Scrutiny of Commonwealth expenditure [2021] AUSStaCSDLM 187 (25 November 2021)

• Chapter 3
• Scrutiny of Commonwealth expenditure

Chapter 3

Scrutiny of Commonwealth expenditure

3.1 The Financial Framework (Supplementary Powers) Act 1997 (FF(SP) Act) and the Industry Research and Development Act 1986 (IRD Act) authorise the Commonwealth to spend public money on grants and programs specified in instruments made under those Acts. Consequently, the specification of expenditure in an instrument made under these Acts effectively authorises the Commonwealth to spend public moneys on the relevant grant or program. The scrutiny of such instruments is a key aspect of parliamentary scrutiny and control of Commonwealth expenditure.^[1]

3.2 To facilitate such scrutiny, this chapter draws the Senate's attention to the nature and extent of Commonwealth expenditure that is authorised by the FF(SP) Act and the IRD Act and specified in delegated legislation made under those Acts.^[2]

3.3 The tables below outline the expenditure specified in legislative instruments registered between 11 September 2021 and 1 October 2021.

3.4 The committee has resolved to write to the relevant legislation committees to alert those committees to the expenditure listed below that falls within their area of portfolio responsibility. The committee does so under standing order 23(4) which requires the committee to scrutinise each instrument to determine whether the Senate's attention should be drawn to it on the ground that it raises significant issues, or otherwise gives rise to issues that are likely to be of interest to the Senate.

Instrument	Grant/ Program	Amount	Description	Portfolio committee
Industry Research and Development (Daintree Microgrid Program) Instrument 2021 [F2021L01305]	Daintree Microgrid Program	$18.75 million over three years	Funding will be provided to support the deployment of a renewable energy microgrid (including hydrogen) in and around Cape Tribulation, Diwan, and Cow Bay in the Daintree region of northern Queensland. The program aims to improve the affordability, reliability and security of energy supply in the community, deploy a priority emerging technology and drive down emissions.	Senate Environment and Communications Legislation Committee
Industry Research and Development (Digital Atlas of Australia Program) Instrument 2021 [F2021L01298]	Digital Atlas of Australia Program	$40.2 million over four years	Funding will be provided to Geoscience Australia for the development and maintenance of a Digital Atlas of Australia. The three-dimensional Digital Atlas of Australia's geography will bring together government data on people, the economy, employment, infrastructure, health, land and the environment into a single national data asset—making better use of Australia's over 90,000 open datasets to create a secure, dynamic, location-based and collaborative public data platform.	Senate Economics Legislation Committee
Industry Research and Development (Refinery Upgrades Program) Instrument 2021 [F2021L01258]	Refinery Upgrades Program	Funding will be provided through two rounds: • Desulfurisation grants: $250 million • Enabling Euro 6d Equivalent Fuels grants: $52 million, plus any unspent funds from the desulfurisation grants round	Funding will be provided to support upgrades at domestic refineries to assure the domestic production and supply of better quality fuel, and allow for the earlier introduction of ultra-low sulfur gasoline from 2027 to 2024. Funding will be available to the entities with ownership of the Lytton refinery in Queensland and the Geelong refinery in Victoria to undertake planning and infrastructure upgrades. Activities that may be funded through the program include: • planning, design and engineering; • site preparation activities directly related to the project; • upgrading infrastructure; and • designing, buying, constructing, installing and/or commissioning of infrastructure including plant and equipment.	Senate Environment and Communications Legislation Committee
Industry Research and Development (Supporting Critical Transmission Infrastructure Program) Instrument 2021 [F2021L01312]	Supporting Critical Transmission Infrastructure Program	Not specified	Funding will be provided to support electricity transmission projects that have potential to benefit electricity price, reliability and/or security outcomes. This includes the following projects that may be supported initially: • HumeLink (which will increase the capacity of the southern NSW transmission system) • VNI West (which will link New South Wales to Victoria) • Project EnergyConnect (which will link South Australia to New South Wales) and • Marinus Link (which will provide a second link between Tasmania and Victoria).	Senate Environment and Communications Legislation Committee

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[1] For further information see the committee's guideline on Scrutiny of Commonwealth expenditure and Chapter 7 of the report of the committee's inquiry, Parliamentary scrutiny of delegated legislation.

[2] Details of all instruments which specify Commonwealth expenditure are published on the committee's website: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Scrutiny_of_Delegated_Legislation/Scrutiny_of_Commonwealth_expenditure.