EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(Education and Training Measures No. 5) Regulation 2016
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, 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 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 programs specified in the Principal Regulations. Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs.
Schedule 1 to the Regulation amends the Principal Regulations to establish legislative authority in Schedule 1AB for the Government to provide a grant to The Smith Family to expand its Learning for Life Program.
This Program is an early intervention initiative that provides financial and practical support for primary and secondary school students, primarily from low-income and disadvantaged backgrounds, in order to help those students to stay at school, complete Year 12 (or its equivalent), and achieve better educational outcomes.
The grant, which is an election commitment, will be administered by the Department of Education and Training.
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 Legislation Act 2003. The Regulation commences 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 Education and Training.
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 (Education and Training Measures No. 5) Regulation 2016
Section 1 – Name
This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Education and Training Measures No. 5) Regulation 2016.
Section 2 – Commencement
This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislation.
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 – In the appropriate position in Part 3 of Schedule 1AB (table)
This item adds a new table item to Part 3 of Schedule 1AB to establish legislative authority for government spending on an activity which will be administered by the Department of Education and Training.
New table item 13 establishes legislative authority for the Government to provide funding to The Smith Family to expand its Learning for Life Program (the Program).
Learning for Life is an early intervention initiative of The Smith Family that provides financial and practical support for primary and secondary school students, primarily from low-income and disadvantaged backgrounds, in order to help those students to stay at school, complete Year 12 (or its equivalent), and achieve better educational outcomes.
The Program currently supports 34,000 students each year. From 2016-17, the Government will provide a grant of $48 million over four years to The Smith Family to expand the reach of the Program to support an additional 24,000 students annually. The additional funding will help to improve access to quality learning opportunities for disadvantaged children and young people.
The Program, consisting of three key components, provides support to participating students and their families in the early years of learning and continues through primary and high school.
The Program provides:
- financial support to pay for students’ school supplies and activities; for example, school uniforms, shoes, textbooks and excursions;
- ongoing support from a Learning for Life Coordinator, employed by The Smith Family, who works directly with students and their families to support long term participation in education; and
- access to The Smith Family’s out-of-school educational opportunities, including learning and mentoring programs, which aim to ensure students are engaged in education.
The Program also provides, to some participants, access to affordable refurbished computers, subsidised or free internet access for a period of time, and associated skills training in how best to use these resources to support education.
Funding will be paid to The Smith Family in accordance with the Commonwealth Grants Rules and Guidelines, the Department’s Secretary Instructions and delegations on the expenditure of relevant monies, in accordance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Decisions as to funding for the Learning for Life Program will be made by the relevant delegate of the Secretary of the Department in accordance with the PGPA Act.
Merits review will not be available for any funding associated with the Program, as it is not appropriate due to the non-competitive, targeted and discretionary nature of the funding being provided to The Smith Family.
Funding is expected to be detailed as a measure in the Mid-Year Economic and Fiscal Outlook 2016-17, and subsequently in Program 1.3: Early Learning and Schools Support, in Outcome 1 in the Portfolio Additional Estimates Statements 2016–17 for the Education and Training portfolio.
Funding for Learning for Life will be drawn from Program 1.3: Early Learning and Schools Support, which is part of Outcome 1: Improved early learning, schooling, student educational outcomes and transitions to and from school through access to quality support, parent engagement, quality teaching and learning environments.
Noting that it is not a comprehensive statement of relevant constitutional considerations, the purpose of the item references the following powers of the Constitution:
- the communications power (section 51(v));
- the social welfare power (section 51(xxiiiA)); and
- the external affairs power (section 51(xxix)).
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 (Education and Training Measures No. 5) Regulation 2016
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 programs specified in the Regulations. Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs.
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 amends the Principal Regulations to establish legislative authority in Schedule 1AB for the Government to provide funding to The Smith Family to expand its Learning for Life Program. This Program is an early intervention initiative that provides financial and practical support for primary and secondary school students, primarily from low-income and disadvantaged backgrounds, in order to help those students to stay at school, complete Year 12 (or its equivalent), and achieve better educational outcomes.
The Minister for Education and Training has portfolio responsibility for the grant which will be administered by the Department of Education and Training.
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