Financial Framework (Supplementary Powers) Amendment (Finance Measures No. 1) Regulations 2026

EXPLANATORY STATEMENT

Issued by the Authority of the Minister for Finance

Financial Framework (Supplementary Powers) Act 1997

Financial Framework (Supplementary Powers) Amendment

(Finance 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 (Finance Measures No. 1) Regulations 2026 (the Regulations) amend Schedules 1AA and 1AB to the Principal Regulations in relation to activities administered by the Department of Finance.

The Regulations repeal table item 411.001 in Part 4 of Schedule 1AA relating to the Grants in Aid. Table item 411.001 is appropriate for repeal as legislative authority for spending activities under the program will be supported by a new table item 785.

The Regulations also insert one new table item 785 in Part 4 of Schedule 1AB to establish legislative authority for government spending on the Grants in Aid Program (the program).

The program, which commenced in the mid-1970s, aims to provide funding to
non-government organisations (NGOs) that undertake work in science, humanities, public policy, animal welfare or the promotion of acts of bravery or heroism across Australia. Program recipients provide information to the Australian Government to raise awareness of social issues, prompt improvements in public sector governance and contribute to public policy debates.

Funding of $1.0 million per year over four years from 2025-26 is currently available to support the following seven NGOs:

Chifley Research Centre Limited – for nominated purposes and general expenses;
The Green Institute Limited – for nominated purposes and general expenses;
The Menzies Research Centre Limited – for nominated purposes and general expenses;
The Page Research Centre Limited – for nominated purposes and general expenses;
Australian Institute of Policy and Science Limited – for the publication of ‘AQ – Journal of Contemporary Analysis’ which provides topical analysis of Australia’s main political, social, economic, education and scientific issues;

The Royal Humane Society of Australasia Incorporated – for the provision and presentation of bravery awards; and

Royal Society for the Prevention of Cruelty to Animals Australia – for supporting activities which directly relate to providing information or advice to the Australian Government.

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 Finance.

Attachment A

Details of the Financial Framework (Supplementary Powers) Amendment

(Finance Measures No. 1) Regulations 2026

Section 1 – Name

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Finance 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 items in Schedule 1 amend Schedules 1AA and 1AB to the Principal Regulations in relation to activities administered by the Department of Finance (the department).

Item 1 – Part 4 of Schedule 1AA (table item 411.001)

Item 1 repeals table item 411.001 in Part 4 of Schedule 1AA.

Table item 411.001 relates to the Grants in Aid. Table item 411.001 is appropriate for repeal as legislative authority for spending activities under the program will be supported by new table item 785 in Part 4 of Schedule 1AB.

This is a minor technical amendment which does not affect existing spending.

Item 2 – Part 4 of Schedule 1AB (in the appropriate position in the table)

Item 2 adds one new table item to Part 4 of Schedule 1AB.

Table item 785 – Grants in Aid Program

New table item 785 establishes legislative authority for government spending on the Grants in Aid Program (the program).

The program commenced in the mid-1970s and is a long-standing, ongoing, non-competitive targeted grant program. The objective of the program is to provide funding to
non-government organisations (NGOs) that undertake work in science, humanities, public policy, animal welfare or the promotion of acts of bravery or heroism across Australia.

Access to program funding for NGOs not affiliated with a registered political party is limited to recipients that have previously participated in the program. These NGOs were determined historically by Australian Government decisions, with their inclusion carried forward through successive governments as part of a standing list of eligible grant recipients. Organisations that have not participated in the program are not eligible to apply. Entry into the program for any newly qualifying NGO nominated by and affiliated with a registered political party, would be subject to a future decision of government.

Access to the program is limited to the following seven NGOs:

Chifley Research Centre Limited (Chifley Research Centre)

Established in 1996, the Chifley Research Centre is the official think tank of the Australian Labor Party with a stated commitment to ‘advancing public policy debate and progressive thinking in Australia’, and a stated mission to ‘champion a Labor culture of ideas’.

The Chifley Research Centre first received Australian Government funding in 1999‑2000. Previously funded activities included undertaking research and publications, Chifley Conversations events and partnership publications, conferences, the Labor History project, strategic advice to the Federal Parliamentary Labor Party and meeting the organisation’s general expenses.

The grant to Chifley Research Centre was valued at approximately $285,000 in 2024-25.

The Green Institute Limited (Green Institute)

Founded in 2008, the Green Institute is the official think tank of the Australian Greens. Its stated dedication is to ‘the Global Greens’ four pillars of ecological sustainability, grassroots democracy, social and economic justice, and peace and nonviolence’, and its stated vision is ‘seeding, feeding and leading transformative Green politics’.

The Green Institute first received Australian Government funding in 2008‑09. Previously funded activities included policy and outreach on green ideas and philosophy, capacity building on green politics and skills (through webinars, forums, courses and conferences), research and strategic advice on current issues related to greens politics and environmental sustainability and meeting the organisation’s general expenses.

The grant to Green Institute was valued at approximately $102,000 in 2024-25.

The Menzies Research Centre Limited (Menzies Research Centre)

Founded in 1994, the Menzies Research Centre is the official think tank of the Liberal Party of Australia. Its stated commitment is to a ‘just and humane society in which every individual has the opportunity to flourish and supporting freedom, human dignity, personal responsibility, and private enterprise and the mainstays of modern Australian Liberalism and to championing Liberal principles and advocating for a free, just and prosperous Australia’.

The Menzies Research Centre first received Australian Government funding in 1996‑97. Previously funded activities included conducting roundtables, lectures and seminars on social, political and public policy issues, producing publications and reports on public policy and the liberal heritage of Sir Robert Menzies, conducting research and related projects, ongoing website development and social media engagement to share information and encourage civic debate and meeting the organisation’s general expenses.

The grant to Menzies Research Centre was valued at approximately $285,000 in 2024-25.

The Page Research Centre Limited (Page Research Centre)

Founded in 2003, the Page Research Centre is the official think tank of the National Party of Australia. Its stated vision is to ‘seek to inform and influence policy that delivers positive outcomes for all Australians’ and is concerned with ‘driving debate and policy which affects rural and regional Australia’.

The Page Research Centre first received Australian Government funding in 2002‑03. Previously funded activities included conducting research, delivering public lectures (including the annual Page Research Centre Lecture), and meeting the organisation’s general expenses.

The grant to Page Research Centre was valued at approximately $138,000 in 2024-25.

Australian Institute of Policy and Science Limited (AIPS)

Founded in 1932, AIPS is an independent not-for-profit organisation. Its stated mission is to ‘champion scientific excellence, public engagement, and evidence-based policy and through its work to advance a society that thrives on scientific literacy and boundless curiosity’, and its vision is to ‘envision a country where Australians confidently engage with science, and future generations are inspired to explore, discover, and innovate’.

AIPS first received Australian Government funding in 1974‑75. Previously funded activities included the editing, production and distribution of the ‘AQ – Journal of Contemporary Analysis’ (AQ) magazine. Established in 1929, AQ is Australia’s longest-running current affairs magazine and the only magazine with a focus on science policy. AQ contains articles on political, economic, social and scientific issues that are relevant to Australian public affairs.

The grant to AIPS was valued at approximately $45,000 in 2024-25.

The Royal Humane Society of Australasia Incorporated (RHSA)

Founded in 1874, the RHSA was initially created as the Victorian Humane Society with a focus on Victoria and was expanded to encompass the entire nation and renamed in 1882. Its stated mission is to ‘recognise and support acts of bravery and selflessness across Australia, and its vision is to ‘honour those who risked their lives to save others, ensuring that their extraordinary deeds are acknowledged, remembered, and celebrated for generations to come’.

The RHSA is the longest-standing grant recipient and first received Australian Government funding in 1973-74 to support the provision of bravery awards. Previously funded activities relate to the promotion of acts of bravery or heroism across Australia, including the provision of bravery awards and presentation ceremonies.

The grant to the RHSA was valued at approximately $33,000 in 2024-25.

Royal Society for the Prevention of Cruelty to Animals (RSPCA) Australia (RSPCA Australia)

Established in 1981 as the national body of the eight independent state and territory RSPCA Societies, its stated role is to ‘work to influence animal welfare policy, practice and legislation across Australia through various avenues, including working with government and industries, communicating and contributing to animal welfare science, running RSPCA Certified, and working with supporters through targeted advocacy and education campaigns’.

RSPCA Australia first received Australian Government funding in 1986-87. Previously funded activities included producing policy and position papers, conducting the Animal Welfare seminar, educating the community through targeted education campaigns and the website, and providing specialist advice.

The grant to RSPCA Australia was valued at approximately $45,000 in 2024-25.

Payments made to NGOs affiliated with registered political parties will reflect a three-tiered payment structure with a set amount for each tier and which is contingent upon the number of elected Members and Senators in the Australian Parliament from the organisation’s affiliated political party. The three tiers include the following requirements:

Tier one – political party must have representation in Parliament of 40 or more elected Members and Senators;
Tier two – political party must have representation in Parliament of between 16 and 39 elected Members and Senators (inclusive); and
Tier three – political party must have representation in Parliament of between 5 and 15 elected Members and Senators (inclusive).

On 1 July of each financial year, the department will identify which category of funding is applicable to each NGO affiliated with a registered political party. If the Australian Government is in the caretaker period on 1 July, the department will use the results of the preceding election, as announced on election night, to determine the relevant categories. The program funds are to be expended by the eligible organisations on activities which support the purpose of the grant. In addition, for NGOs undertaking work in animal welfare, expenditure is limited to activities that directly relate to informing or advising the Australian Government.

The overall intended outcome of the program is to provide information to the Australian Government to raise awareness of social issues, prompt improvements in public sector governance and contribute to public policy debates.

Funding amount and arrangements, merits review and consultation

Existing funding of $1.0 million per year over four years from 2025-26 for the item will come from Program 2.1: Public Sector Governance, which is part of Outcome 2. Details are set out in the Portfolio Additional Estimates Statements 2025-26, Finance Portfolio on page 27.

Funding will be provided through a closed, non-competitive grant process. The organisations’ suitability for grant funding will be assessed by the department on the following basis:

whether the grant funds are to be expended on activities which support the program objectives;
capacity to deliver agreed program outcomes in a cost-effective manner; and
demonstrated history of performance of its current activities and reporting arrangements under the program.

The grants will be administered 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 the Commonwealth Grants Rules and Principles 2024 (CGRPs). Consistent with the CGRPs, the department will develop grant opportunity guidelines and will have regard to the nine key principles in administering the grant.

Grant opportunity guidelines and information about the grant will be made available on the GrantConnect website (www.grants.gov.au). The grant will be administered by the department. A delegate of the Secretary of the department under the Financial Framework (Supplementary Powers) Act 1997, will be the decision-maker for the selection of grant recipients and will be responsible for approving Commonwealth funding provided to eligible organisations. The delegate will be at the Senior Executive Service Band 1 level and have appropriate experience and knowledge to exercise this function.

The department will conduct a desktop evaluation of the program upon conclusion of the three-year grant lifecycle to measure how well the outcomes and objectives have been achieved.

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. The funding will be delivered through a closed non-competitive grant process to organisations that the department has assessed as suitable and the allocation of funding already made would be affected by overturning the original decision. 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 grants, by their nature, are 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.

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 merit 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.

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

Following finalisation of the 2024‑25 grant funding round, the department has been engaging with the seven NGOs eligible for grant funding under the program about the timing of the next three-year grant round. In late‑February 2026, the department advised the seven NGOs that it was working to align the program with updated requirements contained in the CGRPs. The most recent engagement between the department and the seven NGOs was in
late-March 2026.

Consultation on the updated program requirements was also undertaken with the
Attorney-General’s Department, the Department of the Prime Minister and Cabinet and relevant areas within the department. Feedback from these consultations has been incorporated into the program’s design and the development of the new grant opportunity guidelines.

The department will engage with grant recipients several times per year throughout the
three-year grant lifecycle in relation to their grant reporting and acquittal requirements and on the annual payment of their grant funding. Ongoing consultation is a key part of the program’s monitoring and governance mechanisms, and consultation with grant recipients will continue throughout the life of the grant agreements. In addition, the findings from the evaluation of the program will continue to inform the development and implementation of future grant opportunities and in line with requirements under the Commonwealth resource management framework including the CGRPs.

The department will continue to engage with funded organisations throughout the life of the grant agreements to ensure the program’s policy objectives are met. As the program’s objectives remain unchanged, the department does not consider it necessary to consult with the public.

Constitutional considerations

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the executive power and express incidental power (section 61 and section 51(xxxix)) of the Constitution, including the nationhood aspect.

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 the nation and cannot otherwise be carried out for the benefit of the nation otherwise than by the Commonwealth.

The program provides funding to NGOs to undertake nationally significant work in science, humanities or public policy, and the promotion of acts of bravery or heroism across Australia. The program also supports activities that inform or advise the Australian Government.

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 (Finance 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.

This disallowable legislative instrument makes the following amendments to the Principal Regulations:

repeals table item 411.001 ‘Grants in Aid’ in Part 4 of Schedule 1AA; and
adds table item 785 ‘Grants in Aid Program’ in Part 4 of Schedule 1AB.

Repealed table item 411.001 – Grants in Aid

The repealed table item 411.001 relates to the Grants in Aid. Table item 411.001 is appropriate for repeal as legislative authority for spending activities under the program will be supported by new table item 785.

The amendment is technical and does not affect existing spending.

Human rights implications

The repealed table item 411.001 does not engage any of the applicable human rights or freedoms.

The repealed table item 411.001 is compatible with human rights as it does not raise any human rights issues.

Table item 785 – Grants in Aid Program

Table item 785 establishes legislative authority for government spending on the Grants in Aid Program (program).

Funding of $1.0 million per year over four years from 2025-26 is currently available to support the following seven NGOs:

Chifley Research Centre Limited – for nominated purposes and general expenses;

The Green Institute Limited – for nominated purposes and general expenses;

The Menzies Research Centre Limited – for nominated purposes and general expenses;
The Page Research Centre Limited – for nominated purposes and general expenses;

Australian Institute of Policy and Science Limited - for the publication of ‘AQ – Journal of Contemporary Analysis’ which provides topical analysis of Australia’s main political, social, economic, education and scientific issues;

The Royal Humane Society of Australasia Incorporated – for the provision and presentation of bravery awards; and

Royal Society for the Prevention of Cruelty to Animals Australia – for supporting activities which directly relate to providing information or advice to the Australian Government.

Human rights implications

Table item 785 does not engage any of the applicable human rights or freedoms.

Table item 785 is compatible with human rights as it does not raise any human rights issues.

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

Administered by Department of Finance

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