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. 2) 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. 2) Regulations 2026 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the News Media Assistance Program—News Innovation Fund (the NIF). The NIF will be administered by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.
The NIF forms part of the broader News Media Assistance Program, an investment aimed at supporting news and journalism across Australia, which is supported by a framework for
evidence-based, targeted support that addresses ongoing pressures in the news sector, while safeguarding its independence.
The NIF sets out three objectives for the sector to:
- support Australian news publishers to produce core news in the face of significant disruption to the media sector;
- diversify avenues of support for digital news publishers, through commercial means; and
- encourage innovation in business practices to support and improve the capacity development of news producers.
Funding of $31.5 million over two years from 2026-27 will be provided for the NIF to support projects that foster commercial and community partnerships for news producers, build resilience through enhanced capacity and capabilities, strengthen business planning via improved governance practices and policies, and expand the delivery of core news content to existing or new communities.
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. 2) 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. 2) 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 to be administered by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts (the department).
Item 1 – Part 4 of Schedule 1AB (in the appropriate position in the table)
This item adds one new table item to Part 4 of Schedule 1AB.
Table item 782 – News Media Assistance Program—News Innovation Fund
New table item 782 establishes legislative authority for government spending on the News Media Assistance Program—News Innovation Fund (the NIF).
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.
Australian news media is under significant pressure from changing audience behaviours, declining advertising revenues, and increasingly complex relationships with major digital platforms. While many producers have successfully leveraged opportunities in the digital environment, ongoing volatility in advertising income and rapid technological change mean the industry must take further steps to ensure long-term competitiveness and sustainability.
The NIF forms part of the News MAP and will support business innovation and build the commercial sustainability and resilience of news organisations. The NIF sets out three objectives for the sector:
- supporting Australian news publishers to produce core news in the face of significant disruption to the media sector;
- diversifying avenues of support for digital news publishers, through commercial means; and
- encourage innovation in business practices to support and improve the capacity development of news producers.
To meet these objectives, the NIF will fund projects which assist Australian news organisations to develop innovative business models that strengthen commercial sustainability and enhance the sector’s capacity to respond to significant external pressures. Each project must be grounded in achieving one or more of the NIF’s four outcomes:
- retain or expand the capacity to produce news and maintain editorial independence;
- maintain, or increase, commercial revenue;
- engage new audiences with existing or expanded offerings; and
- help reduce operating costs with more efficient business practices.
Projects under the NIF will range in scale and complexity depending on the needs of the applicant organisation, but must break new ground in pursuit of these objectives. The projects could include activities that:
- facilitate reach into communities, such as purchasing transmission equipment or launching a new distribution method to expand coverage;
- build and diversify commercial revenue, such as establishing a subscription service; and
- build the capability and capacity of a news producer, such as staff training or purchasing research or Information Technology resources.
The NIF will be an open-competitive grant program. Organisations with a primary purpose of producing core news content for digital distribution and enabling services that provide third party support to those news producers, will be eligible to apply. Applicants must be Australian-owned and operate in Australia with a valid Australian Business Number. Applicants must not be a government entity or government-owned business.
Funding amount and arrangements, merits review and consultation
Funding of $31.5 million for the NIF 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 page 286.
The Government has approved for the NIF to be delivered over two years from 2026-27. 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 2025‑26, Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Portfolio at page 55.
The funding 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 and the Commonwealth Grants Rules and Principles 2024 (CGRPs).
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 Financial Framework (Supplementary Powers) Act 1997 (FFSP Act).
Consistent with the CGRPs, the department will develop grant opportunity guidelines and will have regard to the nine key principles in delivering the grant. A forecast opportunity is currently available on the GrantConnect’s website www.grants.gov.au (FO31032026 refers). 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 Senior Executive Service 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.
Grants will be administered by the Business Grants Hub, which is part of the Department of Industry, Science and Resources, with payments to be made to grantees in instalments upon receipt of project progress reports. Payments will be made according to an agreed schedule in the grant agreement.
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.
Grant opportunity guidelines and final grant decisions will be publicly available on GrantConnect (www.grants.gov.au).
An 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 NIF is to support the media industry. The funding will be delivered through an open-competitive grants process, and the
decision-maker must not approve funding if there are insufficient program funds available within a given financial year. The funding decisions under the NIF will be made based on an allocation of finite resources, meaning a merits review decision under the NIF may affect or overturn an agreed allocation to a party. The Administrative Review Council has recognised that is justifiable to exclude review in relation to decisions of this nature (see paragraphs 4.11 to 4.19 of the guide, What decisions should be subject to merits review?).
The review and audit process undertaken by the Australian National Audit Office provides a mechanism to review Australian Government spending decisions and report any concerns to the Parliament. These requirements and mechanisms help to ensure the proper use of Commonwealth resources and appropriate transparency around decisions relating to making, varying or administering arrangements to spend relevant money.
Further, the right to review under section 65 (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.
In accordance with the requirements under the CGRPs, the department has established an evaluation framework to measure the intended outcomes and objectives of the NIF, that they are consistent with the strategic policy direction as outlined in the portfolio statement, and to inform continual learning and improvement of grant administration and policy development. This will include data gathering and analysis, post-assessment report, report from grantees, internal review of policies and process to determine the overall impacts and outcomes of the program against what was intended.
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 funding to help news organisations innovate and enhance the digital accessibility of digital public interest journalism, particularly in underserved regions or ‘news deserts’.
Informed by the public consultation, the Australian Government released the News MAP Policy Framework. The Policy Framework 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. The Policy Framework is published at www.infrastructure.gov.au/
department/media/publications/news-media-assistance-program-governments-role-news-and-journalism.
Subsequently, on 13 November 2025, the department organised a roundtable of 26 industry stakeholders to seek their views on the design and implementation of the NIF. The attendees included news producers, peak bodies, academics, and advocacy groups, and provided input on the targeting, duration, and assessment of prospective projects.
Attendees recognised the need and benefits of innovating but reported low capacities across the industry to do so, identifying limited resourcing and time as significant barriers. Stakeholders were supportive of projects that encouraged cross-collaboration to share resources and expertise to grow audiences and revenue, and a grant structure that would diversify funding across as many segments of the market as possible, ensuring smaller, less capable organisations would also benefit from funding. There was broad support for peak bodies to be eligible for funding to leverage the impact of funding via their membership networks. Stakeholders also advocated for the use of funding to hire new journalists to increase news production, and to support organisations that targeted new, diverse or hard to reach audiences.
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 NIF will support existing Australian digital news organisations that produce public interest news content, and third-party organisations who provide enabling services to those news producers, to improve the efficiency, sustainability, and resilience of the sector. Funding for the NIF may be used to support activities that include the creation and distribution of news content for publication on the internet, and activities that enable the provision, or enhance the quality, integrity or safety of digitally distributed news content.
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. 2) 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. 2) Regulations 2026 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the News Media Assistance Program—News Innovation Fund (the NIF) to be administered by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.
The NIF forms part of the broader News Media Assistance Program, an investment aimed at supporting news and journalism across Australia, which is supported by a framework for evidence-based, targeted support that addresses ongoing pressures in the news sector, while safeguarding its independence. The objectives of the NIF are to:
- diversify avenues of support for digital news publishers, through commercial means;
- support Australian news publishers to produce core news in the face of significant disruption to the media sector; and
- encourage innovation in business practices to support and improve the capacity development of news producers.
Funding of $31.5 million over two years from 2026-27 is available for the NIF to support projects that foster commercial and community partnerships for news producers, build resilience through enhanced capacity and capabilities, strengthen business planning via improved governance practices and policies, and expand the delivery of core news content to existing or new communities.
Human rights implications
This disallowable legislative instrument engages the following rights:
- the right to freedom of opinion and expression – Article 19 of the International Covenant on Civil and Political Rights (ICCPR), read with Article 2; and
- the right to work – Article 6 of the International Covenant on Economic, Social and Cultural Rights (ICESCR), read with Article 2.
Right to freedom of opinion and expression
Article 2(1) of the ICCPR requires that each State Party to the Covenant undertakes 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; 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.
The NIF 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(2) of the ICESCR requires that each 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 NIF will support the employment of journalists in the media sector.
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