Financial Framework (Supplementary Powers) Amendment (Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Measures No. 1) Regulations 2025

EXPLANATORY STATEMENT

Issued by the Authority of the Minister for Finance

Financial Framework (Supplementary Powers) Act 1997

Financial Framework (Supplementary Powers) Amendment

(Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Measures No. 1) 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 (Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Measures No. 1) Regulations 2025 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on certain activities to be administered by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.

Funding will be provided for the following initiatives:

a grant to the Australian National Academy of Music Ltd. to redevelop, restore and enhance its South Melbourne Town Hall premises ($12.5 million over three years from 2025-26);
the Investing in LGBTIQA+ Community Connection program to support the provision by LGBTIQA+ media organisations, of broadcasting services and digital and online content ($0.3 million in 2025-26);
the Journalism Assistance Fund to support Australian news publishers and safeguard media diversity in Australia by providing funding for the production or distribution of online or digital public interest news content ($67.6 million over three years from 2025-26); and
the Maritime Skills and Training Initiative to increase the number of seafarers certified in accordance with the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, by funding the employers of seafarers to assist trainees to complete required periods of seagoing service ($14.4 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 Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.

Attachment A

Details of the Financial Framework (Supplementary Powers) Amendment

(Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Measures No. 1) Regulations 2025

Section 1 – Name

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Measures No. 1) 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 items in Schedule 1 amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on activities to be administered by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts (the department).

Item 1 – In the appropriate position in Part 3 of Schedule 1AB (table)

This item adds one new table item to Part 3 of Schedule 1AB.

Table item 93 – Grant to the Australian National Academy of Music Ltd.

New table item 93 establishes legislative authority for the Government to provide a grant to the Australian National Academy of Music Ltd. (the Academy) to support the redevelopment of its South Melbourne Town Hall premises.

The Academy is one of the eight national arts training organisations and has received operational funding from the Government since 1995. Funding supports the Academy, to provide world-class training and career pathways for Australia’s best performing artists and production talent. The Academy is the only purely classical music performance training academy in Australia, and one of the few in the world, providing a studio-based program of individually tailored lessons, classes, coaching and rehearsals.

The Academy has operated from the South Melbourne Town Hall (the Town Hall) since 1997, however, in 2018 parts of the ceiling collapsed. As a result, in 2020, the building was declared unsafe, requiring the Academy to temporarily relocate until the Town Hall could be redeveloped into a fit-for-purpose building. In response, in 2022 the Government provided funding of $12.5 million as capital expenditure to redevelop the Town Hall into a
fit-for-purpose building.

On 17 April 2025, the Minister for Arts, announced an election commitment to provide an additional ‘$12.5 million for the Australian National Academy of Music’s Home’. The grant is in addition to the $12.5 million provided in 2022, bringing the total government investment to $25.0 million. To support simplified delivery to the Academy, both sources of funding will be provided through a new capital expenditure program, the Australian National Academy of Music - South Melbourne Town Hall Redevelopment Program (the program).

The grant will support the Government’s priorities set out in the National Cultural Policy, Revive (www.arts.gov.au/what-we-do/new-national-cultural-policy), including Pillar 4: ‘Strong Cultural Infrastructure, Providing support across the spectrum of institutions which sustain our arts, culture and heritage’. By delivering new state-of-the-art public performance spaces, studios, rehearsal facilities, and much-needed office accommodation for creative organisations, the Town Hall will help transform the area into a cultural destination. The grant funding can be used for costs that include, but are not limited to:

consultants to ensure project deliverables can be achieved effectively and efficiently;
building repairs, including roof structure, external façade, internal brick work and ceilings;
installation of heating, ventilation, security system and air conditioning;
construction and fit-out of offices, meeting rooms and storage areas; and
fit-out of library, main hall, lobby, studios, lounge and commercial kitchens/bar.

The objective of the grant is to enhance the architecture, capacity and functionality of the Town Hall by modernising and improving performance and hospitality facilities, increasing energy efficiency, preserving the building’s architectural and civic heritage and collaborating with First Nations groups on the design concept. Ultimately, the grant will support the redevelopment of the Town Hall as a specialised facility for fostering and developing young Australian musical talent and national excellence in music.

Funding amount and arrangements, merits review and consultation

Funding of $12.5 million over three years from 2025-26 for the grant to the Academy will be included in the 2025-26 Mid-Year Economic and Fiscal Outlook and the Portfolio Additional Estimates Statements for the Infrastructure, Transport, Regional Development, Communications, Sport and the Arts portfolio. Funding will come from Program 6.1: Arts and Cultural Development, which is part of Outcome 6.

The allocation of funding under the grant will be determined on a targeted, closed and non‑competitive basis. The grant 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 Commonwealth Grants Rules and Principles 2024 (CGRPs).

Consistent with the CGRPs, the department will develop grant opportunity guidelines and will have regards to the nine key principles in administering the grant. The guidelines will be publicly available on GrantConnect (at www.grants.gov.au). The Academy is the only eligible organisation under the grant, and it does not need to submit an application for this grant opportunity. The Minister for the Arts is the responsible decision-maker for grant expenditure under the program.

Following funding approval, the Academy is required to enter into a legally binding grant agreement to deliver the agreed activity within defined terms and conditions. The Academy must demonstrate it is delivering outcomes against the objectives of the grant and eligible grant activities. The activity will be assessed by Commonwealth officials from within the department through reports provided to the department under the grant agreement. Payments will be made following execution of the grant agreement, and on acceptance of progress reports outlining capital works undertaken, and receipt of a correctly rendered invoice.

The grant award will be listed on the GrantConnect website 21 calendar days after the date of effect in accordance with the CGRPs.

The Office for the Arts currently administers grants funding using SmartyGrants, a low cost and highly effective grants administration platform that is widely used throughout the arts sector nationally. Administration of the grant by the Office for the Arts will support the effective and efficient delivery of the grant, allowing administrative alignment with the Academy’s existing operational grant agreement.

Funding decisions made in connection with the grant are not considered appropriate for independent merits review on the basis that it involves the allocation of a finite resource and an allocation that has already been made to another party would be affected by overturning the original decision. 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)).

Funding will be provided to the Academy under a new capital expenditure program to support activities associated with the redevelopment of the Town Hall. This is a closed,
non-competitive grant opportunity and independent review is not considered appropriate. The application and assessment processes which will be put in place will ensure that the grant opportunity process is consistent with the CGRPs and will incorporate appropriate safeguards against fraud, unlawful activities and other inappropriate conduct.

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 relevant money.

Further, the right to review under section 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 resource to the Commonwealth Ombudsman where appropriate.

The Office for the Arts has a long-standing and effective relationship with the Academy, having provided funding to the organisation for over 30 years, and has worked, and will continue to work, closely with the organisation’s senior staff on the establishment of the grant to ensure it meets the Academy’s needs. For this reason, and because the Academy has agreed with the delivery of both sources of funding through this program, the Office for the Arts does not consider it necessary to undertake broader public consultation.

Constitutional considerations

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

Executive power and express incidental power, including the nationhood aspect

The express incidental power in section 51(xxxix) of the Constitution empowers the Parliament to make laws with respect to matters incidental to the execution of any power vested in the Parliament, the executive or the courts by the Constitution. Section 61 of the Constitution supports activities that are peculiarly adapted to the government of a nation and cannot be carried out for the benefit of the nation otherwise than by the Commonwealth.

The grant will enhance the architecture, capacity and functionality of the Town Hall by modernising and improving performance and hospitality facilities, increasing energy efficiency, preserving the building’s architectural and civic heritage and collaborating with First Nations groups on the design concept. Funding will support the redevelopment of the Town Hall as a specialised facility for fostering and developing young Australian musical talent and national excellence in music. Establishing the Town Hall as a self-generating revenue stream for the Academy will also support its functions as an organisation with a national focus on excellence in music.

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

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

Table item 740 – Investing in LGBTIQA+ Community Connection

New table item 740 establishes legislative authority for government spending on the Investing in LGBTIQA+ Community Connection program (the program).

The program responds to the two election commitments ‘Labor investing in LGBTIQA+ community connection’ and ‘Supporting LGBTIQA+ Community Connection with JOY Media’ made by the Government in April 2025.

The LGBTIQA+ community is an underrepresented group in Australia’s media landscape. Whilst there have been improvements in rights and protections for the community over time, many LGBTIQA+ people still experience discrimination, stigma and trauma. These experiences are linked to poorer outcomes when compared to the general population. Public interest journalism and media diversity are critical to a healthy democracy, social cohesion and informed citizens. Furthermore, representation in media is an important contributor towards social cohesion, community wellbeing and trust in public institutions.

In response, the program will be introduced to support media and news services targeted at LGBTIQA+ audiences, reflecting the fact that the history, stories and issues relating to the specific needs of LGBTIQA+ communities are not consistently prioritised or captured comprehensively in broader Australian media and news.

The program’s objective is to promote connection, participation, belonging and empowerment for LGBTIQA+ communities nationally, by ensuring these audiences have access to media and news content that reflects their particular lived experiences and affirms their connection to a broader community.

The program will support LGBTIQA+ media organisations to cover a mix of relevant staff salaries, production and organisational costs so they can continue to provide the following four broadcasting, podcasting and digital content services for LGBTIQA+ communities:

JOY Media - a not-for-profit LGBTIQA+ community radio station broadcasting in Melbourne and streaming nationally, which also produces podcasts and provides training, production services and events;
QNews - an LGBTIQA+ digital news outlet based in Brisbane, which also produces a monthly magazine;
OUTinPerth - a LGBTIQA+ news and content publisher in Perth, distributing online and via social media; and
Star Observer - covers news and content relating to the LGBTIQA+ community in Sydney and provides an online newspaper and free monthly magazine.

The funding will support JOY Media in covering essential costs such as staff salaries, office lease, equipment purchases or hire, and training. These resources are critical to producing high-quality broadcasting, podcasting, and digital content for LGBTIQA+ communities in Melbourne and across Australia. JOY Media will be required to outline the expected impacts of the funding on the program objectives of connection, participation, belonging and empowerment of LGBTIQA+ audiences in Melbourne and nationally.

The funding to the other three media services, Star Observer, QNews and OUTinPerth, will support salaries for up to two staff, either journalists or content producers, and other expenses directly related to the production or distribution of digital news and content for LGBTIQA+ audiences, such as information technology equipment or website development, office costs and training.

Funding amount and arrangements, merits review and consultation

Funding of $0.3 million in 2025-26 for the program will be included in the 2025-26
Mid-Year Economic and Fiscal Outlook and the Portfolio Additional Estimates Statements for the Infrastructure, Transport, Regional Development, Communications, Sport and the Arts portfolio. Funding will come from Program 5.1: Digital Technologies and Communications Services, which is part of Outcome 5.

Funding to the LGBTIQA+ media organisations will be administered through a closed,
non-competitive grant process based on eligibility criteria specific to the named organisations. These arrangements will be subject to the Commonwealth resource management framework, including the PGPA Act, the PGPA Rule, and the CGRPs.

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

The delegate for the administration of the grant agreements will be at the SES Band 1 level or higher. The delegate will possess the appropriate skills and qualifications to exercise this function, including the decisions relating to the design and implementation of the resulting grant agreements.

The delegate will make their decisions in accordance with the PGPA Act and the FFSP Act. Their decisions will be final in all matters, including:

 the grant approval;

 the grant funding to be awarded; and

 the terms and conditions of the grant.

The decision maker must not approve funding if there are insufficient program funds available within the 2025-26 financial year. Payments will be made according to an agreed schedule in the grant agreement.

Independent merits review of decisions made in connection with the grants is not considered appropriate because these decisions relate to the provision of closed non-competitive grants to a service provider, over other service providers. The grantees were identified as the appropriate recipients for these grants as they provide unique broadcasting and content services to geographically defined minority communities. 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 review and audit process undertaken by the ANAO provides a mechanism to review Australian Government spending decisions and report any concerns to the Parliament. These requirements and mechanisms help to ensure the proper use of Commonwealth resources and appropriate transparency around decisions relating to making, varying or administering arrangements to spend relevant money.

The department will consult with the LGBTIQA+ media organisations in relation to the upcoming grant opportunities. The department will continue to consult with the grantees through the delivery of this program, as well as other relevant internal and external stakeholders such as the Australian Communications and Media Authority, which administers JOY Media’s Community Broadcasting License.

Constitutional considerations

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the communications power (section 51(v)) of the Constitution.

Communications power

Section 51(v) of the Constitution empowers the Parliament to make laws with respect to ‘postal, telegraphic, telephonic and other like services’.

The program will support LGBTIQA+ media organisations to promote connection, participation, belonging and empowerment for LGBTIQA+ communities, by contributing to their operational costs and production of news and content. This funding will support the ongoing provision of public interest news for the Australian LGBTIQA+ community and will provide for news coverage that reflects the diversity of Australian perspectives. Funding for the program may be used to support activities that include the distribution of news content through radio broadcasting and digital publication.

Table item 741 – Journalism Assistance Fund

New table item 741 establishes legislative authority for government spending on the Journalism Assistance Fund (the JAF).

On 16 December 2024, the Government announced a $153.5 million News Media Assistance Program (News MAP) to support news and journalism in Australia (https://minister.
infrastructure.gov.au/rowland/media-release/charting-course-diverse-and-sustainable-news-sector).

The News MAP sets out a framework and measures to support public interest journalism and media diversity in Australia, recognising these are critical to a healthy democracy, social cohesion and informed citizens. The framework guides evidence-based and targeted government support that addresses ongoing pressures in the news sector, while balancing the need to maintain the sector’s independence. It outlines the key policy objectives of ensuring access, diversity, press freedom, quality, citizen engagement and representation in Australian news.

The JAF forms part of the News MAP and will support public interest journalism and safeguard media diversity in Australia. The JAF will provide grant funding to news organisations linked to a threshold number of journalists the respective organisation employs, ensuring important financial support that will allow more media companies to survive, and will support some to expand their operations or coverage. Ultimately, the JAF aims to support the sustainability of Australian news publishers in response to significant and ongoing disruption facing the media sector.

The objectives of the JAF are to:

support the sustainability of Australian news publishers in the face of significant disruption to the media sector;
support the creation of news content distributed online;
encourage the continued employment of journalists who produce news that is in the Australian public interest; and
build and maintain social cohesion in Australia.

Funding amount and arrangements, merits review and consultation

Funding of $67.6 million for the JAF was included in the 2024-25 Mid-Year Economic and Fiscal Outlook under the measure ‘Supporting News and Media Diversity’ for a period of three years commencing in 2025-26. Details are set out in the Mid-Year Economic and Fiscal Outlook 2024-25, Appendix A: Policy Decisions taken since the 2024-25 Budget at pages 286-287.

Funding for this item will come from Program 5.1: Digital Technologies and Communications Services, which is part of Outcome 5. Details are set out in the Portfolio Additional Estimates Statements 2024-25, Infrastructure, Transport, Regional Development, Communications and the Arts Portfolio at page 51.

The funding will be delivered through an open, demand driven grants process. To be eligible for funding, organisations are required to be Australian-owned organisations with a valid Australian Business Number and must demonstrate that they employ journalists that produce core news content. The funding will be administered in accordance with the Commonwealth Resource Management Framework, including the PGPA Act, the PGPA Rule and the CGRPs.

Consistent with the CGRPs, the department will develop grant opportunity guidelines and will have regard to the nine key principles in administering the grants. Grant opportunity guidelines and information about the grants will be made available on the GrantConnect website (www.grants.gov.au), and the grants will be administered by the Business Grants Hub, part of the Department of Industry, Science and Resources.

A delegate of the Secretary of the department under the FFSP Act will be responsible for approving the grant payments. The delegate will be at the SES Band 1 level or higher and will possess the appropriate skills and qualifications to exercise this function, including the decisions relating to the design and implementation of the resulting grant agreements.

Funding decisions will be made objectively, and in accordance with the assessment process and eligibility set out in program guidelines, and applicable legislative requirements under the PGPA Act and the FFSP Act. The decision maker must not approve funding if there are insufficient program funds available within a given financial year.

The delegate’s decision will be final in all matters, including:

the grant approval;
the grant funding to be awarded; and
the terms and conditions of the grant.

Final grant decisions will be publicly available on GrantConnect.

Independent merits review is not considered suitable for decisions made in connection with government allocated funding, as they are budgetary decisions of a policy nature and the process and criteria of allocating funding is defined in the grant guidelines. Further, decisions relating to the allocation of a finite resource are generally considered to be inappropriate for merits review. In this case, the expenditure under the JAF is to support the media industry rather than any individual entity or person. The funding will be delivered through an open, demand driven grants process. The funding decisions under the JAF will be made based on an allocation of finite resources, meaning a merits review decision under the JAF may affect or overturn an agreed allocation to a party. The ARC has recognised that it is justifiable to exclude review in relation to decisions of this nature (see paragraphs 4.11 to 4.19 of the ARC guide).

The department undertook public consultation on the News MAP from December 2023 to February 2024. As part of the consultation, the department held 18 meetings and received over 70 submissions. Overall, the submissions and input from the consultation on News MAP were supportive of providing funding to the news sector, including urgent funding to preserve employment in news organisations that may otherwise be at risk of closing or downsizing their staffing numbers.

Informed by the public consultation, in 2024, the Australian Government released the News MAP Policy Framework (www.infrastructure.gov.au/department/media/publications/
news-media-assistance-program-governments-role-news-and-journalism) which guides the way forward for evidence-based and targeted Government support that addresses ongoing pressures in the news sector, while balancing the need to maintain the independence of the sector. It outlines the key objectives of ensuring access, diversity, press freedom, quality, citizen engagement and representation in Australian news.

Constitutional considerations

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the communications power (section 51(v)) of the Constitution.

Communications power

Section 51(v) of the Constitution empowers the Parliament to make laws with respect to ‘postal, telegraphic, telephonic and other like services’.

The JAF will support Australian news organisations that produce public interest news content for digital and online distribution. Funding for the JAF may be used to support activities that include the creation and distribution of news content for publication on the internet.

Table item 742 – Maritime Skills and Training Initiative

New table item 742 establishes legislative authority for government spending on the Maritime Skills and Training Initiative (the MSTI).

The MSTI responds to the Strategic Fleet Taskforce Report (the report) which explores and examines the current maritime landscape within Australia. The Strategic Fleet Taskforce (the Taskforce) was appointed in October 2022 to advise the Government on establishing a strategic fleet of up to 12 Australian flagged and crewed vessels that will operate commercially and are able to be requisitioned by the Government in a time of need. The Taskforce released a public version of the final report in November 2023, which made 16 recommendations to the Government. The report is available at: https:///documents/strategic-fleet-taskforce-final-report.pdf.

The MSTI responds to recommendation 11 of the report which advised that the Government should establish a cadetship or similar scheme to provide financial assistance to organisations that provide berths for cadets and trainees to complete mandatory sea time requirements to obtain International Convention on Standards of Training, Certification and Watchkeeping for Seafarers 1978 (STCW) certification.

The report identified a major barrier to increasing the number of Australian seafarers is the limited access to training berths available for entry level seafarers to undertake qualifying sea service and achieve STCW certification. Certification to the international standards has different qualifying sea service requirements, which stipulate the length of sea service, the duties to be completed and the type of vessel sea service needs to be completed on.

Entry-level seafarers have historically relied on vessel owners and operators to sponsor the costs associated with access to berths for sea time, however, industry has reported that there is little incentive to make this high-cost investment due to the low retention rate once certified. The low retention rate is a result of poaching by other parts of the industry that require STCW certified persons (including port authorities).

This shortage in available vessels offering berths to entry level seafarers has been the result of compounding factors including:

vessel operators being reluctant to take on the high costs associated with offering berths for sea time;
the decline in the number of Australian operated ships in favour of foreign flagged and crewed vessels; and
a lack of alternate pathways for self-funded seafarers to gain the mandatory sea time required for the Australian Maritime Safety Authority (AMSA) certification.

Over time, a shortage of qualified seafarers will erode Australia’s capacity to operate ports and ensure the safe operation of ships in Australian waters.

The MSTI was announced on 4 March 2025 by the Hon Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government and the Hon Andrew Giles MP, Minister for Skills and Training (https://minister.infrastructure.gov.au/c-king/media-release/albanese-government-backs-maritime-skills-and-training).

The MSTI will deliver grants to eligible employers to provide up to 20 trainee seafarers each year, access to berths in order to complete the appropriate sea time to qualify for STCW certification. The purpose of MSTI is to increase the supply of STCW certified Australian seafarers. The objectives are to:

increase availability of training berths on vessels so trainees can access sea time;
address the skills shortage in the Australian maritime industry; and
support the implementation of the Strategic Fleet.

Employers of seafarers will apply for the funding through a competitive grant process. Their application must show how many seafarers the employer can fund for sea time in the financial year and what the total cost will be. Employers will need to provide regular milestone reports in order to access the grant funding, for example, to ensure that seafarers successfully start and finish their sea time.

The employer can be a shipping company or operator, a crewing or recruitment agency, or a Group Training Organisation, as long as the relationship between the grantee and the seafarer is one of employer and employee. The seafarer must be undertaking training that will lead to an STCW certification. They must also be Australian citizens or permanent residents of Australia to be eligible. This requirement is in line with the purpose of increasing the supply of Australian seafarers.

Each eligible employer will need to demonstrate what the funding will be spent on. MSTI has been funded specifically to address sea time for trainee seafarers so the funding can be used for the following:

wages and on-costs associated with engaging the trainee (payroll tax, super, leave and insurance relating to the trainee/cadet);
provision of appropriate placement on-board the ships (including accommodation, victualling and qualified supervision on a vessel suitable for sea time that leads to STCW certification);
travel to and from the vessel, from the trainee’s usual home, if required; and
the cost of an independent audit of project expenditure (if requested) up to a maximum of 1 per cent of total eligible project expenditure.

The funding cannot be spent on course work such as Technical and Further Education (TAFE), university fees or AMSA fees, costs associated with maintaining industry certifications and accreditations (e.g. identity cards), union fees, operational expenditure or wages for employees other than the trainee or cadet. It is expected that employers and seafarers will also be contributing to the overall cost of their training. The department will consider the total costs in assessing applications, along with value for money.

Priorities for funding will be considered based on stakeholder consultations and the available evidence regarding issues facing the maritime workforce in Australia. Priority will be given to:

cadet seafarers – engineers, electro-technical officers and deck officers; and
trainee seafarers – integrated ratings.

Priority may also be given to employers who are actively seeking to improve the diversity of their workforce (noting that only around five per cent of seafarers are women). Seafarers who are upskilling will also be considered. Each grant application will be required to include a discussion of which trainees the funding will be used for and how they will address workforce issues within the applicant’s operations and/or the broader industry.

Funding amount and arrangements, merits review and consultation

Funding of $16.9 million for MSTI was included in the 2025-26 Budget under the measure ‘Supporting Transport Priorities’ for a period of five years commencing in 2024-25. Details are set out in Budget 2025-26, Budget Measures, Budget Paper No. 2 at page 69.

Funding of $14.4 million over four years from 2025-26 for this item will come from Program 2.1: Surface Transport, which is part of Outcome 2. Details are set out in the Portfolio Budget Statements 2025-26, Budget Related Paper No. 1.12, Infrastructure, Transport, Regional Development, Communications and the Arts at page 43.

The MSTI will be delivered via a competitive grant process open to employers of seafarers. The grant will be administered in accordance with the Commonwealth resource management framework, including the PGPA Act, the PGPA Rule and the 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.

It will be administered by the Business Grants Hub, part of the Department of Industry, Science and Resources. Grant opportunity guidelines and program information will be available on the GrantConnect website (www.grants.gov.au). The Business Grants Hub will complete early eligibility checks and then applications will be provided to a departmental panel for assessment. AMSA will provide expert technical advice to the panel as required.

The panel will make recommendations as to which applicant should receive the funding to the Minister for Infrastructure, Transport, Regional Development and Local Government. The Minister will make the final decision regarding successful grantees. Final decisions will be published on the GrantConnect website.

Independent merit reviews of decisions made in connection with the program are not considered appropriate because these decisions relate to the provision of a grant to a certain employer, over other applicants, in a process governed by the PGPA Act and the CGRPs. Any funding that has already been allocated would be affected if the original decision was overturned. The ARC has recognised that it is justifiable to exclude merits review in relation to decisions of this nature (see paragraphs 4.16 to 4.19 of the ARC guide).

The Government has undertaken extensive consultation with regards to the maritime Strategic Fleet and related skills and training issues detailed within the report. The Taskforce released a consultation paper which received 59 stakeholder submissions from across the sector. Additional targeted consultation sessions were undertaken with key stakeholders including unions, shipping providers and users, as well as operators and owners. The final Taskforce report included a number of recommendations related to growing the maritime workforce and supporting skills and training development for seafarers, which informed the Government’s response for the MSTI.

Following the announcement of the MSTI in March 2025, further consultation sessions specific to the program were held with stakeholders including state and territory governments, shipping operators, crewing agencies, training providers, and unions. The first phase involved ‘blank page’ sessions with stakeholders to discuss the issues being addressed by the MSTI and how it could best be implemented. Following this phase, a consultation paper was provided to stakeholders which included key program design elements informed by the earlier sessions. Feedback received through the consultation paper will be considered when finalising the MSTI design.

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 implementing Australia’s international obligations under treaties to which it is a party.

International Convention on Standards of Training, Certification and Watchkeeping for Seafarers 1978 (STCW)

Australia is a party to the STCW. States Parties to the STCW are required to comply with international standards of training, certification and watchkeeping for seafarers, in order to promote safety of life and property at sea and protect the marine environment (STCW Preamble).

Article I provides that States Parties undertake to abide by the Convention and promote all laws, decrees, orders and regulations, to ensure that seafarers on board ships are qualified and fit for their duties.

Article VI(1) provides that States Parties should issue certificates to masters, officers or ratings who satisfy relevant requirements for service, age, medical fitness, training, qualification and examinations.

Funding the MSTI will enable the Government to comply with its obligations under the STCW by increasing the number of appropriately certified seafarers and supporting the Strategic Fleet initiative.

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 (Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Measures No. 1) 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 (Infrastructure, Transport, Regional Development, Communications, Sport and the Arts No. 1) Regulations 2025 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on certain activities administered by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.

This disallowable legislative instrument makes the following amendments to Part 3 of Schedule 1AB:

adds table item 93 ‘Grant to the Australian National Academy of Music Ltd.’;

and the following amendments to Part 4 of Schedule 1AB:

adds table item 740 ‘Investing in LGBTIQA+ Community Connection’;
adds table item 741 ‘Journalism Assistance Fund’; and
adds table item 742 ‘Maritime Skills and Training Initiative’.

Table item 93 – Grant to the Australian National Academy of Music Ltd

The Government will provide funding of $12.5 million over three years from 2025-26 to the Academy to redevelop, restore and enhance its Town Hall premises. The grant funding will be used for costs that include, but are not limited to:

building repairs, including roof structure, external façade, internal brick work and ceilings;
installation of heating, ventilation, security system and air conditioning;
construction and fit-out of offices, meeting rooms and storage areas; and
fit-out of library, main hall, lobby, studios, lounge and commercial kitchens/bar.

Human rights implications

Table item 93 engages the following rights:

the right to work – Article 6 of the International Convent on Economic, Social and Cultural Rights (ICESCR), read with Article 2;
the right to the enjoyment of just and favourable work conditions – Article 7 of the ICESCR;
the right to an education – Article 13 of the ICESCR; and
the right to take part in cultural life – Article 15 of the ICESCR.

Right to work

Article 2 of the ICESCR requires States Parties to take steps to progressively achieve the full realisation of the rights recognised in the ICESCR by all appropriate means.

Article 6 of the ICESCR recognises the right to work.

Table item 93 promotes the realisation of the right to work by supporting employment in the arts sector, and by supporting the continuing viability of the Academy.

Right to the enjoyment of just and favourable work conditions

Article 7 of the ICESCR recognises the right of everyone to the enjoyment of just and favourable conditions of work.

Table item 93 promotes the realisation of the enjoyment of just and favourable conditions of work by making sure the Academy’s building is fit-for-purpose and provides a safe and healthy work environment.

Right to an education

Article 13 of the ICESCR recognises the right of everyone to an education.

Table item 93 promotes the realisation of the right to an education by ensuring appropriate resourcing of the Academy’s facilities and that these facilities meet the requisite standard for elite training and are freely available for use by its students.

Right to take part in cultural life

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

Table item 93 promotes the realisation of this right by supporting the continued creation and delivery of creative works to members of the Australian community.

Table item 93 is compatible with human rights because it promotes the protection of human rights.

Table item 740 – Investing in LGBTIQA+ Community Connection

New table item 740 establishes legislative authority for government spending on the Investing in LGBTIQA+ Community Connection program (the program).

The program aims to promote connection, participation, belonging and empowerment for LGBTIQA+ communities by ensuring audiences have access to media and news content which reflects their particular lived experiences and affirms their connection to a broader community.

Funding of $0.3 million in 2025-26 will be provided to four different LGBTIQA+ media services (JOY Media, Star Observer, QNews and OUTinPerth) to cover a mix of operational costs in order to continue providing broadcasting, podcasting and digital content services for LGBTIQA+ communities.

Funding for JOY Media will be provided for items such as salaries, office lease, equipment purchases or hire, and training that is required to deliver their broadcasting, podcasting and digital content. Funding for Star Observer, QNews and OUTinPerth will provide for up to two staff, either journalists or content producers, and other expenses directly related to the production or distribution of digital news and content for LGBTIQA+ audiences, such as IT equipment or website development, office costs and training.

Human rights implications

Table item 740 engages the following rights:

the right to freedom of expression – Article 19 of the International Covenant on Civil and Political Rights (ICCPR), read with Article 2;
the right to equality and non-discrimination – Article 26 of the ICCPR; and
the right to work – Article 6 of the ICESCR, read with Article 2.

Right to freedom of expression

Article 2 of the ICCPR requires that States Parties to the Covenant undertake to respect and ensure the rights recognised in the Covenant, adopt laws or other measures to give effect to these rights, and ensure an effective remedy to any person whose rights recognised in the Covenant are violated.

There is no Commonwealth legislation enshrining a general right to freedom of expression. Article 19 of the ICCPR states that:

Everyone shall have the right to hold opinions without interference; and
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.

This program upholds the rights in Article 19 by supporting the communication of ideas, opinions and news by the LGBTIQA+ media organisations over broadcasting, podcasting and digital news and content. These services will support both freedom of expression on the part of the presenters, journalists and writers, and on the part of the audiences and readers receiving and responding to the information.

Right to 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’. The Human Rights Committee has interpreted the phrase ‘other status’ to incorporate sexual orientation or sexuality.

The program promotes equality and non-discrimination based on sex, gender and sexual orientation as it will provide funding to media organisations that supply community broadcasting and digital content services to cohorts of people who are otherwise underrepresented in the media, complementing the Australian Government’s broader investments in news and media.

Right to work

Article 2 of the ICESCR requires that States Parties to the Covenant undertake to take steps to the maximum of their available resources, especially economic and technical, to realise the rights recognised in the Covenant, particularly through legislative measures.

Article 6 of the ICESCR recognises the right to work and provides that States Parties will take appropriate steps to achieve the realisation of the right to work, including through technical and vocational training.

By supporting the financial sustainability of the LGBTIQA+ media organisations, the program will support employment in the media sector.

Table item 740 is compatible with human rights because it promotes the protection of human rights.

Table item 741 – Journalism Assistance Fund

New table item 741 establishes legislative authority for government spending on the Journalism Assistance Fund (the JAF).

The JAF forms part of the broader News Media Assistance initiative, an investment aimed at supporting news and journalism across Australia, by establishing a framework for evidence-based, targeted support that addresses ongoing pressures in the news sector, while safeguarding its independence.

The JAF will provide grant funding to news organisations linked to a threshold number of journalists the respective organisations employ, ensuring vital financial support that enables more media companies to remain viable, while helping some expand their operations and broaden their coverage. Funding of $67.6 million over three years from 2025-26 will be provided for the JAF to support public interest journalism and preserve the employment of journalists to continue the operation of existing news providers.

Human rights implications

Table item 741 engages the following rights:

the right to freedom of opinion and expression – Article 19 of the ICCPR, read with Article 2; and
the right to work – Article 6 of the ICESCR, read with Article 2.

Right to freedom of opinion and expression

Article 2(1) of the ICCPR requires that States Parties to the Covenant undertake to respect and to ensure the rights recognised in the Covenant, 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.

There is no Commonwealth legislation enshrining a general right to freedom of expression. Article 19 of the ICCPR states that:

Everyone shall have the right to hold opinions without interference.
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 JAF upholds the rights outlined in Article 19 by supporting public interest news organisations to accurately inform and engage citizens on matters relevant to their rights and responsibilities, the wellbeing of the community, and their participation in democratic processes and public discourse.

Right to work

Article 2 of the ICESCR requires that a State Party to the Covenant ‘…undertakes to take steps, individually and through international assistance and co-operation, especially economic and technical, to the maximum of its available resources, with a view to achieving progressively the full realization of the rights recognized in the present Covenant by all appropriate means, including particularly the adoption of legislative measures’.

Article 6 of the ICESCR recognises the right to work.

By supporting the financial sustainability of public interest journalism, the JAF will support the employment of journalists in the media sector.

Table item 741 is compatible with human rights because it promotes the protection of human rights.

Table item 742 – Maritime Skills and Training Initiative

New table item 742 establishes legislative authority for government spending on the Maritime Skills and Training Initiative (the MSTI).

The MSTI responds to recommendation 11 made in the Strategic Fleet Taskforce Final Report (the report) which explores and examines the current maritime landscape within Australia. The report identified there is limited access to training berths available for entry level seafarers to undertake qualifying sea service and achieve the necessary International Convention on Standards of Training, Certification and Watchkeeping for Seafarers 1978 (STCW) certification.

In response, the MSTI will deliver grants to eligible employers to provide up to 20 trainee seafarers each year, access to berths in order to complete the appropriate sea time to qualify for STCW certification. Employers will also ensure seafarers are receiving high quality training, including mentoring and pastoral care as appropriate. The objective of the grants delivered through the MSTI are to expand the availability of training berths on vessels in order to increase the supply of Australian seafarers certified to the STCW standards.

Funding of $14.4 million will be provided for the MSTI over four years from 2025-26 to deliver grants to employers to support wages, ensure appropriate on-board placements, and cover travel to and from vessels.

Human rights implications

Table item 742 engages the following rights:

the right to work – Article 6 of the ICESCR, read with Article 2, Article 1 of the International Labour Organization’s (ILO) Convention concerning Employment Policy (ILO Convention 122), Article 1 of the Convention concerning the Organisation of the Employment Service (ILO Convention 88) and Articles 1 to 4 of the Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO Convention 142);
the right to education – Article 13 of the ICESCR and Articles 1 to 5 of the ILO Convention 142; and
the right to equality and non-discrimination – Article 26 of the ICCPR, read with Article 2.

Right to work

Article 6 of the ICESCR recognises the right to work and provides that the States Parties will take appropriate steps to achieve the realisation of the right to work, including through technical and vocational training.

Article 1 of the ILO Convention 122 provides that ‘each Member shall declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment’.

Article 1 of the ILO Convention 88 provides that Members shall maintain a free public employment service, which in co-operation with other public and private bodies concerned, ensures the best possible organisation of the employment market to achieve and maintain full employment and the productive use of resources.

Articles 1 to 4 of the ILO Convention 142 relate to the adoption and development of comprehensive and coordinated policies and programs of vocational guidance and training, including providing broadest possible information and guidance, which are closely linked with employment for all people.

The MSTI will promote the right to work by increasing access to training berths on vessels for trainee seafarers. Trainees will strengthen and broaden their skill sets and capabilities, expanding their opportunities in the sector. Employees on the vessels who are responsible for supporting the trainee seafarers will also develop their supervisory skills.

Table item 742 promotes trainee seafarers’ access to full, productive and freely chosen employment by ensuring they can complete the sea time required for their full certification. This includes financial support to travel to the vessel from their usual place of residence, if needed, enhancing sea time opportunities which may otherwise have been inaccessible.

Right to education

Article 13 of the ICESCR recognises the right to education, including technical and vocational secondary education which shall be generally available and accessible to all by every appropriate means.

Articles 1 to 5 of the ILO Convention 142 relate to the adoption and development of comprehensive and coordinated policies and programs of vocational guidance and training, including ensuring training systems meet the needs of all sectors of the economy and all skill levels, and that the policies related to vocational training should be formulated in cooperation with employers and workers organisations.

The MSTI has been established to respond to the needs of the maritime sector and has been developed in consultation with employers, operators and unions.

Right to 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’.

The MSTI will be limited to Australian citizens and permanent residents who are undertaking their sea time. This can be justified because it is for a legitimate aim, based on reasonable and objective criteria, and proportionate to the aims of the measure. This criterion has been introduced to achieve broader policy objectives – namely, to increase the Australian maritime workforce generally and particularly so it can contribute to the establishment of the Strategic Fleet.

The assessment of applications under the MSTI will consider the policies of employers with regards to ensuring underrepresented groups are not being discriminated against. Currently around 7 per cent of the maritime workforce is women, and First Nations make up 1.7 per cent of the workforce (ISA 2025 Maritime Workforce Plan).

Table item 742 is compatible with human rights because it promotes the protection of 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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