Details of the Financial Framework (Supplementary Powers) Amendment (2015 Measures No. 5) Regulation 2015

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (2015 Measures No. 5) Regulation 2015.

 

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 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 (at the end of the table)

 

This item adds a new item to Part 4 of Schedule 1AB to establish legislative authority for Government spending for a programme administered by the Department of Industry and Science.

 

New table item 84 establishes legislative authority for the Government to fund the Home Insulation Program Industry Payment Scheme (the Scheme).

 

The Scheme has been established in response to the recommendations of the Report of the Royal Commission into the Home Insulation Program.  The Government's response to the Royal Commission was announced by the Minister for the Environment, the Hon Greg Hunt MP, on 23 December 2014.

 

Under the Scheme, discretionary payments will be made to home insulation installation businesses that suffered adverse financial impacts as a direct result of the administration, including termination, of the Home Insulation Program.  The Scheme will commence on 1 June 2015.

 

Ministerial Guidelines, including the eligibility, assessment process and further information, will be publicly available on www.business.gov.au.  Payments will be made in accordance with the requirements of the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines.

 

 

The decision-maker for the Scheme will be the Minister for Industry and Science whose offer of a final payment amount will be final.  However, an eligible applicant will be able to make a case for special circumstances that, if taken into account, would result in a different assessment of the extent of adverse financial impact.  This could warrant a re-determination of the adverse financial impact.

 

The Scheme comes under Programme 2: Growing Business Investment and Improving Business Capability; Sub-programme 2.3: Economic Transition, Home Insulation Program - Industry Payment Scheme.  Programme 2 is part of Outcome 1: Enabling growth and productivity for globally competitive industries through supporting science and commercialisation, growing business investment and improving business capability and streamlining regulation.  While the expenditure for the Scheme is not for publication due to commercial-in-confidence considerations, the item is listed at page 35 of the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.12, Industry and Science Portfolio. 

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the Commonwealth executive power (section 61) and the express incidental power (section 51(xxxix)) of the Constitution.

 

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 (2015 Measures No. 5) Regulation 2015

 

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 programmes specified in the Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programmes. 

 

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. 

 

The Regulation amends Schedule 1AB to the FF(SP) Regulations to establish legislative authority for spending by the Government on the Home Insulation Program Industry Payment Scheme, which was included in the 2015-16 Budget.  Under the Scheme, discretionary payments will be made to home insulation installation businesses that suffered adverse financial impacts as a direct result of the administration, including the termination, of the Home Insulation Program.  The Scheme will give effect to recommendations of the Royal Commission into the Home Insulation Program.  

 

The Scheme will be administered by the Department of Industry and Science. 

 

The item specified in Schedule 1AB is the responsibility of the Minister for Industry and Science who has portfolio responsibility for the 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