Financial Framework (Supplementary Powers) Amendment (Infrastructure and Regional Development Measures No. 1) Regulation 2016

Administered by Department of Finance

Legislation au F2016L01921 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(Infrastructure and Regional Development Measures No. 1) Regulation 2016

 

The Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) 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 FF(SP) Act applies to Ministers and the accountable authorities of non‑corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013. 

 

Section 65 of the FF(SP) Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

 

Section 32B of the FF(SP) 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.  Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs. 

 

Schedule 1 to the Regulation amends Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Regional Jobs and Investment Packages (RJIP) which will be administered by the Department of Infrastructure and Regional Development.

 

The RJIP is a $220 million grant program designed to help regions in Australia diversify their economies, stimulate economic growth and deliver sustainable employment.  The packages will be delivered across ten regions. 

 

The RJIP is part of the Government’s ‘Jobs and Growth in Regional Australia’ election commitment announced in June 2016.  Separate announcements of the ten RJIP regions were made in June 2016 and November 2016.

 

Details of the Regulation are set out at Attachment A.  A Statement of Compatibility with Human Rights is at Attachment B. 

 

The Regulation is a legislative instrument for the purposes of the Legislation Act 2003.  The Regulation commences 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 Infrastructure and Regional Development.

 

A regulation impact statement is not required as the Regulation only applies to non‑corporate Commonwealth entities and does not adversely affect the private sector.

 

 

 

Details of the Financial Framework (Supplementary Powers) Amendment (Infrastructure and Regional Development Measures No. 1) Regulation 2016

 

Section 1 – Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Infrastructure and Regional Development       Measures No. 1) Regulation 2016.

 

Section 2 – Commencement

 

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislation. 

 

Section 3 – Authority

 

This section provides that the Regulation is made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 – Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedules to the Regulation.

 

Schedule 1 – Amendments

 

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

 

This item adds a new table item to Part 4 of Schedule 1AB to establish legislative authority for government spending on the Regional Jobs and Investment Packages which will be administered by the Department of Infrastructure and Regional Development.

 

New table item 190 establishes legislative authority for government spending on the Regional Jobs and Investment Packages (RJIP).

 

The RJIP is a $220 million grant program designed to help regions in Australia diversify their economies, stimulate economic growth and deliver sustainable employment.  The packages will be delivered across the following ten regions: 

  • Cairns;
  • Bowen Basin;
  • Wide Bay Burnett;
  • New South Wales North Coast;
  • New South Wales South Coast;
  • Upper Spencer Gulf;
  • Goulburn Valley;
  • Latrobe Valley;
  • Geelong; and
  • Regional Tasmania.

 

The RJIP is part of the Government’s ‘Jobs and Growth in Regional Australia’ election commitment announced in June 2016.  Separate announcements were made in June 2016 in nine of the RJIP regions.  On 3 November 2016, the Minister for Regional Development, Senator the Hon Fiona Nash; the Minister for Infrastructure and Transport, the Hon Darren Chester MP; the Minister for the Environment and Energy, the Hon Josh Frydenberg MP; the Minister for Industry, Innovation and Science, the Hon Greg Hunt MP; and the Minister for Employment, Senator the Hon Michaelia Cash, jointly announced $20 million funding for the Latrobe Valley RJIP.

 

The delivery of each RJIP will consist of a planning and funding phase. 

 

The planning phase will involve each RJIP region establishing a local planning committee which will contribute to the development of local investment plans.  These plans will identify each region’s key growth priorities with evidence-based potential for sustainable economic growth.

 

Once a region has completed its plan, it will move to the funding phase.  This phase will deliver funds awarded through a competitive grants process across three streams:

  • business innovation grants to help businesses invest in new technology, diversify operations, create new export opportunities and deliver new sustainable jobs;
  • local infrastructure investment to enable local communities to invest in infrastructure to help boost the region’s long-term productivity and resilience; and
  • skills and training initiatives to help communities address regional skills shortages and to support workers impacted by structural change to retrain and upskill.

 

Funding details for the four-year program will be included in the Mid-Year Economic and Fiscal Outlook 2016-17.

 

Grants will be awarded on a competitive basis as decided by the Minister for Regional Development.  Potential grant recipients could include individual businesses, not-for-profit organisations, local government and educational institutions.

 

Selection criteria for the RJIP grants will be included in the grant guidelines which will be publicly released prior to the first grant round.  The guidelines will be published on the Department of Infrastructure and Regional Development’s website at http://regional.gov.au/regional/regional-jobs-investment-package/. 

 

The Minister for Regional Development will announce the selection of funded projects. These will be published on the Department’s website.

 

The RJIP is unsuitable for merits review.  Decisions which allocate funding under the RJIP will involve the allocation of finite resources between competing applicants.  The funds available for the RJIP are limited, and as the program involves a competitive selection process, it is likely that only a proportion of applications for a share of the funding will be able to be met.

 

Providing for merits review, where decisions could be set aside, would result in the possibility that allocations of funding to successful applicants would be affected.  Delays in the implementation of projects, and the achievement of the objects of the program, would also be likely.

 

Administrative decisions of this nature are generally recognised as not being appropriate for merits review.  However, the grant guidelines will ensure that the decision-making process is objective and transparent and that eligibility criteria are clear.

 

Funding for this item will come from Program 3.1: Regional Development, which is part of Outcome 3: Strengthening the sustainability, capacity and diversity of regional economies including through facilitating local partnerships between all levels of government and local communities; and providing grants and financial assistance.  Details will be set out in the Portfolio Additional Estimates Statements 2016-17: Infrastructure and Regional Development Portfolio.

 

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 interstate and international trade and commerce power (section 51(i));
  • the communications power (section 51(v));
  • the aliens power (section 51(xix));
  • the social welfare power (section 51(xxiiiA));
  • the immigration power (section 51(xxvii));
  • the race power (section 51(xxvi));
  • the power to grant financial assistance to States (section 96);
  • the external affairs power (section 51(xxix));
  • the railway construction and extension power (section 51(xxxiv)); and
  • the Commonwealth executive power and the express incidental power (section 61 and section 51(xxxix)).

 

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 (Infrastructure and Regional Development Measures No. 1) Regulation 2016

 

This Regulation 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 FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) 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 FF(SP) Regulations specify the arrangements, grants and programs. 

 

The FF(SP) Act applies to Ministers and the accountable authorities of non‑corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013. 

 

Schedule 1 to the Regulation amends Schedule 1AB to the FF(SP) Regulations to establish legislative authority for government spending on the Regional Jobs and Investment Packages (RJIP) which will be administered by the Department of Infrastructure and Regional Development. 

 

The RJIP is a grant program designed to help regions in Australia diversify their economies, stimulate economic growth and deliver sustainable employment.  It will be delivered in ten regions through a competitive grants process across three streams: business innovation grants, local infrastructure investment, and skills and training initiatives.

 

The Minister for Regional Development has portfolio responsibility for this matter.

 

Human rights implications

 

The Regulation does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This Regulation is compatible with human rights as it does not raise any human rights issues.

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance

Overview

The Financial Framework (Supplementary Powers) Amendment (Infrastructure and Regional Development Measures No. 1) Regulation 2016 was enacted to address the need for legislative authority to support the Regional Jobs and Investment Packages (RJIP), a $220 million grant program aimed at fostering economic diversification, stimulating growth, and creating sustainable employment opportunities across ten regions in Australia. The Regulation was introduced under the Financial Framework (Supplementary Powers) Act 1997, which empowers the Commonwealth to make arrangements, grants, and programs as specified in the Financial Framework (Supplementary Powers) Regulations 1997. The enacting body was the Parliament of Australia, with the objective of enabling the Commonwealth to efficiently implement the RJIP, which forms part of the Government’s broader election commitment to enhance jobs and growth in regional areas. The Regulation amends the Financial Framework (Supplementary Powers) Regulations 1997 to include the RJIP as a specified program, thus establishing the necessary legislative framework for the allocation and administration of the grants. The RJIP is designed to be delivered through a competitive grants process, focusing on business innovation, local infrastructure, and skills and training initiatives. Given the targeted nature of the program and the limited funding available, the decision-making process does not undergo merits review to ensure timely implementation and effectiveness of the program. The Regulation is compatible with human rights, as it does not engage any of the rights or freedoms protected under the applicable international instruments.

Scope and Application

The Financial Framework (Supplementary Powers) Amendment (Infrastructure and Regional Development Measures No. 1) Regulation 2016 applies to Ministers and accountable authorities of non-corporate Commonwealth entities as defined under section 12 of the Public Governance, Performance and Accountability Act 2013. The Regulation establishes legislative authority for government spending on the Regional Jobs and Investment Packages (RJIP), which will be administered by the Department of Infrastructure and Regional Development. The RJIP is a $220 million grant program designed to help regions in Australia diversify their economies, stimulate economic growth and deliver sustainable employment. The packages will be delivered across ten regions. The Regulation is made under the Financial Framework (Supplementary Powers) Act 1997, and it amends the Financial Framework (Supplementary Powers) Regulations 1997. The Regulation commences on the day after it is registered on the Federal Register of Legislation. The Regulation does not adversely affect the private sector and is compatible with human rights as it does not raise any human rights issues. The Minister for Regional Development has portfolio responsibility for this matter. The Regulation provides for the allocation of funds from Program 3.1: Regional Development, which is part of Outcome 3: Strengthening the sustainability, capacity and diversity of regional economies including through facilitating local partnerships between all levels of government and local communities; and providing grants and financial assistance. The Regulation references various powers of the Constitution, including the interstate and international trade and commerce power, the communications power, the aliens power, the social welfare power, the immigration power, the race power, the power to grant financial assistance to States, the external affairs power, the railway construction and extension power, the Commonwealth executive power and the express incidental power.

Key Provisions

The Financial Framework (Supplementary Powers) Amendment (Infrastructure and Regional Development Measures No. 1) Regulation 2016 (the Regulation) amends the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations) to provide legislative authority for the Regional Jobs and Investment Packages (RJIP) (Schedule 1, Item 1). These packages are a $220 million grant program intended to help diversify regional economies, stimulate economic growth, and create sustainable employment across ten specified regions (Schedule 1, Item 1). The Department of Infrastructure and Regional Development will administer these packages, which include business innovation grants, local infrastructure investment, and skills and training initiatives. The Regulation imposes obligations on Ministers and accountable authorities of non-corporate Commonwealth entities as defined under section 12 of the Public Governance, Performance and Accountability Act 2013. The accountable authorities must ensure that spending and grants are made in accordance with the RJIP as specified in the Regulation (Section 32B of the Financial Framework (Supplementary Powers) Act 1997). They must also ensure that the competitive grants process is transparent and objective, with clear eligibility criteria and selection processes. The grant guidelines will be published on the Department of Infrastructure and Regional Development’s website, ensuring public access to information about the program and its implementation (Schedule 1, Item 1). There are no specific offences, penalties, or civil/criminal consequences outlined in the Regulation for breaches of the RJIP provisions. However, the nature of the program, involving the allocation of finite resources through a competitive grants process, implies that decisions on funding allocations are not subject to merits review. This is to prevent potential delays and ensure that the program's objectives are met efficiently. Nevertheless, the grant guidelines aim to ensure that the decision-making process remains objective and transparent (Schedule 1, Item 1). The funding for this initiative will be sourced from Program 3.1: Regional Development, as part of Outcome 3: Strengthening the sustainability, capacity, and diversity of regional economies (Schedule 1, Item 1).

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.