Details of the Financial Framework (Supplementary Powers) Amendment (Communications and the Arts Measures No. 2) Regulations 2017

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Communications and the Arts Measures No. 2) Regulations 2017.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on the day after registration on the Federal Register of Legislation. 

 

Section 3 - Authority

 

This section provides that the Regulations are 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 Schedule to the Regulations.

 

Schedule 1 - Amendments

 

Item 1 - In the appropriate position in Part 4 of Schedule 1AB (table)

 

This item adds two new table items to Part 4 of Schedule 1AB to establish legislative authority for government spending on certain activities administered by the Department of Communications and the Arts.

 

New table item 228 establishes legislative authority for the Government to provide continued funding to The Australian Children's Television Foundation (the ACTF).

 

The ACTF is a national children's media production and policy hub and performs a wide range of functions including being a distributor and investor of Australian children's content; an instigator of new, innovative and entertaining children's media; a developer of valuable screen resources for the education sector; and a voice on children's media policy matters.

 

The ACTF was established in 1982 following a commitment from the Government and all state and territory governments to develop entertaining media made specifically for children and young people and, in particular, to drive higher standards for children's content.  The ACTF is a not-for-profit company limited by guarantee.  It is governed by a constitution that sets out the manner in which the internal administration of the company is to be conducted.  The ACTF Board is comprised of three Commonwealth appointees; one representative from each state and territory that contributes funding; and up to three members who are elected by the Board at each annual general meeting. 

 

 

The Government has provided funding to the ACTF since its establishment.  The objective of providing continued funding to the ACTF is to support the ongoing development, production and distribution of high-quality screen content and educational material for Australian children reflective of Australian voices, and contributing to Australian sense of identity and culture which is accessible to all Australian audiences.  

 

The funding will be used for the national activities of the ACTF including:

*         investing in the development and production of engaging, entertaining, accessible and educative screen content for Australian children;

*         delivering educational outcomes through the development and production of educational resources on ACTF-supported projects as well as engaging with teachers and students across Australia; and

*         maximising access for children's audiences to new and existing Australian children's content by facilitating distribution of content across a broad range of platforms.

 

Providing funding to the ACTF will positively impact the Australian screen industry and Australian audiences by ensuring young audiences have access to high-quality Australian stories that are critical for educating, entertaining and contributing to a sense of culture and identity.

 

Funding of $3.75 million for the ACTF was included in the 2017-18 Budget under the measure 'Broadcasting and Content Reform Package - funding for Australian film and television content and SBS' for a period of two years commencing in 2017-18.  Details are set out in Budget 2017-18, Budget Measures, Budget Paper No. 2 2017-18 at page 73. 

 

Funding to the ACTF will be provided by way of a grant via direct offer.  Processes for providing direct funding to the ACTF will follow the Commonwealth Grants Rules and Guidelines.  The grant will be administered either by the Department of Communications and the Arts or one of the government grants hubs.  The department will enter into a funding agreement with the ACTF to ensure compliance and reporting on all government objectives.  The ACTF will be responsible for delivering activities under the funding agreement.

 

The funding decision will be made by the Minister for the Arts and all relevant approvals will be subject to the Public Governance, Performance and Accountability Act 2013.

Information on the funding decision will be published at www.communications.gov.au/who-we-are/department/funding-reporting.

 

The funding decision is not considered suitable for merits review.  It is not directed towards the circumstances of particular persons but to the broader benefit to the Australian community.  In addition, the grant funding will be targeted, non-competitive and for the specific purpose to support the ongoing development, production and distribution of high-quality screen content and educational material for Australian children.

 

The ACTF is the only organisation that can effectively and efficiently deliver the Government's outcomes of supporting the development, production and distribution of high-quality screen content and educational material for Australian children reflective of Australian voices, and contributing to Australian sense of identity and culture which is accessible to all Australian audiences.  The decision is unlikely to affect the interests of any one person and the re-making of a decision under merits review would impact the funding objectives and the timely provision of support to the Australian screen industry for the purpose of creating high-quality children's screen content.

 

Funding for this item will come from Program 2.1: Arts and Cultural Development, which is part of Outcome 2.  Details are set out in the Portfolio Budget Statements 2017-18, Budget Related Paper No. 1.3, Communications and the Arts Portfolio at page 18.

 

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 communications power (section 51(v)); and

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

 

With respect to the communications power, funding will be provided to support the development, production and dissemination of television and online content.

 

With respect to the Commonwealth executive power and the express incidental power, funding will support distinctly Australian children's screen content.

 

New table item 229 establishes legislative authority for the Government to provide continued funding to AusFILM International Incorporated (Ausfilm).

 

Ausfilm is an Australian screen industry organisation which was incorporated in 1998.  It works on behalf of the Commonwealth, state and territory governments, and screen production businesses.  Ausfilm is governed by a constitution that sets out the manner in which the internal administration of the organisation is to be conducted.  The Ausfilm Board is comprised of five screen agency representatives, five corporate member representatives and an independent Chairperson.

   

Ausfilm's role is to:

*         position and market Australia worldwide as a destination for film, television, commercial and other screen production, as well as post, digital and visual effects (PDV) production;

*         promote Australia's production incentives;

*         utilise and expand international trade networks to create business opportunities and generate export income;

*         provide advice to offshore producers; and

*         advocate on matters relating to the attraction of foreign-financed productions to Australia.

 

The Government has been providing funding to Ausfilm since 2002.  The objective of providing continued funding to Ausfilm is to positively impact the Australian screen industry by promoting the industry internationally, attracting production to Australia, and establishing connections with the international industry that will generate new job and training opportunities for the local industry. 

 

The funding will be used for the national and international activities of Ausfilm including:

*         marketing the Australian Screen Production Incentive, which provides taxation rebates for expenditure on Australian feature films, television and other screen programs, as well as large-budget international productions shot in Australia;

*         providing easily accessible and up-to-date information on screen production and PDV services in Australia including government regulation relevant to production and PDV services;

*         promoting Australia's International Co-production Program to offshore producers, which encourages productions and fosters relationships between international screen content creators under formal arrangements between Australia and the governments of various countries creating benefits for both partners; and

*         providing advice to the Government and its entities on issues facing the offshore production sector.

 

Providing funding to Ausfilm will positively impact the Australian screen industry and Australian audiences by attracting work that generates jobs, training opportunities and investment in Australia, and expanding international trade.

 

Funding of $2.25 million for Ausfilm was included in the 2017-18 Budget under the measure 'Broadcasting and Content Reform Package - funding for Australian film and television content and SBS' for a period of two years commencing in 2017-18.  Details are set out in Budget 2017-18, Budget Measures, Budget Paper No. 2 2017-18 at page 73. 

 

Funding to Ausfilm will be provided by way of a grant via direct offer.  Processes for providing direct funding to Ausfilm will follow the Commonwealth Grants Rules and Guidelines.  The grant will be administered either by the Department of Communications and the Arts or one of the government grants hubs.  The department will enter into a funding agreement with Ausfilm to ensure compliance and reporting on all government objectives.    Ausfilm will be responsible for delivering activities under the funding agreement.

 

The funding decision will be made by the Minister for the Arts and all relevant approvals will be subject to the Public Governance, Performance and Accountability Act 2013.

Information on the funding decision will be published at www.communications.gov.au/who-we-are/department/funding-reporting.

 

The funding decision is not considered suitable for merits review.  It is not directed towards the circumstances of particular persons but to the broader benefit to the Australian community.  In addition, the grant funding will be targeted, non-competitive and for the specific purpose to market the Australian Screen Production Incentive to offshore producers and promote Australia as a destination for film production.

 

Ausfilm is the only organisation that can effectively and efficiently deliver the Government's outcomes of positioning Australia worldwide as a destination for film, television, commercial and other screen production as well as PDV production through its established connections with the international industry.  The decision is unlikely to affect the interests of any one person and the re-making of a decision under merits review would impact the funding objectives and the timely provision of support to the Australian screen production industry.

 

Funding for this item will come from Program 2.1: Arts and Cultural Development, which is part of Outcome 2.  Details are set out in the Portfolio Budget Statements 2017-18, Budget Related Paper No. 1.3, Communications and the Arts Portfolio at page 18.

 

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 trade and commerce power (section 51(i));

-          the communications power (section 51(v)); and

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

 

Trade and commerce power

 

With respect to the trade and commerce power, funding will be provided to increase foreign interest in Australia as a destination for screen production and PDV services. 

 

Communications power

 

With respect to the communications power, funding will be provided to promote Australian production services for films that are intended to be distributed online.

 

Commonwealth executive power and express incidental power

 

With respect to the Commonwealth executive power and the express incidental power, funding will be provided for the promotion of Australian film production services.

 

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 (Communications and the Arts Measures No. 2) Regulations 2017

 

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 Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs.  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 Schedule 1AB to the FF(SP) Regulations to establish legislative authority for government spending on two initiatives in the Communications and the Arts portfolio that arise from decisions in the 2017-18 Budget which was released on 9 May 2017. The initiatives will be administered by the Department of Communications and the Arts.

 

Funding will be provided to:

*         The Australian Children's Television Foundation to support the ongoing development, production and distribution of high-quality screen content and educational material for Australian children; and

*         AusFILM International Incorporated to positively impact the Australian screen industry by promoting the industry internationally, attracting production to Australia, and establishing connections with the international industry that will generate new job and training opportunities for the local industry.

 

The Minister for the Arts has responsibility for these matters.

 

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