EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(Employment and Workplace Relations Measures No. 1) 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 (Employment and Workplace Relations Measures No. 1) Regulations 2026 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Foundation Skills Campaign (the campaign). The campaign will be administered by the Department of Employment and Workplace Relations.
The campaign will be delivered under the National Foundation Skills Strategy 2025-2035 (the Strategy), with funding of $16.5 million over four years from 2025-26 available to undertake activities within the campaign. The Strategy is a component of the National Skills Agreement, a five-year joint agreement between the Commonwealth and states and territories to strengthen the vocational education and training sector, which commenced on 1 January 2024.
Under the Strategy, foundation skills are defined as the core competencies of language, literacy, numeracy and digital literacy, along with employment skills such as problem-solving and collaboration skills.
The campaign aims to reduce the shame and stigma associated with having low foundation skills, enabling people to more easily engage with foundation skills training programs and support. The campaign also aims to highlight the benefits of lifelong learning, targeting people with limited post-secondary education, including those with foundation skills gaps and encouraging them to undertake training to develop those skills.
The campaign will involve activities to be delivered via television, radio, and online platforms which may include streaming services, social media and digital advertising on websites.
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 Employment and Workplace Relations.
Attachment A
Details of the Financial Framework (Supplementary Powers) Amendment
(Employment and Workplace Relations Measures No. 1) Regulations 2026
Section 1 – Name
This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Employment and Workplace Relations Measures No. 1) 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 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 Employment and Workplace Relations (the department).
Item 1 – Part 4 of Schedule 1AB (in the appropriate position in the table)
This item adds one new table item to Part 4 of Schedule 1AB.
Table item 796 – Foundation Skills Campaign
New table item 796 establishes legislative authority for government spending on the Foundation Skills Campaign (the campaign).
The Australian Government is committed to supporting adults in Australia to increase their English language, literacy, numeracy, digital literacy and employability skills – known collectively as foundation skills. Foundation skills are the competencies that underpin workforce participation, productivity and social inclusion. These are core “learning to learn” skills, necessary to provide people access to an education system from which follows opportunities to develop careers and engage in lifelong learning.
The campaign will be delivered under the National Foundation Skills Strategy 2025-2035 (the Strategy) (www.dewr.gov.au/national-skills-agreement/resources/national-foundation-skills-strategy-20252035), which sets a shared direction for Commonwealth, state and territory governments for adult foundation skills nationally over the decade from 2025-2035 and reflects Skills Ministers’ shared commitment to build foundation skill levels among Australian adults.
The Strategy is a component of the five-year joint National Skills Agreement between the Commonwealth and states and territories, which commenced on 1 January 2024 to strengthen the vocational education and training (VET) sector. The campaign will align with the objectives of the National Skills Agreement to:
- transform the national VET system, ensuring it provides high quality, responsive and accessible education and training to boost productivity;
- support Australians to future proof their careers by obtaining the skills and capabilities they need to obtain well-paid, secure jobs and support the economy; and
- ensure Australia has the skilled workforce it needs now and into the future, by returning technical and further education (TAFE) to the heart of the VET sector.
The objective of the campaign is to reduce the shame and stigma associated with having low foundation skills, enabling people to more easily engage with foundation skills training programs and support. The campaign aims to highlight the benefits of lifelong learning, targeting people with limited post-secondary education, including those with foundation skills gaps, and encouraging them to undertake training to develop those skills.
The campaign will be delivered across television, radio and online platforms which may include streaming services, social media and digital advertising on websites. These channels will be used to provide information only.
Audiences may interact with online advertisements by clicking through to the campaign website but will be unable to comment on advertisements. Social media advertisements will allow audiences to comment on posts, and the department will manage responses to comments. For advertisements in languages other than English, the department will provide suppliers with pre-approved responses for translation.
Public relations activities will be non-interactive and will focus on distributing campaign content. This may include written or filmed case studies, digital information kits and pitching content to media outlets.
The department will develop audience reach benchmarks in consultation with the master media agency, the evaluation research agency, and public relations, First Nations and multicultural communications agencies. Benchmarks will reflect the size, location and demographics of the target audience.
Funding amount and arrangements, merits review and consultation
Funding of $16.5 million over four years from 2025-26 for this item will come from Program 2.1.5: National Skills Agreement Commonwealth Own−Purpose Expenses, which is part of Outcome 2. Details are set out in the Portfolio Additional Estimates Statements 2025−26, Employment and Workplace Relations Portfolio at page 37.
Funding for the campaign will be delivered through a limited tender procurement process. The department will procure a supplier from the Government Communications Campaign Panel, a mandatory whole-of-government panel of communication suppliers who work on Australian Government advertising and information campaigns. The supplier will be procured to design and deliver a national communications campaign which will meet broader VET participation objectives under the National Skills Agreement, with a focus on lifelong learning and foundation skills training.
The procurement will be undertaken in accordance with the Public Governance, Performance and Accountability Act 2013, the Public Governance, Performance and Accountability Rule 2014 and the Commonwealth Procurement Rules 2025 (CPRs). The procurement process will be administered by the department and information about the procurement, including contract details, will be made available on AusTender (www.tenders.gov.au).
A delegate of the Secretary of the department under the Financial Framework (Supplementary Powers) Act 1997 will be responsible for approving Commonwealth funding. The delegate will be at the Senior Executive Service Band 1 level and have appropriate experience and knowledge to exercise this function.
Consistent with the CPRs, procurement decisions will be based on value for money, including capability and capacity to deliver, and price and risk considerations. The department will manage the contract and make the required payments based on the contract.
Funding decisions made in connection with the procurement 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. Any funding that has already been allocated would be affected if the original decision was overturned. In addition, the benefits of the campaign 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 campaign, 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. Further, 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 providing services.
The Administrative Review Council has recognised that it is justifiable to exclude merits review in relation to decisions of this nature (see paragraphs 3.3 to 3.7 and 4.11 to 4.19 of the guide, What decisions should be subject to merits review?).
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 suppliers to challenge some procurement processes for alleged breaches of certain procurement rules. This legislation might provide an additional avenue of redress (compensation or injunction) for dissatisfied providers or potential providers, 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.
In 2025, the department contracted Whereto Research from the Government Communications Campaign Panel to undertake research to inform the development of the campaign.
The research explored the Australian Government’s role in communicating with audiences about lifelong learning and foundation skills. The research engaged with a range of participants to identify the most compelling strategic direction for the campaign, including: adults who self-identified as having foundation skills gaps, First Nations adults, adults who speak a language other than English, people with a disability, and employers and managers from industries with a lower-skilled workforce.
Feedback was sought from peak bodies, including the Australian Council for Adult Literacy, Adult Learning Australia, 26Ten, Libraries Tasmania and the Reading Writing Hotline, and interviews were conducted with adult literacy experts and training providers. The research identified significant barriers to people with foundation skills gaps taking action, including:
- many people experience shame and stigma from past negative experiences, leading to low confidence, whilst others have become adept at masking their difficulties or have normalised their skills gaps, reducing motivation to seek support and contributing to inertia and overwhelm;
- some people struggle to identify or articulate the help they need, making it difficult to find or request support;
- practical barriers also play a role, including limited transport, lack of access to technology, perceived costs, time constraints and caring responsibilities; and
- for some people, more immediate challenges such as serious mental illness, alcohol and drug dependence, poor physical health, domestic violence or homelessness, further limit engagement.
Recommendations from Whereto Research included the development of a campaign targeting working-age Australian adults, particularly those with limited post-secondary education, to encourage engagement in adult learning to support work and career goals. The campaign should have two complementary aims: to encourage adults to upskill or reskill for their careers, with a focus on VET and TAFE, and to encourage adults with foundation skills gaps to seek support. The Whereto Research findings and recommendations will be incorporated into the design and development of the campaign. In addition, the department will consult with the National Indigenous Australians Agency on the development of the campaign to ensure resources developed for the campaign are culturally appropriate for First Nations people.
A formal evaluation of the campaign will be conducted at the end of each financial year to measure the campaign’s performance against its objectives and will also be used to identify whether advertising and messaging needs to be updated to improve their efficacy with audiences.
The evaluation will be conducted in accordance with the CPRs and will comprise qualitative and quantitative research with target audiences, data from the master media agency on advertising performance against set audience-reach benchmarks, data on visits to the campaign website and exits to state and territory training websites, and data on performance of public relations activities.
Constitutional considerations
Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the communications power (section 51(v)) of the Constitution.
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 campaign will support a foundation skills communication campaign to be conducted through the internet (including social media), television and radio.
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 (Employment and Workplace Relations Measures No. 1) 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 Financial Framework (Supplementary Powers) Amendment (Employment and Workplace Relations Measures No. 1) Regulations 2026 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Foundation Skills Campaign (the campaign). The campaign will be administered by the Department of Employment and Workplace Relations.
Under the National Foundation Skills Strategy 2025-2035, funding of $16.5 million over four years from 2025-26 will be provided to undertake the campaign.
The campaign aims to reduce the shame and stigma associated with having low foundation skills, enabling people to more easily engage with foundation skills training programs and support. The campaign also aims to highlight the benefits of lifelong learning, targeting people with limited post-secondary education, including those with foundation skills gaps and encouraging them to undertake training to develop those skills.
The campaign will involve activities to be delivered via television, radio, and online platforms which may include streaming services, social media and digital advertising on websites.
Human rights implications
This disallowable legislative instrument engages the following rights:
- the right to work – Article 6 of the International Covenant on Economic, Social and Cultural Rights (ICESCR), read with Article 2, Article 1 of the International Labour Organization Convention concerning Employment Policy (ILO Convention 122), Article 1 of the International Labour Organization Convention concerning the Organisation of the Employment Service (ILO Convention 88), and Articles 1 to 4 of the International Labour Organization Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO Convention 142); and
- the right to education – Article 13 of the ICESCR.
Right to work
Article 2 of the ICESCR requires each State Party to take steps to the maximum of its available resources, especially economic and technical, to realise the rights recognised in the ICESCR by all appropriate means, including particularly the adoption of legislative measures.
Article 6 of the ICESCR recognises the right to work and provides that States Parties will take appropriate steps to achieve the realisation of the right to work, including through technical and vocational training.
Article 1 of the ILO Convention 122 provides that ‘each Member shall declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen
employment’.
Article 1 of the ILO Convention 88 provides that Members shall maintain a free public employment service, which in co-operation with other public and private bodies concerned, ensures the best possible organisation of the employment market to achieve and maintain full employment and the productive use of resources.
Further, Articles 1 to 4 of the ILO Convention 142 relate to the adoption and development of comprehensive and coordinated policies and programs of vocational guidance and training, including providing broadest possible information and guidance, which are closely linked with employment for all people.
By highlighting the benefits of lifelong learning, this disallowable legislative instrument will promote the right to work by encouraging people, especially those with limited
post-secondary education, to enrol and engage with the Commonwealth’s skills programs, which could include Fee-Free technical and further education and Australian Apprenticeships. The campaign will target those with low foundation skills, to enrol and engage with the Commonwealth’s foundation skills programs, which could include the Skills for Education and Employment Program and the Reading Writing Hotline. These programs/services are designed to assist people with limited post-secondary education and those with foundation skills gaps to upskill and gain employment, improve their competitiveness in the labour market and improve job stability, find out about programs to assist people with low foundation skills, and address skills shortages.
Right to education
Article 13(1) of the ICESCR provides that States Parties agree that education ‘…shall be directed to the full development of the human personality and the sense of dignity, and shall strengthen the respect for human rights and fundamental freedoms. They further agree that education shall enable all persons to participate effectively in a free society, promote understanding, tolerance and friendship among all nations and all racial, ethnic or religious groups, and further the activities of the United Nations for the maintenance of peace’.
This disallowable legislative instrument promotes the right to education by encouraging people, particularly those with limited post-secondary education and low foundation skills, to engage with programs to improve their skills by highlighting the benefits of lifelong learning.
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