FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (2018 MEASURES NO. 1) REGULATIONS 2018 (F2018L00456) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (2018 MEASURES NO. 1) REGULATIONS 2018 (F2018L00456)

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(2018 Measures No. 1) Regulations 2018

 

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, programs 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 programs specified in the Principal Regulations.  Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs. 

 

Section 39B of the FF(SP) Act authorises the Commonwealth to form companies, or participate in the formation of companies, specified in the Principal Regulations and whose objects or proposed activities are specified in the Principal Regulations.  Schedule 1B to the Principal Regulations specifies the companies and their objects or proposed activities.   

 

Schedule 1 to the Financial Framework (Supplementary Powers) Amendment (2018 Measures No. 1) Regulations 2018 (the Regulations) amends Part 3 of the Principal Regulations and Schedules 1AA, 1AB and 1B to the Principal Regulations.  The amendments repeal selected items from schedules to the Principal Regulations and include transitional provisions to preserve the capacity for the Commonwealth to take action in relation to a grant or arrangement entered into prior to the repeal of relevant items as if these items continue in force, should the need for such action arise in the future.

 

The Regulations repeal 163 items from schedules to the Principal Regulations:

 

The items in Schedules 1AA and 1AB to the Principal Regulations have been identified as appropriate for repeal because the grants and arrangements made in reliance on these items have come to an end or are expected to come to an end prior to the commencement of the Regulations, or another source of legislative authority has been identified for such grants and arrangements.  The items being repealed from Schedule 1B to the Principal Regulations relate to companies that have been deregistered under the Corporations Act 2001.

 

The transitional provisions for items being repealed preserve the power for the Commonwealth to vary or administer a grant or arrangement entered into prior to the repeal of relevant items as if these items continue in force, should the need for such action arise in the future.  Such a need could arise because a grant or arrangement entered into prior to the repeal has not expired as expected or because there is a need to administer a continuing obligation in such an agreement (for example, to recover funds in the event that a breach of the agreement is later identified).  

 

The transitional provisions also preserve the capacity for Ministers and accountable authorities of non-corporate Commonwealth entities to issue delegations in respect of this power.  The provisions do not provide the authority for the Commonwealth to make any new commitments to spend money in reliance on the items being repealed but would authorise spending pursuant to any contractual commitment entered into prior to the repeal. 

 

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

 

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.  The Regulations commence on the day after the instrument is registered on the Federal Register of Legislation. 

 

Consultation

 

In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Agriculture and Water Resources; the Attorney-General's Department; the Department of Communications and the Arts; the Department of Education and Training; the Department of the Environment and Energy; the Department of Health; the Department of Home Affairs; the Department of Human Services; the Department of Industry, Innovation and Science; the Department of Infrastructure, Regional Development and Cities; the Department of Jobs and Small Business; the Department of the Prime Minister and Cabinet; the Department of Social Services; and the Department of the Treasury.

 

A regulation impact statement is not required as the Regulations only apply to non-corporate Commonwealth entities and do not adversely affect the private sector.

 

 

 


Details of the Financial Framework (Supplementary Powers) Amendment (2018 Measures No. 1) Regulations 2018

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (2018 Measures No. 1) Regulations 2018.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on 1 January 2019. 

 

Section 3 - Authority

 

This section provides that the Regulations are made under the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act).

 

Section 4 - Schedules

 

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

 

Schedule 1 - Amendments

 

Item 1 - Before regulation 23

 

This item inserts the title for Division 1 in Part 3 of the Principal Regulations - Amendments made by the Financial Management and Accountability Amendment (Public Governance) Regulation 2014 - before regulation 23 (definitions).  Division 1 will be comprised of existing regulations 23 to 26 in Part 3 of the Principal Regulations.

 

Item 2 - Regulation 23

 

This item amends the reference to 'In this Part' within regulation 23 (definitions) to 'In this Division'.  The amendment clarifies that definitions in regulation 23 relate only to Division 1 in Part 3 of the Principal Regulations.

 

Item 3 - At the end of Part 3

 

This item adds new Division 2 - Amendments made by the Financial Framework (Supplementary Powers) Amendment (2018 Measures No. 1) Regulations 2018 - at the end of Part 3 of the Principal Regulations.

 

New regulation 27 (power to vary or administer grants or arrangements) ensures that, despite the repeal of table items in Schedules 1AA and 1AB by Schedule 1 to the Regulations, there are transitional provisions in place to preserve the power for the Commonwealth to vary or administer grants or arrangements entered into prior to the repeal of these table items as if these items continue in force for the purposes of sections 32B (power to make, vary and administer arrangements and grants) and 32C (terms and conditions for grants) of the FF(SP) Act, should the need for such action arise in the future.  Such a need could arise because a grant or arrangement entered into prior to the repeal has not expired as expected or because there is a need to administer a continuing obligation in such an agreement (for example, to recover funds in the event that a breach of the agreement is later identified).

 

The transitional provisions also preserve the capacity for Ministers and accountable authorities of non-corporate Commonwealth entities to issue delegations in respect of this power.  The transitional provisions do not provide the authority for the Commonwealth to make any new commitments to spend money in reliance on the table items being repealed (for example, a grant or arrangement could not be varied to increase any amount payable by the Commonwealth).  The provisions would however authorise spending pursuant to any contractual commitment entered into prior to the repeal of the relevant item, including where:

 

Item 4 - Amendments of listed provisions - Part 3 of Schedule 1AA

 

Items 4 to 7 amend Schedules 1AA and 1AB by repealing 142 table items from Schedule 1AA and 16 table items from Schedule 1AB to the Principal Regulations.  These table items have been identified as appropriate for repeal because the grants and arrangements made in reliance on these table items have come to an end or are expected to come to an end prior to the commencement of the Regulations, or another source of legislative authority has been identified for such grants and arrangements. 

 

Item 4 amends Part 3 of Schedule 1AA by repealing the following four table items.   

 

Table item

Name

317.001

Grant to Refugee Council of Australia for advice on the views of the refugee and humanitarian non-government sector on the Humanitarian Program, including resettlement and onshore protection, and on humanitarian settlement issues

317.003

Grant towards the cost of developing a multicultural centre in Mirrabooka, Western Australia

318.002

Ford Australia Environmental Innovation Grant

318.003

General Motors Holden--next generation vehicles

 

Item 5 - Amendments of listed provisions - Part 4 of Schedule 1AA

 

Item 5 amends Part 4 of Schedule 1AA by repealing the following 138 table items.   

 

Table item

Name

401.001

Carbon Farming Initiative

Clean energy future - Creating Opportunities on the Land - extending the benefits of the Carbon Farming Initiative

401.002

Climate Change Adaptation Partnerships Program

Climate Change Adjustment Program

Climate Change Research Program

401.003

Drought Assistance - Re-establishment Assistance

Drought policy reform - Pilot of new measures in Western Australia

Drought Assistance - Professional Advice

401.004

Tasmanian Forest Industry - Adjustment package

401.005

Live Animal Exports - Assistance to Individuals

Live Animal Exports - Business Assistance

401.006

Regional Food Producers Innovation and Productivity Program

401.008

Northern Australia Beef Industry Strategy - Indigenous Pastoral Project

401.009

National Weeds and Productivity Research Program

401.017

Transitional Farm Family Payment

401.021

Australian wine industry - support

401.024

Asian Food Markets Research Fund

401.025

Leveraging Australia's Brand for Food

401.026

Food in the National Curriculum

401.027

Community Food Initiatives

401.030

Caring for our Country - Sustainable Agriculture stream

402.007

Commonwealth Human Rights Education Program

402.009

Payments under the Indigenous Justice Program

402.010

Payments for the provision of Family Violence Prevention Legal Services for Indigenous Australia

402.011

Payments for Indigenous interpreter services in the Northern Territory

402.012

Closing the Gap in the Northern Territory law and order measures

402.029

Royal Commission into Institutional Responses to Child Sexual Abuse

405.004

Digital Productivity

405.010

Digital Television Switchover - spectrum restacking - assistance

405.011

Spectrum - assistance to broadcasters for electronic news gathering

405.012

Digital Productivity - Development and Use of Industry Specific eKITs with Industry Peak Bodies

405.013

Digital Productivity - Digital Careers program with National ICT Australia (NICTA)

405.015

Digital Productivity - Telehealth trial with Townsville Mackay Medicare Local

406.005

Solar Hot Water Initiative

406.006

Green Loans / Green Start

406.007

Home Insulation Program

406.012

National Solar School Plan

406.017

Natural Resource Management for Climate Change

406.019

Energy security fund

407.005

School Support

407.007

National Trade Cadetship

407.008

Online Diagnostic Tools

407.009

Australian Baccalaureate

407.011

National Asian Languages in Schools

407.012

Grants and Awards

407.013

National School Chaplaincy and Student Welfare Program (NSCSWP)

407.015

Quality Outcomes

407.016

Framework for Open Learning

407.017

Local Schools Working Together

407.018

Student Resilience and Wellbeing

407.019

Review of School Funding

407.020

One Laptop Per Child

407.021

Maths and Science Participation

407.024

Digital Education

407.025

Digital Education Revolution Project Pool

407.026

Digital Education Revolution (Non-Government)

407.027

National Action Plan on Literacy and Numeracy

407.028

Education Infrastructure

407.029

Smarter Schools--Improving Teacher Quality National Partnership

407.030

Support for Students with Disabilities

407.031

Students with Disabilities (COPE)

407.032

Student with Disabilities (Non-Government)

407.033

Youth Support

407.034

Youth Attainment and Transitions National Partnership

407.035

Youth Engagement

407.036

Empowering Local Schools

407.037

Empowering Local Schools (COPE)

407.038

Empowering Local Schools (Non-Government)

407.039

Rewards for School Improvement

407.040

Rewards For School Improvement (COPE)

407.041

Rewards For School Improvement (Non-Government)

407.042

National Rewards for Great Teachers

407.044

Job Services Australia

407.046

National Green Jobs Corps

407.070

Wage Assistance for Cyclone Yasi

407.075

Creative Young Stars

407.078

Philanthropic Fund

407.079

Youth Connections

407.080

National Career Development Strategy

407.081

School Business Community Partnership Brokers

409.001

Education services and compliance activities

410.001

Family Support

410.009

Targeted Community Care

410.016

Economic Development and Participation

410.017

Indigenous Housing and Infrastructure

410.018

Native Title and Land Rights

410.019

Indigenous Capability and Development

410.021

Remote Service Delivery (RSD)

410.024

Equal Opportunity for Women in the Workplace Agency

410.026

Remote Jobs and Communities Program--Community Development

414.001

Local Solutions Fund

415.043

Therapeutic Goods regulatory grants program

417.007

Diversity and Social Cohesion

417.033

Legal Advice Scheme

417.037

2011--2013 Irregular Migration Research Program

417.042

Regional Processing and Resettlement Arrangements

418.002

Enterprise Connect

418.005

Tasmanian Innovation and Investment Fund

418.007

Manufacturing Technology Innovation Centre

418.011

Small scale mammalian cell production facility

418.017

Commercial Ready Program

418.018

Green Car Innovation Fund

418.020

Liquefied Petroleum Gas Vehicle Scheme

418.024

Clean Business Australia - Retooling for Climate Change

418.025

Clean Business Australia - Green Building Fund

418.026

Clean Business Australia - Climate Ready Program

418.029

Clean Technology Innovation Program

418.036

South-East South Australian Innovation and Investment Fund

418.037

Textile Clothing and Footwear - Strategic Capability Program

418.041

Collaborative Research Network program

418.044

Commonwealth-Australian National University Strategic Relationship

418.047

Super Science--Future Industries

418.054

Australian Apprenticeship Centres

418.057

Australian Government Skills Connect--Investing in Experience (Skills, Recognition and Training)

418.058

Australian Government Skills Connect--Workplace English Language and Literacy

418.059

Australian Government Skills Connect--National Workforce Development Fund

418.060

Australian Government Skills Connect--Australian Apprenticeships Mentoring

418.061

Australian Government Skills Connect--Accelerated Australian Apprenticeships

418.062

Critical Skills Investment Fund

418.065

National Foundation Skills Strategy

418.066

National Training Programs

418.068

The Right Trade for You

418.069

Australian Apprenticeship Access

418.070

Australian Skills Centres of Excellence

418.071

Productive Ageing Through Community Education

418.073

Apprentice to business owner--business skills and mentoring program

418.077

Support to the Tertiary Education and Vocational Education Training sectors

418.078

Latrobe Valley Economic Diversification Program

419.002

Tasmanian Wheat Freight Scheme

419.005

Seat Belts on Regional School Buses

419.006

Strengthening Aviation Security - optimal technologies at international gateway airports

419.010

Remote Aviation Infrastructure Fund

419.011

Remote Aerodrome Safety Program

419.014

Sustainable Australia - Liveable Cities

419.015

Regional Infrastructure Fund

419.016

Jobs Fund - Infrastructure Employment Projects

419.017

Cloncurry Community Precinct

419.018

Nation Building Plan for the Future Program

419.019

Implementation of noise amelioration for Adelaide Airport

419.020

Implementation of noise amelioration for Sydney Airport

420.002

National Security & International Policy

421.002A

Referendum on financial recognition of local government

425.016

Remediation of land affected by the Tiwi Islands Plantation project

426.001

Support for Markets and Business and the Development and Operation of the Commonwealth Superannuation System

 

Item 6 - Amendments of listed provisions - Part 3 of Schedule 1AB

 

Item 6 amends Part 3 of Schedule 1AB by repealing the following two table items.   

 

Table item

Name

12

Grants for promotion of Australia as a financial technology destination

21

Women's Rugby League World Cup 2017

 

Item 7 - Amendments of listed provisions - Part 4 of Schedule 1AB

 

Item 7 amends Part 4 of Schedule 1AB by repealing the following 14 table items.   

 

Table item

Name

1

Digital Productivity - Telehealth trial with Townsville Mackay Medicare Local

8

Agriculture in Education

10

Interim Farm Household Allowance

11

Australia-Indonesia Centre

12

Assistance for transition to the new regime for delivery of certain public interest telecommunications services

20

Matthew Flinders' Chart

22

Green Army Programme

31

Early Language Learning Australia Trial

79

Bathurst 200 Commemoration

84

Home Insulation Program Industry Payment Scheme

104

Australian Men's Shed Association

107

Industry Skilling Program Enhancement--Schools Pathways Programme

108

Support for the Child Care System--Child Care Services Support--Interim Home Based Carer Subsidy Pilot Programme

112

Skills Checkpoint for Older Workers Pilot Programme

 

Item 8 - Amendments of listed provisions - Schedule 1B

 

Item 8 amends Schedule 1B by repealing the following five table items.  These table items have been identified as appropriate for repeal because they relate to companies that have been deregistered under the Corporations Act 2001.

 

Table item

Company

2

Low Carbon Australia Limited

9

Australian River Co Limited

13

Aged Care Standards and Accreditation Agency

14

General Practice Education and Training Limited

15

IIF Investments Pty Ltd

 


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 (2018 Measures No. 1) Regulations 2018

 

These Regulations are 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 programs specified in the FF(SP) Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs.  Section 39B of the FF(SP) Act authorises the Commonwealth to form companies, or participate in the formation of companies, specified in the FF(SP) Regulations and whose objects or proposed activities are specified in the FF(SP) Regulations.  Schedule 1B to the FF(SP) Regulations specifies the companies.  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 Regulations amend Part 3 of the FF(SP) Regulations and Schedules 1AA, 1AB and 1B to the FF(SP) Regulations.  The amendments repeal selected items in the schedules that are no longer needed and include transitional provisions to preserve the capacity for the Commonwealth to take action in relation to an arrangement or grant entered into prior to the repeal of relevant items as if these items continue in force, should the need for such action arise in the future.  

 

The Regulations repeal 163 items from schedules to the FF(SP) Regulations:

 

The items in Schedules 1AA and 1AB to the FF(SP) Regulations have been identified as appropriate for repeal because the grants and arrangements made in reliance on these items have come to an end or are expected to come to an end prior to the commencement of the Regulations, or another source of legislative authority has been identified for such grants and arrangements.  The items being repealed from Schedule 1B to the FF(SP) Regulations relate to companies that have been deregistered under the Corporations Act 2001.

 

The transitional provisions for items being repealed preserve the power for the Commonwealth to vary or administer a grant or arrangement entered into prior to the repeal of relevant items as if these items continue in force, should the need for such action arise in the future.  Such a need could arise because a grant or arrangement entered into prior to the repeal has not expired as expected or because there is a need to administer a continuing obligation in such an agreement (for example, to recover funds in the event that a breach of the agreement is later identified). 

 

The transitional provisions also preserve the capacity for Ministers and accountable authorities of non-corporate Commonwealth entities to issue delegations in respect of this power.  The provisions do not provide the authority for the Commonwealth to make any new commitments to spend money in reliance on the items being repealed but would authorise spending pursuant to any contractual commitment entered into prior to the repeal. 

 

Human rights implications

 

The Regulations do not engage any of the applicable rights or freedoms.

 

Conclusion

 

These Regulations are compatible with human rights as they do not raise any human rights issues.

 

Senator the Hon Mathias Cormann

Minister for Finance

 


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