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

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Defence 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 3 of Schedule 1AB (table)

 

This item adds a new table item to Part 3 of Schedule 1AB to establish legislative authority for government spending on an initiative that falls within the responsibility of the Department of Defence. 

 

New table item 22 establishes legislative authority for the Government to fund the Invictus Games which will be hosted by Australia in 2018. 

 

The Invictus Games are an international multi-day sport event in which current and former members of the Australian Defence Force and foreign armed forces, who were injured or wounded or became ill as a result of military service, take part in adaptive sports. 

 

The Invictus Games were first staged in London in September 2014.  The United States hosted the second Games in Orlando in May 2016.  Canada will host the third Games in Toronto in September 2017.  Australia will host the fourth Games in Sydney and surrounding areas in October 2018. 

 

The Australian International Military Games (AIMG), a not-for-profit company limited by guarantee, has signed a Hosting Agreement with the Invictus Games Foundation to manage the delivery of the Invictus Games and associated events in Australia.  The 2018 Games will feature 10 adaptive sports, 17 nations and over 500 athletes.  

 

The purpose of hosting the Invictus Games in Australia is:

*         to use Australia's prowess in hosting sporting events and natural advantages to contribute to the global effort to support wounded, injured and ill servicemen, women and their families;

*         to recognise the sacrifice made by servicemen, women and their families and friends; and

*         to enable an enduring benefit for the wounded, injured and ill, known as legacy.

 

The legacy of hosting the Invictus Games in Australia will be:

*         a rehabilitation through sport by demonstrating the healing power of sport which will be of direct benefit to competitors;

*         an increased veteran involvement in sport by raising awareness of the benefits of sport and driving increased levels of veteran participation in sport which brings social, physical and mental health benefits;

*         a more coherent community of ex-service organisations which are currently in the process of change to adapt to the challenge of caring for contemporary veterans.  The Invictus Games is an opportunity for the community of ex-service organisations to coalesce behind a single cause, leading to a legacy of cooperation and understanding among ex-service organisations; and

*         an increased public support for, and understanding of, veterans by engaging communities and raising awareness of veterans within communities.  The emphasis will be on promoting veterans and their knowledge, skills and attributes to inform the society about inspirational qualities of veterans.

 

Grant funding of up to $7 million will be provided to the AIMG for:

*         the operational costs incurred in planning and overseeing the delivery of the Invictus Games;

*         the marketing, communications and commercial strategy costs to raise awareness of the Games, commercial revenue and public support;

*         the licence fee to be paid to the Invictus Games Foundation; and

*         the contribution to the budget for unforeseen or emergency expenses.

 

In addition to funding from the Government, the AIMG is also expected to receive funds and support from a number of other sources including the New South Wales Government, commercial sponsors, philanthropic donations, and the sales of tickets, merchandise and corporate hospitality packages.  The Department of Defence may also provide in kind support to the 2018 Invictus Games.

 

Funding of up to $7 million will be made available over two years commencing in 2016-17.

 

The grant was awarded to the AIMG through a one-off, non-competitive process.  The grant decision was made by the Minister for Defence, whose decision is final in all matters relating to the grant.  The Department of Defence has entered into a grant agreement with the AIMG.  As required under the Commonwealth Grants Rules and Guidelines, details of the grant were published by the department at www.defence.gov.au/Disclosures.asp.

 

The grant decision is not subject to merits review arrangements as the grant funding is targeted, non-competitive and for the specific purpose to support the delivery of the 2018 Invictus Games and associated events in Australia.

 

Funding for this item will come from Program 2.4: Vice Chief of the Defence Force, which is part of Outcome 2.  Details will be set out in the Portfolio Additional Estimates Statements 2017-18, Defence Portfolio.

 

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 defence power (section 51(vi)); and

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

 

With respect to the defence power, the 2018 Invictus Games relate to the health and wellbeing of current and former service personnel.

 

With respect to the external affairs power, the 2018 Invictus Games will involve personnel from foreign armed forces, thereby promoting Australia's relations with those countries.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 (Defence 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 the Government to fund the Invictus Games which will be hosted by Australia in 2018.  The Department of Defence has responsibility for this initiative. 

 

The Invictus Games are an international multi-day sport event in which current and former members of the Australian Defence Force and foreign armed forces, who were injured or wounded or became ill as a result of military service, take part in adaptive sports.  Grant funding of up to $7 million will be provided to the Australian International Military Games, a not-for-profit company, to support the delivery of the Invictus Games and associated events in Australia.

 

The Minister for Defence has portfolio responsibility for this initiative.

 

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