Attachment A

 

Details of the Financial Management and Accountability Amendment (2013 Measures No. 1) Regulation 2013

 

Section 1 - Name of Regulation

 

This section provides that the title of the Regulation is the Financial Management and Accountability Amendment (2013 Measures No. 1) Regulation 2013.

 

Section 2 - Commencement

 

This section provides for the commencement of the Regulation.  Schedule 1 to the Regulation commences on the day after the Regulation is registered on the Federal Register of Legislative Instruments.  Schedule 2 to the Regulation commences on 1 January 2014.

 

Section 3 - Authority

 

This section provides that the Regulation is made under the Financial Management and Accountability Act 1997 (FMA Act).

 

Section 4 - Schedule(s)

 

This section provides that the Financial Management and Accountability Regulations 1997 (the Principal Regulations) are amended as set out in Schedules 1 and 2 to the Regulation.

 

Schedule 1 - Amendments commencing on the day after registration

 

Item 1 - At the end of regulation 16

 

Section 32B of the FMA Act establishes legislative authority for the Government to make, vary and administer arrangements and grants specified in the Principal Regulations and arrangements and grants for the purposes of programs specified in the Principal Regulations.  Regulation 16 to the Principal Regulations provides that Schedule 1AA to the Principal Regulations specifies the arrangements, grants of financial assistance, classes of arrangements, classes of grants and programs for the purposes of subsection 32B(1) of the FMA Act.

 

Subregulation 16(2) to the Principal Regulations provides that the specification of an arrangement, grant or program in Schedule 1AA is not affected by a change in the name of a department or authority or the transfer, in whole or in part, of responsibility for the administration of the arrangement, grant or program. 

 

Schedule 1AA lists grants and programs under a heading of the name of each department or certain agencies.  This was intended as a sorting mechanism.  As a result of machinery of government changes, the names of departments in the headings in Schedule 1AA do not reflect the current Administrative Arrangements Order.  This, however, does not affect the legal effect of Schedule 1AA. 

 

 

Item 1 amends Regulation 16 to the Principal Regulations to add a new Schedule 1AB to specify arrangements, classes of arrangements, grants and classes of grants, and programs for the purposes of subsection 32B(1) of the FMA Act.  The purpose and operation of new Schedule 1AB is intended to be the same as that of Schedule 1AA. 

 

Schedule 1AB does not have headings with the names of departments or agencies.  For Schedule 1AB, responsibility for the administration of the arrangement, grant or program will be determined in line with the Administrative Arrangements Order as applying from time to time.  This approach is similar to that taken for the agencies prescribed in Schedule 1 to the Principal Regulations which are not listed by portfolio. 

 

New subregulation 16(3) specifies four Parts to new Schedule 1AB and the arrangements, grants or programs to which they apply.  The Parts are consistent with those in Schedule 1AA.

 

Item 2 - After Schedule 1AA

 

Item 2 adds new Schedule 1AB to the Principal Regulations to follow Schedule 1AA.  Schedule 1AB includes four Parts which are the same as those of Schedule 1AA, namely:

*         Part 1 for arrangements under which public money is, or may become, payable by the Commonwealth;

*         Part 2 for grants of financial assistance to a State or Territory;

*         Part 3 for grants of financial assistance to persons other than a State or Territory; and

*         Part 4 for programs.

 

Parts 1 to 3 have been included for future use.  Part 4 of new Schedule 1AB specifies the activities for which legislative authority for Government spending is established.  The Regulation specifies activities in the Departments of Agriculture; Communications; and the Prime Minister and Cabinet.

 

Table item 1 establishes legislative authority for Government spending on a broader digital productivity telehealth trial with Townsville-Mackay Medicare Local.  Item 405.015 of Schedule 1AA to the Principal Regulations establishes legislative authority for the Government to provide funding to the Townsville-Mackay Medicare Local for the Townsville National Broadband Network-enabled Diabetes Telehealth Trial. 

 

The item in Schedule 1AB provides for the delivery of trial services over any suitable broadband technology.  This is in line with Government policy and will allow the Townsville-Mackay Medicare Local to deliver the same telehealth trial services over a wider range of high-speed broadband access technologies in addition to National Broadband Network technology.

 

The funding arrangements in relation to the program (for example, in relation to how payments are made and relevant approvals) remain the same as set out in the Explanatory Statement accompanying the Financial Management and Accountability Amendment Regulation 2013 (No. 5).  The Department of Communications will administer this activity.

 

 

Table item 2 establishes legislative authority for the Government to fund agricultural co-operation and investment projects between Australia and Indonesia.

 

This initiative will be supported by a 10 year, $10 million program to increase agricultural co-operation and boost Australian investment in the red meat and cattle sector in Indonesia.  This program will consist of non-Official Development Assistance (ODA) funding that will be administered by the Department of Agriculture and will complement $50 million funding of ODA (aid) funding to support co-operation activities to be administered by the Department of Foreign Affairs and Trade.  The decision-maker for expenditure under the $10 million program will be the Minister or his or her delegate.

 

Projects to be funded under the $10 million program will be developed collaboratively with Indonesia through an Indonesia-Australia government industry partnership.  The partnership will function as a high level advisory government industry body, providing strategically focused advice and recommendations on areas of priority investment and agricultural co-operation, aimed at:

*         improving the long-term sustainability, productivity and competitiveness of Indonesia's beef and cattle sector;

*         supporting the bilateral exchange of agricultural expertise related to the red meat and cattle sector;

*         strengthening Indonesia-Australia bilateral business, investment and trade ties; and

*         supporting closer engagement with the red meat and cattle sector.

 

Priority areas of investment and co-operation, as suggested by the partnership, may be translated into a project proposal for consideration by the Australian Government. 

 

Table item 3 establishes legislative authority for the Government to provide funding to support the conduct of national expositions relating to primary industry, such as the Beef Australia exposition.

 

Expositions held in Australia, or overseas, can support the national objectives of improved resource management, production, and cross-border and international marketing and trade in primary industries, namely the agriculture and fisheries industries (including the related food and beverage industries) and forest industries.  Support from the Australian Government can enhance outcomes from national expositions relating to primary industry that address and promote national interests.

 

As expositions are expected to be industry-driven, applications for Australian Government support will generally be received on an ad hoc basis.  As such, decisions on funding will be made on a non-competitive basis to support departmental objectives.  This does not preclude the Department of Agriculture from initiating a competitive process with guidelines that further target outcomes from a national exposition.

 

Ad hoc applications from industry will be assessed by the Department, with spending decisions approved by the Minister for Agriculture.  Where a competitive process with guidelines is undertaken, the Minister may, when approving the guidelines, delegate funding approval to a departmental official.  Funding will be administered in accordance with the Commonwealth Grant Guidelines and related departmental guidelines.  Spending decisions will be made public as required by these guidelines.  The activity will be administered by the Department of Agriculture.

 

Table item 4 establishes legislative authority for the Government to fund the Empowered Communities initiative, an initiative to support Aboriginal and Torres Strait Islander peoples.  The Government has committed $5 million for a design phase of the Empowered Communities initiative to strengthen local leadership and build strong, healthy, prosperous and safe communities.

 

A taskforce comprising Government officials, Indigenous representatives and corporate Australia will lead the design work for the Empowered Communities model beginning in late 2013 and recommend a model to Government for consideration in 2014.  The Empowered Communities model will potentially apply in up to eight opt-in regions across urban, regional and remote Australia.

 

The objectives of the initiative are:

*         Indigenous-led responsibility for overcoming welfare dependency and building self-reliance;

*         participation on an opt-in basis;

*         place-based and site-specific program design;

*         flexible funding arrangements; and

*         measurable outcomes to track progress.

 

Empowered Communities focuses on reforms to ensure that Indigenous people have a greater say about how best to respond to local issues, in particular those problems associated with welfare dependence.  The Empowered Communities proposal also recognises the importance of establishing shared social norms and expectations.  The focus is on helping communities take strong action to ensure that children are going to school, adults are getting into work and people are living in communities that are safe.

 

Funding is being allocated to the Empowered Communities initiative from the Indigenous Communities Strategic Investment (ICSI) Activity within the Flexible Funding component of Program 7.4: Indigenous Capability and Development.  Part C: Flexible Funding Program Guidelines for ICSI can be found at http://www.dss.gov.au/our-responsibilities/indigenous-australians/programs-services/recognition-respect/indigenous-capability-and-development-program-guidelines.

 

The decision-maker for the Empowered Communities initiative is the Parliamentary Secretary to the Prime Minister, the Hon Alan Tudge MP.  The initiative will be administered by the Department of the Prime Minister and Cabinet.

 

The Empowered Communities initiative is an election commitment made by the current Prime Minister, the Hon Tony Abbott MP, on 24 August 2013.

 

Table item 5 establishes legislative authority for the Government to fund the Better Employment Outcomes for Indigenous Australians program.

 

This program will support the implementation of the demand-led GenerationOne employment model, known as Vocational Training and Employment Centres (VTECs), in at least four sites across Australia in 2013-14 and 2014-15.  The VTECs will provide up to 5,000 Indigenous Australians with practical training, with guaranteed jobs upon completion.

 

The GenerationOne employment model will be established under the Indigenous Employment Program (IEP) as an element of the IEP, with the same funding criteria as the IEP.  The implementation of the GenerationOne employment model will use existing IEP Guidelines as these are consistent with the objectives of the Better Outcomes for Indigenous Australians measure.  The IEP Guidelines are available at: http://employment.gov.au/indigenous-employment-program-iep.

 

The objective of the IEP is to increase the employment outcomes and participation in economic activities for Aboriginal and Torres Strait Islander people.  The IEP supports activities that will develop the capacity of employers, Indigenous Australians and their communities to increase opportunities through employment, business and other economic development activities.

 

The decision-maker for the GenerationOne employment model will be the delegate for the IEP.  The initiative will be administered by the Department of the Prime Minister and Cabinet.

 

The GenerationOne employment model will be part of the IEP and will not be separately listed in the Portfolio Budget Statements.  The IEP is currently Program 3.2, described in the Portfolio Budget Statements 2013-14, Budget Related Paper No. 1.5, Education, Employment and Workplace Relations Portfolio at pages 78 to 79.

 

Table item 6 establishes legislative authority for the Government to fund school attendance strategies.  The Government, in accordance with Article 28(1)(e) of the Convention on the Rights of the Child, recognises the right of children to education and is taking measures to encourage regular attendance at schools and the reduction of drop-out rates.

 

These measures include remote areas school attendance strategies which will provide targeted assistance to improve educational outcomes for students.  These strategies may also provide community-based models to improve school attendance in various communities, for example, using local people where possible as officers to assist school attendance.  These officers would be able to undertake a range of activities, including taking children to and from school, ensuring they have school uniforms, providing breakfast and lunch clubs, marking attendance rolls and referring complex cases to other specialist services.  The strategies may also provide a small amount of pooled, flexible funding available for each community to access to assist with any incidental costs that may be associated with the provision of lunches, homework assistance, transport, uniforms, and related capital expenditure.

 

Funding is being made available under existing allocations to programs for implementation of the strategies.  Funding will be targeted to communities with low attendance rates or where there are concerns about attendance.  The strategies will initially utilise funding from the Remote Jobs and Community Program (RJCP) Community Development Fund and Indigenous Communities Strategic Investment (ICSI) Program.  Funding will initially be provided under the RJCP Community Development Fund Guidelines and the ICSI Program Guidelines.  The RJCP guidelines are available at http://www.dss.gov.au/indigenous-australians/grants-funding/community-development-fund-remote-jobs-and-communities-program. 

 

The ICSI Program is an item in the Indigenous Capability and Development Program (Program 7.4).  Relevant guidelines are available at http://www.dss.gov.au/our-responsibilities/indigenous-australians/programs-services/recognition-respect/indigenous-capability-and-development-program-guidelines (ICSI is referenced together with Indigenous Remote Service Delivery Special Account under their specific Part C: Flexible Funding).

 

The decision-maker will be the Minister or delegate.  The initiative will be administered by the Department of the Prime Minister and Cabinet.

 

Funding for the initiative will be made as part of Program 3.4 - Remote Jobs and Community Program, described in the Portfolio Budget Statements, Budget Related Paper No. 1.5, Education, Employment and Workplace Relations Portfolio at page 74. 

 

Funding will also be made from Program 7.4 - Indigenous Capability and Development, described in the Portfolio Budget Statements 2013-14, Budget Related Paper No. 1.6, Families, Housing, Community Services and Indigenous Affairs Portfolio at page 135 and pages 145 to 148. 

 

Schedule 2 - Amendments commencing on 1 January 2014

 

Item 1 - Schedule 1 (after item 101)

 

The Australian Aged Care Quality Agency Act 2013 establishes the Australian Aged Care Quality Agency (Quality Agency).  The Quality Agency will replace the existing Aged Care Standards and Accreditation Agency Limited from 1 January 2014.

 

The Quality Agency will be the sole agency that providers of Australian Government funded aged care, approved under the Aged Care Act 1997, will deal with in relation to the quality assurance of the aged care services that they deliver.  The Quality Agency will commence functions relating to residential care services from 1 January 2014 and functions relating to home care services from 1 July 2014.

 

Item 1 adds this new agency at new item 101AA as a prescribed agency to Schedule 1 to the Principal Regulations.  Once prescribed under the Principal Regulations, the Quality Agency will be subject to the requirements of the FMA Act.

 

The item specifies that, for FMA Act purposes, the Quality Agency comprises:

*         the Chief Executive Officer (CEO);

*         the staff of the Quality Agency;

*         persons assisting the CEO;

*         consultants engaged by the CEO; and

*         the members of the Aged Care Quality Advisory Council.

 

For the purposes of the FMA Act, the item specifies that the Chief Executive Officer will be the Chief Executive of the agency.

Attachment B

 

Statement of Compatibility with Human Rights

Prepared in accordance with part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

 

Financial Management and Accountability Amendment (2013 Measures No. 1) Regulation 2013

 

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

 

The Financial Management and Accountability Act 1997 (the FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies.  The FMA Act applies to Commonwealth Departments of State and their staff, parliamentary departments and their staff, and prescribed agencies.  Agencies are prescribed in Schedule 1 to the Financial Management and Accountability Regulations 1997 (the FMA Regulations). 

 

Section 32B of the FMA Act establishes legislative authority for the Government to make, vary and administer arrangements and grants specified in the FMA Regulations and arrangements and grants for the purposes of programs specified in the FMA Regulations.  Regulation 16 to the FMA Regulations provides that Schedule 1AA to the FMA Regulations specifies the arrangements, grants of financial assistance, classes of arrangements, classes of grants and programs for the purposes of subsection 32B(1) of the FMA Act.  Schedule 1AA to the FMA Regulations specifies the arrangements, grants and programs.  This is in response to the High Court's decision in Williams v Commonwealth (2012) 288 ALR 410. 

 

Subregulation 16(2) to the FMA Regulations provides that the specification of an arrangement, grant or program in Schedule 1AA is not affected by a change in the name of a department or authority or the transfer, in whole or in part, of responsibility for the administration of the arrangement, grant or program.  Amending Schedule 1AA to reflect machinery of government changes is not legally necessary in light of subregulation 16(2).  Schedule 1AA will be retained.

 

To avoid future confusion and complexity and to overcome issues arising from changes to departments, the Regulation adds a new Schedule, Schedule 1AB, to list new and significantly changed spending activities for the purposes of section 32B of the FMA Act.  New Schedule 1AB does not include departmental headings. 

 

New Schedule 1AB establishes legislative authority for spending on certain activities in three departments, namely, the Department of Agriculture; the Department of Communications; and the Department of the Prime Minister and Cabinet.  The spending activities specified in Schedule 1AB are the responsibility of the relevant Ministers who have portfolio responsibility for the matters.

 

 

Schedule 1 to the FMA Regulations prescribes agencies for the purposes of the FMA Act.  The Regulation adds the Australian Aged Care Quality Agency as a prescribed agency to Schedule 1 to the FMA Regulations.  This agency will be part of the Social Services portfolio.

 

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