EXPLANATORY STATEMENT
Select Legislative Instrument No. 177, 2015
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(Defence Measures No. 1) 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.
Schedule 1 to the Regulation amends the Principal Regulations to establish legislative authority in Schedule 1AB for the Government to provide financial support to individuals and businesses experiencing financial hardship as a direct result of the closure of fisheries in response to contamination attributed to activities at RAAF Base Williamtown in New South Wales. The Department of Defence will be responsible for the scheme.
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 Defence.
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 (Defence Measures No. 1) Regulation 2015
Section 1 – Name
This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Defence Measures No. 1) 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
This item adds a new item to Part 4 of Schedule 1AB to establish legislative authority for government spending on an activity by the Department of Defence.
New table item 107A establishes legislative authority for the Government to provide support to individuals and businesses experiencing financial hardship as a direct result of the closure of fisheries linked to perfluorooctane sulfonate (PFOS) and perfluorooctanoic acid (PFOA) contamination around RAAF Base Williamtown, and who are not able to access another income support payment or pension, or business assistance payment. The programme will be administered by the Department of Defence, with the delivery of payments by the Department of Human Services.
The objective of this programme is to provide targeted assistance to eligible fishers and businesses affected by the closure of Hunter River and Port Stephens fisheries in response to contamination attributed to activities at RAAF Base Williamtown to manage adjustment pressures and remain viable in the long term. The closure of the fisheries from 4 September 2015 has been extended until 30 June 2016.
Three types of payments will be available, as follows:
- Income Recovery Subsidy - fortnightly payments at the applicable Newstart or Youth Allowance rates to individuals who usually derive more than 50 per cent of their income from fishing in a closed fishery, who have experienced loss of income as a direct result of the fisheries closures, and whose fortnightly personal income does not exceed the relevant Newstart or Youth Allowance personal income cut-off. The Income Recovery Subsidy is not subject to liquid assets or other assets tests, partner/parental income tests or activity tests;
- Business Assistance Payment - a one-off $5,000 lump sum payment to businesses that usually derive more than 50 per cent of business turnover from fishing in a closed fishery; and
- Business Hardship Payment (Reimbursement Payment) - a series of up to five lump sum payments, to a total value of $20,000, to businesses that usually derive more than 50 per cent of business turnover from fishing in a closed fishery and continue to experience hardship despite having received the Business Assistance Payment.
Guidelines for determining eligibility for the payments will be established between the Department of Defence and the Department of Human Services. These Guidelines will be applied when assessing applications, with decisions made by service officers in the Department of Human Services.
Funding decisions will be made by a delegate of the Department of Human Services following the Guidelines of the Department of Defence.
If an applicant does not agree with a decision made by the Department of Human Services, they will be able to seek merits review by an independent officer. An independent officer will be an experienced officer who has not been involved in the case previously. The independent officer can change the decision if it is wrong or, if they agree with the decision they can tell the applicant about other possible avenues of review that may be available to the applicant, and how the applicant can apply for them.
Further information about the programme will be available on the Department of Human Services website once the programme commences (www.humanservices.gov.au).
Funding for this item will come from Programme 3.1: Defence Contribution to National Support Tasks in Australia which is part of Outcome 3: Support for the Australian community and civilian authorities as requested by Government. Details of Programme 3.1 are set out in the Portfolio Budget Statements 2015‑16, Budget Related Paper No. 1.4A, Defence Portfolio at page 88. The Department of Human Services will fund the service delivery element of the programme from within existing resources.
Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the defence power (section 51(vi)) of the Constitution.
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 (Defence Measures No. 1) 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.
Schedule 1 to the Regulation adds a new item to Schedule 1AB to establish legislative authority for the Government to provide financial support to individuals and businesses experiencing financial hardship as a direct result of the closure of fisheries in response to contamination attributed to activities at RAAF Base Williamtown in New South Wales. The Department of Defence will be responsible for the scheme.
The Minister for Defence has portfolio responsibility for this new item.
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