Details of the Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 3) Regulations 2018
Section 1 - Name
This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 3) Regulations 2018.
Section 2 - Commencement
This section provides that the Regulations commence on the day after the instrument is registered 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 a new table item to Part 4 of Schedule 1AB to establish legislative authority for government spending on an activity that will be administered by the Department of Social Services (the department).
New table item 283 establishes legislative authority for government spending on the redesigned Financial Wellbeing and Capability program (the program). The program will commence on 1 January 2019. Existing activities under the current program will continue until 31 December 2018.
Government funding will support not-for-profit, community and local government organisations to provide free, voluntary and confidential crisis support, broad financial capability building services, financial counselling and access to microfinance products to eligible recipients. The program has been redesigned to provide funding for the administration of certain services, and to restrict eligibility for some of the services.
The delivery of some services such as those relating to financial counselling, emergency relief and financial capability may continue to be fully funded. Examples of administrative costs which may be funded for certain services include staff salaries, rent, information technology, insurance, utilities, accounting and auditing expenses.
Funding will be provided to support eligible recipients such as financially vulnerable individuals and families, including Indigenous Australians, through:
* financial and material support for people in financial crisis;
* financial counselling, including through online and telephone services;
* improving financial capability, including in relation to budgeting and financial literacy;
* facilitating access to microfinance products, including loans, savings programs, business planning and development programs, and employment development opportunities; and
* research and consultation activities, engagement activities and expert advice on issues relating to the financial wellbeing of the Australian community, including in relation to problem gambling.
Financial and material support for people in financial crisis
Financial and material support for people in financial crisis is provided under the
Emergency Relief and Food Relief program activities. Under the redesigned program, eligibility for the Emergency Relief program activity will be restricted to people who are unable to pay their bills or who are at imminent risk of not being able to do so.
This support may include food parcels, clothes or vouchers (for example, for supermarket, utilities or petrol). The Food Relief program activity supports Emergency Relief organisations to provide food to eligible people on a national scale. For example, Food Relief organisations may receive donated foods from farmers, manufacturers, retailers or other food redistribution services, and redistribute these foods to Emergency Relief organisations or other distribution centres where the food is needed.
Commonwealth Financial Counselling, including through online and telephone services, and Financial Counselling for Problem Gambling
The Commonwealth Financial Counselling (CFC) program activity helps eligible people to address their financial problems through the provision of information, advocacy and/or negotiation on behalf of the client. Financial counsellors provide intensive support through an in-depth assessment of a person's financial situation to understand the extent of the person's financial difficulties and to identify options to address these. They encourage the person to participate in the planning and decision-making process. Financial counsellors may also refer clients to relevant sources of support and assistance as necessary.
Under the redesigned program, eligibility for CFC services will be restricted to people who are unable to pay their bills or who are at imminent risk of not being able to do so.
The National Debt Helpline provides a single point of contact for people to access financial counselling, either immediately on the phone or via a referral to face-to-face services.
The Financial Counselling for Problem Gambling program activity provides specialised financial counselling services in 50 locations to support eligible people affected by problem gambling.
Financial Capability and Money Support Hubs
Financial Capability services help eligible people to build longer-term capability to budget and manage their money better, and make informed financial decisions. These services provide:
* financial literacy education;
* one-on-one financial coaching and budget support; and/or
* non-accredited financial literacy community education workshops to eligible people.
Under the redesigned program, eligibility for Financial Capability services will be restricted to:
* those in receipt of a Commonwealth social security benefit, allowance or payment for the purpose of assisting them to manage their social welfare payment;
* immigrants/non-citizens; and
* women experiencing family violence for the purpose of assisting these women to become financially independent.
Organisations may also deliver Indigenous Home Ownership Education, a package designed by the department and Indigenous Business Australia. This education package is delivered in a series of workshops for Indigenous people looking to purchase or build their own home on Indigenous land.
Money Support Hubs provide integrated CFC and Financial Capability services, and in some instances Emergency Relief services and access to microfinance products, in Income Management and Cashless Debit Card locations. Services are provided to people from all communities that lie within each organisation's coverage area, including small outstations or communities, either through a permanent presence or outreach. Service providers can determine the frequency and type of services to be provided to each community based on the needs identified in individual communities.
Microfinance products, including loans, savings programs, business planning and development programs, and employment development opportunities
The Financial Resilience program activity, or microfinance, provides eligible people with access to safe and affordable financial products including no interest loans, low interest loans, microenterprise development loans and matched savings that are not available through mainstream providers of financial services.
The No Interest Loan Scheme (NILS) provides access for eligible people to fair and safe loans, with no interest, fees or charges and a repayment period of between 12 to 18 months.
Under the redesigned program, eligibility for the NILS will be restricted to:
* people and couples with income/s at or below the income test applicable for the single or partnered pension rate, where the person or couple is otherwise unable to meet their immediate and basic needs and has no other capacity to obtain financial support to satisfy their basic needs;
* women experiencing family violence for the purpose of assisting these women to become financially independent;
* parents and guardians on a low income with dependent children to ensure an adequate standard of living for their children; and
* persons with disabilities or their family members who are on a low income to support them with disability related expenses.
StepUP loans are low interest loans of up to $3,000 for people on low incomes for household goods and vehicles.
The Community Development Financial Institutions (CDFI) program activity supports eligible participants to enhance workforce participation through increased business planning and workforce skills, development of sustainable microenterprises and creating opportunities for employment, including self-employment.
Under the redesigned program, eligibility for CDFI services will be restricted to:
* people in receipt of an unemployment benefit; and
* women experiencing family violence for the purpose of assisting these women to become financially independent.
Saver Plus is a matched savings program that provides eligible participants with financial education training, personal guidance and support over a 10-month period on how to manage their social welfare payment and their bank account.
Under the redesigned program, eligibility for the Saver Plus program will be restricted to those in receipt of a Commonwealth social security benefit, allowance or payment to assist them to manage their social welfare payment.
Research and consultation activities, engagement activities and expert advice on issues relating to the financial wellbeing of the Australian community, including in relation to problem gambling
Funding will be provided to undertake research, consultation and engagement activities as required. It will also support the provision of expert advice to the Government on issues and effective and best-practice approaches relating to the financial wellbeing of all Australians, including emerging areas of need. These activities can:
* inform program and service improvement on a national scale in critical areas such as problem gambling;
* improve consumer protections; and
* identify effective methods to alleviate, or reduce the likelihood of, a financial crisis.
Under the current program, grant funding is being provided to over 400 organisations who deliver services across Australia for eligible recipients. A comparable number of
not-for-profit, community and local government organisations are expected to receive grants under the redesigned program for the continued provision of services.
Funding of $397.4 million over four years from 2018-19 for the redesigned program comes from Program 2.1: Families and Communities, which is part of Outcome 2. Details are set out in the Portfolio Budget Statements 2018-19, Budget Related Paper No. 1.15, Social Services Portfolio at page 67.
The department anticipates to conduct both open and restricted grant processes prior to
31 December 2018. There will be several grant opportunities for various program activities with varying funding periods ranging from 18 months to four and a half years. Grant funding decisions will be made at various times throughout the funding period.
The department's Community Grants Hub Assessment Centre will undertake assessments of applications for grant funding against the selection criteria in the program grant opportunity guidelines. Applicants will be able to review the selection criteria before submitting a proposal for funding.
Information on the grant funding available under the program, including how to apply, will be published on the departmental website at www.dss.gov.au and the Community Grants Hub website at www.communitygrants.gov.au, along with the program grant opportunity guidelines, frequently asked questions and the selection criteria.
The Secretary of the department or her delegate will make final decisions about the grant expenditure. Funding will be provided through new grant agreements in accordance with the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines 2017. The outcomes of the grant processes and progress updates on the projects will be published at www.dss.gov.au.
Grant decisions made under the program will not be suitable for independent merits review. There is a finite resource available for these grants, which will only be paid to a number of
not-for-profit, community and local government organisations. The remaking of a decision under merits review may affect funding provided to other successful grant applicants who would be affected by overturning the original decision. It may also cause delays in finalising funding decisions for other providers, which would affect the timely provision of services to financially vulnerable people.
The guaranteed right of review under section 75(v) of the Constitution, and review under section 39B of the Judiciary Act 1903, will be available. Feedback will be offered to all applicants under the program. People affected by spending decisions would also have recourse to the Commonwealth Ombudsman, where appropriate.
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 banking power (section 51(xiii));
* the bankruptcy and insolvency power (section 51(xvii));
* the naturalization and aliens power (section 51(xix));
* the invalid and old age pensions power (section 51(xxiii));
* the social welfare power (section 51(xxiiiA));
* the races power (section 51(xxvi));
* the immigration and emigration power (section 51(xxvii));
* the external affairs power (section 51(xxix));
* the power to grant financial assistance to States (section 96);
* the territories power (section 122); and
* the Commonwealth executive power and the express incidental power (sections 51(xxxix) and 61).
Communications power
Section 51(v) of the Constitution empowers the Parliament to make laws with respect to 'postal, telegraphic, telephonic, and other like services'.
Under the program, the department will fund projects directed at delivering online and telephone services to support the financial knowledge, skills and capabilities of people in their communities. These projects may include, for example, developing online services that increase financial literacy and help people build longer-term capability to budget and manage their money better.
Funding for the National Debt Helpline provides a single contact point for people to access financial counselling, either immediately on the phone or via a phone referral to face-to-face services.
Banking power
Section 51(xiii) of the Constitution empowers the Parliament to make laws with respect to 'banking, other than State banking'.
Under the program, the department will fund projects directed at assisting people improve their financial knowledge, skills and capabilities in relation to loans provided to them by a bank. For example, microfinance services provided under the CDFI, Saver Plus and StepUP program activities offer a variety of financial services and products targeted at financially vulnerable people. These services help to build self-reliance and provide access to financial products, to provide support in relation to loans provided to them by a bank.
Bankruptcy and insolvency power
Section 51(xvii) of the Constitution empowers the Parliament to make laws with respect to 'bankruptcy and insolvency'.
Under the program, the department may fund projects directed at assisting individuals avoid the circumstances of bankruptcy or insolvency through undertaking activities directed at supporting the financial knowledge, skills and capabilities of these people.
Several program activities provide services and relief to people who are bankrupt or insolvent, or who are at imminent risk of these circumstances arising, in relation to those circumstances. These include the Emergency Relief, Food Relief, CFC and Financial Counselling for Problem Gambling program activities.
Naturalization and aliens power
Section 51(xix) of the Constitution empowers the Parliament to make laws with respect to 'naturalization and aliens'. The aliens power supports legislation with respect to
non-citizens.
Under the program, the department will fund projects directed at supporting the financial knowledge, skills and capabilities of non-citizens within the Australian community.
For example, Financial Capability services (described below under the Immigration and emigration power) target immigrants and non-citizens.
Invalid and old age pensions power
Section 51(xxiii) of the Constitution empowers the Parliament to make laws with respect to 'invalid and old age pensions'.
The program provides Financial Capability services to recipients of invalid and
old age pensions to improve their financial knowledge, skills and capabilities in relation to the management of their pension. Financial Capability services aim to help pension recipients build longer-term capability to budget and manage their money better and make informed choices. Financial Capability workers provide budgeting support, financial literacy education and workshops.
Social welfare power
The social welfare power in section 51(xxiiiA) of the Constitution empowers the Parliament to make laws with respect to the provision of certain social welfare benefits including maternity allowances, widows' pensions, child endowment, unemployment and student benefits, sickness benefits and family allowances.
The department may fund activities that relate to the provision of these payments, allowances or benefits through assisting people in receipt of these payments, allowances or benefits to improve their financial knowledge, skills and capabilities in relation to the management of the payment, benefit or allowance.
The program supports financially vulnerable people by funding Financial Capability workers. Financial Capability services aim to help people receiving a relevant payment, allowance or benefit build longer-term capability to budget and manage that payment, allowance or benefit and make informed choices. Financial Capability workers provide budgeting support, financial literacy education and workshops.
The microfinance program, Saver Plus, offers financial services and products targeted at people in receipt of a relevant benefit, allowance or payment to manage that payment, allowance or benefit through building self-reliance and providing access to financial products.
CDFIs offer services for people in receipt of an unemployment benefit to enhance their workforce participation through increased business planning and workforce skills, development of sustainable microenterprises and creating opportunities for employment, including self-employment.
Races power
Section 51(xxvi) of the Constitution empowers the Parliament to make laws with respect to 'the people of any race for whom it is necessary to make special laws'.
Under the program, the department will fund projects specifically directed at improving the financial knowledge, skills and capabilities of Aboriginal and Torres Strait Islander Australians. The program provides funding to organisations that provide Financial Capability services to Indigenous persons, particularly those living in remote communities.
The Indigenous Home Ownership Education package, which is a component of the Financial Capability program activity, is delivered as an Indigenous-specific initiative.
Immigration and emigration power
Section 51(xxvii) empowers the Parliament to make laws with respect to 'immigration and emigration'.
Under the program, the department will fund projects directed at supporting the financial knowledge, skills and capabilities of newly arrived migrants within the Australian community. Financial Capability services funded under the program will aim to help people build longer-term capability to budget and manage their money better and make informed choices. Financial Capability workers provide budgeting support, financial literacy education and workshops that relate to relevant social welfare issues faced by financially vulnerable new migrants and refugees.
External affairs power
Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to 'external affairs'. The external affairs power supports legislation implementing Australia's obligations under international treaties to which it is a party.
Convention on the Elimination of All Forms of Discrimination against Women
Australia has obligations under the Convention on the Elimination of All Forms of Discrimination against Women. In particular, Article 3 provides that 'States Parties shall take in all fields, in particular in the political, social, economic and cultural fields' appropriate measures 'to ensure the full development and advancement of women, for the purpose of guaranteeing them the exercise and enjoyment of human rights and fundamental freedoms on a basis of equality with men'. Article 4(1) provides that 'temporary special measures aimed at accelerating de facto equality between men and women' shall not be considered discrimination as defined in the Convention.
The NILS, CDFI and Financial Capability program activities will provide assistance to women experiencing domestic violence to enable them to become financially independent, thereby promoting the advancement of women and their participation in society on an equal basis with men.
Convention on the Rights of Persons with Disabilities
Australia has obligations under the Convention on the Rights of Persons with Disabilities (CRPD). Article 4(1)(a) of the CRPD requires States Parties to 'adopt all appropriate legislative, administrative and other measures for the implementation of the rights' recognised in the CRPD.
Article 28(2) provides that 'States Parties recognize the right of persons with disabilities to social protection and to the enjoyment of that right without discrimination on the basis of disability, and shall take appropriate steps to safeguard and promote the realization of this right'. These steps include measures 'to ensure access by persons with disabilities and their families living in situations of poverty to assistance from the State with disability related expenses, including adequate training, counselling, financial assistance and respite care' (Article 28(2)(c)).
Under the program, the department may fund activities that improve the financial knowledge, skills and capabilities of persons with a disability. The NILS will also provide no interest loans to assist persons with disabilities with disability related expenses.
Convention on the Rights of the Child
Australia has obligations under the Convention on the Rights of the Child (CRC).
Article 4 of the CRC requires States Parties to 'undertake all appropriate legislative, administrative, and other measures for the implementation of the rights' recognised in the CRC. In particular:
* Article 27(1) provides that 'States Parties recognize the right of every child to a standard of living adequate for the child's physical, mental, spiritual, moral and social development';
* Article 18(2) provides that 'for the purpose of guaranteeing and promoting the rights set forth' in the CRC, 'States Parties shall render appropriate assistance to parents and legal guardians in the performance of their child-rearing responsibilities'; and
* Article 19 requires States Parties to take appropriate measures to protect the child from abuse, neglect and maltreatment while in the care of a parent, guardian or other carer (Article 19(1)). Article 19 stipulates that these measures should include 'effective procedures for the establishment of social programmes to provide necessary support for the child and for those who have the care of the child' as well as other forms of prevention of child maltreatment (Article 19(2)).
The NILS program activity provides financial assistance to parents and guardians on a low income with dependent children to ensure an adequate standard of living for their children's development, and to prevent the maltreatment of children by making funds available to carers to enable them to meet the basic needs of children in their care.
International Covenant on Economic, Social and Cultural Rights
Australia has obligations under the International Covenant on Economic, Social and Cultural Rights (ICESCR), including in relation to the right to social security, the right to an adequate living standard, and the right to work.
Article 2(1) of the ICESCR provides that States Parties undertake to take steps to progressively realise the rights recognised in the ICESCR 'by all appropriate means, including particularly the adoption of legislative measures'. In particular:
* Article 9 recognises the 'right of everyone to social security, including social insurance';
* Article 11 recognises 'the right of everyone to an adequate standard of living'; and
* Article 6 recognises the 'right to work which includes the right of everyone to the opportunity to gain his living by work which he freely chooses or accepts, and will take appropriate steps to safeguard this right'. The steps to be taken by a State Party to realise the right include 'policies and techniques to achieve steady economic, social and cultural development and full and productive employment'.
Under the program, the department may fund activities for, or supporting the provision of, social security to all people in Australia who are in need. The NILS loans are provided to people who are otherwise unable to provide for an adequate standard of living. The CFC and Financial Capability program activities support people with employment readiness through improving financial knowledge, skills and capabilities to assist them to achieve full and freely chosen employment.
International Labour Organization's Convention concerning Employment Policy
Australia also has obligations under the International Labour Organization's Convention concerning Employment Policy [1970] ATS 17.
Article 1 requires Members to pursue 'an active policy designed to promote full, productive and freely chosen employment' aiming to ensure, among other things, that 'there is work for all who are available for and seeking work' and 'freedom of choice of employment'.
Article 2 provides that Members shall 'decide on and keep under review within a framework of a co-ordinated economic and social policy' the 'measures to be adopted for attaining the objectives specified in Article 1' and to take appropriate steps 'for the application of these measures'.
Under the program, the department may fund activities that improve the financial knowledge, skills and capabilities of people seeking work in order to assist them achieving full and freely chosen employment.
CFC and Financial Capability services support people with employment readiness through improving financial knowledge, skills and capabilities to assist them to achieve full and freely chosen employment.
Power to grant financial assistance to States
Section 96 of the Constitution allows the Parliament to make grants of financial assistance to States on such terms and conditions as the Parliament sees fit.
Under the program, the department may grant financial assistance to a State for the purpose of assisting the financial knowledge, skills and capabilities of people within that State.
Territories power
Section 122 of the Constitution empowers the Parliament to make laws for the government of a territory.
Under the program, the department may fund activities that relate to improving the financial knowledge, skills and capabilities of people in a Territory. For example, the program may include funding for service providers to provide Emergency Relief, Food Relief, CFC and Financial Capability services to financially vulnerable individuals in a Territory.
Commonwealth executive power and the express incidental power
The express incidental power in section 51(xxxix) of the Constitution empowers the Parliament to make laws with respect to matters incidental to the execution of any power vested in it by the Constitution. Together with the executive power in section 61 of the Constitution, the express incidental power supports activities that form part of the ordinary and well-recognised functions of government.
Under the program, the Commonwealth may engage in research and information gathering in order to inform itself about matters relating to the financial capability and wellbeing of the Australian community for purposes including policy development.
Commonwealth Numbered Regulations - Explanatory Statements