Details of the Financial Framework (Supplementary Powers) Amendment (Treasury Measures No. 1) Regulation 2016

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Treasury Measures No. 1) Regulation 2016.

 

Section 2 - Commencement

 

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

 

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 - In the appropriate position in Part 3 of Schedule 1AB (table)

 

This item adds a new table item to Part 3 of Schedule 1AB that establishes legislative authority for government spending for an activity to be administered by the Department of the Treasury.

 

New table item 12 establishes legislative authority for the Government to fund the promotion of Australia internationally as a financial technology (FinTech) destination.

 

The FinTech international promotion program will provide grant funding to facilitate promotion of Australia internationally as a FinTech destination.

 

The aim of the program is to encourage the development of the Australian FinTech sector by promoting:

*         Australian FinTech organisations internationally;

*         relocation to Australia by offshore FinTech innovators; and

*         Australia and Australian FinTech innovators to potential offshore FinTech investors.

 

Funding of $200,000 for this one-year program, commencing in 2016-17, was included in the 2016-17 Budget.  Details are set out in the measure Financial Technology Innovation in Budget Measures, Budget Paper No. 2 2016-17 at page 151.

 

The program will operate as a one-off, ad hoc grant.  This approach will ensure that international promotion activities can commence as soon as possible to build upon the measures announced in the Government's FinTech Statement, released in March 2016, and in the 2016-17 Budget.  Further information about the Government's FinTech agenda can be found in the FinTech Statement, available at www.fintech.treasury.gov.au.

 

The grant recipient will undertake a targeted advertising campaign and related promotional activities including producing promotional material and placing advertising in overseas markets.  Program activities will require industry knowledge and networks to ensure the campaign is effectively targeted and connects interested FinTech innovators and investors with the Australian FinTech sector.

 

The Treasurer will decide on the awarding of the grant.  Spending decisions on the grant will be published on the Treasury website at http://www.treasury.gov.au/About-Treasury/OurDepartment/Treasury-Grants. 

 

Merits review arrangements will not apply as the program will operate as a one-off non-competitive grant.

 

Funding for this item will come from Program 1.1: Department of the Treasury, which is part of Outcome 1: Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations.  Details are set out in the Portfolio Budget Statements 2016-17, Budget Related Paper No.1.16, Treasury Portfolio at page 16.

 

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

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

*         the external affairs power (section 51(xxix)).

 

 

 

 

 

 

 

 

 

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 (Treasury Measures No. 1) Regulation 2016

 

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 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. 

 

Schedule 1 to the Regulation adds a new item to Schedule 1AB to establish legislative authority for the Government to fund the promotion of Australia internationally as a financial technology (FinTech) destination.  This initiative will build on the Government's FinTech Statement which was released in March 2016.  Funding of $200,000 was included in the 2016-17 Budget. 

 

The Treasurer has portfolio responsibility for this initiative which will be administered by the Department of the Treasury. 

 

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