Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL MANAGEMENT AND ACCOUNTABILITY AMENDMENT (2014 MEASURES NO. 3) REGULATION 2014 (SLI NO 34 OF 2014)

EXPLANATORY STATEMENT

 

Select Legislative Instrument No. 34, 2014

 

Issued by the Authority of the Minister for Finance

 

Financial Management and Accountability Act 1997

 

Financial Management and Accountability Amendment

(2014 Measures No. 3) Regulation 2014

 

The Financial Management and Accountability Act 1997 (the FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies.  The FMA Act applies to Commonwealth Departments of State and their staff, parliamentary departments and their staff, and prescribed agencies.

 

Subsection 65(1) of the FMA 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.

 

To respond to the High Court's decision in Williams v Commonwealth (2012) 288 ALR 410, the Financial Framework Legislation Amendment Act (No. 3) 2012 inserted section 32B of the FMA Act, which authorised the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Management and Accountability Regulations 1997 (the FMA Regulations).  Section 32B also authorises the Commonwealth to make, vary and administer arrangements for the purposes of programmes specified in the FMA Regulations.  Schedule 1AA and Schedule 1AB to the FMA Regulations specify the arrangements, grants and programmes. 

 

The Regulation amends Schedule 1AB to the FMA Regulations to establish legislative authority for the Government to fund the establishment of the Australia-Indonesia Centre.  The aim of the Centre is to strengthen and deepen Australia-Indonesia business, cultural, educational, research and community links, as well as promote a greater understanding of contemporary Indonesia. 

 

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 Education.  A regulation impact statement is not required as the Regulation only applies to FMA Act Agencies and does not adversely affect the private sector.

 

 

 


Details of the Financial Management and Accountability Amendment (2014 Measures No. 3) Regulation 2014

 

Section 1 - Name of Regulation

 

This section provides that the title of the Regulation is the Financial Management and Accountability Amendment (2014 Measures No. 3) Regulation 2014.

 

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 Management and Accountability Act 1997 (FMA Act).

 

Section 4 - Schedule(s)

 

This section provides that the Financial Management and Accountability Regulations 1997 is amended as set out in Schedule 1 to the Regulation.

 

Schedule 1 - Amendments

 

Item 1 - Part 4 of Schedule 1AB (at the end of the table)

 

This item adds a new item to Schedule 1AB to establish legislative authority for the Government to fund a grant which will be administered by the Department of Education.

 

New table item 11 establishes legislative authority for the Government to provide funding to establish the Australia-Indonesia Centre.  The Government will provide $15.0 million over four years from 2013-14 to establish the Centre. 

 

The Australia-Indonesia Centre aims to:

*         engage Australians to update their perceptions of Indonesia and to build trust and understanding;

*         help Australians gain a better understanding of contemporary Indonesia, build personal connections and foster collaboration with Indonesian counterparts on important research projects;

*         encourage greater study of languages and culture;

*         identify and work collaboratively with Indonesian institutions and companies on areas of shared challenge and mutual benefit;

*         strengthen the Australia-Indonesia relationship, and in particular expand and deepen Australia-Indonesia business, cultural, educational, research and community links;

*         foster high-value linkages between government, business and academia; and

*         become a world-class centre acknowledged for regional leadership in its fields of endeavour.

 

The Centre will be based at Monash University which will work in partnership with the Australian National University, the University of Melbourne, the University of Sydney and the Commonwealth Scientific and Industrial Research Organisation. 

 

The establishment of the Centre was announced by the Prime Minister, the Hon Tony Abbott MP, on 1 October 2013 during his visit to Indonesia.  The Government is providing a one-off grant with the expectation that it would lead to the Centre becoming self-sustaining after four years.  As a result, the establishment of the Centre is not subject to external review.  

 

Funding will be provided for four years, and the Centre is expected to pursue income generating opportunities together with its institutional and industry partners to support activities and continued operation from 2017-18.  Monash University intends to consolidate its operations with its currently nominated partners, and then over time, work to expand the Centre with the support of a broad range of Australian and Indonesian institutional partners.

 

Funding details are in Tables 1.2 and 1.3 of the Portfolio Additional Estimates Statements 2013-14, Education Portfolio.  Detail on the Centre is also available in the Mid-Year Economic and Fiscal Outlook 2013-14 at page 127.

 

 

 

 

 

 


Statement of Compatibility with Human Rights

Prepared in accordance with part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Financial Management and Accountability Amendment (2014 Measures No. 3) Regulation 2014

 

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

 

The Financial Management and Accountability Act 1997 (the FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies.  The FMA Act applies to Commonwealth Departments of State and their staff, parliamentary departments and their staff, and prescribed agencies. 

 

Section 32B of the FMA Act establishes legislative authority for the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Management and Accountability Regulations 1997 (FMA Regulations) and to make, vary and administer arrangements and grants for the purposes of programmes specified in the FMA Regulations.  This is in response to the High Court's decision in Williams v Commonwealth (2012) 288 ALR 410.  Schedule 1AA and Schedule 1AB to the FMA Regulations specify the arrangements, grants and programmes. 

 

The Regulation amends Schedule 1AB to the FMA Regulations to establish legislative authority for the Government to provide funding for the establishment of the Australia-Indonesia Centre which will be based at Monash University.  The aim of the Centre is to strengthen and deepen Australia-Indonesia business, cultural, educational, research and community links, as well as promote a greater understanding of contemporary Indonesia. 

 

The measure is the responsibility of the Minister for Education.

 

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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