Details of the Financial Framework (Supplementary Powers) Amendment (2015 Measures No. 9) Regulation 2015

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (2015 Measures No. 9) 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 Education and Training.

 

New table item 108 establishes legislative authority for the Government to provide funding under the Interim Home Based Carer Subsidy Programme for families to access child care provided by nannies to meet or increase their workforce commitments.  

 

The programme was announced on 28 April 2015 by the former Minister for Social Services, the Hon Scott Morrison MP, and is a component of a comprehensive child care reform package.  Responsibility for child care was transferred to the Department of Education and Training in September 2015.

 

The Government will spend almost $40 billion on child care support, as announced in the 2015-16 Budget, including changing the child care system to better support families with access to quality, flexible, and affordable child care targeted at those who need it most.

 

The new child care system will focus on affordable, accessible and flexible child care. Increased flexibility will be supported from 1 January 2016 through the Interim Home Based Carer Subsidy Programme, which will provide care for around 10,000 children whose families cannot easily access mainstream services.

 

Funding of $245.9 million will be provided over two years from 1 January 2016 to provide subsidised care to help families meet the cost of using a nanny.

 

By subsidising the cost of using a nanny in the family home, the programme will provide a more flexible and accessible care option for families who are experiencing the greatest difficulty in finding appropriate child care for their children, to enable them to meet or increase their workforce commitments.  These families include those working non-standard hours, living in rural or remote areas and those who have children with additional needs or a disability.

 

Participating families will receive the subsidy as a fee reduction towards the cost of a nanny, which will be a percentage of the fixed hourly fee of $7.00 per child.  The maximum subsidy is $5.95 per child per hour (85% of the fixed hourly fee of $7.00) for families earning up to $60,000 per annum.  The subsidy amount reduces as family income increases, to $3.50 per child per hour (50 per cent of the fixed hourly fee of $7.00) for family incomes over $165,000 and up to $250,000 per annum.

 

A small number of service providers will be selected through an open competitive selection process and will be responsible for engaging nannies and matching nannies with families.  Service providers will be paid the subsidy on behalf of families and will pass on the subsidy as a fee reduction through grant arrangements.

 

Throughout the pilot period an independent evaluation will be undertaken to inform future government policy about care in the family home.

 

The programme guidelines, including eligibility criteria for families and further information are currently publicly available on the Department of Social Services website at www.dss.gov.au and will also be available on the Department of Education and Training website at www.education.gov.au at a later date.  Successful service providers will enter into a grant agreement with the Department of Education and Training, and will receive an administrative payment to acknowledge their role in administering the programme on behalf of the Department of Education and Training.  Grants will be made in accordance with the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines.  Details of grants will be made publicly available in accordance with the Commonwealth Grants Rules and Guidelines.

 

The decision-maker for the programme will be the Secretary of the Department of Education and Training (or delegate).  Departmental officials and an expert panel will assess the applications and make recommendations to the Secretary.

 

The programme is unsuitable for merits review as it is a time limited pilot programme; has limited funds; and only a proportion of applications can be met.  An application for review would result in funding delays that would affect all grants under the programme, affecting the successful and timely provision of support to families.

 

The programme comes under Outcome 2: Families and Communities; Programme 2.4: Support for the Child Care System; Sub-Programme: Interim Home Based Carer Subsidy Pilot Programme.  Funding details and a description of the programme are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.15A, Social Services Portfolio, at pages 103 to 105.

 

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

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

*         the social welfare power (section 51(xxiiiA)).

 

New table item 109 establishes legislative authority for the Government to provide funding under the Inclusion Support Programme to assist child care services to improve their capacity and capability to include children with additional needs, including children with disability. 

 

The programme was announced on 8 May 2015 by the former Minister for Social Services, the Hon Scott Morrison MP.  Responsibility for child care was transferred to the Department of Education and Training in September 2015.  The programme, which will commence on 1 July 2016, is a component of the Families Package - Child Care Safety Net.  The Families Package - Child Care Safety Net will provide targeted assistance to child care services in disadvantaged communities and also disadvantaged or vulnerable families and children, to address barriers to accessing child care, while encouraging parents to enter and return to the workforce.

 

The focus of the Families Package - Child Care Safety Net is to provide targeted additional support to genuinely disadvantaged families through a number of specific measures that facilitate access to quality early learning for children who need it most.  There are three components:

*         the Additional Child Care Subsidy, which will provide targeted additional fee assistance to children and families who are genuinely disadvantaged;

*         the Community Child Care Fund, a competitive grants programme to assist services to reduce barriers to accessing child care; and

*         a new Inclusion Support Programme to assist child care services to improve their capacity and capability to include children with additional needs.

 

The Government has allocated $409 million over four years from 2015-16 to the Inclusion Support Programme to assist child care services improve their capacity and capability to include all children, in particular those with additional needs. 

 

The programme will provide parents and carers of children with additional needs with access to appropriate child care and early learning services that assist them to participate in the workforce.  The programme will focus on assisting child care services to improve their inclusive practices to include children with additional needs, particularly those children:

*         with a disability or who are undergoing assessment of disability;

*         who are Indigenous Australians;

*         who are from culturally and linguistically diverse backgrounds; or

*         who are from a refugee or humanitarian background.

 

Under the Inclusion Support Programme, funding will be provided for:

*         a network of Inclusion Consultants in each state and territory who will work with child care services to identify their needs, develop goals and implement strategies to build educator and service capacity and capability to facilitate the inclusion of children with additional needs;

*         a specialist equipment library, managed by the Inclusion Consultant in each state and territory, to allow services to borrow items of equipment to enable the inclusion of children with disability with ongoing high support needs;

*         an Inclusion Development Fund (IDF) to provide funding to eligible services to address a barrier to inclusion that cannot be addressed through support from the Inclusion Consultant.  This will include facilitating the employment of an additional educator for centre-based services, providing a fee top up payment for family day care services where including an eligible child results in the educator being unable to enrol the maximum number of children as allowed under the national law and to fund innovative and flexible solutions to address inclusion barriers; and

*         an IDF Manager to administer the IDF on behalf of the Department and provide nationally consistent and equitable management of funding using programme guidelines.  This will include assessing applications for funding, advising child care services of funding outcomes and undertaking compliance activities.

 

The decision-maker for the Inclusion Support Programme will be the Secretary of the Department of Education and Training (or delegate).  The Inclusion Consultant and IDF Manager will be appointed through a procurement exercise managed by the Department of Education and Training.  Contracts will be made in accordance with the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Procurement Rules.

 

The programme is unsuitable for merits review as it is a time limited programme; has limited funds; and only a proportion of applications can be met.  An application for review would result in funding delays that would affect all grants under the programme, affecting the successful and timely provision of support to child care services and subsequently, families of children with additional needs.

 

The programme guidelines, including eligibility criteria and further information will be publicly available on the Department of Education and Training website at www.education.gov.au.  Grants will be made in accordance with the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines.  Details of grants will be made publicly available in accordance with the Commonwealth Grants Rules and Guidelines.

 

The Inclusion Support Programme replaces the Inclusion and Professional Support Program which will cease on 30 June 2016. 

 

The programme comes under Programme 2.4: Support for the Child Care System which is part of Outcome 2: Families and Communities.  Funding details and a description of the programme are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.15A, Social Services Portfolio at page 86 and pages 103 to 105. 

 

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 110 establishes legislative authority for the Government to provide funding under the Community Child Care Fund.  

 

The programme was announced on 8 May 2015, by the former Minister for Social Services, the Hon Scott Morrison MP, as part of the Families Package - Child Care Safety Net.  Responsibility for child care was transferred to the Department of Education and Training in September 2015.

 

The Government has committed $304 million over four years to the Community Child Care Fund.  The element of the Fund supporting service integration in a number of disadvantaged Indigenous communities (including the integration of early childhood, maternal and child health and family support services) will commence from 1 July 2016, with the remaining elements commencing from 1 July 2017.

 

The Community Child Care Fund will be a competitive grants programme for child care services to reduce barriers to accessing child care, particularly in disadvantaged, regional or remote communities and in areas of demonstrated high demand but with low child care availability.

 

Grants will be provided to services to:

*         address community-level barriers to participation in child care;

*         improve their viability and sustainability in areas of limited child care supply;

*         increase the supply of child care places in areas of high demand and low availability; and

*         support the integration of early childhood, maternal and child health and family support services in a number of disadvantaged Indigenous communities, through funding providers to engage in innovative activities that will strengthen or enhance the integration of existing services, as recommended in the Forrest Review of Indigenous Jobs and Training - Creating Parity.

 

The programme guidelines, including eligibility criteria and further information will be publicly available on the Department of Education and Training website at www.education.gov.au.  Grants will be made in accordance with the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines.  Details of grants will be made publicly available in accordance with the Commonwealth Grants Rules and Guidelines.

 

The decision-maker for the programme will be the Secretary of the Department of Education and Training (or delegate).  Applications will be assessed by departmental officials who will make recommendations to the Secretary, based on selection criteria which will be detailed in the programme guidelines and funding round documentation to be available on the Department's website.

 

The programme is unsuitable for merits review as it is a time limited programme; has limited funds; and only a proportion of applications can be met.  An application for review would result in funding delays that would affect all grants under the programme, affecting the successful and timely provision of support to families.

 

 

The programme comes under Programme 2.4: Support for the Child Care System which is part of Outcome 2: Families and Communities.  Funding details and a description of Programme 2.4 are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.15A, Social Services Portfolio at pages 88 and 102.

 

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 111 establishes legislative authority for the Government to fund implementation of the Literacy and Numeracy Test for Initial Teacher Education Students (the Test).

 

The Test has been designed to measure aspects of personal literacy and numeracy of initial teacher education students, with a benchmark set at the top 30 per cent of the population.

 

Delivery of the Test supports the Government's response to the Teacher Education Ministerial Advisory Group's report Action Now: Classroom Ready Teachers, which recommended that the Test be used to demonstrate that all initial teacher education students are within the top 30 per cent of the Australian population in personal literacy and numeracy (recommendation 13).

 

At the 18 September 2015 COAG Education Council meeting, State and Territory Education Ministers agreed to the Government's proposal that the Test be implemented nationally and, from 1 July 2016, as the means by which initial teacher education students demonstrate they are within the top 30 per cent of the Australian population in personal literacy and numeracy.

 

Funding of $100,000 will be provided to the Test administrator to assist in establishing organisational capability so that the Test will be ready for national delivery from 1 July 2016. This funding will allow for the customisation and establishment of the online Test delivery platform and the development of new trial Test questions.  From 1 July 2016, the expectation is that the Test administrator will deliver the Test on a cost recovery basis with students paying to sit the Test.  The Test administrator will be responsible for updating and refreshing the Test items and maintenance of the Test delivery platform.

 

The Test will be funded from departmental expenses as identified in Outcome 1: Improved early learning, schooling, student educational outcomes and transitions to and from school through access to quality support, parent engagement, quality teaching and learning environments of the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.5, Education and Training Portfolio (PBS) at page 23.  The Test also supports high quality initial teacher education as referred to in the Department's Strategic Direction Statements at pages 11 to 13 of the PBS.

 

The Test administrator will be selected through a two-phased approach to market involving an open request for expressions of interest and then a request for a quote from suitable respondents.  The delegate of the Secretary of the Department will select the Test administrator as per standard procurement practices.  Funding and procurement decisions will be made in accordance with the Commonwealth Procurement Rules, the Department's Secretary Instructions and delegations on the expenditure of relevant monies, in accordance with the Public Governance, Performance and Accountability Act 2013.

 

As the funding will be provided to the Test administrator selected at the conclusion of a two-phased approach to market process, and consistent with procurement practice, there will be no merits review available.  Funding is being provided via a procurement tender process where merits review is ordinarily not available.  Debriefing of unsuccessful respondents will be made available where appropriate.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the purpose of the item references the communications power (section 51(v)) of the Constitution.

 

New table item 112 establishes legislative authority for the Government to fund the Skills Checkpoint for Older Workers Pilot (Skills Checkpoint Pilot), which will conduct a trial, free of charge, of the delivery of skills analysis and career advisory services for employed individuals aged 45 to 54.  These services will assist individuals assess where they are in their careers and offer guidance if a change in career direction is needed or desired. 

 

The Skills Checkpoint Pilot will be trialled by up to three selected Australian Apprenticeship Support Network (AASN) providers in three jurisdictions and cover metropolitan, regional and remote areas for up to 2,650 individuals.  Selection is occurring through a procurement process, in accordance with the Commonwealth Procurement Rules, with responses assessed against capacity, capability, strategies and value for money.

 

The AASN providers will engage and deliver a range of support services to employed individuals aged 45 to 54 who are assessing their career and training options.  The service will assist individuals to gain:

*         an understanding of their own skills and gaps in skills;

*         a broad understanding of potential new industry and career options; and

*         an appreciation of the knowledge and skills required to manage career transitions.

 

The service is intended to assist participants to gain additional skills and training to enable them to lengthen their working lives.  Individuals will be provided with a career plan and recommendations at the end of their assessment.  The Skills Checkpoint Pilot supports the Government's commitment to skill shortages, business growth, improved productivity, reducing the size of welfare payments and strengthening the economy.

 

The Skills Checkpoint Pilot will provide the following services:

*         screening and testing to determine current skills, gaps in skills and aptitude for a variety of career and training pathways;

*         provide information, recommend an appropriate career, industry and/or occupation and job-matching services where possible;

*         referral and information to further programmes and advice where there are multiple and/or complex issues; and

*         a career plan and recommendations for the individual to take away with them.

 

The Government has allocated funding to support the Skills Checkpoint Pilot over a nine-month period, commencing in November 2015.  Funding will support delivery of these services.  In addition, these funds will support an independent evaluation of the Skills Checkpoint Pilot to assess the viability of the service, test and refine assessment models, independently evaluate outcomes and inform the development of a high-quality, national approach for funding consideration.  Funding allocations to the selected AASN providers will be based on their responses to tender documentation.

 

Funding decisions will be made by the Secretary's Delegate (the Branch Manager of Skills Development and Apprenticeships Policy Branch) who will select the AASN providers to fund.  Funding decisions will be made in accordance with the Department of Education and Training's Secretary Instructions and delegations on the expenditure of relevant monies in accordance with the Public Governance, Performance and Accountability Act 2013. 

 

There will be no merits review of funding decisions for the Skills Checkpoint Pilot.  The Skills Checkpoint Pilot is unsuitable for merits review as it is a time limited pilot initiative; has limited funds; and only a proportion of applications can be met.  An application for review would result in funding delays that would affect the successful and timely provision of Skills Checkpoint Pilot services.  However, a merits review process will be developed in the event the Skills Checkpoint Pilot is rolled out following evaluation.

 

The Age Discrimination Commissioner, the Hon Susan Ryan AO proposed the Skills Checkpoint Pilot concept in her address to the National Press Club on 17 September 2014.  More information on the Skills Checkpoint Pilot will be available on the Department of Education and Training website at www.education.gov.au when providers have been selected to deliver the services.  The website will have extensive search terms to enable interested parties to navigate to this information. 

 

Funding for this item will come from the Industry Workforce Training programme, which is part of Programme 2.8: Building Skills and Capability, Sub-programme 2.8.4: Support for the National Training System.  Programme 2.8 is part of Outcome 2: Promote growth in economic productivity and social wellbeing through access to quality higher education, international education, and international quality research, skills and training.  Details are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No.1.5, Education and Training Portfolio at page 61.  

 

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.

 

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. 9) 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 on the following activities which are administered by the Department of Education and Training:

*         the Interim Home Based Carer Subsidy Pilot Programme to provide fee assistance to help families meet the cost of child care provided by a nanny;

*         the Inclusion Support Programme to provide targeted assistance to child care services in disadvantaged communities and also to disadvantaged or vulnerable families and children, to address barriers to accessing child care, while encouraging parents to enter and return to the workforce;

*         the Community Child Care Fund to provide grants for child care services to reduce barriers to accessing child care, particularly in disadvantaged, regional or remote communities and in areas of demonstrated high demand but with low child care availability;

*         the Literacy and Numeracy Test for Initial Teacher Education Students to measure aspects of personal literacy and numeracy of initial teacher education students, with a benchmark set at the top 30 per cent of the population; and

*         the Skills Checkpoint for Older Workers Pilot to conduct a trial, free of charge, of the delivery of skills analysis and career advisory services for employed individuals aged 45 to 54.

 

The items specified in Schedule 1AB are the responsibility of the relevant Minister who has 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