Details of the Financial Framework (Supplementary Powers) Amendment  

(Treasury Measures No. 1) Regulations 2020

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Treasury Measures No. 1) Regulations 2020.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on the day after the instrument is registered 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.

 

Section 4 - Schedules

 

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

 

Schedule 1 - Amendments

 

Item 1 - In the appropriate position in 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 on an initiative that will be administered by the Department of the Treasury (the Treasury).

 

New table item 395 establishes legislative authority for the small business bushfire financial support line to provide information to small businesses in regions affected by the 2019-20 bushfire emergency.  

 

On 20 January 2020, the Government announced the "Immediate Small Business Support for Bushfire Affected Communities" package, which included funding for the Small Business Bushfire Financial Support Line (the initiative).

 

The initiative will assist small businesses that have been affected by the 2019-20 bushfire disaster by ensuring that they have immediate access to information on the assistance and support that the Commonwealth is providing to small businesses, as well as to financial counselling that will assist small business owners to make decisions about the future of their businesses. The support line will be able to provide advice to around 100 small businesses a day.

 

Funding will be provided to a financial counselling service provider through a one-off ad hoc grant. Funding will be used to establish and operate a support line staffed by small business specialist financial counsellors. The service provider will also provide specialist training to the financial counsellors who are engaged or employed to deliver the program, as necessary.

The Treasury will deliver the activity through a grant process undertaken in accordance with the Commonwealth Grants Rules and Guidelines 2017. Grant funding will be delivered via an ad hoc grant to support the program outcomes and objectives.

 

The program guidelines will be published on the GrantConnect website at www.grants.gov.au and the administered grant will be delivered through the Business Grants Hub within the Department of Industry, Science, Energy and Resources.

 

All final decisions for expenditure will be made by the Treasurer or delegate. Expenditure will be made in accordance with the Commonwealth Grants Rules and Guidelines 2017 on the GrantConnect website at www.grants.gov.au.

 

All information relating to the availability, application process and outcomes of available grants will be made publicly available in accordance with the Commonwealth Grants Rules and Guidelines 2017 (CGGRs) on the GrantConnect website at www.grants.gov.au.

 

Merits review is not applicable in respect of decisions made in relation to ad hoc or targeted funding given the non-competitive nature of the funding. While there will be no independent merits review for the grant, all general obligations to act fairly in the conduct of the grant process will be observed in accordance with the applicable legislative requirements under the Public Governance, Performance and Accountability Act 2013 and the CGGRs.

 

Merits review is also not considered suitable in respect of decisions made in relation to accessing services under the initiative as decisions are automatic or mandatory in nature based on the location of the small business accessing support.  

 

The initiative forms part of the $2 billion National Bushfire Recovery Fund and is the Government's national response to the 2019-20 bushfires. Funding of $3.5 million over three years from 2019-20 will be included in the 2020-21 Budget for the initiative, under the measure 'Small Business Bushfire Financial Support Line'.

 

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

*         the express incidental power and the executive power (sections 51(xxxix) and 61), including the nationhood aspect; and

*         the communications power (section 51(v) of the Constitution).

 

Executive power and express incidental power, including the nationhood aspect

 

The express incidental power in section 51(xxxix) of the Constitution empowers the Parliament to make laws with respect to matters incidental to the execution of any power vested in the Parliament, the executive or the courts by the Constitution. Section 61 of the Constitution supports activities that are peculiarly adapted to the government of a nation and cannot be carried out for the benefit of the nation otherwise than by the Commonwealth.

 

Under this initiative, funding will be provided in response to the natural bushfire disaster that occurred in the 2019-20 financial year. The small business financial support line will assist small businesses that have been affected by this national disaster by ensuring that they have immediate access to information on the assistance and support that the Commonwealth is providing to small businesses, as well as to financial counselling that will assist small business owners to make decisions about the future of their businesses.

 

Communications Power

 

Section 51(v) of the Constitution empowers the Parliament to make laws with respect to 'postal, telegraphic, telephonic and other like services'.

 

Under the initiative, funding will be provided for financial counselling which will be delivered over the telephone.

 

 

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
(Treasury Measures No. 1) Regulations 2020

 

This disallowable legislative instrument 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 FF(SP) 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.  

 

The Financial Framework (Supplementary Powers) Amendment (Treasury Measures No. 1) Regulations 2020 amend Schedule 1AB to the FF(SP) Regulations to add a new table item 395 to Part 4 of that schedule. The new table item establishes legislative authority for the Small Business Bushfire Financial Support Line.

 

The Small Business Bushfire Financial Support Line will assist small businesses that have been affected by the 2019-20 bushfire disaster by ensuring that they have immediate access to information on the assistance and support that the Commonwealth is providing to small businesses, as well as to financial counselling that will assist small business owners to make decisions about the future of their businesses.

 

Human rights implications

 

This instrument does not engage human rights as it does not relate to any of the rights contained in the relevant human rights treaties to which Australia is a party.

Conclusion

 

This instrument is compatible with human rights as it does not raise any human rights issues.

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance