Financial Framework (Supplementary Powers) Amendment (Climate Change, Energy, the Environment and Water Measures No. 4) Regulations 2025

EXPLANATORY STATEMENT

Issued by the Authority of the Minister for Finance

Financial Framework (Supplementary Powers) Act 1997

Financial Framework (Supplementary Powers) Amendment

(Climate Change, Energy, the Environment and Water Measures No. 4) Regulations 2025

The Financial Framework (Supplementary Powers) Act 1997 (the FFSP 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, programs 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 powers in the FFSP 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 Principal Regulations are exempt from sunsetting under section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015 (item 28A). If the Principal Regulations were subject to the sunsetting regime under the Legislation Act 2003, this would generate uncertainty about the continuing operation of existing contracts and funding agreements between the Commonwealth and third parties (particularly those extending beyond 10 years), as well as the Commonwealth’s legislative authority to continue making, varying or administering arrangements, grants and programs.

Additionally, the Principal Regulations authorise a number of activities that form part of intergovernmental schemes. It would not be appropriate for the Commonwealth to unilaterally sunset an instrument that provides authority for Commonwealth funding for activities that are underpinned by an intergovernmental arrangement. To ensure that the Principal Regulations continue to reflect government priorities and remain up to date, the Principal Regulations are subject to periodic review to identify and repeal items that are redundant or no longer required.

Section 32B of the FFSP 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 programs specified in the Principal Regulations. Section 32D of the FFSP Act confers powers of delegation on Ministers and the accountable authorities of non-corporate Commonwealth entities, including subsection 32B(1) of the FFSP Act. Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs.

Section 65 of the FFSP Act provides that the Governor-General may make regulations prescribing matters required or permitted by the FFSP Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the FFSP Act.

The Financial Framework (Supplementary Powers) Amendment (Climate Change, Energy, the Environment and Water Measures No. 4) Regulations 2025 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Australian Bushland Program (the program). The program will be administered by the Department of Climate Change, Energy, the Environment and Water.

The program responds to the Government’s national target to protect and conserve 30 per cent of Australia’s landmass and 30 per cent of Australia’s marine areas by 2030 (the ‘30 by 30’ target). To reach the 30 by 30 land target, approximately an additional 40 million hectares will need to be protected or conserved over the next five years.

The Government will provide funding of $250.0 million over five years from 2025-26 for the program to deliver four components:

1.       partner with state and territory governments to strategically grow protected and conserved areas;
2.       expand the Indigenous Protected Area Program;
3.       support Nature Repair Market projects under the protect and conserve method; and
4.       acquire land with high biodiversity values.

Legislative authority under table item 759 will support two components of the program:

• partnerships with state and territory governments: this component will leverage new and existing state and territory governments programs that support expansion of protected and conserved areas; and
• acquisition of properties with high biodiversity values: this component will be provided to eligible entities to support acquisition of properties with high biodiversity values within priority areas.

Details of the Regulations are set out at Attachment A. A Statement of Compatibility with Human Rights is at Attachment B.

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

The Regulations commence on the day after registration on the Federal Register of Legislation.

Consultation

In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Climate Change, Energy, the Environment and Water.

Attachment A

Details of the Financial Framework (Supplementary Powers) Amendment

(Climate Change, Energy, the Environment and Water Measures No. 4) Regulations 2025

Section 1 – Name

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Climate Change, Energy, the Environment and Water Measures No. 4) Regulations 2025.

Section 2 – Commencement

This section provides that the Regulations commence on the day after registration 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 (the Principal Regulations) are amended as set out in the Schedule to the Regulations.

Schedule 1 – Amendments

Financial Framework (Supplementary Powers) Regulations 1997

The item in Schedule 1 amends Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on an activity to be administered by the Department of Climate Change, Energy, the Environment and Water (the department).

Item 1 – In the appropriate position in Part 4 of Schedule 1AB (table)

This item adds one new table item to Part 4 of Schedule 1AB.

Table item 759 – Australian Bushland Program

New table item 759 establishes legislative authority for government spending on the Australian Bushland Program (the program).

The Government has set a national target to protect and conserve 30 per cent of Australia’s landmass and 30 per cent of Australia’s marine areas by 2030 (the ‘30 by 30’ target). Currently, 24.5 per cent of Australia’s land is protected. To reach the 30 by 30 land target, approximately an additional 40 million hectares will need to be protected or conserved over the next five years. To coordinate national action towards the 30 by 30 target on land, the Australian Government, in partnership with state and territory governments developed a National Roadmap for protecting and conserving 30% of Australia’s land by 2030 (the National Roadmap), which sets out the principles to guide the implementation of the 30 by 30 target, ensuring the expanded conservation areas are ecologically representative,
well-connected and effectively managed. The National Roadmap is available at: www.dcceew.gov.au/environment/land/achieving-30-by-30/national-roadmap.

The Government has committed funding of $250.0 million for the program to meet the 30 by 30 land target, by strategically growing protected and conserved areas across Australia consistent with the principles, criteria and pathways outlined in the National Roadmap. The program comprises four components:

1.       partnerships with state and territory governments to strategically grow protected and conserved areas;
2.       expand the Indigenous Protected Area Program;
3.       support Nature Repair Market projects under the protect and conserve method; and
4.       contribute funds to eligible entities to acquire land with high biodiversity values.

Legislative authority for aspects of the second and third components will be provided through existing legislations. Legislative authority for aspects of the first and fourth components will be supported by table item 759.

Partnerships with state and territory governments to strategically grow protected and conserved areas

All jurisdictions have legislation, policies and programs that support establishment of new protected areas, and jurisdictions are considering ways to support recognition of conserved areas. The National Roadmap recognises that these efforts need to be scaled up if Australia is to achieve the target. By working in partnerships with state and territory governments to build on existing and successful initiatives, the outcomes will be achieved quickly and efficiently.

This component aims to increase the percentage of Australia’s landmass that is protected and conserved. Funding for state and territory partnerships will contribute to this objective by supporting the establishment and management of protected and conserved areas.

This component will leverage new and existing state and territory governments programs that support expansion of protected areas, including land acquisition programs and private land conservation programs designed to incentivise landowners to place conservation covenants on their land to permanently protect it.

Protected areas and conserved areas can both contribute to Australia’s 30 by 30 target. Conserved areas provide biodiversity outcomes in places where formal protection is not possible, appropriate or supported. Funding may be provided to support state and territory governments to review and identify potential areas of Crown or leasehold land that could be suitable either as a protected or a conserved area. Funding may also be provided to relevant state and territory governments to support implementation of the National Other Effective Area-Based Conservation Measures (OECM) Framework (www.dcceew.gov.au/
environment/land/achieving-30-by-30/conserved-areas/national-oecms-framework) which enables the recognition of conserved areas.

Additionally, this component builds upon the momentum of the Government’s existing investment in the Protecting Important Biodiversity Areas (PIBA) program. Established in October 2023, the PIBA program supports state and territory initiatives aimed at increasing the protection and conservation of Australia’s land. Insights gained from its implementation have informed the design and delivery of state and territory partnerships under the program. These learnings relate to the types of projects supported, the structure of funding agreements, opportunities to leverage jurisdictional contributions, and the timeframes required for effective delivery.

Support for acquisition and protection of properties with high biodiversity values

Under this component, the Australian Government will partner with eligible entities to support the acquisition of properties with particular importance for biodiversity and ecosystem functions and services. Funding will be subject to conditions that ensure the permanent protection and enhancement of areas with high biodiversity values. Activities funded under this component will support the protection of high-quality land within priority areas, directly supporting progress towards Australia’s 30 by 30 target. The Australian Government will not take ownership of land acquired through this component. Instead, the department will administer funding through an open tender procurement process. Eligible entities will be funded to identify suitable areas of land, as well as purchase, protect and manage the land.

Eligible entities for this initiative will include state and territory government bodies, environmental non-government organisations, and other entities or individuals. All eligible entities will be required to financially co-contribute to the land purchase. To qualify for funding, proposed property purchases must have high biodiversity values, demonstrate cost efficiency, and have minimal or no barriers to protection.

Funding to support strategic property acquisitions will directly support the program’s objective to prioritise the protection of areas of particular importance for biodiversity and ecosystem services and functions and to increase the ecological representativeness of Australia’s protected and conserved areas.

Funding amount and arrangements, merits review and consultation

Total funding of $250.0 million for the program was included in the 2025-26 Budget under the measure ‘Protecting our Environment’ for a period of five years commencing in 2025-26. Details are set out in Budget 2025-26, Budget Measures, Budget Paper No. 2 at page 26.

Funding for the item will come from Program 2.1: Conserve, protect and sustainably manage Australia’s natural environment through a nature positive approach (Australian Bushland Program), which is part of Outcome 2. Details are set out in the Portfolio Budget Statements 2025-26, Budget Related Paper No. 1.3, Climate Change, Energy, the Environment and Water Portfolio at page 50.

The department will deliver the program through a suite of funding arrangements, including other financial arrangements (OFAs), Federation Funding Agreements (FFA) and procurement processes.

The Minister for the Environment and Water (the Minister) has recently written to all state and territory environment ministers to invite them to submit proposals and invest jointly with the Australian Government in efforts to achieve the 30 by 30 target. The department anticipates being able to enter agreements with some jurisdictions in 2025-26, with others to follow in later financial years.

Multi-year funding agreements will be established with state and territory governments for approved partnership projects. The department will look to utilise OFAs with states and FFAs with territories. The department will establish eligibility criteria and invite all states and territories to submit project proposals.

Decisions on partnerships with states and territories will be made by the Minister or an appropriate delegate at the Senior Executive Service (SES) level. The delegate will have the appropriate qualifications and skills to perform this administrative power. Funding decisions will be made in accordance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the Federal Financial Relations Act 2009, the Federation Reform Fund Act 2008 and the Financial Framework (Supplementary Powers) Act 1997 (FFSP Act).

The decision maker will be informed by advice from the Australian Bushland Program Steering Committee (Steering Committee), which comprises members of the department’s SES who have appropriate knowledge of the program and expertise in the subject matter. Where relevant, an independent property valuation will be provided to the Steering Committee and the decision maker. The Minister or their delegate will not approve funding if there are insufficient program funds available across relevant financial years for the program. Contracts for the program will be managed by the department. Information about partnerships with states and territories will be made available on the department’s website.

Financial assistance for the acquisition of properties with high biodiversity values will be provided following an open, competitive tender process. Eligible entities will include government entities and incorporated entities. Limited tender procurements will be considered where necessary.

Procurements will be conducted in accordance with the Commonwealth resource management framework, including the PGPA Act and the Commonwealth Procurement Rules 2024. The departments policies on probity, transparency, accountability and managing conflicts of interest will provide additional safeguards on the exercise of administrative powers and functions.

Information about tenders and resultant contracts will be made available on the department’s website and published on AusTender (www.tenders.gov.au). The procurement process will set out eligibility criteria and conditions of participation. Tenders will be evaluated on value for money, capability, capacity to deliver protection and enhancement of high biodiversity values and risk considerations.

Procurement decisions will be made by the Minister, or an appropriate delegate at the SES level in accordance with the PGPA Act and the FFSP Act. The delegate will have the appropriate qualifications and skills to perform this administrative power and will be informed by advice from the Steering Committee. Where relevant, an independent property valuation will be provided to the Steering Committee and the decision maker. The decision maker will not approve funding if there are insufficient program funds available across relevant financial years. Contracts for the program will be managed by the department. 

Funding decisions made in connection with the program are not considered suitable for independent merits 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 would be affected if the original decision was overturned. The remaking of a procurement decision after entry into a contractual arrangement with a successful provider is legally complex, impractical, and could result in delays to meeting the objectives of the program. 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 merits review?). 

The department will provide an opportunity for providers, tenderers, state partners with funding agreements via OFAs and other persons affected by decisions to make complaints if they wish, and to receive feedback. These complaints and inquiries can be made at any time during the procurement process or funding opportunity and will be handled in accordance with probity requirements.

In addition, the review and audit process undertaken by the Australian National Audit Office provides a mechanism to review Australian Government spending decisions and report any concerns to the Parliament. These requirements and mechanisms help to ensure the proper use of Commonwealth resources and appropriate transparency around decisions relating to making, varying or administering arrangements to spend relevant money. 

The Government Procurement (Judicial Review) Act 2018 enables persons affected by spending decisions to challenge some procurement processes for alleged breaches of certain procurement rules. This legislation provides an additional avenue of redress (compensation or injunction), depending on the circumstances.

Further, the right to review under section 75(v) of the Constitution and review under section 39B of the Judiciary Act 1903 may also be available. Persons affected by spending decisions would also have recourse to the Commonwealth Ombudsman where appropriate. 

The National Roadmap, which provides the overarching policy framework for achieving the target of protecting 30 per cent of Australia’s landmass and territorial waters by 2030, was used to inform the design of the program.

The National Roadmap was developed in partnership with all state and territory governments. Public consultation was also undertaken on the National Roadmap from 21 June 2024 to 19 July 2024 (https://consult.dcceew.gov.au/draft-national-roadmap-for-protecting-and-conserving-30-of-australias-land-by-2030/new-survey/list) with 167 unique submissions received. This included 22 environmental organisations, five environmental finance or consultancy groups, nine Landcare or natural resource management groups, one state government agency, two First Nations groups, four academics, one industry group and 123 individuals. Over 3,400 campaign submissions were also received.

Most submissions expressed general support for the National Roadmap and welcomed additional funding to help achieve the target. A small number of submissions raised concerns about potential controls over private land. In response, the National Roadmap was revised where possible to reflect stakeholder feedback. All states and territories have now formally agreed to the National Roadmap.

The department has consulted with environmental not-for-profit organisations, private land conservation representatives, and each state and territory on the design of the program. All stakeholders were generally supportive with feedback received being incorporated into the design of the program. All state and territory governments have expressed interest in partnering with the government on the program. Through meetings with officials, the department has identified a range of prospective and potentially significant opportunities for partnerships to support the projects under the program.

Constitutional considerations

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 power to grant financial assistance to any state (section 96); and
• the territories power (section 122).

External affairs power

Section 51 (xxix) of the Constitution empowers the Parliament to make laws with respect to ‘external affairs’. The external affairs power supports legislation implementing Australia’s international obligations under treaties to which it is a party.

Australia is a party to the Convention on Biological Diversity [1993] ATS 32 (Biodiversity Convention). Relevantly, under the Biodiversity Convention, Australia has committed to:

• develop national strategies, plans or programmes for the conservation and sustainable use of biological diversity or adapt for this purpose existing strategies, plans or programmes which shall reflect, inter alia, the measures set out in the Biodiversity Convention relevant to the Contracting Party concerned (Art 6(a));
• establish a system of protected areas or areas where special measures need to be taken to conserve biological diversity (Art 8(a));
• promote the protection of ecosystems, natural habitats and the maintenance of viable population of species in natural surroundings (Art 8(d)); and
• encourage cooperation between its governmental authorities and its private sector in developing methods for sustainable use of biological resources (Art 10(e)).
   

Through the program, the Commonwealth will partner with state and territory governments to build on existing initiatives that support the expansion of protected areas by incentivising private landowners to place conservation covenants on their land, provide funding to state and territory governments to support their implementation of the OECM Framework, provide funding to state and territory governments to review and identify areas that could be suitable for protection or conservation, and funding any other projects which maximise the growth of Australia’s protected and conserved areas.

The Commonwealth will also provide assistance to states, territories, and other entities to acquire property with high biodiversity values, with conditions for the protection and enhancement of those high biodiversity values.

Power to grant financial assistance to any state

Section 96 of the Constitution empowers the Parliament to ‘grant financial assistance to any State on such terms and conditions as the Parliament thinks fit’. 

The program will provide conditional financial assistance to state governments to improve and expand the management of protected and conserved areas, and acquire high biodiversity properties, with conditions for the protection and enhancement of those high biodiversity values.

Territories Power
 

Section 122 of the Constitution empowers the Parliament to ‘make laws for the government of any territory’.

The program will provide conditional financial assistance to territory governments to improve and expand the management of protected and conserved areas, and acquire high biodiversity properties, with conditions for the protection and enhancement of those high biodiversity values.

Attachment B

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 (Climate Change, Energy, the Environment and Water Measures No. 4) Regulations 2025

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 FFSP Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal 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 Principal Regulations specify the arrangements, grants and programs. The powers in the FFSP 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 (Climate Change, Energy, the Environment and Water Measures No. 4) Regulations 2025 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Australian Bushland Program (the program). The program will be administered by the Department of Climate Change, Energy, the Environment and Water.

The program responds to the Government’s national target to protect and conserve 30 per cent of Australia’s landmass by 2030 (the ‘30 by 30’ target). To reach the 30 by 30 land target, approximately an additional 40 million hectares will need to be protected or conserved over the next five years.

The Government will provide funding of $250.0 million over five years from 2025-26 for the program to deliver four components:

1.       partner with state and territory governments to strategically grow protected and conserved areas;
2.       expand the Indigenous Protected Area Program;
3.       support Nature Repair Market projects under the protect and conserve method; and
4.       acquire land with high biodiversity values.

Legislative authority under table item 759 will support two components of the program:

• partnerships with state and territory governments: this component will leverage new and existing state and territory governments programs that support expansion of protected and conserved areas; and
• acquisition of properties with high biodiversity values: this component will be provided to eligible entities to support acquisition of properties with high biodiversity values within priority areas.

Human rights implications

This disallowable legislative instrument does not engage any of the applicable rights or freedoms.

Conclusion

This disallowable legislative instrument is compatible with human rights as it does not raise any human rights issues.

Senator the Hon Katy Gallagher

Minister for Finance