Financial Framework (Supplementary Powers) Amendment (Foreign Affairs and Trade Measures No. 2) Regulations 2025

EXPLANATORY STATEMENT

Issued by the Authority of the Minister for Finance

Financial Framework (Supplementary Powers) Act 1997

Financial Framework (Supplementary Powers) Amendment

(Foreign Affairs and Trade Measures No. 2) Regulations 2025

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 (Foreign Affairs and Trade Measures No. 2) Regulations 2025 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on activities to be administered by the Department of Foreign Affairs and Trade.

Funding will be provided for the:

Australian Cultural Diplomacy Grants Program to support cultural and artistic activities that strengthen international partnerships and enhance perceptions of Australia overseas, including activities that tell Australian stories, amplify First Nations voices, deepen bilateral partnerships, and build cultural understanding and connections overseas ($0.4 million per year over four years from 2024-25);
Pacific Onshore Health Access program to cover costs of a limited number of persons from the Pacific accessing private medical care in Australia ($0.4 million for a pilot in 2025-26);
Support for Solomon Islands to provide financial assistance to Solomon Islands Government to support the expansion of the Royal Solomon Islands Police ($65.6 million over three years from 2025-26); and
Australia-India Trade and Investment Accelerator Fund to support whole of government efforts in overcoming policy and regulatory impediments to greater trade and investment with India ($16.0 million over four years from 2025-26).

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 Foreign Affairs and Trade.

Attachment A

Details of the Financial Framework (Supplementary Powers) Amendment
(Foreign Affairs and Trade Measures No. 2) Regulations 2025

Section 1 – Name

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Foreign Affairs and Trade Measures No. 2) Regulations 2025.

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 activities to be administered by the Department of Foreign Affairs and Trade (the department).

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

This item adds four new table items to Part 4 of Schedule 1AB.

Table item 722 – Australian Cultural Diplomacy Grants Program

New table item 722 establishes legislative authority for government spending on the Australian Cultural Diplomacy Grants Program (the ACDGP).

The ACDGP is an ongoing program established in 2015-16 and is valued by the Australian cultural sector due to its support of international projects that tell Australian stories, amplify First Nations voices, deepen bilateral partnerships and build cultural understanding and connections overseas. Past grantees include Australian arts and cultural organisations and individuals who deliver projects that feature genuine collaboration with international partners, effectively mobilising the cultural sector as a key element of national power.

The ACDGP is a key part of the department’s public diplomacy agenda which advances Australia’s interests through strengthening Australia influence and reputation. More information about the department’s public diplomacy agenda is available at www.dfat.gov.au/people-to-people/public-diplomacy.

Funding of $0.4 million will be provided to support the ACDGP to deliver a new round of the open, competitive grant opportunity in 2025-26. The 2025-26 ACDGP round seeks to advance Australia’s interests through activities that foster mutual understanding, build trust, and increase Australia’s ability to influence. Its policy objectives include to:

support collaborative and innovative projects that tell Australian stories and amplify First Nations voices overseas;
influence perceptions of Australia abroad by building cultural understanding and connections;
build international people-to-people and/or institutional partnerships;
support a peaceful, stable and prosperous Indo-Pacific; and
align with Australia’s Cultural Policy – Revive: a place for every story, a story for every place, as set out in the pillars: First Nations First; a Place for Every Story; Centrality of the Artist; and Engaging the Audience (www.arts.gov.au/
sites/default/files/documents/national-culturalpolicy-8february2023.pdf).

The intended outcomes of the ACDGP are to increase collaboration and partnerships between Australia and international organisations/individuals as well as increase Australian capacity to effectively engage with overseas partners, particularly within the arts and cultural sectors. The intended increase in collaboration and engagement ultimately aims to enhance Australia’s reputation and influence on an international scale.

Funding amount and arrangements, merits review and consultation

Funding of $0.4 million per year over four years from 2025-26 for the ACDGP will come from Program 1.6.1 – Component 6: Public Information Services and Public Diplomacy, which is part of Outcome 1. Details are set out in the Portfolio Budget Statements 2025-26, Budget Related Paper No. 1.8, Foreign Affairs and Trade Portfolio at page 34.

The department will deliver the ACDGP to multiple successful grantees as a one-off payment via an open competitive grant process, with the minimum and maximum grant amounts of $10,000 and $60,000 respectively.

Applications will be assessed against the nominated selection criteria (eligibility and assessment criteria) and against the comparative merits of other applications as per the Commonwealth Grants Rules and Principles 2024 (CGRPs). The grant process will be administered in accordance with the Commonwealth resource management framework, including the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) and the CGRPs.

Information about the grant opportunity is available on the GrantConnect website (www.grants.gov.au), and the grants are administered by the department. The decision maker for the award of any grants under the ACDGP will be a relevant Senior Executive Service (SES) officer in the department’s Strategic Communications Division, pursuant to the Financial Framework (Supplementary Powers) Act 1997 (FFSP Act). SES in this division are the subject matter experts on the department's public diplomacy and cultural diplomacy programs and objectives. SES officers have the appropriate financial delegation from the Secretary of the department to approve commitments of relevant money or expenditure under the PGPA Act and the FFSP Act.

The awarding of grants under the ACDGP is considered not suitable for independent merits review, as they are decisions relating to the provision of a finite resource, from which all potential claims for a share of the resource cannot be met. Any funding that has already been awarded to grant recipients would be affected if the original decision was overturned. Further, funding decisions relate to the provision of a one-off grant to a certain service provider, over other service providers. The Administrative Review Council (ARC) 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? (ARC guide)).

The successful applicants are determined to be appropriate organisations to receive a one-off grant after an open competitive grant process with applications being assessed in accordance with the CGRPs. This process involves the assessment of each application on its merits and against the comparative merits of other eligible applications. Any complaints about the ACDGP grant process are requested to be provided in writing and sent to cultural.diplomacy@dfat.gov.au.

If the department finds a complaint has merit and the complainant has been inconvenienced or disadvantaged through their interactions with the department, an apology or other form of suitable remedy such as providing additional information, changing or reconsidering a decision or expediting action may be appropriate. If the complainant is still not satisfied with the response, they may seek an internal review of how the complaint was managed. If the complainant is still dissatisfied, the option to seek independent review is available from the Commonwealth Ombudsman or the Federal Court. In this case, all information about the complaint and proposed resolution must be provided by the department, when requested.

The review and audit process undertaken by the Australian National Audit Office (ANAO) also 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 any money.

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.

The department consults with Australian arts and culture sector organisations, key stakeholders, peak bodies, and relevant government agencies, such as Creative Australia, the Office for the Arts and National Collecting Institutions, on its public diplomacy activities, including the ACDGP, on a regular and ongoing basis.

The department regularly engages with the arts and culture sector by hosting industry roundtables, attending meetings with peak bodies, written correspondence and one-on-one engagements, which enables the department to hear from the sector directly on issues that affect their international engagement, identify opportunities for collaboration, and tailor the department’s public diplomacy activities accordingly. These engagements provide the department with valuable feedback from the sector that informs decision-making and program planning cycles for public diplomacy activities, ensuring alignment across the sector and government where paths diverge.

The department also hosted an information session for the Australian cultural sector in February 2025 on engaging in the Pacific.

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 aliens power (section 51(xix));
the race power (section 51(xxvi));
the external affairs power (section 51(xxix)); and
the Pacific Islands power (section 51(xxx)).

Aliens power

Section 51(xix) of the Constitution empowers the Parliament to make laws with respect to ‘naturalization and aliens’.

Examples of activities funded by the ACDGP include supporting foreign nationals from creative industries to come to Australia.

Race power

Section 51(xxvi) of the Constitution empowers the Parliament to make laws with respect to ‘the people of any race for whom it is deemed necessary to make special laws’.

The current round of the ACDGP will give favourable consideration to activities that amplify First Nations voices.

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 with respect to matters or things outside the geographical limits of Australia.

The majority of the activities funded under the ACDGP will occur overseas.

Pacific Islands power

Section 51(xxx) of the Constitution empowers the Parliament to make laws with respect to the 'relations of the Commonwealth with the islands of the Pacific'.

The current round of the ACDGP includes a focus on activities that promote a stable
Indo-Pacific.

Table item 723 – Pacific Onshore Health Access

New table item 723 establishes legislative authority for government spending on the Pacific Onshore Health Access program (the program).

The program forms part of the Government’s broader Pacific policy to enhance and expand Australia’s engagement with Pacific Island countries (PICs). Australia shares a vision for a peaceful, stable, prosperous, and unified Pacific. Australia has listened, learned, and is working together on Pacific-led, Australian-backed solutions. Australia has been focused on renewing Pacific partnerships to be the region’s partner of choice.

Funding of up to $0.4 million will be provided to pilot a program from Quarter 3 of 2025 to facilitate access to private health services for a limited number of Pacific persons to support strengthened partnerships in Australia’s national interest.

This assistance would be provided in a small number of cases, on the advice of Australian Heads of Mission in the Pacific, with approval to be provided by the Head of the Office of the Pacific (SES Band 3), or their SES delegate.

Participants in the program will not access Australia’s public health system. They would access private health care, to avoid impacting or displacing Australians in the public health system. The program would use existing visa pathways, namely the Medical Treatment visa (subclass 602).

Funding amount and arrangements, merits review and consultation

Funding of up to $0.4 million in 2025-26 for the program comes from reallocated funding from the measure ‘Enhancing Pacific Engagement’ as published in the Mid-year Economic and Fiscal Outlook 2023-24, Appendix A: Policy decisions taken since the 2023-24 Budget at page 249.

The department will deliver the pilot program through a procurement process in accordance with applicable legislative requirements under the PGPA Act, the PGPA Rule, the Commonwealth Procurement Rules (CPRs) and the department’s Accountable Authority Instructions. The selection of which procurement method to use will depend on market information meeting the scope of services required.

Final spending decisions will be made by the Secretary of the department or an appropriate delegate. The delegate will be the head of the Office of the Pacific (SES Band 3), with financial delegation set to the limit of their group budget for a period of 10-year commitment. This is outlined in the department’s Public Governance, Performance and Accountability (DFAT Secretary to DFAT Officials) Delegation 2022 (No. 1) delegation instrument and applied in line with the PGPA Act and the FFSP Act. This is designed to assist employees to make decisions at the appropriate level and with the appropriate job specific expertise.

The persons who from time to time, occupy, or perform the duties of a position and/or level specified are delegated the function or power under the relevant Acts subject to the limitations and directions specified in the relevant part.

Procurement decisions will be made in accordance with the Commonwealth resource management framework, including the PGPA Act and the CPRs. The department will provide an opportunity for suppliers and tenderers to make complaints if they wish, and to receive feedback. These complaints and inquiries can be made at any time during the procurement process and will be handled in accordance with probity requirements. The procurement process and resultant contracts will be made available on AusTender (www.tenders.gov.au) once the contracts are signed. Procurement decisions will be based on value for money, including capability and capacity to deliver, and price and risk considerations.

Procurement decisions made in connection with the program are not considered suitable for independent merits review, because these decisions relate to an allocation of finite resources and an allocation that has already been made to another party would be affected by overturning the original decision.

In addition, the consideration of issues of the highest consequence to the Government, being issues affecting Australia’s relations with other countries, means that procurement decisions made in connection with the program are not considered suitable for independent merits review. The ARC has recognised that it is justifiable to exclude merits review in relation to decisions of this nature (see paragraphs 4.14 to 4.23 of the ARC guide).

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 to platform users.

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.

The department has a Complaints Handling Policy available at www.dfat.gov.au/
about-us/publications/complaint-handling-procedures-procurement, that sets out the process for responding to any procurement complaints received. This includes investigations to resolve the complaint by reaching a fair and independent view on the issues raised by the complainant. If the department finds a complaint has merit and the complainant has been inconvenienced or disadvantaged through their interactions with the department, an apology or other form of suitable remedy such as providing additional information, changing or reconsidering a decision or expediting action may be appropriate.

If the complainant is still not satisfied with the response, they may seek an internal review of how the complaint was managed. If the complainant is still dissatisfied, the option to seek independent review is available from the Commonwealth Ombudsman or the Federal Court. In this case, all information about the complaint and proposed resolution must be provided by the department, when requested.

The review and audit process undertaken by the ANAO also 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 the making, varying or administering of arrangements to spend relevant money.

The department has consulted the Department of Health, Disability and Ageing and has initiated consultations with the Queensland Department of Health, as Queensland is likely to receive most patients under this mechanism due to its proximity to the Pacific. The department will undertake further consultation when the program is further progressed following the engagement of a service provider. The pilot program will provide an opportunity to consult patients as part of the delivery of the program, and their feedback on the program will provide a basis for adjusting and improving its delivery.

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 aliens power (section 51(xix));
the external affairs power (section 51(xxix)); and
the Pacific Islands power (section 51(xxx)).

Aliens power

Section 51(xix) of the Constitution empowers the Parliament to make laws with respect to ‘naturalization and aliens’.

The program will provide non-citizens with access to health care in Australia.

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 with respect to matters concerning Australia’s relations with other nations.

Spending for Pacific onshore health access will provide the department an additional diplomatic tool to strengthen relations with PICs in support of Australia’s strategic interests.

Pacific Islands power

Section 51(xxx) of the Constitution empowers the Parliament to make laws with respect to the 'relations of the Commonwealth with the islands of the Pacific'.

The program will provide a limited number of people from PICs with access to onshore health facilities, with the objective of strengthening Australia's relations with PICs.

Table item 724 – Support for Solomon Islands

New table item 724 establishes legislative authority for government spending on the Support for Solomon Islands (the program), which aims to provide financial assistance to the Solomon Islands Government (SIG) to support the expansion of the Royal Solomon Islands Police Force (RSIPF expansion).

On 20 December 2024, leaders from Australia and Solomon Islands announced a package of support to grow the size and capability of the RSIPF (www.pm.gov.au/media/royal-solomon-islands-police-force-expansion). The program forms part of this package.

RSIPF expansion builds on the longstanding security partnership between Australia and the Solomon Islands, as its security partner of choice, spanning over four decades. The relationship of cooperation dates back to 1978 when Solomon Islands gained their independence. Since then, Australia has established numerous initiatives to further support RSIPF capacity, such as the Regional Assistance Mission to Solomon Islands and the Solomons International Assistance Force.

Supporting RSIPF expansion complements ongoing cooperation through the Royal Solomon Islands Police Force and Australian Federal Police Policing Partnership Program and the Defence Cooperation Program. It will also support the Solomon Islands - Australia Bilateral Security Treaty.

The program supports the overall outcomes and objectives of the broader RSIPF expansion project, recognising Solomon Islands ambitions to grow the size and capability of the RSIPF, thereby reducing reliance on external partners over time. The program will be led and informed by the priorities of Solomon Islands, and the support provided by Australia will be directed by those priorities.

The Government will provide up to $65.6 million over three years to the SIG to support the RSIPF’s expansion. This could include:

personnel footprint, which can be sustainably supported;

law enforcement capacity, and capability to train its personnel;
training infrastructure, ensuring it is fit for purpose due to the increased personnel footprint;
equipment required to train and equip personnel; and
infrastructure, including accommodation for the RSIPF.

A more capable RSIPF will also support the Australian Government’s objective to advance a peaceful, stable and prosperous Indo-Pacific.

Funding amount and arrangements, merits review and consultation

Funding of $65.6 million for the program was included in the 2025-26 Budget under the measure ‘Support for Royal Solomon Islands Police Force Expansion’ for a period of three years commencing in 2025-26. Details are set out in Budget 2025-26, Budget Measures, Budget Paper No. 2 at page 44.

Funding for this item will come from Program 1.1.1 - Component 1: Foreign Affairs and Trade Operations, which is part of Outcome 1. Details are set out in the Portfolio Budget Statements 2025-26, Budget Related Paper No. 1.8, Foreign Affairs and Trade Portfolio at page 33.

Funding will be delivered through a closed, non-competitive, non-Official Development Assistance grant to SIG, with SIG serving as the sole proposed applicant. Direct financial support is an established delivery mechanism in the Solomon Islands development partnership that enables support to be directed by SIG priorities.

The department’s Office of the Pacific will administer the grant in accordance with the Commonwealth resource management framework, including the PGPA Act, the PGPA Rule, the CGRPs and the Partnership Program Grant Guidelines.

Consistent with the CGRPs, the department will develop grant opportunity guidelines and will have regard to the nine key principles in administering the grant. Guidelines will be published on the GrantConnect website (www.grants.gov.au).

SIG, with the support of the Australian High Commission, would be invited to apply for the grant. A panel chaired by the SES Band 2 of the Melanesia Division within the department, would evaluate the application and decide which grants to approve, taking into account the recommendations of the assessment panel and the availability of grant funds for the purposes of the program.

A delegate of the Secretary will be responsible for approving Commonwealth funding provided under the program in accordance with the FFSP Act. The delegate will be the SES Band 2 of the department’s Melanesia Division, with relevant knowledge and experience in approving funding. Australia’s High Commission in Solomon Islands will be responsible for the ongoing management of the program.

RSIPF expansion is a decision by government to allocate funding to a program as a whole. It is a closed non-competitive grant process, where a decision to allocate funding is of a policy nature and not affecting any particular person’s interests. The ARC has recognised that it is justifiable to exclude merits review in relation to decisions of this nature (see paragraphs 4.18 to 4.19 of the ARC guide).

The program delegate’s decision is final in all matters, including, the approval of the grant, the grant amount to be awarded and the terms and conditions of the grant. If at any time the program delegate determines further information is required, the program delegate will direct Australia’s High Commissioner to re-engage SIG officials to further develop the proposal for resubmission. This will then be resubmitted to the assessment panel for consideration prior to the program delegate. Recognising the SIG as the sole eligible entity, multiple resubmissions are permitted.

The department has and will continue to consult extensively with SIG around RSIPF expansion. The department has consulted regularly with the Attorney-General’s Department, the Department of Defence and the Australian Defence Force as co-lead agencies on this program, which were supportive of the proposed program and consultations did not result in any adjustments. PICs were consulted following public release of the Prime Ministerial Statement.

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 external affairs power (section 51 (xxix)); and
the Pacific Islands power (section 51(xxx)).

External affairs power

The program will build on the longstanding partnership between Australia and Solomon Islands by supporting the RSIPF through activities that will be informed by the priorities of Solomon Islands and that would be primarily conducted in Solomon Islands.

Pacific Islands power

Section 51(xxx) of the Constitution empowers the Parliament to make laws with respect to the 'relations of the Commonwealth with the islands of the Pacific'.

The program will provide assistance to, and enhance Australia’s bilateral relationship with Solomon Islands by enhancing law enforcement capacity within Solomon Islands, which is a Pacific Islands nation, supporting the Australian Government’s objective to advance a peaceful, stable and prosperous Indo-Pacific.

Table item 725 – Australia-India Trade and Investment Accelerator Fund

New table item 725 establishes legislative authority for government spending on the Australia-India Trade and Investment Accelerator Fund (AI-TIAF).

The AI-TIAF supports the implementation of A New Roadmap for Australia’s Economic Engagement with India (the Roadmap), launched by the Prime Minister on 26 February 2025. Over 100 people attended the event at Deakin University in Melbourne, including community and diaspora leaders and business representatives. The Prime Minister’s speech is available at www.pm.gov.au/media/launch-roadmap-australias-economic-engagement-india.

The Roadmap (www.dfat.gov.au/sites/default/files/new-roadmap-australias-economic-engagement-india.pdf) aims to focus and accelerate the Australian Government’s investment in areas demonstrating the most significant potential, and set the course for the next phase of Australia’s economic relationship with India. The Roadmap focuses on four key sectors of significant untapped potential: clean energy, education and skills, agribusiness and tourism. It also includes a dedicated chapter on each Australian state and territory to help reflect and align whole-of-nation interests.

The Roadmap demonstrates the Government’s commitment to:

deepen Australia’s economic ties with India;
highlight Australia’s significant achievements to date; and
provide renewed focus and incentive for the next stage of government and industry economic engagement with India, as Australia’s fifth largest trading partner.

The AI-TIAF is a cross-Government initiative, which aims to support whole of government efforts in overcoming policy and regulatory impediments to greater trade and investment with India. Under the AI-TIAF, the Government will provide funding of $16.0 million to support projects and initiatives that will help unlock new commercial opportunities in India.

It will position Australia to benefit from India’s economic rise, increase trade and commercial opportunities within the priority sectors identified by the Roadmap, build Australia’s supply chain resilience and facilitate Australia trade diversification goals. It will also deliver on Australia Economic Cooperation and Trade Agreement commitments and complement negotiations towards the next free trade agreement, Australia-India Comprehensive Economic Cooperation Agreement (CECA).

As a newly funded initiative, the department is working with Australian Government Consulting, and in consultation with relevant Commonwealth entities, on the design and operational principles of the AI-TIAF. Whole of government consultation during the Roadmap process indicated agencies and potential initiatives that would benefit from
AI-TIAF funding. As a result, the department anticipates eligible entities will use the funds provided to conduct activities that progress the outcomes of the Roadmap.

These activities would be thematically based on the Roadmap’s strategic priorities and include, but are not limited to:

building and expanding connections between business, government and research institutions;
facilitating the marketing and promotion of Australian goods, services and investment opportunities;
improving access to information on regulatory requirements and market/consumer data;
streamlining regulatory processes and supporting greater harmonisation of standards;
supporting the negotiations of the terms of the next free trade agreement,
Australia-India CECA; and
research to understand the opportunities and shape a policy response.

Annual funding rounds will be available for projects of approximately $300,000-$500,000 with the expected duration of the project being one to two years. Various eligibility requirements apply to received funding via the AI-TIAF program, including:

meeting the pre-determined selection criteria aligned with the Roadmap:
- strategic alignment – project to align with the Roadmap, further whole of government priorities, and contribute to the Comprehensive Strategic Partnership;
- value added – whether the project is different from the business-as-usual work and if there is any collaboration with other entities involved;
- outcomes focus – how is success demonstrated within project timeline, and whether the future work of the project can be sustainably financed; and
- delivery feasibility – resources and capability to deliver; demonstrated buy-in with key partners/stakeholders.
the AI-TIAF will be demand driven and the department will engage with eligible applicants to maximise alignment to strategic priorities;
reporting is to be provided, including on amounts spent, project progress according to the agreed timeline, and on an ad hoc basis when necessary;
appropriate mechanisms such as Records of Understanding will be put in place; and
successful proposals will be required to send through a final work plan eight weeks after they have been notified.

Funding amount and arrangements, merits review and consultation

Funding of $16.0 million for the AI-TIAF was included in the 2025-26 Budget under the measure ‘Boosting Australia’s Economic Ties with India’ for a period of four years commencing in 2025-26. Details are set out in Budget 2025-26, Budget Measures, Budget Paper No. 2 at page 43.

Funding for this item will come from Program 1.1: Foreign Affairs and Trade Operations, which is part of Outcome 1. Details are set out in the Portfolio Budget Statements 2025-26, Budget Related Paper No. 1.8, Foreign Affairs and Trade Portfolio at page 32.

The department will commence implementation of the AI-TIAF in Quarter 3 of 2025 through a mix of procurements or records of understanding with other agencies. Funding under the AI-TIAF will be administered in accordance with the Commonwealth resource management framework, including the PGPA Act, the PGPA Rule, the CPRs and the department’s Accountable Authority Instructions.

A range of procurement methods may be used such as open and limited tenders or procurements under existing arrangements. The selection of which procurement method to use will depend on the activity. The department will provide an opportunity for suppliers and tenderers to provide feedback and, if they wish, to make complaints. These complaints and inquiries can be made at any time during the procurement process and will be handled in accordance with probity requirements. Information about the tender and the resultant contracts will be made available on AusTender (www.tenders.gov.au) once the contracts are signed. Procurement decisions will be based on value for money.

Final spending decisions will be made by the Secretary of the department or an appropriate delegate at the SES level with relevant skills and qualification to perform the administrative function. Decisions will be made in accordance with the PGPA Act and the FFSP Act.

Procurement decisions made in connection with the AI-TIAF 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. A finite amount of funding is available under the appropriation in each financial year and not all applications seeking funding under the AI-TIAF can be met. The ARC 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 ARC guide).

The department has a Complaints Handling Policy (available at www.dfat.gov.au/about-us/
publications/complaints-handling-procedures-procurement) that sets out the process for responding to any procurement complaints received. This includes investigations to resolve the complaint by reaching a fair and independent view on the issues raised by the complainant. If the department finds a complaint has merit and the complainant has been inconvenienced or disadvantaged through their interactions with the department, an apology or other form of suitable remedy such as providing additional information, changing or reconsidering a decision or expediting action may be appropriate. If the complainant is still not satisfied with the response, they may seek an internal review of how the complaint was managed. If the complainant is still dissatisfied, the option to seek independent review is available from the Commonwealth Ombudsman or the Federal Court. In this case, all information about the complaint and proposed resolution must be provided by the department, when requested.

Consultations were integral to the creation of the Roadmap. The department met with over 400 stakeholders, both across Australian states and territories and in India, from a diverse range of industries including business, state and territory governments, and cultural organisations. It also received 72 public submissions. Engagement with subject matter experts from over 10 economic sectors led to the identification of the four priority sectors previously outlined, which will serve as the strategic framework for the AI-TIAF. Importantly, the department engaged the Indian diaspora, who play a special role in driving greater economic engagement with India.

On 20 May 2025, the department convened an SES Band 2 Interdepartmental Committee (IDC). This meeting was chaired by the department’s SES Band 2 of the South and Central Asia Division. Feedback from this IDC consultation was incorporated into the design of the program. Engagement will be ongoing with recipients of the AI-TIAF, who will be required to report on and evaluate their progress and experience of the AI-TIAF.

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 trade and commerce power (section 51 (i));
the immigration and emigration power (section 51(xxvii));
the external affairs power (section 51(xxix));
the Commonwealth executive power (section 61);
the power to grant financial assistance to States (section 96); and
the territories power (section 122);

Trade and commerce power

Section 51(i) of the Constitution empowers the Parliament to make laws with respect to ‘trade and commerce with other countries, and among the States’.

The AI-TIAF will foster and encourage international trade and commerce by funding projects and initiatives aimed at overcoming domestic policy and regulatory impediments to greater trade and investment with India. Reducing these barriers will increase trade and commercial opportunities for Australian businesses in India and facilitate Australian trade diversification.

Immigration and emigration power

Section 51(xxvii) empowers the Parliament to make laws with respect to ‘immigration and emigration’.

The AI-TIAF provides funding for activities that aim to build and expand pathways for Australian businesses to import knowledge and skills from India; this would involve immigration and emigration to India from Australia and vice versa.

External affairs power

Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to 'external affairs'. The geographically external aspect of the external affairs power supports legislation with respect to matters of things outside the geographical limits of Australia.

The AI-TIAF may provide funding for activities outside of Australia and support Australian businesses to access the skills and knowledge of Indian people in India.

Executive power and express incidental power

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. The executive power in section 61 of the Constitution extends to a range of matters, including activities that form part of the ‘ordinary and well-recognised functions’ of Government, and the establishment and conduct of relationships between Australia and other nations.

The AI-TIAF may support activities that involve the collection and distribution of information on trading and investment opportunities, the Indian market and consumers and minimum requirements for trade or investment.

The AI-TIAF also supports projects and initiatives that will help unlock new commercial opportunities in India and increase trade and commercial opportunities in priority sectors, which would involve collecting and distributing information on trading and investment opportunities, the Indian market and consumers, and minimum requirements to trade or investment, and facilitating relationships and negotiations between the Australian and Indian government.

Power to grant financial assistance to States

Section 96 of the Constitution empowers the Parliament to ‘grant financial assistance to any State on such terms and conditions as the Parliament thinks fit’.

AI-TIAF funding may be provided to states and territories to build and expand connections between business, government and research institutions between Australian and Indian entities in states in Australia.

Territories power

Section 122 of the Constitution empowers the Parliament to ‘make laws for the government of any territory’.

The AI-TIAF facilitates the marketing and promotion of Australian goods, services and investment opportunities in the Indian market from Australian territories.

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 (Foreign Affairs and Trade Measures No. 2) Regulations 2025

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 (Foreign Affairs and Trade Measure No. 2) Regulations 2025 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on activities to be administered by the Department of Foreign Affairs and Trade.

This disallowable legislative instrument makes the following amendments to Part 4 of Schedule 1AB:

adds table item 722 ‘Australian Cultural Diplomacy Grants Program’;
adds table item 723 ‘Pacific Onshore Health Access’;
adds table item 724 ‘Support for Solomon Islands’; and
adds table item 725 ‘Australia-India Trade and Investment Accelerator Fund’.

Table item 722 – Australian Cultural Diplomacy Grants Program

Table item 722 establishes legislative authority for government spending on the Australian Cultural Diplomacy Grants Program (the ACDGP).

Funding of $0.4 million per year over four years from 2024-25 is provided to support the ACDGP to deliver its policy objectives, including to:

support collaborative and innovative projects that tell Australian stories and amplify First Nations voices overseas;
influence perceptions of Australia abroad by building cultural understanding and connections;
build international people-to-people and/or institutional partnerships;
support a peaceful, stable and prosperous Indo-Pacific; and
align with Australia’s Cultural Policy – Revive: A place for every story, a story for every place, as set out in the pillars: First Nations First, a Place for Every Story; Centrality of the Artist, and Engaging the Audience.

Human rights implications

Table item 722 engages the following rights:

the right to self-determination – Article 1 of the International Covenant on Civil and Political Rights (ICCPR), read with Article 2, Article 1 of the Covenant on Economic, Social and Cultural Rights (ICESCR), read with Article 2, and Articles 2 and 3 of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP);
the rights to equality and non-discrimination – Article 26 of the ICCPR, Article 2 of the ICESCR, Article 5 of the Convention on the Elimination of All Forms of Racial Discrimination (CERD), read with Article 2, and Article 2 of the UNDRIP;
the right to freedom of opinion and expression – Article 19 of the ICCPR and Article 5 of the CERD; and
the right to enjoy and benefit from culture – Article 27 of the ICCPR, Article 15 of the ICESCR, Article 3 of the UNDRIP, and Articles 5 and 7 of the CERD.

Article 2 of the ICCPR, the ICESCR and the CERD requires that each State Party undertake to take steps to the maximum of its available resources to realise the rights recognised, particularly through legislative measures.

Right to self-determination

The right to self-determination is contained in Article 1 of the ICCPR and Article 1 of the ICESCR.

Article 1 of the ICCPR and ICESCR states the entitlement of peoples to have control over their destiny and to be treated respectfully. This includes being free to pursue their economic, social and cultural development.

Article 2 of the UNDRIP states that Indigenous peoples and individuals are free and equal to all other peoples and individuals and have the right to be free from any kind of discrimination, in the exercise of their rights, in particular that based on their indigenous origin or identity.

Article 3 of the UNDRIP states that Indigenous peoples have the right of self-determination. By virtue of that right they freely determine their political status and freely pursue their economic, social and cultural development.

While there is no universally accepted agreement as to the content of the right to
self-determination, it is agreed that at a minimum, it entails the entitlement of peoples to have control over their destiny and to be treated respectfully. This includes peoples being free to pursue their economic, social and cultural development.

Table item 722 positively affects people’s right to self-determination and their freedom to pursue economic, social and cultural development, by providing financial support for collaborative projects which build connections and cultural understanding of Australia overseas.

Rights of equality and non-discrimination

Article 26 of the ICCPR recognises the right to equality and non-discrimination on, among other grounds: race, sex, colour, language, national origin or ‘other status’.

Article 2(2) of the ICESCR states that rights will be exercised without discrimination of any kind on any ground including race, colour, sex and other status.

Article 5 of the CERD provides that States Parties undertake to prohibit and eliminate discrimination in all its forms to guarantee the right of everyone, without distinction as to race, colour, or national or ethnic origin, to the enjoyment of a number of rights, including the right to freedom of expression, freedom of thought and conscience and the right to equal participation in cultural activities.

Article 2 of UNDRIP states that Indigenous peoples and individuals are free and equal to all other peoples and individuals and have the right to be free from any kind of discrimination, in the exercise of their rights, in particular that based on their indigenous origin or identity.

Equality affirms that all human beings are born free and equal. Equality presupposes that all individuals have the same rights and deserve the same level of respect. All people have the right to be treated equally.

Non-discrimination is an integral part of the principle of equality. It ensures that no one is denied their rights because of factors such as race, colour, sex, language, religion, political or other opinion, national or social origin, property or birth. In addition to those grounds, discrimination on certain other grounds may also be prohibited. These grounds include age, nationality, marital status, disability, place of residence within a country and sexual orientation.

Grants funding from the ACDGP provides favourable consideration to applications from First Nations people and organisations. In general, measures that are necessary to assist or recognise the interests of particular disadvantaged groups in the community ('special measures') will not be regarded as prohibited discrimination. The extent to which this limits the rights of equality and non-discrimination are reasonable, necessary and proportionate as they assist the interests of a particular group in the community that is disadvantaged.

Right to freedom of opinion and expression

Article 19 of the ICCPR provides that everyone shall have the right to freedom of expression; this right shall include freedom to seek, receive and impart information and ideas of all kinds, regardless of frontiers, either orally, in writing or in print, in the form of art, or through any other media of his choice.

The right to freedom of expression extends to any medium, including written and oral communications, the media, public protest, broadcasting, artistic works and commercial advertising.

Table item 722 positively promotes the right to freedom of opinion and expression by providing a funding opportunity for artistic pursuits across a variety of artforms that support the program’s objectives.

Right to enjoy and benefit from culture

Article 27 of the ICCPR provides that in those States in which ethnic, religious or linguistic minorities exist, persons belonging to such minorities shall not be denied the right, in community with the other members of their group, to enjoy their own culture.

Article 15 of the ICESCR recognises the right of everyone to take part in cultural life.

Article 5 of the CERD provides that States Parties undertake to prohibit and eliminate discrimination in all its forms to guarantee the right of everyone, without distinction as to race, colour, or national or ethnic origin, to the enjoyment of a number of rights. Including economic, cultural and social rights and the right to equal participation in cultural activities.

Article 7 of the CERD requires States Parties to adopt immediate and effective measures, particularly in the fields of teaching, education, culture and information, with a view to combating prejudices which lead to racial discrimination and to promoting understanding, tolerance and friendship among nations and racial or ethnical groups.

The right to enjoy and benefit from culture includes the rights of individuals belonging to ethnic, religious and linguistic minorities within a country to enjoy their own culture, practise their own religion and use their own language; the right of all persons to take part in cultural life; the right of all persons to enjoy the benefit of scientific progress and its applications; and the right of all persons to benefit from the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he or she is the author.

The ACDGP positively promotes people’s right to enjoy and benefit from culture by providing financial and in-kind support to eligible arts and cultural activities. Funded activities may include dance and theatre performances, art exhibitions and film screenings by Australian artists and creatives, often in collaboration with international partners. Funded activities are often open to the public and generally free of charge, therefore enabling people to enjoy and benefit from both their own and other cultures.

Table item 722 is compatible with human rights because it would promote or positively affect human rights.

Table item 723 – Pacific Onshore Health Access

Table item 723 establishes legislative authority for government spending on the Pacific Onshore Health Access program (the program).

The program forms part of the Government’s broader Pacific policy to enhance and expand Australia’s engagement with Pacific Island countries.

Funding of up to $0.4 million in 2025-26 is provided to pilot the program, which aims to support requests for onshore health access from a limited number of Pacific persons, including in such cases where they are already in Australia. In addition to the inherent health benefits to individuals suffering a serious health condition, offering health access to such individuals enhances Australia diplomatic engagement. Participants in the program will not access Australia’s public health system.

Human rights implications

Table item 723 engages the following rights:

the right to privacy and reputation – Article 17 of the ICCPR, read with Article 2; and

the right to health – Article 12 of the ICESCR, read with Article 2.

Right to privacy and reputation

Article 2(1) of the ICCPR requires that each State Party to the Covenant undertakes to respect and to ensure to all individuals within its territory and subject to its jurisdiction the rights recognised in the ICCPR, without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status.

Article 2(2) of the ICCPR requires, where not already provided for by existing legislative or other measures, that each State Party to the Covenant undertakes to take the necessary steps to adopt such laws or other measures as may be necessary to give effect to the rights recognised in the ICCPR.

Article 17 of the ICCPR prohibits unlawful or arbitrary interferences with a person’s privacy, family, home and correspondence. It also prohibits unlawful attacks on a person’s reputation. It provides that persons have the right to the protection of the law against such interference or attacks.

As the program relates to the provision of health services, it follows that the personal and sensitive-personal (health) information of participants will be collected. The program will be implemented with careful attention to protect the privacy of the individuals participating in the program, and their family members. In accordance with Australian privacy laws, health practices and procedures, a patient’s medical details and identity will be protected.

Collection of personal information is necessary to deliver the program. It is also reasonable and proportionate when compared to the benefit of providing participants access to health care they may otherwise not have access to.

Right to health

Article 2 of the ICESCR requires each State Party to take steps to the maximum of its available resources, with a view to achieving progressively the full realisation of the rights in the ICESCR by all appropriate means, including particularly the adoption of legislative measures.

Article 12(1) of the ICESCR recognises the ‘right of everyone to the enjoyment of the highest attainable standard of physical and mental health’. The steps to be taken by States Parties to achieve full realisation of the right to health are specified in Article 12(2) and include steps necessary for the creation of conditions which would assure to all medical service and medical attention in the event of sickness (Article 12(2)(d)).

Table item 723 will promote access to health for participants in the program. It will provide access to health above what participants would receive in their home country.

Table item 723 is compatible with human rights because it would promote or positively affect human rights. To the extent that it may limit human rights, those limitations are reasonable, necessary and proportionate.

Table item 724 – Support for Solomon Islands

New table item 724 establishes legislative authority for government spending on the Support for Solomon Islands (the program), which aims to provide financial assistance to Solomon Islands Government (SIG) to support the expansion of the Royal Solomon Islands Police Force (RSIPF expansion).

The RSIPF expansion builds on the longstanding security partnership between Australia and Solomon Islands, as their security partner of choice, spanning over four decades. The extended history dates back to 1978 when Solomon Islands gained their independence.

The Government will provide support of up to $65.6 million over three years from 2025-26 to the SIG to improve the RSIPF’s:

personnel footprint, which can be sustainably supported;

law enforcement capacity, and capacity to train its personnel;
training infrastructure, ensuring it is fit for purpose due to the increased personnel footprint;
additional equipment required to train and equip the additional personnel footprint; and
enhanced infrastructure, including accommodation for the RSIPF.

Human rights implications

Table item 724 does not engage any of the applicable human rights or freedoms. Measures under this item will not affect Australian citizens or people subject to Australia’s jurisdiction and Australia will not be exercising effective control over the people of Solomon Islands as it is a grant to SIG.

Table item 725 – Australia-India Trade and Investment Accelerator Fund

New table item 725 establishes legislative authority for government spending on the Australia-India Trade and Investment Accelerator Fund (AI-TIAF).

The AI-TIAF aims to support whole of government efforts in overcoming policy and regulatory impediments to greater trade and investment with India. Its objective is to position Australia to benefit from India’s economic rise, increase trade and commercial opportunities in the priority sectors, build Australia’s supply chain resilience and facilitate Australia’s trade diversification goals. The intended outcomes of the AI-TIAF include:

strengthened partnerships between Australian peak industry and research bodies and their Indian counterparts;
greater two-way business-to-business engagement of supply chains; and
additional market access and trade opportunities through developing industry partnerships.

Funding of $16.0 million over four years from 2025-26 will be provided to support projects and initiatives which will help unlock new commercial opportunities in India.

Human rights implications

Table item 725 engages the following rights:

the right to self-determination – Article 1 of the ICCPR, read with Article 2, Article 1 of the ICESCR, read with Article 2, and Article 3 of the UNDRIP; and
the right to work and rights at work – Article 7 of the ICESCR.

Article 2 of the ICCPR and the ICESCR requires that each State Party undertake to take steps to the maximum of its available resources to realise the rights recognised, particularly through legislative measures.

Right to self-determination

Article 1 of the ICCPR states that all peoples have the right of self-determination, that they may freely determine political status and freely pursue their economic, social and cultural development. Article 1 of the ICESCR also states that all peoples have the right of self-determination and freedom to pursue their political status and economic, social and cultural development.

Article 3 of the UNDRIP states that Indigenous peoples have the right to self-determination and freedom to pursue their political status and economic, social and cultural development.

The AI-TIAF will help promote the right to self-determination in Australia and in India, as it will support cross-border investment, create additional trade opportunities, as well as economic and other development opportunities for people from Australia and India.

The AI-TIAF will not limit India’s sovereignty or the people’s control over their own destiny. Creating these opportunities for economic and business activity will support people from both Australia and India to pursue their economic development. In addition, a great variety of stakeholders in Australia and India were thoroughly consulted on this policy, with their feedback informing the policy’s ‘four priority sectors’.

Right to work and rights at work

Article 7 of the ICESCR provides that parties must recognise the right of everyone to the enjoyment of just and favourable conditions of work which ensure remuneration and fair wages, a decent living, safe and healthy working conditions, equal opportunity, as well as rest, leisure and the reasonable limitation of working hours.

The right to work includes the right of everyone to the opportunity to gain his or her living by work which he or she freely chooses or accepts. The AI-TIAF would promote the right to work by investing in initiatives which will reduce impediments to Australian investment in India. In reducing these barriers, the extra investment could create increased employment opportunities for people from both Australia and India, increasing their options as well as increasing the competition for skilled labour. This competition could lead to better remuneration options for Indian and Australian workers as well as promote equal opportunity by reducing barriers to trade and investment.

Table item 725 is compatible with human rights because it would promote or positively affect human rights.

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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