FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (INDUSTRY, INNOVATION AND SCIENCE MEASURES NO. 2) REGULATION 2016 (F2016L00672) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (INDUSTRY, INNOVATION AND SCIENCE MEASURES NO. 2) REGULATION 2016 (F2016L00672)

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(Industry, Innovation and Science Measures No. 2) Regulation 2016

 

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. 

 

Schedule 1 to the Regulation amends the Principal Regulations to establish legislative authority in Schedule 1AB for spending by the Government on certain initiatives under the National Innovation and Science Agenda, which was announced by the Prime Minister, the Hon Malcolm Turnbull MP, and the Minister for Industry, Innovation and Science, the Hon Christopher Pyne MP, on 7 December 2015.  The initiatives will be administered by the Department of Industry, Innovation and Science.  Funding details were included in the Mid-Year Economic and Fiscal Outlook 2015-16, released on 15 December 2015. 

 

Funding will be provided for:

*         the National Science Week and strategic science communication activities to raise the science literacy and interest of Australians;

*         Maker Projects to encourage the development of 'maker' spaces and activities in schools and communities, where students and the community can invent, design and create products, using new technology and traditional craft supplies and hardware; and

*         citizen science projects to support exemplar projects in citizen science targeted at students under 18 years of age, and the development of a web portal where people can find, and be involved, in citizen science projects.

 

Details of the Regulation are set out at Attachment A.  A Statement of Compatibility with Human Rights is at Attachment B

The Regulation is a legislative instrument for the purposes of the Legislation Act 2003.  The Regulation commences on the day after registration 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 Industry, Innovation and Science.

 

A regulation impact statement is not required as the Regulation only applies to non-corporate Commonwealth entities and does not adversely affect the private sector. 


Details of the Financial Framework (Supplementary Powers) Amendment (Industry, Innovation and Science Measures No. 2) Regulation 2016

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Industry, Innovation and Science Measures No. 2) Regulation 2016.

 

Section 2 - Commencement

 

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

 

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 (table)

 

This item adds three new table items to Part 4 of Schedule 1AB that establish legislative authority for government spending on a number of initiatives which are part of the National Innovation and Science Agenda.  The Agenda was announced by the Prime Minister, the Hon Malcolm Turnbull MP, and the Minister for Industry, Innovation and Science, the Hon Christopher Pyne MP, on 7 December 2015.  The initiatives will be administered by the Department of Industry, Innovation and Science.  Information on the initiatives is set out in the Mid-Year Economic and Fiscal Outlook 2015-16.

 

New table item 159 establishes legislative authority for the Government to fund the National Science Week and strategic science communication activities.

 

There are three elements under this activity, namely: science tourism capacity building; decision-maker engagement; and equity of access.

 

Funding will be provided for science tourism capacity building for 2018-19 to:

*         develop new and/or existing avenues for raising the science literacy and interest of Australians through domestic tourism activities; and

*         strategically target domestic tourism audiences (including international tourists travelling to Australia) to broaden their science, technology, engineering and mathematics (STEM) engagement opportunities.

 

Science tourism capacity building will be supported through grants to organisations that undertake tourism activities; small to medium sized enterprises that offer products and services to tourists; and community organisations and local information centres that wish to highlight STEM attractions in their local area.

 

Decision-maker engagement, an existing activity currently delivered under the Inspiring Australia Programme, will receive additional funding:

*         for the development of new and/or existing avenues for raising the science literacy and interest of Australians; and

*         to strategically target science and innovation industry decision-makers to broaden their understanding and promotion of STEM engagement opportunities, including, for example, an annual event held in Canberra known as 'science meets parliament'.

 

Equity of Access is an existing activity that is to receive ongoing funding to support the accessibility of programmes and activities delivered by, and at, Questacon as the National Science and Technology Centre.  This element is to be delivered in three parts:

*         the Questacon Transport Assistance Programme, which provides funding to cover transportation costs to and from Questacon from other parts of the Australian Capital Territory (ACT).  It is directed at disadvantaged groups, including immigrants or refugees, people with a disability, and people in aged care;

*         support for a Low Vision Project, which is being undertaken in the ACT; and

*         continued funding for a travelling STEM outreach programme experience.

 

The more detailed scope, purpose and nature of the activities described as science tourism, decision-maker engagement and equity of access will be set out in program guidelines.

 

Funding of $15.2 million over four years (2016-17 to 2019-2020) will in part support this activity.

 

The Minister or the Minister's authorised departmental delegate (in accordance with the guidelines) will award funding under the Program as a grant to the selected organisation/organisations.  Funding decisions will be made in accordance with the legislative requirements of the Financial Framework (Supplementary Powers) Act 1997 (FF(SP) Act) and the department Secretary's Accountable Authority Instructions.  Funding will be provided through both targeted grants to relevant organisations and competitive grants.  More information on the grant guidelines, selection criteria and guidelines will be available on departmental websites, including  www.business.gov.au, www.science.gov.au and www.inspiringaustralia.net.au.

 

Funding decisions will not be subject to merits review given the limited allocation of funding that is available.  The department has, however, established processes for dealing with complaints and these will be followed in instances where applicants for funding are dissatisfied with the outcomes of funding rounds.

 

The program comes under Program 1: Supporting Science and Commercialisation which is part of Outcome 2: Inspiring all Australians in STEM.  Funding details are set out in the Portfolio Additional Estimates Statements 2015-16, Industry, Innovation and Science Portfolio at page 26.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the trade and commerce power (section 51(i));

*         the communications power (section 51(v));

*         the astronomical and meteorological observations power (section 51(viii));

*         the statistics power (section 51(xi));

*         the power to make special laws for people of any race (section 51(xxvi));

*         the external affairs power (section 51(xxix));

*         the power to make grants to the States (section 96);

*         the Territories power (section 122); and

*         the Commonwealth executive power and the express incidental power (section 61 and section 51(xxxix)).

 

New table item 160 establishes legislative authority for government funding of citizen science projects.

 

Citizen science involves amateur or non-professional scientists collecting or analysing data, and formulating research questions and design, usually working with a professional scientist.  Funding will be provided for citizen science projects that have national impact, and produce credible, useable data, as well as projects that build capacity for citizen science in Australia. Applications for funding will be assessed on a competitive basis, with a competitive round held annually. 

 

Targeted funding will also be provided to build a web portal where people can find, and be involved in, citizen science projects.  The portal will support and facilitate projects that people can participate in, and will also set out best practice guidelines on citizen science, and other information on citizen science. 

 

The more detailed scope, purpose and nature of Citizen Science Projects will be set out in program guidelines, which will provide information on eligible applicants and activities funded under the programme. Guidelines will be available via www.science.gov.au and www.business.gov.au.

 

Funding of $15.2 million over four years (2016-17 to 2019-2020) will in part support these projects. 

 

The Minister or the Minister's authorised departmental delegate (in accordance with the guidelines) will award funding under the Citizen Science Projects as a grant to the selected organisation/organisations.  Funding decisions will be made in accordance with the legislative requirements of the FF(SP) Act and the department Secretary's Accountable Authority Instructions.  Funding will be provided through both targeted funding to relevant organisations and competitive grants.  More information and guidelines will be available on www.innovation.gov.au and www.science.gov.au as it becomes available.

 

These decisions will not be subject to merits review given the limited allocation of funding that is available.  The department has, however, established processes for dealing with complaints and these will be followed in instances where applicants for funding are dissatisfied with the outcomes of funding rounds.

 

Citizen Science Projects are part of Program 1: Supporting Science and Commercialisation which comes under Outcome 2: Inspiring all Australians in STEM.  Funding details are set out in the Portfolio Additional Estimates Statements 2015-16, Industry, Innovation and Science Portfolio at page 26.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the communications power (section 51(v));

*         the astronomical and meteorological observations power (section 51(viii));

*         the statistics power (section 51(xi));

*         the external affairs power (section 51(xxix)); and

*         the Territories power (section 122).

 

New table item 161 establishes legislative authority for government spending on Maker Projects.  These projects will encourage the development of 'maker' spaces and activities in schools and communities, where people can invent, design and create products, often using new technology such as 3D printers and software, as well as more traditional craft supplies and hardware. 

 

The Maker Projects will have two components: regional grants and small competitive grants to secondary schools.  The focus of each of the grants is to target students in middle school (Years 7 to 10) in regional areas and potentially disadvantaged groups.  The Government's role is to ensure that students have equal access to facilities and spaces that allow them to explore their creativity, problem-solving, innovation and entrepreneurial skills.

 

The regional grants component will target regional areas by extending an existing program, the Questacon Smart Skills program, including the regional Invention Convention.  This will include support to regional entities to hold maker project events, after participating in the Smart Skills program.  These events should be skills-based, interactive and encourage design thinking, innovation, entrepreneurship and problem-solving to create awareness of technology and engineering amongst young Australians.  Maker Projects are to be tailored to each region to fit in with the local industry.  Workshops will have a focus on imparting a process of innovative design thinking and equipping students with the confidence to test and refine a raft of ideas.

 

The small competitive grants to secondary schools component will provide grants for secondary schools on a competitive basis.  This funding is to enable the schools to create a maker's space onsite (including a roaming maker space, for schools requiring this flexibility) for all of the schools' students to access.  Criteria for assessing applications for funding will be set out in guidelines, which will be available on www.science.gov.au and www.business.gov.au

 

Funding of $4 million over four years (2016-17 to 2019-2020) will support the Maker Projects. 

 

The Minister or the Minister's authorised departmental delegate (in accordance with the guidelines) will award funding under the Maker Projects as a grant to the selected organisation/s.  Funding decisions will be made in accordance with the legislative requirements of the FF(SP) Act and the department Secretary's Accountable Authority InstructionsFunding will be provided through competitive grants.  More information and guidelines will be available on www.innovation.gov.au and www.science.gov.au.

 

These decisions will not be subject to merits review given the limited allocation of funding that is available.  The department has, however, established processes for dealing with complaints and these will be followed in instances where applicants for funding are dissatisfied with the outcomes of funding rounds.

 

Maker Projects are part of Program 1: Supporting Science and Commercialisation which comes under Outcome 2: Inspiring all Australians in STEM.  Funding details are set out in the Portfolio Additional Estimates Statements 2015-16, Industry, Innovation and Science Portfolio at page 26.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the external affairs power (section 51(xxix)); and

*         the Territories power (section 122);

 

 

 

 

 


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 (Industry, Innovation and Science Measures No. 2) Regulation 2016

 

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

 

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

 

Schedule 1 to the Regulation amends the Principal Regulations to establish legislative authority in Schedule 1AB for spending by the Government on certain initiatives under the National Innovation and Science Agenda, which was announced by the Prime Minister, the Hon Malcolm Turnbull MP, and the Minister for Industry, Innovation and Science, the Hon Christopher Pyne MP, on 7 December 2015.  The initiatives will be administered by the Department of Industry, Innovation and Science.  Funding details were included in the Mid-Year Economic and Fiscal Outlook 2015-16, released on 15 December 2015. 

 

Funding will be provided for:

*         the National Science Week and strategic science communication activities to raise the science literacy and interest of Australians;

*         Maker Projects to encourage the development of 'maker' spaces and activities in schools and communities, where students and the community can invent, design and create products, using new technology and traditional craft supplies and hardware; and

*         citizen science projects to support exemplar projects in citizen science targeted at students under 18 years of age, and the development of a web portal where people can find, and be involved, in citizen science projects.

 

The Minister for Industry, Innovation and Science has portfolio responsibility for these programs.

 

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

 


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