Financial Framework (Supplementary Powers) Amendment (Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Measures No. 1) Regulations 2026

EXPLANATORY STATEMENT

Issued by the Authority of the Minister for Finance

Financial Framework (Supplementary Powers) Act 1997

Financial Framework (Supplementary Powers) Amendment

(Infrastructure, Transport, Regional Development, Communications, Sport and the Arts 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 (Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Measures No. 1) Regulations 2026 (the Regulations) amend table item 575 in Part 4 of Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the On Farm Connectivity Program (the program), administered by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.

Established in 2022, the program supports Australia’s primary producers in agriculture, forestry, and fisheries to improve connectivity across their properties and leverage technologies such as connected machinery, sensors, and other digital services. It offers rebates of up to 50 per cent to help cover the cost of eligible equipment solutions, including delivery, installation, and training, such as Wi-Fi systems, external antennas, repeaters, boosters, and sensors. By addressing connectivity challenges, the program aims to enhance access to telecommunications, boost productivity and safety for farmers, and improve efficiency across the agriculture, fisheries, and forestry sectors.

Funding of $20.0 million is allocated in 2025-26 to support round three of the program to subsidise the cost of connectivity equipment and connectivity enabled agriculture-technology for Australian primary producers.

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 2026

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 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 Infrastructure, Transport, Regional Development, Communications, Sport and the Arts (the department).

Amended table item 575 – On Farm Connectivity Program

Item 1 – Part 4 of Schedule 1AB (table item 575)

Item 1 amends table item 575 by repealing and substituting the full item. Table item 575 in Part 4 of Schedule 1AB establishes legislative authority for government spending for the On Farm Connectivity Program (the program).

Established in 2022, the program supports primary producers in the agriculture, forestry, and fisheries sectors to improve on‑farm connectivity and adopt connected machinery, sensor technologies, and related digital services.

The program was informed by the 2021 Regional Telecommunications Review (www.infrastructure.gov.au/department/media/publications/2021-regional-telecommunications-review-step-change-demand) that found connectivity gaps were impacting the uptake of technology solutions by primary producers. It is a demand-driven grant initiative that provides rebates of up to 50 per cent of the total cost, covering equipment, delivery, installation, and training. Eligible solutions include (but are not limited to): Wi‑Fi systems, external antennas, repeaters, boosters, and a range of sensor technologies.

The program has successfully delivered two rounds of grant opportunities totalling $33.0 million since its establishment. Before each funding round opens, the department conducts an expression of interest process to identify equipment suppliers eligible to participate in the program. This process resulted in 77 suppliers being approved for Round 1 and 364 for Round 2. Under the program’s two‑stage structure, an approved supplier is required to submit an application for pre‑approval for each proposed transaction. Pre‑approval confirms that the primary producer and the equipment meet eligibility requirements and that funding is available. Only after receiving this confirmation can the sale proceed.

Once pre‑approved, the approved supplier had to complete the sale, including delivery, installation, and any other associated activities, and lodge the rebate claim within 60 days for Round 1 or 120 days for Round 2. The rebate was applied at the point of sale as a discount on the equipment price. The primary producer paid only the remaining balance, and the approved supplier subsequently claimed the rebate amount from the program.

Over the program’s lifecycle, several design changes have been supported. The key design changes in Round 2 included expanded eligibility requirements, increasing the number of primary producers eligible to participate and including a wider range of products. Other changes included: a reduction of the minimum rebate amount from $3,000 to $1,000, increasing the timeline between pre-approval and rebate submission to 120 days, and increasing the maximum income eligibility for primary producers from $2.0 million to a $4.0 million average annual revenue cap.

While previous rounds successfully demonstrated the value of targeted on-farm connectivity investment, they did not resolve the persistent connectivity challenges that remain for primary producers in regional, rural and remote areas of Australia. Demand in earlier rounds exceeded available funding, demonstrating an ongoing high need for the program to continue for a further round. On 14 January 2025, the then Minister for Communications, announced a third round of funding for the program and approved a further $20.0 million in 2025-26 (https://minister.infrastructure.gov.au/rowland/media-release/backing-aussie-farmers-additional-20-million-ag-tech-connectivity).

Public consultation in 2025 highlighted several issues that supported amending the program to clarify the eligibility of connectivity‑enabled agriculture-technology (‘ag‑tech’) equipment. Key themes raised, and the corresponding amendments proposed for Round 3 include:

• Strong stakeholder consensus that connected ag‑tech equipment is integral to connectivity outcomes. Connected ag‑tech is the primary mechanism through which on‑farm connectivity delivers productivity, safety and efficiency gains.
  • Round 3 will explicitly include connectivity‑enabled ag‑tech equipment as eligible expenditure.

• Excluding ag‑tech categories would significantly undermine program effectiveness. Omitting key equipment types, risks reducing alignment with program objectives and dampening demand from primary producers—the program’s core beneficiaries.
  • Round 3 will ensure eligible expenditure aligns with program objectives and supports maximum uptake.
• Practical use of connectivity on farm requires connected ag‑tech solutions. Sensors, automation tools and monitoring equipment are essential to translating connectivity into practical agricultural applications.
  • Round 3 will confirm that expenditure on these technologies is consistent with the legislative authority and the program’s outcomes‑focused intent.
• Connectivity‑enabled ag‑tech solutions offer the strongest value for money. Investment in proven, connectivity‑enabled equipment is expected to drive improvements in productivity, safety and efficiency.
  • Round 3 will enable funding for technologies with demonstrated on‑farm benefits.
• Stakeholders expressed clear demand for end‑to‑end solutions rather than standalone connectivity. Producers prefer integrated connectivity and ag‑tech packages that deliver immediate, practical outcomes.
  • Round 3 will support funding of integrated connectivity and ag‑tech equipment solutions under a single legislative authority.

Program funding under Round 3 will be expended on activities directly supporting the delivery of on-farm connectivity outcomes including:

• purchase and installation of eligible connectivity and connectivity-enabled ag-tech equipment;
• network enablement;
• infrastructure necessary to support connectivity; and
• project delivery, installation and administration costs.

These spending activities directly contribute to the program’s objectives by:

• improving access to reliable digital connectivity on farms;
• supporting productivity, efficiency, safety and sustainability outcomes;
• reducing connectivity gaps in regional, rural and remote areas; and
• strengthening farm business capability and competitiveness.

Funding amount and arrangements, merits review and consultation

Funding of $20.0 million in 2025-26 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 Budget Statements 2025-26, Budget Related Paper No. 1.12, Infrastructure, Transport, Regional Development, Communications and the Arts Portfolio at page 67.

The department will deliver the program through a demand-driven grant process 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.

The Minister for Communications will be the decision-maker for the grant opportunity guidelines. Policy decisions for the program will be made by an appropriate delegate of the Secretary of the department under the Financial Framework (Supplementary Powers) Act 1997. The delegate will also be responsible for approving Commonwealth funding for the purposes of administering Round 3. The delegate is a Senior Executive Service Band 1 level with the requisite skills, knowledge and experience to approve Commonwealth expenditure in accordance with legislative and financial management requirements. 

Grant opportunity guidelines will be developed and published on GrantConnect (www.grants.gov.au). Grants funding will be administered by the Business Grants Hub, which is part of the Department of Industry, Science and Resources. All final decisions will be published on GrantConnect.

While no formal evaluation framework was established for earlier rounds, robust consideration was given to the program design elements, implementation and results to inform program refinement for Round 3, including:

• lessons learned from delivery and administration of previous rounds;
• targeted engagement with industry and stakeholders on program settings and usability;
• program closure reporting provided by the Business Grants Hub;
• development of case studies by the Regional Tech Hub of the program’s benefits for primary producers; and
• fraud risk assessments and program risk analysis.

Collectively, these inputs informed continuous improvement and provided a sound evidence base for the development of the Round 3 design. Evaluation of Round 3 will draw on lessons learned from delivery data, implementation arrangements, Business Grants Hub reporting, and stakeholder feedback, and will be supported by a proportionate post-implementation review to assess outcomes, value for money and inform future programs.

Independent merits review of decisions made in connection with the grant would not be considered appropriate because these decisions relate to the provision of a one-off grant to a certain service provider, over other service providers. In addition, 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 4.16 to 4.19 of the guide, What decisions should be subject to merit review?).

These measures will be delivered in accordance with Australian Government obligations and processes within the department. Applicants who are affected by decisions or who have complaints have recourse in in accordance with a Client Service Charter, and such complaints will be investigated under the department complaints policy and procedures. Information on the Charter and handling of complaints is available at: www.infrastructure.gov.au/about-us/corporate-reporting/client-service-charter.

The review and audit process undertaken by the Australian National Audit Office 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 recourse to the Commonwealth Ombudsman where appropriate.

The department conducted public consultation on a number of proposed design changes for Round 3 of the program, releasing a discussion paper and survey via its departmental Have Your Say page (www.infrastructure.gov.au/have-your-say), which opened from 17 July 2025 to 26 August 2025. The department received 232 responses from primary producers, suppliers of equipment, industry bodies and members of the public.

The department also undertook targeted consultation on the proposed design changes for Round 3 from December 2024 to May 2025. Stakeholders consulted include the National Farmers Federation, Meat and Livestock Australia, AusAgritech, New South Wales Department of Primary Industries and Regional Development, the Department of Agriculture, Forestry and Fisheries, and the Foundation for Rural and Regional Renewal.

Feedback from stakeholders were considered in the development for Round 3 grant opportunities, which retained most design elements from the previous rounds, with several enhancements aimed to:

• strengthen requirements for participating approved suppliers;
• provide greater assurance that only fit-for-purpose equipment is eligible and subject to a rebate;
• increase communications to primary producers to support their participation in the program; and
• increase fraud-risk mitigations to enhance protections for program participants and the government.

Constitutional considerations

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

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 primary producers on their properties by subsidising the cost of agriculture-technology and connectivity equipment with the aim of increasing connectivity, improving safety and driving more efficient farming practices. Funding for the program may be used to support activities that include improving access to internet and other telecommunications services, and activities that enable the transmitting or receiving of data through the internet or another telecommunications service.

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 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 (Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Measures No. 1) Regulations 2026 (the Regulations) amend table item 575 in Part 4 of Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the On Farm Connectivity Program (the program), administered by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts (the department).

Established in 2022, the program supports Australia’s primary producers in agriculture, forestry, and fisheries to improve connectivity across their properties and leverage technologies such as connected machinery, sensors, and other digital services. It offers rebates of up to 50 per cent to help cover the cost of eligible equipment solutions, including delivery, installation, and training, such as Wi-Fi systems, external antennas, repeaters, boosters, and sensors. By addressing connectivity challenges, the program aims to enhance access to telecommunications, boost productivity and safety for farmers, and improve efficiency across the agriculture, fisheries, and forestry sectors.

Funding of $20.0 million in 2025-26 will support round three of the program to subsidise the cost of agriculture-technology and connectivity equipment for Australian primary producers.

Human rights implications

This disallowable legislative instrument engages the right to prohibition on interference with privacy and attacks on reputation – Article 17 of the International Covenant on Civil and Political Rights (ICCPR), read with Article 2.

Right to prohibition on interference with privacy and attacks on reputation

Article 2 of the ICCPR requires States Parties to the Covenant undertake to respect and to ensure to all individuals within its territory and subject to its jurisdiction the rights recognised, without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status.

Article 17 of the ICCPR provides that ‘no one shall be subjected to arbitrary or unlawful interference with his privacy, family, home or correspondence, nor to unlawful attacks on his honour and reputation. Everyone has the right to the protection of the law against such interference or attacks’.

The program will collect personal information from recipients of goods and services from the grant funding opportunity. This information may also be linked across government agencies and potentially shared with state and territory government agencies. Sharing with state and territory government agencies will be for the sole purpose of avoiding duplication of goods and services where a commensurate state and territory program exists. The department will work to ensure any personal information shared is the bare minimum needed to identify areas of duplication and that potential grant funding recipients are made aware of this before participating in the program.

A further safeguard is provided through the protection of the information under the Privacy Act 1988 (the Privacy Act) which applies to Australian Government agencies. The department and the Business Grants Hub which is part of the Department of Industry, Science and Resources will be required to collect and store the information in accordance with the Privacy Act. The Privacy Act sets out the applicable Information Privacy Principles which deal with all stages of the processing of personal information, setting out standards for the collection, storage, security, use, disclosure and quality of personal information.

In addition to Commonwealth privacy legislation, each state and territory has either legislative schemes or administrative regimes to regulate the management of personal information.

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