EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(House of Representatives 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 (House of Representatives Measures No. 1) Regulations 2026 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Pacific Parliamentary Partnerships program (the program) administered by the Department of the House of Representatives.
The program will provide funding of $3.0 million over four years from 2026-27 to the Commonwealth Parliamentary Association (CPA), to deliver the following three broad streams of work for 12 Commonwealth Pacific Parliaments:
- reform priorities and technical support - identify individual reform priorities and technical support needs and deliver targeted programs to achieve these goals;
- multilateral professional development - provide access to multilateral professional development seminars and other forums to develop skills and knowledge in parliamentarians and parliamentary officials and ensure Pacific perspectives are represented in these seminars and other forums; and
- promote inclusion activities - promote inclusion through gender and disability inclusion assessments, and support to legislative reform for improved representation in parliaments.
The program will build on the CPA’s existing Good Governance Project, which began in 2023 with support from the United Kingdom Government’s Foreign, Commonwealth and Development Office, and aims to strengthen institutional parliamentary democracy and good governance across the Commonwealth Legislatures through benchmarking, targeted technical assistance, professional development and inclusion-focused reform.
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 the House of Representatives.
Attachment A
Details of the Financial Framework (Supplementary Powers) Amendment
(House of Representatives Measures No. 1) Regulations 2026
Section 1 – Name
This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (House of Representatives 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 administered by the Department of the House of Representatives (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 799 – Pacific Parliamentary Partnerships
New table item 799 establishes legislative authority for government spending on the Pacific Parliamentary Partnerships program (the program).
The program will support the Commonwealth Parliamentary Association (CPA) to deliver a comprehensive program of work for 12 Commonwealth Pacific Parliaments including: Kiribati, Papua New Guinea, Solomon Islands, Niue, Vanuatu, Tonga, Nauru, Tuvalu, Fiji, Samoa, Cook Islands and Bougainville.
CPA is an unincorporated association and is in the process of transitioning into an International Inter-Parliamentary Organisation. The CPA was registered as a charity in the United Kingdom (UK) on 22 October 1971 and is subject to regulation by the UK Charity Commission and UK legislation on the charities sector. In 2025, the UK Parliament passed the Commonwealth Parliamentary Association and International Committee of the Red Cross (Status) Act 2025 which will enable the CPA to become an International Inter-Parliamentary Organisation.
The objective of the program is to strengthen parliamentary capacity in the Commonwealth Pacific Parliaments through targeted technical assistance and professional development. The program will build on the CPA’s existing Good Governance Project, which began in 2023 with support from the UK Government’s Foreign, Commonwealth and Development Office.
Through the Good Governance Project, eight Pacific parliaments have undertaken assessments against CPA Benchmarks for Democratic Legislatures (the benchmarks),
peer-facilitated institutional assessments of a legislature against approximately 200 benchmark indicators, resulting in published outcomes reports with recommendations and implementation roadmaps.
The benchmarks provide a set of minimum standards for how a Parliament should be constituted and function. They also support legislatures in overcoming challenges by enabling them to strive for aspirational excellence by meeting additional measures that reflect international best practice and underpin the central principles of good governance. The benchmarks play an important role in strengthening the effectiveness of parliamentary institutions across the 180 Parliaments and Legislatures of the CPA, support the broader values expressed in the Commonwealth Charter, and contribute to the effective implementation of the United Nations Sustainable Development Goals.
Each benchmark assessment has identified specific recommendations to improve parliamentary capacity and democratic practice. The program will support parliaments to achieve these next steps and will deliver the following three broad streams of work:
Reform priorities and technical support
The CPA benchmark self-assessment process provides individual parliaments with a structured way to identify areas of institutional strength and areas requiring reform or additional support, and for measuring themselves against international democratic standards. The process combines desk-based research by the facilitators (CPA) and the Parliament, drawing on key documents such as the Constitution, Standing Orders, Election Acts, followed by an in-country visit led by a CPA facilitation team to triangulate and validate findings through stakeholder consultations. These visits provide the information required to prepare the self-assessment outcome reports and help to build stakeholder buy-in for the final report and its recommendations.
The Technical Assistance Programmes (TAPs) are bespoke in-country packages of follow-on support facilitated by the CPA to help parliaments implement their benchmark recommendations. Technical assistance work has already taken place following some of the benchmark assessments, including a technical review and redrafting of the rules of procedure in Tonga in March 2025 and technical input into Members’ codes of conduct in Fiji in June 2025. The Pacific Parliaments that have undertaken benchmark self-assessments have, through their outcomes reports, been provided with clear reform roadmaps and a pipeline of TAP activities to be funded under the program.
Post-election seminars are structured induction and orientation programs delivered following a general election for new and returning parliamentarians. Typically, these cover the role of the Member, parliamentary procedure, committee work, constituency engagement, ethics and privileges, and are tailored to specific needs and context of the Parliament.
The intended outcomes of the reform priorities and technical support stream include:
- all parliamentary stakeholders and ultimately the citizens, are served by a more effective and accountable Parliament; and
- stronger institutional rules and practices are in place for Parliamentarians and parliamentary staff, and wider stakeholders, and ultimately the citizens of the jurisdiction, are served through more effective parliamentary processes.
Multilateral professional development
CPA Parliamentary Academy residency courses are delivered by CPA annually to support the professional development of Parliamentarians and parliamentary staff that parliamentary representatives from the Pacific will be able to attend. Topics covered may include leadership, strategic thinking, communications and parliamentary practice. The delivery format includes peer-to-peer learning, case studies, study visits to host parliaments, and structured networking with counterparts from across the Commonwealth.
Further multilateral professional development offerings are delivered by other CPA Branches, such as the CPA UK Westminster Seminar and the Canadian Parliamentary Seminar, as well as annual thematic and professional development workshops run by CPA Networks including the Commonwealth Women Parliamentarians, CPA Small Branches and Commonwealth Parliamentarians with Disabilities (CPwD) Networks.
The intended outcomes of the multilateral professional development stream are that the funded delegates directly, and their home parliaments indirectly, gain from returning Members and staff applying new skills and peer networks to their institutional roles.
Promote inclusion activities
A suite of activities will be delivered, including Gender Sensitising Parliaments (GSP) assessments and disability inclusion assessments, to support Pacific parliaments to meet the highest standards of gender equality and disability inclusion.
GSP assessments are structured institutional reviews using the CPA Gender Sensitising Parliaments Guidelines and Field Guide to examine women’s representation, parliamentary procedures, infrastructure, working practices and policymaking through a gender lens. Recommendations from GSP audits often lead to in-country technical assistance to support implementation, such as revising standing orders and developing sexual harassment and
anti-bullying policies.
Disability inclusion assessments delivered through the CPwD Networks comprise institutional audits that identify physical, digital and procedural barriers to participation. These assessments lead to recommendations to improve accessibility (for example, ramps and lifts, accessible chambers and accessible websites).
The intended outcomes of the promote inclusion activities stream are that female Parliamentarians and candidates, Parliamentarians and staff with disabilities, the wider parliamentary workforce, parliamentary visitors and ultimately citizens, benefit from broadened representation and accessibility improvements in parliament.
Where benchmark assessments have not yet been conducted for a Pacific parliament, the program will enable assessment to be conducted and recommendations to be road-mapped.
The program is founded in strong institutional relationships between Australian and Pacific parliaments. The twinning relationships between Australian states and territories and Pacific parliaments allow parliaments of similar scale to share information and expertise with the common goal of ensuring robust parliaments and strong democracies. The department will oversee the program and serve as the regional secretariat, and Australian twins will be closely involved in the delivery of TAPs reinforcing these longstanding relationships and further strengthening direct people-to-people links between Australian and Pacific parliamentary institutions.
Program and financial monitoring and evaluation will be undertaken by the CPA Headquarters Secretariat reporting through the department. A dedicated Program Board (the Board) will be established with membership comprising the CPA Secretary General, CPA’s Finance Director, the Head of Programmes and the Deputy Head of Programmes. The Board will ensure that quarterly monitoring takes place within the CPA and that quarterly meetings are held with the International and Parliamentary Relations Office in the Parliament of Australia which is responsible for the Australian Parliament’s international program, is the contact point for parliamentary visits to and from Australia, and provides secretariat support for the Australian Parliament’s participation in parliamentary associations. The Board will also report biannually to an external body made up of the Pacific and Australian Members of the CPA Executive Committee which will ensure oversight of progress made and address any hurdles that may arise.
Annual reports will be produced and published and will form part of the reporting delivered to the department and Australian states and territories, as major stakeholders in the Australia Pacific Parliamentary Partnership.
Funding amount and arrangements, merits review and consultation
Funding of $3.0 million over four years from 2026-27 for this item will come from Program 1: Other Departmental DHR, which is part of Outcome 1. Details will be set out in the 2026-27 Portfolio Additional Estimates Statements for the Department of the House of Representatives.
Funding for the program will be provided though a closed, non‑competitive grant process. CPA is eligible for the grant opportunity on the basis that the organisation has:
- the capability to deliver the specified grant activities – CPA has completed eight of the 12 benchmarking assessments to a high standard;
- existing infrastructure and relationships to undertake the grant activities; and
- demonstrated history of performance of its current activities and reporting arrangements – CPA have significant experience working with the Pacific parliaments and Australian states and territories and a proven ability to design and deliver parliamentary capacity building programs to address reforms identified through the benchmarking process.
The grant 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 Clerk of the department under the Financial Framework (Supplementary Powers) Act 1997, will be responsible for approving Commonwealth funding provided to CPA. The delegate will be at the Senior Executive Service Band 1 level and have appropriate experience and knowledge to exercise this function.
The provision of funds to the CPA is not considered suitable for independent merits review because the funding will be delivered through a closed, non-competitive grant process to an organisation that the department has assessed as suitable.
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. Any funding that has already been allocated would be affected if the original decision was overturned. In addition, the benefits of the program are not directed towards the circumstances of particular persons, but rather apply generally to the community, and is therefore considered to be unsuitable for review. The program, by its nature, is unlikely to affect the interests of a sole individual and any funding that has already been allocated would be affected if the original decision was overturned. 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.
The program has been developed in collaboration with the CPA drawing on its expertise in developing and delivering parliamentary capacity building programs for Commonwealth parliaments. The department has continued to engage with key stakeholders, including the Office of the Pacific in the Department of Foreign Affairs and Trade, the Department of Finance, Australian states and territories and the 12 Pacific Parliaments on the design and development of the grant opportunity guidelines and the timeline for program implementation.
The program will build on the work that CPA have completed through its Good Governance Project including the benchmark assessments that have already been undertaken by the eight Pacific Parliaments. The program aims to see the completion of the remaining four benchmark assessments and the implementation of the specific recommendations identified by each benchmark assessment to improve parliamentary capacity and democratic practice.
The department will continue to engage with the CPA throughout the life of the grant agreement to ensure the program’s policy objectives are met.
Constitutional considerations
Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the external affairs power (section 51(xxix)) of the Constitution.
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 and with respect to matters concerning Australia’s relations with other nations.
The program will deliver a capacity-building program of work for 12 Commonwealth Pacific Parliaments including Kiribati, Papua New Guinea, Solomon Islands, Niue, Vanuatu, Tonga, Nauru, Tuvalu, Fiji, Samoa, Cook Islands and Bougainville. The program will extend existing supports which further connects the Australian parliaments with Pacific parliaments through twinning arrangements. The program will build on the CPA’s existing Good Governance Project and enable Pacific parliaments to implement recommendations identified to improve parliamentary capability and democratic practices.
In addition, the program will support the strong and continued institutional relationships between Australian and Pacific parliaments united by their common goal of strengthening democratic practices.
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 (House of Representatives 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 (House of Representatives Measures No. 1) Regulations 2026 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Pacific Parliamentary Partnerships program (the program) administered by the Department of the House of Representatives.
The program will provide funding of $3.0 million over four years from 2026-27 to the Commonwealth Parliamentary Association (CPA), to deliver a comprehensive program of work for 12 Commonwealth Pacific Parliaments including: Kiribati, Papua New Guinea, Solomon Islands, Niue, Vanuatu, Tonga, Nauru, Tuvalu, Fiji, Samoa, Cook Islands and Bougainville.
The program will build on the CPA’s existing Good Governance Project, which began in 2023 and aims to strengthen institutional parliamentary democracy and good governance across the Commonwealth Legislatures.
The objective of the program is to strengthen parliamentary capacity in the Commonwealth Pacific Parliaments through benchmarking, targeted technical assistance, professional development and inclusion-focused reform and will deliver the following three broad streams of work:
- reform priorities and technical support - identify individual reform priorities and technical support needs and deliver targeted programs to achieve these goals;
- multilateral professional development - provide access to multilateral professional development seminars and other forums to develop skills and knowledge in parliamentarians and parliamentary officials and ensure Pacific perspectives are represented in these seminars and other forums; and
- promote inclusion activities - promote inclusion through gender assessments, disability inclusion assessments and support to legislative reform for improved representation in parliaments.
Human rights implications
This disallowable legislative instrument does not engage any of the applicable human rights or freedoms.
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