FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (EMPLOYMENT MEASURES NO. 1) REGULATION 2016 (F2016L00164) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (EMPLOYMENT MEASURES NO. 1) REGULATION 2016 (F2016L00164)

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(Employment Measures No. 1) 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 programmes 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 the Government to provide funding for the ParentsNext program, which will help parents of young children to plan and prepare for employment, with the objective of avoiding welfare dependency.  The program forms part of the Growing Jobs and Small Business package that was announced in the 2015-16 Budget.  ParentsNext will be administered by the Department of Employment.

 

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 Legislative Instruments Act 2003.  The Regulation commences on the day after registration on the Federal Register of Legislative Instruments. 

 

Consultation

 

In accordance with section 17 of the Legislative Instruments Act 2003, consultation has taken place with the Department of Employment.

 

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 (Employment Measures No. 1) Regulation 2016

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Employment Measures No. 1) Regulation 2016.

 

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 (table)

 

This item adds a new table item to Part 4 of Schedule 1AB to establish legislative authority for government spending for an activity administered by the Department of Employment.

 

New table item 139 establishes legislative authority for the Government to provide funding for the ParentsNext program, which forms part of the Government's Growing Jobs and Small Business package, announced in the 2015-16 Budget.    

 

On 6 January 2016, the Minister for Employment, Senator the Hon Michaelia Cash, announced that, from 4 April 2016, ParentsNext projects will operate in ten local government areas around Australia to help parents of young children to plan and prepare for employment.  

 

The objective of the ParentsNext program is to help parents prepare for work by the time their youngest child is of school age and to avoid welfare dependency and re-enter the labour market by:

*         targeting early intervention assistance to parents at risk of long-term welfare dependency;

*         helping parents identify their education and employment related goals and participate in activities that help them achieve their goals; and

*         connecting parents to local services that can help them address their barriers to employment.

 

Recipients of Parenting Payment who live in one of the ten Local government areas and who meet certain criteria may be required under the social security law to participate in the program in order to remain eligible for their parenting payment.  Other persons may volunteer to participate in the program if they meet certain criteria. 

 

As a component of the Growing Jobs and Small Business package announced in the 2015-16 Budget, the Government provided funding over four years starting in 2015-16 to establish ParentsNext projects.

 

The ParentsNext program builds on the strengths of the Helping Young Parents and Supporting Jobless Families trials which demonstrated positive outcomes for parents through regular contact with the Department of Human Services and participation in activities. 

 

The Department is calling for organisations to apply for funding and to put forward ideas on how to ensure parents within the ten Local government areas do not fall into long term unemployment.  The selection process will be competitive and conducted in accordance with the Commonwealth Grants Rules and Guidelines.  Grant guidelines for the ParentsNext program, including eligibility and selection criteria, were made available on the 360Pro website, via the Department's website (www.employment.gov.au), in January 2016.Â

 

All decisions about spending in connection with the program will be made in accordance with the Public Governance, Performance and Accountability Act 2013.  Decisions about which funding applicants are successful and how much funding they receive will be made by senior officials in the Department to whom relevant powers under the Public Governance, Performance and Accountability Act 2013 have been delegated. 

 

Funding recipients will be required to provide regular reports to the Department in order to demonstrate how their project is meeting the objectives of the ParentsNext program and the conditions of their funding agreements.

 

The Department will conduct an evaluation to determine the effectiveness of the ParentsNext program in helping parents to plan and prepare for employment.  The Department will work in partnership with funding recipients to capture relevant qualitative and quantitative data for the evaluation.

 

Unsuccessful applicants may request feedback on their application from the Department of Employment or raise the matter with the Commonwealth Ombudsman.

 

To the extent that decisions relevant to the ParentsNext program may be made under the social security law, a participant who is dissatisfied with such a decision would generally have the ability to seek review of the decision by the Administrative Appeals Tribunal (AAT), and, on questions of law, by courts provided the person had first sought review by the AAT.

 

Given the existence of these review mechanisms, and the targeted nature of the program that is focussed on ten Local government areas, it is not appropriate for decisions about which funding applicants are successful or other decisions in connection with the program to be subject to merits review, except as indicated above.  Noting that decisions are not made under an enactment, except as indicated above, the Administrative Decisions (Judicial Review) Act 1977 is not currently applicable and for the reasons above this is appropriate. 

The ParentsNext program, part of the Intensive Support for Vulnerable Job Seekers initiative, is being delivered under Program 1.1: Employment Services, which is part of Outcome 1: Foster a productive and competitive labour market through employment policies and programs that assist job seekers into work, meet employer needs and increase Australia's workforce participation.  Funding details are set out in the Portfolio Budget Statements 2015−16, Budget Related Paper No. 1.6, Employment Portfolio, at page 31.

 

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 social welfare power (section 51(xxiiiA));

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

*         the Commonwealth executive power (section 61).

 

 

 

 

 


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 (Employment Measures No. 1) 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 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

 

Schedule 1 to the Regulation adds a new item to Schedule 1AB to establish legislative authority in Schedule 1AB for the Government to provide funding for the ParentsNext program, which will help parents of young children to plan and prepare for employment, with the objective of avoiding welfare dependency.  The program forms part of the Growing Jobs and Small Business package that was announced in the 2015-16 Budget.  The ParentsNext program will be administered by the Department of Employment.

 

The Minister for Employment has portfolio responsibility for this programme.

 

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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