Details of the Financial Framework (Supplementary Powers) Amendment (Health Measures No. 3) Regulation 2016

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Health Measures No. 3) 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 - 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 for certain activities administered by the Department of Health.

 

New table item 162 establishes legislative authority for government spending on the Biomedical Translation Fund.

 

The Biomedical Translation Fund (BTF) is an equity co-investment venture capital program announced in the National Innovation and Science Agenda to support the development of biomedical ventures in Australia.  The BTF is expected to be established in 2016.

 

The policy objectives of the BTF are:

*         to invest in promising biomedical discoveries and assist in their commercialisation; and 

*         by addressing capital and management constraints, to encourage the development of companies that are commercialising biomedical research and development.

 

The BTF will license private sector fund managers and provide capital, to be at least matched by private capital raised by the private sector fund managers, to invest in and support the development of Australian biomedical discoveries.

 

On 10 December 2015, the Minister for Health, the Hon Sussan Ley MP, and the Minister for Industry, Innovation and Science, the Hon Christopher Pyne MP, announced the Government's commitment of $250 million for the BTF (http://www.health.gov.au/internet/ministers/publishing.nsf/Content/health-mediarel-yr2015-ley147.htm).  After the expected commencement of the BTF in 2016, this capital will be placed into a capital account over two years, and will be drawn over the next seven to ten years.  Funds will be drawn in response to calls for funds from licensed fund managers.

 

The Minister for Health and the Minister for Industry, Innovation and Science will issue program guidelines that will provide a program overview of the objectives of the BTF, the roles and responsibilities of the Department of Health and the Department of Industry, Innovation and Science, as affected agencies, the technical merit criteria for assessing applications, the application process, the granting of licences to successful applicants and the operational requirements of licensed funds.

 

The program guidelines, application mechanism and further information on the BTF will be available at www.business.gov.au.

 

The Board established under the Industry Research and Development Act 1986 will be responsible for assessing applications and conducting the merit based selection process that will provide recommendations to the program delegate.  The program delegate will ultimately appoint the successful fund managers and will negotiate contracts with the successful fund managers, pursuant to the program guidelines.  The program delegate will be an SES Officer within the Department of Industry, Innovation and Science appointed by the Minister for Industry, Innovation and Science.

 

Details of the successful fund managers will be published on the websites of the Department of Health and the Department of Industry, Innovation and Science (www.health.gov.au and www.industry.gov.au, respectively).  Unsuccessful applicants will be provided with feedback as to why their application had not been successful.  If an unsuccessful applicant has an issue with the selection process they can register a complaint in accordance with the feedback and complaints handling process as outlined at www.business.gov.au. 

 

Merits review is not applicable given the complaints mechanisms available and given that the selection process will follow a strict eligibility and merit criteria, as set out in the program guidelines.

 

A communication strategy, including joint media releases between the Minister for Health and the Minister for Industry, Innovation and Science, has been developed to build awareness of the BTF and the application process.

 

Funding for the BTF will come from Program 7.4: Research Capacity and Quality which is part of Outcome 7: Health Infrastructure, Regulation, Safety and Quality. Details on the BTF are set out in the Portfolio Additional Estimates Statements 2015-16, Health Portfolio at page 21.

 

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 social welfare power (section 51(xxiiiA));

*         the external affairs power (section 51(xxix)); and

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

New table item 163 establishes legislative authority for the Government to provide funding for the Commonwealth Home Support Programme (CHSP).

 

The CHSP, which commenced on 1 July 2015, is one of the changes being made by the Government to the aged care system to help older people stay independent and in their homes and communities for longer.  Under the CHSP, four former home support programs have been consolidated to form one streamlined program providing entry-level access to the aged care system for frail older Australians.  These programs include:

*         the Commonwealth Home and Community Care Programme;

*         planned respite from the National Respite for Carers Programme;

*         the Day Therapy Centres Programme; and

*         the Assistance with Care and Housing for the Aged Programme.

 

In the 2015-16 Budget, funding of around $5.1 billion was announced to fund the CHSP for three years to 30 June 2018.  On 17 June 2015, the former Assistant Minister for Social Services, Senator the Hon Mitch Fifield, announced that CHSP grant agreements would be extended until 30 June 2018.

 

The CHSP helps frail, older people (65 years and over, or 50 years and over for Aboriginal and Torres Strait Islander people) who are living in the community to maximise their independence.  This is achieved through the delivery of timely, high quality entry-level support services which take into account each person's individual goals, preferences and choice.

 

Where the frail, older person has a carer, the CHSP also supports the care relationship between CHSP clients and their carers who provide the support necessary to help the older person stay at home.  Frail, older clients aged 65 years and over (50 years and over for Aboriginal and Torres Strait Islander people) are the direct service recipients of planned respite services under the CHSP, to allow their regular carers to take a break from their usual caring duties.

 

In addition, the CHSP supports frail older people, including those who are prematurely aged (50 years and over or 45 years and over for Aboriginal and Torres Strait Islander people) who are on a low income and who are homeless or at risk of homelessness through the provision of assistance with accessing appropriate and sustainable housing as well as other CHSP services.

 

The objectives of the CHSP are to:

*         provide high-quality support, at a low intensity on a short-term or ongoing basis, or higher intensity services delivered on a short-term or episodic basis, to frail, older people to maximise their independence at home and in the community for as long as they choose, thereby enhancing their wellbeing and quality of life;

*         support frail, older clients aged 65 years and over (50 years and over for Aboriginal and Torres Strait Islander people) through the direct service delivery of respite services, which will allow regular carers to take a break from their usual caring duties;

*         support clients to delay, or avoid altogether, the need to move into more expensive forms of aged care, such as Home Care Packages or residential aged care, so that whole-of-system aged care costs can be kept at a sustainable level as the population ages and the number of people requiring care increases;

*         ensure that all clients, including those with special needs, have equity of access to services that are socially and culturally appropriate and free from discrimination;

*         ensure through the quality framework that clients receive high quality services;

*         facilitate client choice to enhance the independence and wellbeing of older people, and ensure that services are responsive to the needs of clients;

*         provide a standardised assessment process which encompasses a holistic view of client needs; and

*         provide flexible, timely services that are responsive to local needs.

 

In November 2015, responsibility for the CHSP was transferred from the Social Services portfolio to the Health portfolio.  Funding for this item has transferred to Program 11.2: Home Support, which comes under Outcome 11: Ageing and Aged Care.  Funding details are set out in the Portfolio Additional Estimates Statements 2015-16, Health Portfolio at page 96.

 

The program guidelines, including eligibility and selection criteria and further information are available on the Department of Health's website (www.health.gov.au).  Grants will be made in accordance with the Public Governance, Performance and Accountability Act 2013, the Commonwealth Grants Rules and Guidelines (CGRGs) and the CHSP guidelines.

 

Details of grants will be made publicly available on the department's website at www.health.gov.au in accordance with the CGRGs.

 

The decision-maker for the program will be a delegate appointed by the Minister for Health, Aged Care and Sport.  Applications will be assessed by departmental officials who will make recommendations to the program delegate.

 

The program is unsuitable for merits review as it is time limited, has limited funds, and only a proportion of applications can be met.  An application for review would result in funding delays that could affect all grants under the program, affecting the timely provision of essential support services to frail older Australians.

 

Further information about this program can be found on the CHSP webpage on the department's website (www.health.gov.au).

 

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 social welfare power (section 51(xxiiiA));

*         the external affair power (section 51(xxix)); and

*         the Commonwealth executive power (section 61).

 

 

 

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 (Health Measures No. 3) 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 amends the Principal Regulations to establish legislative authority in Schedule 1AB for spending by the Government to provide funding for:

*         the Biomedical Translation Fund, an equity co-investment venture capital program, to support the development of biomedical ventures in Australia, announced by the Minister for Health, the Hon Sussan Ley MP, and the Minister for Industry, Innovation and Science, the Hon Christopher Pyne MP in December 2015; and

*         the Commonwealth Home Support Programme to help frail, older people (65 years and over, or 50 years and over for Aboriginal and Torres Strait Islander people) who are living in the community to maximise their independence to stay in their homes and communities for longer. 

 

The activities will be administered by the Department of Health.  The Minister for Health has portfolio responsibility for these programs.

 

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