Details of the Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) Regulation 2016

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) 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 item 83)

 

This item amends table item 83 in Part 4 of Schedule 1AB by repealing and substituting a new table item 83.  This table item establishes legislative authority for the Government to provide funding to Financial Counselling Australia Incorporated (FCA), as part of the Commonwealth Financial Counselling and Financial Capability - Capability Building program, within the Financial Wellbeing and Capability (FWC) activity.  The FWC activity is administered by the Department of Social Services.

 

The objective of the FWC activity is to provide financial counselling and financial capability services, especially to those most at risk of financial and social exclusion and disadvantage, to navigate financial crises and build financial wellbeing, capability and resilience.  Services include providing crisis support, financial capability services, financial counselling, and access to microfinance products. 

 

The amendment to table item 83 adds financial capability workers and services to the objectives of the Commonwealth Financial Counselling and Financial Capability - Capability Building program.  This will clarify the legislative authority for funding financial capability workers and services.

 

Under the FWC activity, funding is provided to the funded organisation for the following activities:

*         online and national 1800 telephone services which ensure key online and telephone based information and resources are developed and enhanced including ensuring an early intervention approach to the delivery of essential services and consistent and quality service provision;

*         the national financial counselling conference which contributes to professional development requirements for financial counsellors and financial capability workers and enhances their knowledge and the sharing of best practice, including changes to legislative and regulatory frameworks, to provide consistent and quality service to consumers; and

*         Indigenous initiatives which contribute to the professional development requirements and sharing of best practice for Indigenous people, or people who provide financial counselling and financial capability services predominantly to Indigenous people.

 

The Capability Building program aims to build and maintain the capability of workers to provide consistent and quality services to individuals and families experiencing financial difficulties to prevent them falling into entrenched financial hardship and welfare dependence.  Financial capability workers are appropriately trained and qualified to provide financial literacy and education services, with the aim of helping people to build long-term capability to budget, manage their money better and make informed choices.

 

In addition, amended table item 83 removes the reference to the funded organisation, FCA, which has changed its name.  The amendment will provide flexibility for any future changes to the organisation's name or provider arrangements.

 

A further amendment corrects a typographical error in the reference to the International Covenant on Economic, Social and Cultural Rights.

 

Funding for this item comes from Program 2.1: Families and Communities, which is part of Outcome 2: Families and Communities, as set out in the Portfolio Budget Statements 2016-17, Budget Related Paper No. 1.15a, Social Services Portfolio at page 64.  Total funding for the Capability Building program is up to $1 million (from the available FWC activity allocation) from 1 July 2015 to 30 June 2017.  Â

 

Current funding for FCA is provided through a grant agreement, as executed by the delegate of the Secretary of the Department of Social Services, which is in accordance with the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines. 

 

Future spending decisions in relation to this item will be made by the Secretary of the Department of Social Services, or the Secretary's delegate.  This includes decisions about whether direct, restricted or open competitive grant processes would take place.  Selection documentation would be made available for such grant processes on the Department's grants website (www.dss.gov.au/grants) in line with departmental policy and the Commonwealth Grants Rules and Guidelines.

 

The program is unsuitable for merits review as the funded organisation is uniquely qualified to undertake these services as it is the only national provider with an extensive understanding of, and proven performance history in, supporting the financial counselling and financial capability sector.

 

The funded organisation has established a financial counselling and financial capability website, manages the national telephone financial counselling 1800 Helpline, develops and supports national standards for financial counselling and financial capability and co-ordinates the national financial counselling and financial capability conference including supporting people who provide financial counselling and financial capability services predominantly to Indigenous persons to attend the national conference.

 

Further information about the FWC activity can be found at www.dss.gov.au/communities-and-vulnerable-people/programmes-services/financial-wellbeing-and-capability.

 

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 bankruptcy and insolvency power (section 51(xvii));

*         the social welfare power (section 51(xxiiiA));

*         the territories power (section 122);

*         the invalid and old age pensions power (section 51(xxiii));

*         the aliens power (section 51(xix));

*         the immigration power (section 51(xxvii));

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

*         the race power (section 51(xxvi)).

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 (Social Services Measures No. 4) 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 FF(SP) Regulations to amend table item 83 in Part 4 of Schedule 1AB.  Table item 83 establishes legislative authority for the Government to fund Financial Counselling Australia Incorporated (FCA) as part of the Commonwealth Financial Counselling and Financial Capability - Capability Building program, within the Financial Wellbeing and Capability activity, which is administered by the Department of Social Services.

 

The amendment to table item 83 adds financial capability workers and services to the objectives of the Commonwealth Financial Counselling and Financial Capability - Capability Building program.  In addition, amended table item 83 removes the reference to the funded organisation, FCA, which has changed its name; and corrects a typographical error. 

 

The Minister for Social Services has portfolio responsibility this matter.

 

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