Commonwealth Numbered Regulations - Explanatory Statements
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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (2018 MEASURES NO. 1) REGULATIONS 2018 (F2018L00456)
EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(2018 Measures No. 1) Regulations 2018
The Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) confers on the Commonwealth, in certain circumstances, powers to make arrangements under which money can be spent; or to make grants of financial assistance; and to form, or otherwise be involved in, companies. The arrangements, grants, programs and companies (or classes of arrangements or grants in relation to which the powers are conferred) are specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations). 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.
Section 65 of the FF(SP) Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.
Section 32B of the FF(SP) Act authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Principal Regulations. Section 32B also authorises the Commonwealth to make, vary and administer arrangements for the purposes of programs specified in the Principal Regulations. Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs.
Section 39B of the FF(SP) Act authorises the Commonwealth to form companies, or participate in the formation of companies, specified in the Principal Regulations and whose objects or proposed activities are specified in the Principal Regulations. Schedule 1B to the Principal Regulations specifies the companies and their objects or proposed activities.
Schedule 1 to the Financial Framework (Supplementary Powers) Amendment (2018 Measures No. 1) Regulations 2018 (the Regulations) amends Part 3 of the Principal Regulations and Schedules 1AA, 1AB and 1B to the Principal Regulations. The amendments repeal selected items from schedules to the Principal Regulations and include transitional provisions to preserve the capacity for the Commonwealth to take action in relation to a grant or arrangement entered into prior to the repeal of relevant items as if these items continue in force, should the need for such action arise in the future.
The Regulations repeal 163 items from schedules to the Principal Regulations:
- 142 items from Schedule 1AA;
- 16 items from Schedule 1AB; and
- five items from Schedule 1B.
The items in Schedules 1AA and 1AB to the Principal Regulations have been identified as appropriate for repeal because the grants and arrangements made in reliance on these items have come to an end or are expected to come to an end prior to the commencement of the Regulations, or another source of legislative authority has been identified for such grants and arrangements. The items being repealed from Schedule 1B to the Principal Regulations relate to companies that have been deregistered under the Corporations Act 2001.
The transitional provisions for items being repealed preserve the power for the Commonwealth to vary or administer a grant or arrangement entered into prior to the repeal of relevant items as if these items continue in force, should the need for such action arise in the future. Such a need could arise because a grant or arrangement entered into prior to the repeal has not expired as expected or because there is a need to administer a continuing obligation in such an agreement (for example, to recover funds in the event that a breach of the agreement is later identified).
The transitional provisions also preserve the capacity for Ministers and accountable authorities of non-corporate Commonwealth entities to issue delegations in respect of this power. The provisions do not provide the authority for the Commonwealth to make any new commitments to spend money in reliance on the items being repealed but would authorise spending pursuant to any contractual commitment entered into prior to the repeal.
Details of the Regulations are set out at Attachment A. A Statement of Compatibility with Human Rights is at Attachment B.
The Regulations are a legislative instrument for the purposes of the Legislation Act 2003. The Regulations commence on the day after the instrument is registered on the Federal Register of Legislation.
Consultation
In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Agriculture and Water Resources; the Attorney-General's Department; the Department of Communications and the Arts; the Department of Education and Training; the Department of the Environment and Energy; the Department of Health; the Department of Home Affairs; the Department of Human Services; the Department of Industry, Innovation and Science; the Department of Infrastructure, Regional Development and Cities; the Department of Jobs and Small Business; the Department of the Prime Minister and Cabinet; the Department of Social Services; and the Department of the Treasury.
A regulation impact statement is not required as the Regulations only apply to non-corporate Commonwealth entities and do not adversely affect the private sector.