Details of the Financial Management and Accountability Amendment (2014 Measures No. 2) Regulation 2014

 

Section 1 - Name of Regulation

 

This section provides that the title of the Regulation is the Financial Management and Accountability Amendment (2014 Measures No. 2) Regulation 2014.

 

Section 2 - Commencement

 

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislative Instruments. 

 

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 is amended as set out in Schedule 1 to the Regulation.

 

Schedule 1 - Amendments

 

Item 1 - Part 4 of Schedule 1AB (at the end of the table)

 

This item adds two items to Schedule 1AB to establish legislative authority for the Government to spend on certain programmes which are administered by the Department of Foreign Affairs and Trade and the Department of Agriculture, respectively.

 

New table item 9 establishes legislative authority for the Government to provide funding for the New Colombo Plan (NCP), an Australian undergraduate study and internship programme aimed at lifting knowledge of the Indo-Pacific region in Australia and strengthening Australia's people-to-people and institutional relationships in the region.  Funding of $100 million over five years was included in the Mid-Year Economic and Fiscal Outlook 2013-14. 

 

The New Colombo Plan will commence in 2015 following a pilot phase in 2014 which will involve a scholarship programme and a mobility grants scheme.  Approximately 40 scholarships will be awarded for study for a minimum of one semester up to a full academic year in Japan, Indonesia, Singapore and Hong Kong.  The mobility grants scheme will support some 700 Australian undergraduates to undertake study in the region, ranging from short courses to study of up to one year.  Following an evaluation of the pilot programme, study opportunities will be available in 2015 across the Indo-Pacific region.

 

The Department of Foreign Affairs and Trade will provide strategic oversight of the NCP.  The Department of Education will deliver the scholarship and student mobility programmes.

 

 

Students and universities are expected to apply for NCP funding in accordance with the selection criteria set out in the guidelines which are available on the website of the Department of Foreign Affairs and Trade.  Selection of successful applicants will be made in line with procedures set out in the guidelines.  Both the scholarships and mobility grant guidelines for the NCP note that appeals against decisions on the selection of successful applicants will not be considered.  

 

The NCP is unsuitable for merits review as the NCP has limited funds and only a proportion of applications can be met.  A decision made in relation to one grant will affect decisions in relation to all others.  No effective remedy could be provided, as a successful application for review by one university or student would require a reduction in funding to other universities or students.  A successful application for review by one university or student would also result in funding delays that would affect all scholarship and mobility grant applications that may affect the ability to study in the nominated period overseas.

 

Administrative accountability exists with publicised funding guidelines, as reviewed by the New Colombo Plan Reference Group and approved by the Department of Finance.  These guidelines outline the criteria for funding, how funds will be allocated, and the selection process using specialist expert panels to ensure fair and objective decisions.

 

New table item 10 establishes legislative authority for the Government to fund the Interim Farm Household Allowance to provide income support payments to eligible farmers who are facing financial difficulty, regardless of their location or the cause of financial difficulty.

 

The Interim Farm Household Allowance will ensure better access to income support for those farmers currently affected by drought.  Eligibility will be aligned with mainstream social security requirements as much as possible, with an asset test that recognises the special circumstances of farmers.  People aged over 22 years will be paid the Newstart Allowance rate and people under 22 years of age will be paid the Youth Allowance rate. 

 

The Interim Farm Household Allowance will replace the Transitional Farm Family Payment (TFFP) from 1 March 2014 and will be available until the commencement of legislation to establish the permanent Farm Household Allowance which will be introduced into the Parliament in the current sittings.  Transitional arrangements will be in place allowing recipients to continue to receive the Interim Farm Household Allowance after the commencement of the Farm Household Allowance in certain circumstances.  For example, where an Interim Farm Household Allowance recipient has expressed interest in applying for the permanent Farm Household Allowance, and then submits an application, they would continue to receive the interim payment until a determination is made on their application for the permanent allowance.  These arrangements would limit the potential for a break in payment to a person in financial hardship.  Current TFFP recipients will be able to transfer to the Interim Farm Household Allowance.

 

Guidelines detailing eligibility requirements for the Interim Farm Household Allowance are available on the Department of Agriculture website, with links on the Department of Human Services website.  The guidelines will also be distributed to the Rural Financial Counselling Service network, as rural financial counsellors are responsible for case managing TFFP and Interim Farm Household Allowance recipients. 

 

 

The guidelines provide for a multi-stage review process if an applicant is dissatisfied with a decision.  The levels of review escalate from discussion with the officer of the Department of Human Services who made the original decision, to review by a review officer, to review by a departmental official at the national office, and finally to consideration by the Commonwealth Ombudsman.

 

Introduction of the Interim Farm Household Allowance is in line with the announcement by the Prime Minister, the Hon Tony Abbott MP, on 6 February 2014 of the Government's intention to provide income support assistance for drought-affected farmers earlier than 1 July 2014.

 

The Department of Agriculture will administer the Interim Farm Household Allowance, with delivery by the Department of Human Services.

 

 

 

 

 

 

 

 

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 (2014 Measures No. 2) Regulation 2014

 

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. 

 

Section 32B of the FMA Act establishes legislative authority for the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Management and Accountability Regulations 1997 (FMA Regulations) and to make, vary and administer arrangements and grants for the purposes of programmes specified in the FMA Regulations.  This is in response to the High Court's decision in Williams v Commonwealth (2012) 288 ALR 410.  Schedule 1AA and Schedule 1AB to the FMA Regulations specify the arrangements, grants and programmes. 

 

The Regulation amends Schedule 1AB to the FMA Regulations to establish legislative authority for the Government to fund:

*         the New Colombo Plan, an Australian undergraduate study and internship programme aimed at lifting knowledge of the Indo-Pacific region in Australia and strengthening Australia's people-to-people and institutional relationships in the region (administered by the Department of Foreign Affairs and Trade); and

*         the Interim Farm Household Allowance to provide income support payments to eligible farmers who are facing financial difficulty (administered by the Department of Agriculture).

 

The programmes specified in Schedule 1AB are the responsibility of the relevant Ministers who have portfolio responsibility for the matters.

 

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