FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (PRIME MINISTER AND CABINET MEASURES NO. 1) REGULATIONS 2017 (F2017L00558) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (PRIME MINISTER AND CABINET MEASURES NO. 1) REGULATIONS 2017 (F2017L00558)

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(Prime Minister and Cabinet Measures No. 1) Regulations 2017

 

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. 

 

Schedule 1 to the Regulations amends the Principal Regulations to establish legislative authority for government spending on the Smart Cities and Suburbs Program and a package of Indigenous-specific initiatives under the Third Action Plan of the National Plan to Reduce Violence against Women and their Children 2010-2022.  The Department of the Prime Minister and Cabinet has responsibility for these activities.

 

Funding of $50 million was included in the 2016-17 Mid-Year Economic and Fiscal Outlook for the Smart Cities and Suburbs Program, a 2016 election commitment.  Expenditure under the Program will commence in 2017-18.

 

The Smart Cities and Suburbs Program will provide grants on a competitive basis to eligible entities, such as local governments, private companies, research organisations and not-for-profit groups, to deliver collaborative projects that apply innovative, smart technology solutions to urban challenges.  The aim of projects will be to improve the liveability, productivity and sustainability of Australian cities, suburbs and towns. 

 

A $25 million package of Indigenous-specific initiatives to reduce violence against women and children will provide for:

*         trauma-informed therapeutic services for Indigenous children affected by family violence to break the cycle of intergenerational violence;

*         services for perpetrators to encourage changes in behaviour and prevent future offending;

*         intensive family-focused case management to address behaviours that lead to family violence; and

*         increased capacity for Family Violence Prevention Legal Services to deliver holistic, case-managed crisis support to Indigenous women and children experiencing family violence.

 

The domestic violence initiatives are part of the Government's announcement in the 2016-17 Budget of $100 million for initiatives to break the cycle of violence against women and children.  Details of initiatives were announced on 28 October 2016 by the Prime Minister, the Hon Malcolm Turnbull MP, the Minister for Women, Senator the Hon Michaelia Cash, and the Minister for Social Services, the Hon Christian Porter MP.

 

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 registration 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 the Prime Minister and Cabinet.

 

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 (Prime Minister and Cabinet Measures No. 1) Regulations 2017

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Prime Minister and Cabinet Measures No. 1) 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 Schedules 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 the Prime Minister and Cabinet.

 

New table item 224 establishes legislative authority for government spending on the Smart Cities and Suburbs Program (the Program).

 

The Program will provide grants on a competitive basis to eligible entities, such as local governments, private companies, research organisations and not-for-profit groups, to deliver collaborative projects that apply innovative, smart technology solutions to urban challenges.  The aim of projects will be to improve the liveability, productivity and sustainability of Australian cities, suburbs and towns. 

 

The Program aims to help local governments and communities use smart technology and increase the accessibility and use of public data so that:

*         cities, suburbs and towns become more liveable, productive and sustainable; and

*         urban service delivery becomes more efficient and effective.

 

Eligible entities can apply for grants of between $100,000 and $5 million to meet up to 50 per cent of eligible project costs.  The Program will fund projects that apply innovative smart technologies which generate, store, communicate and process data to target urban challenges.  Additionally, projects must involve the innovative application of knowledge, hardware or software that:

*         is new to the organisation, the local government area, city, region or country; or

*         delivers an outcome which has not previously been realised in the community; or

*         extends or deploys an existing smart technology in a novel way.

 

Smart technology can help local governments to:

*         actively engage the community in planning and policy decisions;

*         address economic, social and environmental challenges; and

*         increase the efficiency and effectiveness of urban service delivery.

 

Successful projects will address persistent economic, social and environmental challenges in communities and help transform delivery of local government services across Australia.  Project activities should align with one or more of the four Program priority areas:

*         Smart Infrastructure: improving the efficiency, reliability, delivery and maintenance of infrastructure and essential services;

*         Smart Precincts: making community precincts more liveable, productive, sustainable and safe;

*         Smart Services and Communities: delivering community-focused local government services; and

*         Smart Planning and Design: building adaptable and resilient cities through improved land use, strategic planning and governance.

 

Grants will be awarded commencing early in 2017-18, and projects cannot extend past 30 June 2019.

 

Funding of $50 million was included in the 2016-17 Mid-Year Economic and Fiscal Outlook under the measure 'Smart Cities and Suburbs Program - establishment' for a period of two years commencing in 2017-18.  Details are set out in the Mid-Year Economic and Fiscal Outlook 2016-17 at page 187.

 

The Program is part of 'The Coalition's Policy for Smart Cities' which was announced on 20 June 2016 by the Prime Minister, the Hon Malcolm Turnbull MP, and the Assistant Minister for Cities and Digital Transformation, the Hon Angus Taylor MP.  The Policy is available at https://www.liberal.org.au/coalitions-policy-smart-cities.  The Program directly supports the Government's Smart Cities Plan which was launched on 29 April 2016.

 

An open, competitive grants process will take place before spending decisions are made under the Program.  The Department of the Prime Minister and Cabinet has engaged AusIndustry to administer the grants process through the Business Grants Hub.  Information about the Program is available on business.gov.au.

 

Following an initial assessment by AusIndustry against eligibility criteria, eligible applications will be referred to an assessment committee of officials with subject matter expertise from various Commonwealth entities.  The committee will assess applications against merit criteria and compare them to other eligible applications before recommending which projects to fund.  Technical matters may be referred to independent advisers to support the assessment process.

 

The Assistant Minister for Cities and Digital Transformation will decide which grants to approve, taking into account the recommendations of the committee and the availability of grant funds.  The Assistant Minister's decision is final in all matters including:   

*         the approval of applications for funding;

*         the amount of grant funding awarded; and

*         the terms and conditions of funding.

 

Details of successful projects will be published on business.gov.au and www.dpmc.gov.au/who-we-are/grants-and-funding.

 

Unsuccessful applicants will be notified in writing and given an opportunity to discuss the outcome.  Unsuccessful applicants can submit a new application for the same project or a similar project in any future funding rounds.

 

A complaint handling process is outlined in the Program Guidelines which are available at business.gov.au.  Complaints can be made in the first instance to AusIndustry by phone or in writing.  If the complainant is not satisfied with the way the complaint is handled, they may write to the Head of Business Services Division, AusIndustry or contact the Commonwealth Ombudsman.

 

No further merits review will be available given the open, competitive application process, the assessment by a multi-entity committee, and the one-off, short-term nature of the grants awarded.  

 

Funding for this Program will come from Program 1.1: Prime Minister and Cabinet, which is part of Outcome 1.  Details are set out in the Portfolio Additional Estimates Statements 2016-17, Prime Minister and Cabinet Portfolio at pages 19, 20 and 23.

 

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));

*         the census and statistics power (section 51(xi)); and

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

 

With respect to the communications power, smart technologies (the use of which is a core criterion for grants under the Program) involve the electronic communication of data through both wired and wireless networks.

 

With respect to the census and statistics power, smart technologies (the use of which is a core criterion for grants under the Program) involve the generation, compilation and processing (in the form of manipulation and analysis) of statistical data that is obtained from a range of sources, such as sensor networks in public urban spaces.

 

With respect to the Commonwealth executive power (and the express incidental power which enables legislation with respect to matters falling within the executive power), projects that succeed in implementing smart technologies in transformative ways may be of significance to other urban communities across the nation, meaning that the benefit will be for the benefit of the nation.

New table item 225 establishes legislative authority for government spending on a package of Indigenous-specific initiatives to be implemented under the Third Action Plan of the National Plan to Reduce Violence against Women and their Children 2010-2022 (the National Plan).

 

The National Plan is a long-term collaboration for action by Commonwealth, state and territory governments which aims to achieve a significant and sustained reduction in violence against women and their children.  The National Plan is implemented through four, three-year action plans with the Third Action Plan 2016-2019 setting out 36 practical actions across six national priority areas:

*         prevention and early intervention;

*         Aboriginal and Torres Strait Islander women and children;

*         greater support and choice;

*         sexual violence;

*         responding to children living with violence; and

*         keeping perpetrators accountable across all systems.

 

Further information on the Third Action Plan can be found at

www.plan4womenssafety.dss.gov.au/the-national-plan/third-action-plan/.

 

The overarching aim of the Indigenous package of initiatives is to reduce Indigenous family violence and to provide Indigenous victim support services.  This will lead to improvements in outcomes for Indigenous families, including better engagement with education and employment, and less interaction with the criminal justice system over the long term.

 

Funding of Indigenous-specific initiatives will be administered under the Government's Indigenous Advancement Strategy (IAS), which funds a range of programs targeting Aboriginal and Torres Strait Islander peoples.  Through the IAS, the Government is working to improve the way of doing business with Aboriginal and Torres Strait Islander peoples to ensure funding achieves outcomes.  The Minister for Indigenous Affairs has overall responsibility for the IAS.  The Department of the Prime Minister and Cabinet's National Office provides national oversight, policy advice and program support to the Department's Regional Network in the implementation of the IAS.

 

The Indigenous-specific initiatives under the Third Action Plan include: 

*         trauma-informed therapeutic services for Indigenous children affected by family violence to break the cycle of intergenerational violence;

*         services for perpetrators to encourage changes in behaviour and prevent future offending;

*         intensive family-focused case management to address behaviours that lead to family violence; and

*         increased capacity for Family Violence Prevention Legal Services to deliver holistic, case-managed crisis support to Indigenous women and children experiencing family violence.

 

The trauma-informed therapeutic services will be delivered in a number of high-risk communities by existing IAS providers.  The services will include clinical interventions to address trauma in children caused by abuse, neglect, domestic and family violence.  Expert clinical teams will:

*         identify the impacts of trauma on children affected by domestic and family violence;

*         develop a targeted treatment plan and deliver clinical therapies to children; and

*         work with parents, carers and service providers, including child care workers and teachers, to create an environment where children can recover from trauma.

 

The services to encourage behavioural changes by perpetrators will be delivered in a number of high-risk communities by existing IAS providers.  The services will be set up to test a number of different approaches to addressing perpetrator behaviours, including a residential facility for perpetrators who either self-admit, or participate as part of a community order for domestic violence offences or as part of parole requirements.  Perpetrator treatment services will deliver intensive behavioural change treatments and other therapeutic supports to assist perpetrators address the drivers of their violent offending.

 

The intensive family focused case management services will be delivered in a number of high-risk communities by existing IAS providers.  Case managers and Indigenous liaison officers will be engaged to work intensively for a period of up to two years with families where violence is present to:

*         help families alter problem behaviour and strengthen motivation and commitment to change;

*         refer clients to other professional services to address issues contributing to violent behaviour such as substance misuse treatment, health and employment services, and parenting classes; and

*         develop and manage a tailored treatment plan providing assistance as necessary with issues including housing, finance, legal access, transport and child care.

 

Family Violence Prevention Legal Services are currently funded under the IAS to provide culturally appropriate victim support and legal assistance to victims of family and sexual violence.  Funding under the Third Action Plan will be provided to:

*         Indigenous organisations in locations of high need to deliver Indigenous victim support services, including increasing the capacity of up to six Family Violence Prevention Legal Services to provide holistic, case-managed services, which will benefit Indigenous women and children who are victims of family violence in rural and remote areas;

*         ensure that clients of Indigenous victim support services receive, as required, trauma-informed interventions, sexual assault counselling, legal assistance, information to assist with safety planning, and referrals to appropriate organisations; and

*         invest in a range of supports to further develop the sector and build capacity, including through workforce development which will benefit a range of Indigenous organisations in the sector and the communities that they service.

 

Funding for these initiatives is part of the Government's announcement in the 2016-17 Budget of $100 million for initiatives to break the cycle of violence against women and children.  Details are set out in the measure 'Domestic and Family Violence - new initiatives to break the cycle of violence' in Budget 2016-17, Budget Measures, Budget Paper No. 2 2016-17 at page 141.  Details of this 2016 election commitment are at https://www.liberal.org.au/latest-news/2016/06/17/coalition-deliver-extra-20-million-prevent-domestic-violence.

 


 

Details of initiatives, including the $25 million Indigenous-specific package, were announced on 28 October 2016 by the Prime Minister, the Hon Malcolm Turnbull MP, the Minister for Women, Senator the Hon Michaelia Cash, and the Minister for Social Services, the Hon Christian Porter MP.  A separate announcement of the package was also made on the same day by the Minister for Indigenous Affairs, Senator the Hon Nigel Scullion.

 

A mix of grant and procurement processes will be used for the implementation of initiatives under the Third Action Plan.  Grant funding for the initiatives will be subject to the Commonwealth Grants Rules and Guidelines and the IAS Grant Guidelines.  The IAS Grant Guidelines which contain assessment and eligibility criteria are available at www.dpmc.gov.au/resource-centre/indigenous-affairs/indigenous-advancement-strategy-grant-guidelines-march-2016.  Final decisions about grant funding will be made by the Minister for Indigenous Affairs or his/her delegate(s).

 

The procurement of goods and services under the IAS will be undertaken in accordance with the Secretary's Instructions and Financial Rules of the Department of the Prime Minister and Cabinet including the Commonwealth Procurement Rules and the Public Governance, Performance and Accountability Act 2013.

 

Grant or procurement funding will be provided for:

*         a consultancy to conduct project co-design and oversight of the Third Action Plan initiatives as well as offer an inter-disciplinary team who can conduct project management, governance and stakeholder engagement, identify datasets, and ensure that robust evaluation frameworks are built into each initiative from the start (limited tender procurement);

*         technical expertise to conduct robust impact evaluations of the Third Action Plan initiatives (open tender procurement);

*         a service provider to deliver trauma-informed training packages to the Family Violence Prevention Legal Services National Secretariat and all 14 Family Violence Prevention Legal Services providers to enable them to build their workforce capacity to provide trauma-informed services to their clients (limited tender procurement); 

*         additional resources for the Family Violence Prevention Legal Services National Secretariat to support workforce capacity initiatives (targeted grant under the IAS); 

*         wraparound services for up to six Family Violence Prevention Legal Services to deliver holistic, case-managed crisis support to Indigenous women and children experiencing family violence (targeted grant under the IAS);

*         trauma-informed therapeutic services for Indigenous children affected by family violence to break the cycle of intergenerational violence (direct approach grants under the IAS);

*         services for perpetrators to encourage behavioural change and prevent future offending (direct approach grants under the IAS); and

*         intensive family-focused case management to address behaviours that lead to family violence (direct approach grants under the IAS).

 

The IAS Grant Guidelines provide for review processes, including a complaints mechanism for grant assessment processes and an independent internal review of complaints.  Information is available at www.dpmc.gov.au/indigenous-affairs/grants-and-funding.

 


 

Complaints about the Department's services, the assessment process or the service provided by an IAS grant recipient may be sent in writing to: complaints@pmc.gov.au.  In addressing a complaint about a grant assessment process the Department will investigate the processes undertaken to reach the decision to ensure that they were fair.  The Department's response to the complainant will be in writing and outline the issue that has been raised, what action has been taken to examine the issue and an assessment of the complaint.  If this does not resolve the issue, the complainant has the option of an independent internal review.

 

If a complainant feels their complaint has not been resolved to their satisfaction, they may lodge a request for further examination of the issues raised.  The Department will conduct an independent internal review of the issues raised in the complaint.  A request for further examination may be sent in writing to: complaints@pmc.gov.au.

 

The Department will promptly write to the complainant to notify them of the expected timeframe for making the internal review decision.  The notice will also set out the matters that the reviewing officer considers may be relevant to the review decision.  The notice may request further information from the complainant to conduct the review.

 

The Department will notify the complainant in writing of the decision within the timeframe specified in the original notice.  The notice of decision will outline the issue that has been raised and the matters taken into account in making the decision.

 

Any applicant or provider may complain to the Commonwealth Ombudsman about any administrative action taken by the Department in relation to the IAS.  

 

Funding for the initiatives will come from Program 2.3: Safety and Wellbeing, which is part of Outcome 2.  Details are set out in the Portfolio Additional Estimates Statements 2016-17, Prime Minister and Cabinet Portfolio at page 21.

 

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

 

The races power in section 51(xxvi) of the Constitution supports laws for the benefit of Indigenous people.

 

The item would operate to benefit Aboriginal and Torres Strait Islanders specifically.  It establishes an Indigenous-specific program, aimed at improving outcomes for Indigenous peoples by reducing Indigenous family violence and providing Indigenous victim support 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 (Prime Minister and Cabinet Measures No. 1) Regulations 2017

 

The 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 the FF(SP) Regulations to establish legislative authority for government spending on the Smart Cities and Suburbs Program and a package of Indigenous-specific initiatives under the Third Action Plan of the National Plan to Reduce Violence against Women and their Children 2010-2022.  The spending activities will be administered by the Department of the Prime Minister and Cabinet. 

 

The Smart Cities and Suburbs Program will provide grants on a competitive basis to eligible entities, such as local governments, private companies, research organisations and not-for-profit groups, to deliver collaborative projects that apply innovative, smart technology solutions to urban challenges.  The aim of projects will be to improve the liveability, productivity and sustainability of Australian cities, suburbs and towns. 

 

Funding of $50 million was included in the 2016-17 Mid-Year Economic and Fiscal Outlook for the Smart Cities and Suburbs Program, a 2016 election commitment. 

 

Funding of $25 million will be provided for a package of Indigenous-specific initiatives to reduce violence against women and children with:

*         trauma-informed therapeutic services for Indigenous children affected by family violence to break the cycle of intergenerational violence;

*         services for perpetrators to encourage changes in behaviour and prevent future offending;

*         intensive family-focused case management to address behaviours that lead to family violence; and

*         increased capacity for Family Violence Prevention Legal Services to deliver holistic, case-managed crisis support to Indigenous women and children experiencing family violence.

 

The domestic violence initiatives are part of the Government's announcement in the 2016-17 Budget of $100 million for initiatives to break the cycle of violence against women and children.

 

The Minister for Indigenous Affairs has responsibility for the Indigenous-specific domestic violence initiatives.  The Assistant Minister for Cities and Digital Transformation has responsibility for the Smart Cities and Suburbs Program.

 

Human rights implications

 

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

 

Conclusion

 

The 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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