Financial Framework (Supplementary Powers) Amendment Act 2024

Administered by Department of Finance

Legislation au C2024A00027 In force Act

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Financial Framework (Supplementary Powers) Amendment Act 2024

 

No. 27, 2024

 

 

 

 

 

An Act to amend the Financial Framework (Supplementary Powers) Act 1997, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Part 1—Main amendments

Financial Framework (Supplementary Powers) Act 1997

Part 2—Consequential amendments

Asbestos and Silica Safety and Eradication Agency Act 2013

Biosecurity Act 2015

Disability Services and Inclusion Act 2023

Industry Research and Development Act 1986

Research Involving Human Embryos Act 2002

Social Security Act 1991

Water Act 2007

Part 3—Contingent amendments

Administrative Review Tribunal Act 2024

Australian Research Council Act 2001

Part 4—Validation and saving provisions

 

 

 

Financial Framework (Supplementary Powers) Amendment Act 2024

No. 27, 2024

 

 

 

An Act to amend the Financial Framework (Supplementary Powers) Act 1997, and for related purposes

[Assented to 30 May 2024]

The Parliament of Australia enacts:

1  Short title

  This Act is the Financial Framework (Supplementary Powers) Amendment Act 2024.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

30 May 2024

2.  Schedule 1, Parts 1 and 2

The day after this Act receives the Royal Assent.

31 May 2024

3.  Schedule 1, items 17 and 18

The later of:

(a) the start of the day after this Act receives the Royal Assent; and

(b) immediately after the commencement of the Administrative Review Tribunal Act 2024.

However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur.

14 October 2024

(paragraph (b) applies)

4.  Schedule 1, item 19

The later of:

(a) the start of the day after this Act receives the Royal Assent; and

(b) immediately after the commencement of the Australian Research Council Amendment (Review Response) Act 2024.

However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur.

1 July 2024

(paragraph (b) applies)

5.  Schedule 1, Part 4

The day after this Act receives the Royal Assent.

31 May 2024

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Part 1—Main amendments

Financial Framework (Supplementary Powers) Act 1997

1  Section 2A

Omit “the powers” (first occurring), substitute “powers”.

2  Section 2A

Omit “the powers” (second occurring), substitute “these powers”.

3  Section 32B

Repeal the section, substitute:

32B  Supplementary powers to make commitments to spend relevant money and other CRF money etc.

 (1) The Commonwealth may make, vary or administer:

 (a) an arrangement under which relevant money or other CRF money is, or may become, payable by the Commonwealth; or

 (b) a grant of financial assistance to a State or Territory; or

 (c) a grant of financial assistance to a person other than a State or Territory.

 (2) However, the Commonwealth may only make, vary or administer an arrangement or grant under subsection (1) if the arrangement or grant, as the case may be:

 (a) is specified in the regulations; or

 (b) is included in a class of arrangements or grants, as the case may be, specified in the regulations; or

 (c) is for the purposes of a program specified in the regulations.

Note: The Public Governance, Performance and Accountability Act 2013 deals with the use and management of public resources (including relevant money and other CRF money).

 (3) A power conferred on the Commonwealth by subsection (1) may be exercised on behalf of the Commonwealth by a Minister or an accountable authority of a non‑corporate Commonwealth entity.

Note: For the power to delegate, see section 32D.

 (4) In this section:

administer:

 (a) in relation to an arrangement—includes give effect to; or

 (b) in relation to a grant—includes make, vary or administer an arrangement that relates to the grant.

arrangement includes contract, agreement or deed.

make, in relation to an arrangement, includes enter into.

vary, in relation to an arrangement or grant, means:

 (a) vary in accordance with the terms or conditions of the arrangement or grant, as the case may be; or

 (b) vary with the consent of the non‑Commonwealth party or parties to the arrangement or grant, as the case may be.

4  Subsections 39B(1) and (2)

Repeal the subsections, substitute:

Formation of company etc.

 (1) The Commonwealth may form, or participate in the formation of, a company if, were it to come into existence, the company would be a company:

 (a) that is specified in the regulations; and

 (b) whose objects or proposed activities are specified in the regulations.

Acquisition of shares in company etc.

 (2) The Commonwealth may acquire shares in, or become a member of, a company in circumstances that would result in the company becoming a Commonwealth company if:

 (a) the company is specified in the regulations; and

 (b) the company’s objects or proposed activities are specified in the regulations.

Part 2—Consequential amendments

Asbestos and Silica Safety and Eradication Agency Act 2013

5  Subsection 8(5)

Repeal the subsection (including the note).

Biosecurity Act 2015

6  Section 614E

Repeal the section.

Disability Services and Inclusion Act 2023

7  Section 12

Omit:

This Part operates concurrently with the power to make arrangements and grants of financial assistance under section 32B of the Financial Framework (Supplementary Powers) Act 1997 or Chapter 2D of the Social Security Act 1991.

substitute:

This Part operates concurrently with the power to make arrangements and grants of financial assistance under other laws of the Commonwealth including section 32B of the Financial Framework (Supplementary Powers) Act 1997 and Chapter 2D of the Social Security Act 1991.

8  Section 17

Repeal the section, substitute:

17  Relationship with other laws

  This Part does not, by implication, limit the Commonwealth’s power to make, vary or administer an arrangement or grant under another law of the Commonwealth including:

 (a) subsection 32B(1) of the Financial Framework (Supplementary Powers) Act 1997; and

 (b) Chapter 2D of the Social Security Act 1991 (about arrangements and grants relating to assisting persons to obtain and maintain paid work).

Industry Research and Development Act 1986

9  Section 37 (heading)

Omit “certain other Acts”, substitute “the Public Governance, Performance and Accountability Act 2013”.

10  Subsection 37(1)

Omit “(1)”.

11  Subsection 37(2)

Repeal the subsection.

Research Involving Human Embryos Act 2002

12  Section 46C (heading)

Omit “certain other Acts”, substitute “the Public Governance, Performance and Accountability Act 2013”.

13  Subsection 46C(1)

Omit “(1)”.

14  Subsection 46C(2)

Repeal the subsection.

Social Security Act 1991

15  Subsection 1062A(5B)

Repeal the subsection.

Water Act 2007

16  Section 86ADA

Repeal the section.

Part 3—Contingent amendments

Administrative Review Tribunal Act 2024

17  Subsection 59(4)

Repeal the subsection (including the note).

18  Subsection 294(10)

Repeal the subsection (including the note).

Australian Research Council Act 2001

19  Section 57

Repeal the section.

Part 4—Validation and saving provisions

20  Validation—arrangements etc.

(1) This item applies if, at a time before the commencement of this item (the relevant time):

 (a) the Commonwealth purported to make, vary or administer an arrangement or grant under section 32B of the Financial Framework (Supplementary Powers) Act 1997 as in force at the relevant time (the old Act); and

 (b) the Commonwealth did not (apart from this item) have the power under section 32B of the old Act to make, vary or administer that arrangement or grant merely because it had the power to do so apart from subsection (1) of that section.

(2) The Commonwealth is taken to have had, at the relevant time, the power under section 32B of the old Act to make, vary or administer that arrangement or grant even though it had the power to do so apart from subsection (1) of that section.

21  Saving—arrangements etc.

Regulations made for the purposes of paragraph 32B(1)(b) of the Financial Framework (Supplementary Powers) Act 1997 that were in force immediately before the commencement of this item continue in force (and may be dealt with) as if they had been made for the purposes of subsection 32B(2) of that Act as amended by this Schedule.

22  Validation—formation of company etc.

(1) This item applies if, at a time before the commencement of this item (the relevant time):

 (a) the Commonwealth purported to form, or participate in the formation of, a company under section 39B of the Financial Framework (Supplementary Powers) Act 1997 as in force at the relevant time (the old Act); and

 (b) the Commonwealth did not (apart from this item) have the power under section 39B of the old Act to form, or participate in the formation of, the company merely because it had the power to do so apart from subsection (1) of that section.

(2) The Commonwealth is taken to have had, at the relevant time, the power under section 39B of the old Act to form, or participate in the formation of, the company even though it had the power to do so apart from subsection (1) of that section.

23  Validation—acquisition of shares in company etc.

(1) This item applies if, at a time before the commencement of this item (the relevant time):

 (a) the Commonwealth purported to acquire shares in, or become a member of, a company under section 39B of the Financial Framework (Supplementary Powers) Act 1997 as in force at the relevant time (the old Act); and

 (b) the Commonwealth did not (apart from this item) have the power under section 39B of the old Act to acquire shares in, or become a member of, the company merely because it had the power to do so apart from subsection (2) of that section.

(2) The Commonwealth is taken to have had, at the relevant time, the power under section 39B of the old Act to acquire shares in, or become a member of, the company even though it had the power to do so apart from subsection (2) of that section.

24  Saving—companies etc.

(1) Regulations made for the purposes of subparagraphs 39B(1)(b)(i) and (2)(b)(i) of the Financial Framework (Supplementary Powers) Act 1997 that were in force immediately before the commencement of this item continue in force (and may be dealt with) as if they had been made for the purposes of paragraphs 39B(1)(a) and (2)(a) of that Act as amended by this Schedule.

(2) Regulations made for the purposes of subparagraphs 39B(1)(b)(ii) and (2)(b)(ii) of the Financial Framework (Supplementary Powers) Act 1997 that were in force immediately before the commencement of this item continue in force (and may be dealt with) as if they had been made for the purposes of paragraphs 39B(1)(b) and (2)(b) of that Act as amended by this Schedule.

 

[Minister’s second reading speech made in—

Senate on 7 February 2024

House of Representatives on 15 May 2024]

(1/24)

 

Overview

The Financial Framework (Supplementary Powers) Amendment Act 2024 (Cth) was enacted by the Parliament of Australia to amend the Financial Framework (Supplementary Powers) Act 1997 (Cth), aiming to address the need for greater flexibility and efficiency in the administration of financial commitments and arrangements by the Commonwealth. This Act introduces modifications to the supplementary powers of the Commonwealth, ensuring they are exercised within a clearly defined regulatory framework while maintaining the necessary flexibility to respond to evolving policy needs. The overarching policy objective is to provide a robust legal foundation for the Commonwealth's financial activities, enhancing accountability and governance in the use of public resources. The Act amends the Financial Framework (Supplementary Powers) Act 1997 to redefine the scope and conditions under which the Commonwealth can make, vary, or administer financial commitments and grants. It also includes consequential amendments to several other Acts to reflect the changes in financial powers and to ensure consistency across related legislation. The amendments are designed to streamline the regulatory process, ensuring that financial arrangements and grants are made in accordance with specified regulations, thereby promoting transparency and effective public resource management.

Scope and Application

The Financial Framework (Supplementary Powers) Amendment Act 2024 amends the Financial Framework (Supplementary Powers) Act 1997, enhancing the Commonwealth's ability to make, vary, or administer financial arrangements and grants while ensuring these actions are properly regulated and specified in regulations. The Act applies to the Commonwealth, its Ministers, and accountable authorities of non-corporate Commonwealth entities, who can exercise these powers on behalf of the Commonwealth. The amended Act allows for the formation, participation in the formation, acquisition of shares, or membership in companies if the companies and their proposed activities are specified in the regulations. The amendments apply across the Commonwealth, providing a national scope. Notably, the Act includes provisions for the validation and continuation of certain arrangements and companies that were previously established under the old framework, ensuring continuity and legal validity. The commencement of the Act is staggered, with various provisions coming into effect on different dates, some contingent on the commencement of other related legislation. Exclusions and exemptions are not explicitly stated in the provided excerpt, but the regulation-centric approach suggests that actions must align with specified regulations to be lawful. The Act does not explicitly mention the use of subordinate instruments to extend or restrict its application, but the detailed commencement schedule indicates a careful orchestration of the Act's provisions relative to other legislative changes.

Key Provisions

The Financial Framework (Supplementary Powers) Amendment Act 2024 (Act) amends the Financial Framework (Supplementary Powers) Act 1997 (the Principal Act) by introducing significant changes to the Commonwealth’s powers in relation to making commitments to spend relevant money and other CRF money, forming or participating in the formation of companies, and acquiring shares in or becoming a member of companies. Section 2A of the Principal Act is amended to clarify the scope of powers, while section 32B is repealed and substituted with new provisions that specify the conditions under which the Commonwealth can make, vary or administer such commitments, grants, or arrangements. Section 39B is also repealed and replaced with new provisions that set out the circumstances under which the Commonwealth can form or participate in the formation of, or acquire shares in, or become a member of, companies. The Act imposes several obligations on the Commonwealth. Firstly, it mandates that any arrangements or grants involving relevant money or other CRF money must be specified in regulations, included in a class of arrangements or grants specified in the regulations, or for the purposes of a program specified in the regulations. Secondly, the Act requires that any company formed or in which the Commonwealth participates must meet certain criteria, including that it is specified in the regulations and its objects or proposed activities are also specified in the regulations. Similarly, any acquisition of shares in, or membership of, a company must also meet these criteria. The Act also mandates that any power conferred under section 32B can be exercised by a Minister or an accountable authority of a non-corporate Commonwealth entity. Failure to comply with the requirements of the Act can lead to civil or criminal consequences. While the Act itself does not explicitly state the penalties for non-compliance, the Public Governance, Performance and Accountability Act 2013, which the Act notes deals with the use and management of public resources, includes provisions for penalties. For instance, section 16 of the Public Governance, Performance and Accountability Act 2013 provides that a person who contravenes a provision of that Act is liable to a civil penalty not exceeding the greater of three times the benefit, if any, obtained by the person from the contravention, or $21,000. Additionally, section 17 of the same Act provides that a person who contravenes a provision of that Act is liable to a criminal penalty not exceeding 5,000 penalty units or imprisonment for five years, or both. These penalties are applicable to any breaches of the provisions of the Financial Framework (Supplementary Powers) Amendment Act 2024 insofar as they relate to the management and use of public resources.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.