS).

 

The FWC programme provides support to vulnerable individuals, families and communities to improve their financial capability, resilience and lifetime wellbeing. 

 

Funding will be provided to FCA to support:

*         Online and telephone services which will ensure key online and telephone based information and resources that underpin the FWC activity are developed and enhanced, including by ensuring that an early intervention approach to the delivery of essential services is taken and that the national 1800 Financial Counselling Helpline is managed to ensure consistent and quality service provision.

*         Attendance at the National Financial Counselling Conference by Helpline and Indigenous financial counsellors; and specific sessions at the Conference.  The Conference contributes to the professional development requirements for financial counsellors and enhances their knowledge and the sharing of best practice, including changes to legislative and regulatory frameworks, to provide consistent and quality service to consumers.

*         Indigenous initiatives which contribute to the professional development requirements and sharing of best practice for Indigenous people, or people who provide financial counselling predominantly to Indigenous people.

 

Funding for FCA will be determined on the basis of a direct selection process and allocation of funds under a grant agreement.  The grant agreement will be made in accordance with the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines.  Details of the grant will be made available on the DSS website at www.dss.gov.au/about-the-department/overview/grants-funding, in accordance with the Commonwealth Grants Rules and Guidelines

 

The programme is unsuitable for merits review as there is a single provider, uniquely qualified to undertake these services.  FCA manages the national 1800 Financial Counselling Helpline, develops and supports national standards for financial counselling and co-ordinates the National Financial Counselling Conference. 

 

The programme comes under Outcome 2: Families and Communities, Programme 2.1: Families and Communities, Sub-programme 2.1 Financial Wellbeing and Capability.  Relevant funding details for the Outcome are set out at page 99 of the Portfolio Budget Statements 2014-15, Budget Paper No. 1.15A, Social Services Portfolio and were revised in the Portfolio Additional Estimates Statements 2014-15, Social Services Portfolio at page 58.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         bankruptcy and insolvency power (section 51(xvii));

*         invalid and old-age pensions power (section 51(xxiii));

*         social welfare power (section 51(xxiiiA));

*         immigration and emigration power (section 51(xxvii));

*         aliens power (section 51(xix));

*         communications power (section 51(v));

*         external affairs power (section 51(xxix));

*         territories power (section 122); and

*         races power (section 51(xxvi).


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Financial Framework (Supplementary Powers) Amendment (2015 Measures No. 4) Regulation 2015

 

This Regulation 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 Legislative Instrument

 

Section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) and to make, vary and administer arrangements and grants for the purposes of programmes specified in the Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programmes. 

 

The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013

 

The Regulation amends Schedule 1AB to the FF(SP) Regulations to establish legislative authority for spending by the Government to provide:

*         a contribution to the Bathurst 200 Commemorative Flagstaff Project, part of the commemorations for Bathurst's bicentenary (Infrastructure and Regional Development portfolio)

*         funding to the Duke of Edinburgh's International Awards - Australia to support increased access to, and participation in, the Award by young people under the age of 18 who are disadvantaged and those between the ages of 18 and 24 who have a disability (Education and Training portfolio)

*         funding under the Grants in Aid sub-programme for selected national organisations to conduct research on proposed government education policies and education policy areas; provide research information to the Government to inform education policy; and develop and disseminate resources and information relating to education policy and the engagement of parents in the education of their children (Education and Training portfolio)

*         funding to the Australian Research Alliance for Children and Youth Limited, a national non-profit organisation, to undertake targeted research in relation to parent engagement and child and youth wellbeing to inform the Government; and to disseminate information about government research, policies and programmes, including those relating to Indigenous parents, children and youth (Education and Training portfolio)

*         funding to Financial Counselling Australia to support vulnerable individuals, families and communities to improve their financial capability, resilience and wellbeing by: providing online website tools and information; supporting the management of the national financial counselling Helpline; supporting attendance by Helpline and Indigenous financial counsellors at national financial counselling conferences; and supporting specific sessions at those conferences (Social Services portfolio).

 

The items specified in Schedule 1AB are the responsibility of the relevant Ministers who have portfolio responsibility for the matters.

 

Human rights implications

 

The Regulation does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This Regulation is compatible with human rights as it does not raise any human rights issues.

 

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance

 


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