EXPLANATORY STATEMENT
Select Legislative Instrument No. 183, 2015
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(2015 Measures No. 10) Regulation 2015
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, programmes 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 programmes.
Table item 74 in Part 4 of Schedule 1AB to the Principal Regulations establishes legislative authority for the Commonwealth to provide support under the Sector Development Fund (the Fund) for activities to assist the disability sector in transitioning to the National Disability Insurance Scheme (NDIS). This includes people with disability, their families, carers and service providers. The Fund is administered by the Department of Social Services.
Schedule 1 to the Regulation amends table item 74 to also provide legislative authority for government spending under the Fund for activities for people in the disability sector who are not eligible for the NDIS currently, and for broader community capacity building, both within and outside the NDIS trial sites. The amended item incorporates the existing item.
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 Social Services.
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 (2015 Measures No. 10) Regulation 2015
Section 1 – Name
This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (2015 Measures No. 10) Regulation 2015.
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 item 74)
Item 1 repeals existing table item 74 in Part 4 of Schedule 1AB and substitutes a new table item 74. Existing table item 74 establishes legislative authority for the Government to provide support under the Sector Development Fund (the Fund) for activities to assist the disability sector (including people with disability, their families, carers and service providers) in transitioning to the National Disability Insurance Scheme (NDIS). Sector Development Fund initiatives will be targeted to assist participants and service providers to develop the market and prepare for the implementation of the NDIS.
The new substituted table item 74, which incorporates the existing table item, establishes legislative authority for the Government to provide support under the Fund for activities to assist:
- the disability sector in transitioning to the NDIS; and
- those people in the disability sector who are unable to transition to the NDIS.
The amendment to existing table item 74 ensures that the Sector Development Fund is able to be used to provide support under the Information, Linkages and Coordination tier of the NDIS for people who are not eligible for the NDIS currently, and for broader community capacity building both within and outside the NDIS trial sites. Under the Information, Linkages and Coordination tier, people with disability, their families and carers will be connected with appropriate disability, community and mainstream supports through activities such as community education, broad‑based interventions and capacity building.
People with disability, the disability services sector and its workforce are assisted with the transition to the NDIS, including through:
- building community capacity and engagement;
- increasing individual support capacity and the development of new forms of support to meet the needs of people with disability;
- building disability sector capacity and service provider readiness to manage the transition;
- assistance with the required expansion and diversification of the workforce; and
- building the evidence base.
Responsibility for the Fund, which was established in 2012-13, was transferred from the National Disability Insurance Agency to the Department of Social Services in May 2015.
Grants under the Sector Development Fund will be made in accordance with the Commonwealth Grants Rules and Guidelines. Grant selection processes will utilise the standard grant model of the Department of Social Services, including the use of selection processes such as restricted competitive, direct and expression of interest selection processes. Information on grant availability and processes, including eligibility criteria and the application process, will be published on both the website of the Department of Social Services at www.dss.gov.au/grants and the NDIS website at www.ndis.gov.au. The decision‑maker for grants made under the Sector Development Fund is the Assistant Minister for Social Services (or delegate).
A complaints service is available for applicants and grant recipients. They can contact the complaints service listed on the website with complaints about the Department’s service(s), the selection process or the service of another of the Department’s grant recipients. Details of what constitutes an eligible complaint can be provided upon request by the Department of Social Services. Information on the Sector Development Fund will be published on the NDIS website at www.ndis.gov.au.
In addition to the Department’s complaints service, applicants are able to seek review from the Commonwealth Ombudsman. No further merits review is considered appropriate given that funds are allocated on a competitive selection process involving a limited pool of funds for allocation.
The Sector Development Fund comes under Programme 5.2: National Disability Insurance Scheme. Programme 5.2 is part of Outcome 5: Disability and Carers – Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services. Funding details are set out in the Portfolio Budget Statements 2015-16, Budget Related Paper No. 1.15A, Social Services Portfolio at page 151 and in the Portfolio Additional Estimates Statements 2014‑15, Social Services Portfolio at pages 87 to 88.
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 external affairs power (section 51(xxix));
- the medical services, sickness benefits and hospital benefits powers (section 51(xxiiiA)); 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 (2015 Measures No. 10) Regulation 2015
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.
Existing table item 74 in Part 4 of Schedule 1AB to the FF(SP) Regulations establishes legislative authority for the Government to provide support under the Sector Development Fund for activities to assist the disability sector (including people with disability, their families, carers and service providers) in transitioning to the National Disability Insurance Scheme (NDIS). Sector Development Fund initiatives will be targeted to assist participants and service providers to develop the market and prepare for the implementation of the NDIS. The Sector Development Fund is administered by the Department of Social Services.
The Regulation amends existing table item 74 to also provide legislative authority for government spending under the Fund for activities for people in the disability sector who are not eligible for the NDIS currently, and for broader community capacity building, both within and outside the NDIS trial sites. The new substituted table item 74 establishes legislative authority for the Government to provide support under the Sector Development Fund for activities to assist:
- the disability sector in transitioning to the NDIS; and
- those people in the disability sector who are unable to transition to the NDIS.
The amendment to existing table item 74 ensures that the Sector Development Fund is able to be used to provide support under the Information, Linkages and Coordination tier of the NDIS for people who are not eligible for the NDIS currently, and for broader community capacity building both within and outside the NDIS trial sites.
The item specified in Schedule 1AB is the responsibility of the Minister for Social Services who has portfolio responsibility for this matter.
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