Details of the Financial Framework (Supplementary Powers) Amendment  

(Treasury Measures No. 4) Regulations 2020

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Treasury Measures No. 4) 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

 

Financial Framework (Supplementary Powers) Regulations 1997

 

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 activity that will be administered by the Department of the Treasury (the department).

 

New table item 462 establishes legislative authority for government spending on the development and delivery of an online toolkit to promote the financial capability of young Australians (the program).

 

The program will involve the procurement of services to develop content and deliver an online toolkit and accompanying mobile operating system application, with an initial focus on understanding superannuation, taxation, insurance, budgeting and credit. The program will be an online one-stop shop for young Australians to understand fundamental financial concepts. Drawing from the best financial literacy information, resources and programs across Australia developed by the Australian Government, private sector and not-for-profit entities to provide consumer information on superannuation, taxation, insurance, budgeting and credit, the program will deliver simple, clear messages and a helping hand for young Australians as they plan for and navigate financial decisions.

 

The program will focus on maximising the utility of existing government investments in content of financial capability programs relating to superannuation, taxation, insurance, budgeting and credit, and present this content in an accessible and engaging format. Professional services will be procured to support the development of appropriate online content for the target audience (young Australians aged between 14 to 16 years old), with additional content for parents and other adults who support young Australians to make financial decisions.

 

Services will also be procured to design and develop the consolidated online toolkit for young Australians. The provider will be responsible for undertaking user research to inform website design. It is anticipated that the online resource will consist of a website (serving as the entry point for users to access resources), which will optimise its interface for different users such as young people, or parents/guardians. Resources targeted to these audiences, such as guidance, fact sheets and checklists, will be made available on the website. The website will also host professionally produced short videos which tailor content for the audience.

 

In conjunction with the website, a companion mobile operating system application will be developed. This will ensure that the online resource meets the expectations of the public by allowing information to be easily accessible on the devices they use most often, in addition to being available on a traditional web browser.

 

A public information campaign will support and promote the implementation of the program. The aim of the campaign is to drive initial awareness and engagement with the new online toolkit. The campaign will include both paid media and public relations approaches that target information to young people and their parents/guardians.  

 

The development of the campaign requires procurement of services from external providers, including media buying, creative, research and public relations agencies. All government advertising campaigns must also comply with the Australian Government Guidelines on Information and Advertising Campaigns by non-corporate Commonwealth entities and the Commonwealth Procurement Rules (CPRs). The campaign would be supported by formative, developmental and evaluation research.

 

The program will include additional communications activities, including a mail-out to every household with children in the target age range in 2021, to provide factual information, outline the resources available online, and encourage their use to support financial capability for this target audience.

 

The department will undertake appropriate procurement processes, which may involve an open or limited tender or drawing on existing panel arrangements, to engage third party providers for the development of content, as well as the online toolkit and accompanying mobile operating system. Once received, proposals will be reviewed using a set of pre-determined criteria that assesses understanding of key deliverables, as well as capacity and capability to deliver on the objectives. Successful tenderers will be required to demonstrate value for money consistent with the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the CPRs.

 

The decision on the successful tenderer will be made by a departmental official, as a delegate of the Secretary of the department. Information on the tender(s) and the resultant contracts will be made available on AusTender at www.tenders.gov.au as required.

 

The program will not involve the administration of any grants. Any procurements undertaken in connection with the program will be conducted in accordance with the PGPA Act and the CPRs, and adhere to applicable approach to market and other procurement requirements. It is anticipated that procurement will be undertaken to create content, and to design and build the online resource and companion mobile operating system application.

 

Procurement decisions may be subject to review under the Government Procurement (Judicial Review) Act 2018. Any complaints in relation to the procurements will be handled in accordance with the department's procurement complaint process.

 

In accordance with usual practice, procurement decisions, once made, will be final. Remaking a procurement decision after entry into a contract with a successful proponent is legally complex, impractical and would result in delays in implementation. Spending decisions will be made in accordance with the Commonwealth resource management framework to ensure that such decisions achieve value for money.

 

Funding decisions made in connection with the program are not considered suitable for independent review, as they are decisions relating to the allocation of a finite resource, from which all potential claims for a share of the resource cannot be met. In addition, any funding that has already been allocated to a service provider would be affected if the original decision was overturned. The Administrative Review Council has recognised that it is justifiable to exclude merits review in relation to decisions of this nature (see paragraphs 4.11 to 4.19 of the guide, What decisions should be subject to merit review?).

 

Consultation for the program has not yet taken place, however it is expected that significant consultation, both with the Commonwealth entities and the public, will be undertaken to inform the development of the program content, the online toolkit and the mobile operating system.

 

Consultation will be undertaken at several key stages of program development including, but not limited to:

*         inviting young adults to contribute to the design of materials for the toolkit to ensure it meets the needs of young Australians; and

*         beta testing of the website and mobile operating system with young adults, as well as parents and other adults who support young Australians to make financial decisions, to ensure usability of systems.

 

Funding for the program of $10 million over two years from 2020-21 will be included in the next available budget statement following the announcement of the program. Funding for the item will come from Program 1.1: Department of the Treasury, which is part of Outcome 1.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the communications power (section 51(v)) of the Constitution.

 

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

 

The program will disseminate information through an online toolkit, aimed at promoting financial capability of young Australians.

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. 4) 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 Regulations. Schedule 1AA and Schedule 1AB to the FF(SP) 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.

 

The Financial Framework (Supplementary Powers) Amendment (Treasury Measures No. 4) Regulations 2020 amend Schedule 1AB to the FF(SP) Regulations to establish legislative authority for government spending on the development and delivery of an online toolkit to promote the financial capability of young Australians (the program), which aims to assist young Australians (14 to 16 years old) to manage money, including by improving their understanding of superannuation, taxation, insurance, budgeting and credit. The Department of the Treasury has responsibility for the program.

 

The program will involve the procurement of services to develop content and deliver an online toolkit and accompanying mobile operating system application, with an initial focus on understanding superannuation, taxation, insurance, budgeting and credit. Additional content will be developed for parents and other adults who support young Australians to make financial decisions. The release of the program will be accompanied by a public information campaign, including a mail-out to every household with children in the target age range.

 

Funding of $10 million over two years from 2020-21 will be available for the program.

 

Human rights implications

 

This disallowable legislative instrument engages:

*         the right to education - Articles 28 and 29 of the Convention on the Rights of the Child (CRC), read with Article 4 of the CRC, and Article 13 of the International Covenant on Economic, Social and Cultural Rights (ICESCR), read with Article 2 of the ICESCR.

 

 

Right to education

 

This disallowable legislative instrument engages the right to education contained in Articles 28 and 29 of the CRC, read with Article 4 of the CRC, and Article 13 of the ICESCR, read with Article 2 of the ICESCR.

 

Article 4 of the CRC provides that States Parties 'shall undertake all appropriate legislative, administrative and other measures' for the implementation of the rights recognised in the Convention. These rights include the 'right of the child to education' (Article 28 of the CRC).

 

Further, Article 29(1) of the CRC relevantly provides that States Parties agree that the education of the child shall be directed to the development of the child's personality, talents and mental and physical abilities to their fullest potential, and 'the preparation of the child for responsible life in a free society ... '.

 

Article 29(1) of the CRC provides that education should be delivered to build the inherent capabilities of young people and enable them to navigate all aspects of life and society. Building the capability and understanding in young people of fundamental financial concepts such as superannuation, taxation, insurance, budgeting and credit provides them with the tools to navigate these aspects of modern Australian society.

 

Article 2 of the ICESCR requires States Parties to take steps to progressively achieve the full realisation of the rights recognised in the ICESCR by all appropriate means. These include the right to education in Article 13 of the ICESCR, which provides that States Parties recognise the right to education for everyone, and agree that 'education shall enable all persons to participate effectively in a free society'.

 

Consistent with these obligations, this disallowable legislative instrument promotes the right to education by:

*         seeking to educate and build the financial capability of young Australians;

*         the delivery of resources for educating young Australians on superannuation, taxation, insurance, budgeting and credit; and

*         assisting parents and other adults who support young Australians to make financial decisions, to explain how to manage money.

 

Conclusion

 

This disallowable legislative instrument is compatible with human rights as it promotes the right to education under the CRC and the ICESCR.

 

 

 

 

Senator the Hon Simon Birmingham

Minister for Finance