Financial Framework (Supplementary Powers) Amendment (Education Measures No. 3) Regulations 2026

EXPLANATORY STATEMENT

Issued by the Authority of the Minister for Finance

Financial Framework (Supplementary Powers) Act 1997

Financial Framework (Supplementary Powers) Amendment

(Education Measures No. 3) Regulations 2026

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 (Education Measures No. 3) Regulations 2026 (the Regulations) amend table item 81 in Part 4 of Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Grants in Aid Sub-Programme (the program). The program is administered by the Department of Education.

The program was established in 1972 to support national educational research and nationally representative organisations to undertake activities to inform the Australian Government about issues and key stakeholder views on education and schooling. These activities included conducting research on proposed education policies and education policy areas, providing research information to the Government to inform education policy, and developing and disseminating resources and information relating to education policy.

Table item 81 is amended to support the expanded scope of the program for a 12-month pilot to test an approach for providing professional supervision services to school principals.

Funding of $450,000 in 2026-27 for the pilot will be provided to Headspace Australia who will test the design and delivery of a national model for the provision of professional supervision services to principals, with the aim of incorporating the data and lessons from the pilot into a broader future national rollout.

The pilot will support approximately 300 principals nationally and aims to strengthen leadership wellbeing, reduce burnout, and embed trauma informed and reflective leadership practices. Supporting principals’ wellbeing has demonstrable flow on benefits for school communities and student outcomes.

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 Education.

Attachment A

Details of the Financial Framework (Supplementary Powers) Amendment

(Education Measures No. 3) Regulations 2026

Section 1 – Name

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Education Measures No. 3) Regulations 2026.

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 items in Schedule 1 amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on an activity administered by the Department of Education (the department).

Amended table item 81 – Grants in Aid Sub-Programme

Item 1 – Part 4 of Schedule 1AB (table item 81, column headed “Objective(s)”)

Table item 81 in Part 4 of Schedule 1AB establishes legislative authority for government spending on the Grants in Aid Sub-Programme (the program).

Item 1 amends table item 81 by omitting “key national educational research and representative organisations”, and substituting “organisations, including key national educational research and representative organisations,” in the column headed “Objective(s)”. The amendment expands the funding recipient cohort from key national educational research and representative organisations to include other organisations such as Headspace Australia (Headspace) or a national principal association.

Item 2 – Part 4 of Schedule 1AB (at the end of the cell at table item 81, column headed “Objective(s)”)

Item 2 amends table item 81 by adding “; (d) to conduct research and undertake pilot programs, as a measure to give effect to Australia’s obligations under either or both of the following: (i) the Convention on the Rights of the Child, particularly Articles 2, 4, 28 and 29;

(ii) the International Covenant on Economic, Social and Cultural Rights, particularly Articles 2 and 13.” at the end of the cell in the column headed “Objective(s)”.

The amendment supports the expanded scope of the program for a 12-month pilot (the pilot) to test an approach for providing professional supervision services to school principals. The additional spending activity will be supported by the external affairs power of the Constitution.

The program is a long-standing program, established in 1972 to provide funding to national educational research and nationally representative organisations to undertake activities to inform the Australian Government about issues and key stakeholder views on education and schooling. These activities included conducting research on proposed education policies and education policy areas, providing research information to the Government to inform education policy, and developing and disseminating resources and information relating to education policy.

The program will be expanded to include the pilot, which aims to strengthen leadership wellbeing, reduce burnout, and foster trauma-informed and reflective leadership practices in Australian schools. By supporting principals to remain healthy, resilient and effective in increasingly complex school environments, the pilot seeks to deliver flow-on benefits for school communities and contribute to improved student outcomes and workforce sustainability.

The pilot aligns with the objectives of the Better and Fairer Schools Agreements (2025-2034) and the national priority to build a strong, sustainable education workforce, including strengthening teacher and principal wellbeing (www.education.gov.au/recurrent-funding-schools/national-school-reform-agreement/better-and-fairer-schools-agreement-20252034).

Funding for the pilot will be provided to Headspace, Australia’s national youth mental health foundation, to test the design and delivery of a national model for the provision of professional supervision services to principals, with the aim of incorporating the data and lessons learned from the pilot into a broader national rollout. Headspace will also be responsible for promotional activities, communication development, operation of an evaluation framework, and the collection, analysis and reporting of data and findings. Evaluation will assess impacts on principal wellbeing, leadership practice and sustainability, with the objective of developing a nationally consistent, scalable model that could be implemented across jurisdictions and school sectors.

The pilot will support approximately 300 principals nationally. Funding will support principals to receive professional supervision from experienced and qualified supervisors and support the training of supervisors to meet demand. Participating principals will be offered one of two evidence‑based support options:

one‑on‑one professional supervision, consisting of approximately six sessions per year delivered by trained advisers; or
group‑based reflective practice, a less intensive and lower‑cost option focused on structured reflection and peer learning.

The pilot has been developed in collaboration with key education stakeholders, including the Australian Primary Principals Association, Australian Secondary Principals Association, Australian Council for Educational Leaders, and academic partners from the University of Sydney, University of Tasmania, Charles Sturt University and the Australian Catholic University.

The Australian Government is seeking to co‑fund the pilot with at least one participating state or territory government. Participating jurisdictions would provide approval for principals to be contacted by Headspace and to opt into the pilot if they choose. The pilot will be open to principals in government schools initially. Participating jurisdictions may wish to extend coverage to principals in non-government schools, with agreement from relevant authorities.

The primary target group is school principals in government schools across participating jurisdictions, with participation by non‑government schools principals subject to the decision of participation jurisdictions. Secondary beneficiaries include broader school leadership teams, teachers, school staff and school communities.

Funding amount and arrangements, merits review and consultation

Funding of $450,000 in 2026-27 will come from Program 1.5: Early Learning and Schools Support (Grants and Awards), which is part of Outcome 1. Details are set out in the Portfolio Budget Statements 2026-27, Education Portfolio at page 41.

The department will deliver the program either through a procurement or a grant process in accordance with the Commonwealth resource management framework, including the Public Governance, Performance and Accountability Act 2013, the Public Governance, Performance and Accountability Rule 2014, and depending on the final delivery and contracting model agreed by the Government, the Commonwealth Procurement Rules 2025 as a targeted procurement, or the Commonwealth Grants Rules and Principles 2024 as a closed, non-competitive grant.

The funding supports a time-limited pilot focused on research, evaluation and evidence generation to inform future national policy and program design. Headspace is eligible for the funding on the basis that the organisation has:

the capability to deliver the specified grant activities – Headspace has an established national service platform, specialist research and evaluation capability and capacity to generate robust, policy relevant data and learnings at scale;
existing infrastructure and relationships with key stakeholders to undertake the pilot activities; and
demonstrated experience and knowledge in supporting school leaders through adverse events, crisis and mental health challenges.

The appropriate expenditure mechanism (grant or procurement) will be determined based on consideration of value for money, risk, administrative efficiency and the most effective means of securing defined research and evaluation outputs for the Commonwealth. The Commonwealth will also consider whether a direct funding agreement with Headspace is appropriate, or if funding via a national principal association, which has an existing contract with the department, is most appropriate.

Information about the expenditure will be made publicly available in accordance with the applicable framework. If delivered as a grant, details will be published on GrantConnect (www.grants.gov.au). If delivered as a procurement, details will be published on AusTender (www.tenders.gov.au).

The final decision to approve the expenditure and determine the appropriate funding mechanism will be made by the Minister for Education (or their delegate), following consideration of departmental advice. The delegate will be a Senior Executive Service officer with responsibility for school education policy and program delivery, and with appropriate experience in administering Commonwealth funding arrangements (grant or procurement).

Decisions in relation to the approval of Commonwealth funding for the program are not considered suitable for independent merits review. The decision concerns a targeted, one‑off allocation of finite Commonwealth funding for a time‑limited pilot with a strong research and evaluation focus. Whether implemented as a grant or a procurement, the decision is strategic and policy‑oriented, involving consideration of value for money, alignment with Government priorities, risk, capability and the generation of evidence to inform future national policy decisions.

In addition, the benefits of the grant are not directed towards the circumstances of particular persons, but rather apply generally to the community, and is therefore considered to be unsuitable for review. The program, by its nature, is unlikely to affect the interests of a sole individual and any funding that has already been allocated would be affected if the original decision was overturned.

Consistent with the Administrative Review Council’s guide in What decisions should be subject to merits review? (see paragraphs 4.11 to 4.19 of the guide), the characteristics of the decision justify exclusion from merits review for the following reasons:

The decision does not determine individual rights, statutory entitlements or ongoing benefits. Rather, it concerns the allocation of public funds for a time limited pilot to test and evaluate a particular policy approach at a program level.
The decision involves a high‑level discretionary allocation of a finite pool of funding, where the resources available are constrained and an allocation to one activity necessarily limits funding available for any alternative use. It is not an assessment against fixed eligibility criteria.
The activity is not competitive in nature. It is dependent on the demonstrated capability of a specific provider to deliver a defined, specialised research and evaluation function, rather than a comparative assessment among multiple applicants.
Independent merits review would not be practicable or likely to yield a more preferable outcome. Given the finite nature of the funding, the reliance on specialised capability and the non‑repeatable, time-limited nature of the pilot, a successful review could not be implemented without disrupting or reallocating resources already committed, and no effective alternative remedy would be available.

The department has consulted extensively with national and jurisdictional principal associations, including through the National Principal Reference Group (comprising the nine national peak principal associations, representing principals and school leaders across all school sectors and levels of education in Australia), higher education providers and providers of professional supervision services in relation to principal wellbeing matters and the provision of professional supervision programs.

Through consultations, the department heard from principals about the role and effectiveness of professional supervision services in improving wellbeing outcomes. For instance, the supervision model was discussed at the Minister for Education’s National Principal Reference Group meetings in June 2024. The department also held separate meetings with all nine national principal associations, representing all government and non-government schools across Australia, to find out what wellbeing support currently exists for school leaders, and to hear from the associations on the effectiveness of current supports and gaps. There was consensus that professional supervision was the preferred model and that existing supports, such as employee assistance programs or coaching programs were not meeting the needs of principals.

The department also heard from providers and trainers about the optimum design of supervision programs and how to meet the needs of principals. There is a high degree of support for supervision services among national and jurisdictional principal associations.

The department has also worked closely with Headspace in the design of the pilot. In developing the pilot, Headspace consulted with a range of organisations and experts, including the Australian Secondary Principals Association, the Australian Primary Principals Association, the Australian Council for Educational Leaders, the University of Sydney, the University of Tasmania, Charles Sturt University, and the Australian Catholic University.

There will be ongoing program management activities which will include regular meetings with Headspace along with milestone reports. The department will have regular engagement with principal associations affiliated with the project and will also consult with the Minister’s National Principal Reference Group during the pilot.

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 express incidental power and the executive power (sections 51(xxxix) and 61), including the nationhood aspect;
the communications power (section 51(v)); and
the external affairs power (section 51(xxix)).

Executive power and express incidental power, including the nationhood aspect

The express incidental power in section 51(xxxix) of the Constitution empowers the Parliament to make laws with respect to matters incidental to the execution of any power vested in the Parliament, the executive or the courts by the Constitution. Section 61 of the Constitution supports activities that are peculiarly adapted to the government of a nation and cannot be carried out for the benefit of the nation otherwise than by the Commonwealth.

The program involves funding a 12-month pilot of a nationally consistent model for professional supervision and reflective practice for principals and school leaders across Australia.

Communications power

Section 51(v) of the Constitution empowers the Parliament to make laws with respect to ‘postal, telegraphic, telephonic and other like services’.

The communications power is relevant to other aspects of the program but not to the
12-month pilot.

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 the Rights of the Child (CRC) and the International Covenant on Economic, Social and Cultural Rights (ICESCR).

CRC

Article 2 of the CRC obliges States Parties to ‘respect and ensure the rights set forth in the present Convention to each child within their jurisdiction without discrimination of any kind’.

Article 4 of the CRC obliges States Parties to take appropriate measures to implement the rights recognised by the CRC. This includes the rights recognised in Articles 28 and 29 of the CRC.

Article 28(1) of the CRC provides that States Parties recognise the right of the child to education and shall:

make primary education compulsory and available free to all;
encourage the development of different forms of secondary education, including general and vocational education, make them available and accessible to every child, and take appropriate measures such as the introduction of free education and offering financial assistance in case of need;
make higher education accessible to all on the basis of capacity by every appropriate means;
make educational and vocational information and guidance available and accessible to all children;
take measures to encourage regular attendance at schools and the reduction of drop-out rates.

Article 29(1)(a) of the CRC provides that States Parties agree that the education of the child shall be directed to the development of the child’s personality, talents and mental and physical abilities to their fullest potential.

The program will support a 12-month pilot of a nationally consistent model for professional supervision and reflective practice for Australian school principals and school leaders. Through supporting their wellbeing, the program will support these educators to improve teaching practice in their school communities, promoting good educational outcomes for their students.

ICESCR

Article 2(1) of the ICESCR provides that States Parties shall take steps ‘to the maximum of its available resources, with a view to achieving progressively the full realisation' of the rights recognised in the ICESCR ‘by all appropriate means, including particularly the adoptions of legislative measures’.

Article 13 of the ICESCR provides that States Parties recognise the right of everyone to education. Article 13 also provides that States Parties agree that ‘education shall be directed to the full development of the human personality and the sense of its of its dignity, and shall strengthen the respect for human rights and fundamental freedoms’. Article 13(2)(e) provides that States Parties recognise that, with a view to achieving this right, that the ‘development of a system of schools at all levels shall be actively pursued, an adequate fellowship system shall be established, and the material conditions of teaching staff shall be continuously improved’.

The program will strengthen leadership wellbeing, reduce burnout, and foster trauma informed leadership and reflective leadership among Australian principals and school leaders. By providing such training to principals and school leaders, the program will support these educators to foster safe and effective school communities, enabling student success.

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 (Education Measures No. 3) Regulations 2026

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 program was established in 1972 to support a national educational research and nationally representative organisations to undertake activities to inform the Australian Government about issues and key stakeholder views on education and schooling. These activities included conducting research on proposed education policies and education policy areas, providing research information to the Government to inform education policy, and developing and disseminating resources and information relating to education policy.

Table item 81 is amended to support the expanded scope of the program for a 12-month pilot to test an approach for providing professional supervision services to school principals.

Funding of $450,000 in 2026-27 for the pilot will be provided to Headspace Australia who will test the design and delivery of a national model for the provision of professional supervision services to principals, with the aim of incorporating the data and lessons learned from the pilot into a future broader national rollout.

Human rights implications

This disallowable legislative instrument engages the right to education – Articles 28 and 29 of the Convention on the Rights of the Child (CRC), read with Article 4, and Article 13 of the International Covenant on Economic, Social and Cultural Rights (ICESCR), read with Article 2.

Right to education

Article 4 of the CRC obliges Australia to take appropriate measures to implement the rights recognised by the CRC. This includes the rights recognised in Articles 28 and 29 of the CRC.

Article 28(1) of the CRC provides that States Parties recognise the right of the child to education and shall:

make primary education compulsory and available free to all;
encourage the development of different forms of secondary education, including general and vocational education, make them available and accessible to every child, and take appropriate measures such as the introduction of free education and offering financial assistance in case of need;
make higher education accessible to all on the basis of capacity by every available need;
make educational and vocational information and guidance available and accessible to all children;
take measures to encourage regular attendance at schools and the reduction of drop-out rates.

Article 2(1) of the ICESCR obliges Australia to take steps to realise the rights recognised in the ICESCR.

Article 13 of the ICESCR provides that States Parties recognise the right to everyone to education. Article 13 also provides that States Parties agree that education shall be directed to the full development of the human personality and the sense of its of its dignity, and shall strengthen the respect for human rights and fundamental freedoms. Article 13(2)(e) provides that States Parties recognise that, with a view to achieving this right, that the ‘development of a system of schools at all levels shall be actively pursued, an adequate fellowship system shall be established, and the material conditions of teaching staff shall be continuously improved’.

This disallowable legislative instrument promotes the right to education, by providing funding to support a 12-month pilot of a nationally consistent model for professional supervision and reflective practice for Australian school principals and school leaders. The objective of the model is to strengthen leadership wellbeing, reduce burnout and foster trauma informed leadership and reflective leadership practices across Australian schools. The funding also supports teaching staff, with Australian school principals and school leaders having the benefit of professional supervision, reflective practice and training to strengthen school leadership. The expenditure will also help these educators foster safe and effective school communities, supporting the students which these principals and school leaders educate. This assists Australia to meet the above obligations.

Conclusion

This disallowable legislative instrument is compatible with human rights as it promotes the protection of human rights.

Senator the Hon Katy Gallagher

Minister for Finance

Administered by Department of Finance

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