FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (2023 MEASURES NO. 1) REGULATIONS 2023 (F2023L01352) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (2023 MEASURES NO. 1) REGULATIONS 2023 (F2023L01352)

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(2023 Measures No. 1) Regulations 2023

 

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 powers in the FF(SP) Act to make, vary or administer arrangements or grants may be exercised on behalf of the Commonwealth by 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 Principal Regulations are exempt from sunsetting under section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015 (item 28A). If the Principal Regulations were subject to the sunsetting regime under the Legislation Act 2003, this would generate uncertainty about the continuing operation of existing contracts and funding agreements between the Commonwealth and third parties (particularly those extending beyond 10 years), as well as the Commonwealth's legislative authority to continue making, varying or administering arrangements, grants and programs.

 

Additionally, the Principal Regulations authorise a number of activities that form part of intergovernmental schemes. It would not be appropriate for the Commonwealth to unilaterally sunset an instrument that provides authority for Commonwealth funding for activities that are underpinned by an intergovernmental arrangement. To ensure that the Principal Regulations continue to reflect government priorities and remain up to date, the Principal Regulations are subject to periodic review to identify and repeal items that are redundant or no longer required.

 

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.

 

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.

 

The Financial Framework (Supplementary Powers) Amendment (2023 Measures No. 1) Regulations 2023 (the Regulations) amends Part 3 of the Principal Regulations, relating to transitional and application provisions, Schedules 1AA and 1AB to the Principal Regulations, relating to arrangements, grants or programs, and Schedule 1B to the Principal Regulations, relating to companies and objects or proposed activities.

 

The amendments repeal selected items in the schedules that are no longer needed.

 

The Regulations repeal 67 items from schedules to the Principal Regulations:

 

The items in Schedules 1AA and 1AB to the Principal Regulations have been identified as appropriate for repeal because the arrangements and grants made in reliance on these items have come to an end or will come to an end prior to the commencement of the Regulations, or a more appropriate source of legislative authority is available for such arrangements and grants. The item being repealed from Schedule 1B to the Principal Regulations relates to a company that is no longer funded by the Commonwealth.

 

The amendments also include transitional provisions to preserve the capacity for the Commonwealth to take action in relation to an arrangement or grant 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 need could arise because an arrangement or grant 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. It does 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, Fisheries and Forestry; the Attorney-General's Department; the Department of Climate Change, Energy, the Environment and Water; the Department of Education; the Department of Employment and Workplace Relations; the Department of Foreign Affairs and Trade; the Department of Health and Aged Care; the National Emergency Management Agency (within the Department of Home Affairs); the Department of Industry, Science and Resources; the Department of Infrastructure, Transport, Regional Development and Communications; the National Indigenous Australians Agency (within the Department of the Prime Minister and Cabinet); the Department of Social Services; the Department of the Treasury; and the Department of Veterans' Affairs.

 

A regulatory impact analysis is not required as the Regulations only apply to non-corporate Commonwealth entities and do not adversely affect the private sector.

 

 

 


Attachment A

 

Details of the Financial Framework (Supplementary Powers) Amendment (2023 Measures No. 1) Regulations 2023

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (2023 Measures No. 1) Regulations 2023.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on the day after registration on the Federal Register of Legislation. 

 

Section 3 - Authority

 

This section provides that the Regulations are made under the Financial Framework (Supplementary Powers) Act 1997 (FF(SP) Act).

 

Section 4 - Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations) are amended as set out in the Schedule to the Regulations.

 

Schedule 1 - Amendments

 

Part 1 - Repeal of items

 

Financial Framework (Supplementary Powers) Regulations 1997

 

Items 1 to 6 amend Schedules 1AA and 1AB by repealing 21 table items from Schedule 1AA, 45 table items from Schedule 1AB and one item from Schedule 1B to the Principal Regulations. These table items have been identified as appropriate for repeal because the arrangements and grants made in reliance on these table items have come to an end or will come to an end prior to the commencement of the Regulations, or another source of legislative authority has been identified for such arrangements and grants. 

 

Item 1 - Part 3 of Schedule 1AA (table item 318.001)

 

This item repeals table item 318.001 from Part 3 of Schedule 1AA to the Principal Regulations.

 

Table item 318.001 relates to Assistance to upgrade Simplot's processing plants in Tasmania and is no longer required for legislative authority because grants under the program ended in 2013-14.

 

Item 2 - Amendments of listed provisions--Part 4 of Schedule 1AA

 

This item repeals redundant provisions from the table in Part 4 of Schedule 1AA to the Principal Regulations.

 

Table item

Name

401.019

Australian Pest Animal Research Program

401.028

Support the Forest Industry

402.004

Payments for the provision of legal aid in expensive Commonwealth criminal cases--Legal Aid Commissions

402.008

Family Relationships Services Program

402.018

Safer Suburbs

402.025

Schools Security Program

402.027A

Disaster recovery assistance as required

402.028

Assistance--Disaster Income Recovery Subsidy

405.002

Cybersafety

410.012

Support for Carers

410.027

External Merits Review

418.027

Clean Technology Investment--Food and Foundries Program

418.038

Textile Clothing and Footwear--Structural Adjustment Program

418.075

Education Services for Overseas Students Assurance Fund

419.004

Keys2Drive

425.019

Destruction of ozone depleting substances and synthetic greenhouse gases

430.004

Grants-In-Aid

430.005

Community Care Grants

430.006

Joint Venture Grants

430.008

Joint Venture Home Maintenance

 

These table items are no longer required for legislative authority.

 

Item 3 - Amendments of listed provisions--Part 2 of Schedule 1AB

 

This item repeals redundant provisions from the table in Part 2 of Schedule 1AB to the Principal Regulations.

 

Table item

Name

4

Stronger Biosecurity and Quarantine programme--grants to States and Territories to conduct biosecurity response and preparedness activities

13

Grants to improve apprenticeships 

 

These table items are no longer required for legislative authority.

 

 

Item 4 - Amendments of listed provisions - Part 3 of Schedule 1AB

 

This item repeals redundant provisions from the table in Part 3 of Schedule 1AB to the Principal Regulations.

 

Table item

Name

15

Grants for Casino Beef Week

20

Australian bid for 2023 FIFA Women's World Cup

22

Grant to the Australian International Military Games Limited

36

Grants to General Sir John Monash Foundation

55

Grant to Australian Olympic Committee

 

These table items are no longer required for legislative authority.

 

Item 5 - Amendments of listed provisions - Part 4 of Schedule 1AB

 

This item repeals redundant provisions from the table in Part 4 of Schedule 1AB to the Principal Regulations.

 

Table item

Name

3

Support for national expositions relating to primary industry

5

Better Employment Outcomes for Indigenous Australians

7

Tasmanian Jobs Programme

28

Financial Rebate for Small Exporters

29

Review of Invasive Marine Pests

46

Strengthening Communities

90

Disability and Carers - Disability, Mental Health and Carers - Individual Placement and Support

109

Support for the Child Care System - Child Care Services Support - Inclusion Support Programme

138

Alternative arrangements for apprenticeship delivery 

141

Young Carers Respite and Information Services Programme

147

Asian Physics Olympiad

156

Managing farm risk

157

Building Capacity in Australian Parents Trial

158

Towards Independent Adulthood Trial

172

Dairy Australia--Tactics for Tight Times

177

Perinatal depression online support tool

197

Leadership in Agricultural Industries Fund

209

Commonwealth Scholarships Program for South Australia

220

Commodity Milk Price Index

226

Supporting Younger Veterans Grants

238

Grants to commemorate the end of the First World War

267

In Home Care Support

269

Services for people affected by the use of per- and poly-fluoroalkyl substances at RAAF Base Tindal

279

National Disability Coordination Officer Program

287

Keeping Children Safe by Reducing Childhood Injuries

307

Value in Prescribing Program

311

Farm Hub

334

Smart Fruit Fly Management

346

Urgent assistance for eligible primary producers affected by floods in Northern Queensland

347

Paying legacy unpaid external dispute resolution determinations

360

Incentives for Australian Apprenticeships

371

Grant to Dairy Australia Limited

372

Grant to Australian Dairy Farmers' Limited

374

Starting Farm Cooperative

384

Rural Inspire Program

393

Support to communities affected by bushfires--payments for children

396

Mid-Career Checkpoint

449

Motor Vehicle Service and Repair Information Sharing--Online Resources

 

These table items are no longer required for legislative authority.

 

Item 6 - Schedule 1B (table item 11)

 

Item 6 amends Schedule 1B by repealing table item 11. This table item relates to Medibank Private and is no longer required because Medibank Private is no longer funded by the Commonwealth. In 1976, the Australian Government established Medibank Private as a
not-for-profit private health insurer. In 2014, the Government announced it would sell Medibank Private. The Medibank Private Sale Act 2006 received royal assent on 11 December 2006 with a designated sale date declared for 1 December 2014.

 


Part 2 - Transitional provisions

 

Financial Framework (Supplementary Powers) Regulations 1997

 

Item 7 - In the appropriate position in Part 3

 

Item 7 inserts Division 5 "Amendments made by the Financial Framework (Supplementary Powers) Amendment (2023 Measures No. 1) Regulations 2023" into Part 3 of the Principal Regulations.

 

New section 30 "Power to vary or administer arrangements or grants" ensures that, despite the repeal of table items in Schedules 1AA and 1AB by Part 1 of Schedule 1 to the Regulations, there are transitional provisions in place to preserve the power for the Commonwealth to vary or administer an arrangement or grant entered into prior to the repeal of these table items as if these items continue in force for the purposes of sections 32B (power to make, vary and administer arrangements and grants) and 32C (terms and conditions for grants) of the FF(SP) Act, should the need for such action arise in the future. Such need could arise because an arrangement or grant 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. It does not provide the authority for the Commonwealth to make any new commitments to spend money in reliance on the table items being repealed
(e.g. a grant or arrangement could not be varied to increase any amount payable by the Commonwealth).

 

The provisions would however authorise spending pursuant to any contractual commitment entered into prior to the repeal of the relevant item, including where:

*         a grant or arrangement has not expired prior to the repeal of the item as expected and a payment becomes due, under the terms of the grant or arrangement, after the repeal; or

*         a payment made under the grant or arrangement before the repeal of the item was miscalculated and underpaid and the contractor is entitled, under the terms of the grant or arrangement, to an additional payment. 

 


Attachment B

 

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 (2023 Measures No. 1) Regulations 2023

 

These Regulations are 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 (Principal Regulations) and to make, vary and administer arrangements and grants 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. The powers in the FF(SP) Act to make, vary or administer arrangements or grants may be exercised on behalf of the Commonwealth by 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 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. 

 

The Financial Framework (Supplementary Powers) Amendment (2023 Measures No. 1) Regulations 2023 amend Part 3 of the Principal Regulations, relating to transitional and application provisions, Schedules 1AA and 1AB to the Principal Regulations, relating to arrangements, grants or programs, and Schedule 1B to the Principal Regulations, relating to companies and objects or proposed activities.

 

The amendments repeal selected items in the schedules that are no longer needed.

 

The Regulations repeal 67 items from schedules to the Principal Regulations:

 

The items in Schedules 1AA and 1AB to the Principal Regulations have been identified as appropriate for repeal because the arrangements and grants made in reliance on these items have come to an end or will come to an end prior to the commencement of the Regulations, or a more appropriate source of legislative authority is available for such arrangements and grants. The item being repealed from Schedule 1B to the Principal Regulations relates to a company that is no longer funded by the Commonwealth.

 

The amendments also include transitional provisions to preserve the capacity for the Commonwealth to take action in relation to an arrangement or grant 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 need could arise because an arrangement or grant entered into prior to the repeal has not expired as expected or because there is a need to enforce 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. It does 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.   

 

Human rights implications

 

The Regulations do not engage any of the applicable rights or freedoms.

 

Conclusion

 

The Regulations are compatible with human rights as they do not raise any human rights issues.

 

 

 

Senator the Hon Katy Gallagher

Minister for Finance

 


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