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. 3) 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. 3) Regulations 2026 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for the Government to provide a grant to the Indigenous Marathon Foundation Limited (IMF) to continue the Indigenous Marathon Project (IMP). The grant to the IMF is administered by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.
The Australian Sports Commission’s recent AusPlay survey data indicates that First Nations people have lower rates of participation in sport compared with the general population. Insufficient physical activity, together with poor nutrition, has contributed to a disproportionate burden of chronic disease and ongoing health disparities between Indigenous and non-Indigenous Australians.
The IMP aims to promote healthy lifestyles and help reduce chronic disease in First Nations communities, by supporting young participants from across Australia to complete marathon training alongside an education program. Participants return to their communities as healthy lifestyle leaders, supporting an early and culturally appropriate intervention approach.
Funding of $1.2 million in 2026-27 is available for the IMF to deliver the following activities under the IMP:
- recruiting, training, and supporting IMP participants to run marathon events;
- supporting IMP participants to be healthy lifestyle advocates in local communities;
- working with the First Nations community-controlled sector to ensure that IMP activities are culturally appropriate, through co-design and consultation activities; and
- developing specific workforce development and training strategies.
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. 3) 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. 3) 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 3 of Schedule 1AB (in the appropriate position in the table)
This item adds one new table item to Part 3 of Schedule 1AB.
The terms ‘Aboriginal and Torres Strait Islander,’ ‘Indigenous Australians’ and ‘First Nations’ are used interchangeably throughout this attachment, and no distinction is intended.
Table item 118 – Grant to the Indigenous Marathon Foundation Limited
New table item 118 establishes legislative authority for the Government to provide a grant to the Indigenous Marathon Foundation Limited (IMF) to continue the Indigenous Marathon Project (IMP).
The latest AusPlay survey results (Australian Sports Commission, 2025) indicates that First Nations people participate in sport at lower rates than the broader population. Insufficient levels of physical activity, combined with poor nutrition, have contributed to a disproportionate prevalence of chronic disease and a substantial health disparity between Indigenous and non-Indigenous Australians.
The IMP was established in 2009 by world champion marathon runner, Rob De Castella, and created history in 2010 by four Indigenous Australians as the first to run in the world’s biggest marathon – the New York City Marathon. The IMP seeks to address barriers to participation for First Nations people, with program graduates expected to deliver ongoing benefits within their communities.
The IMP is not just a sports program, but a social change program that uses running as a vehicle to promote healthy lifestyles and help reduce chronic disease in First Nations communities, by supporting young participants from across Australia to complete marathon training and an education program. As part of participating, IMP graduates return to their communities as healthy lifestyle leaders.
Since its establishment, the IMP has grown significantly with 167 graduates finishing a major international marathon, including New York, Boston, Tokyo, London, Paris and Berlin, and completing a compulsory education in health and leadership. To support the continual growth and expansion of the IMP, in 2015 Mr De Castella established the IMF, an Australian health promoting charity that uses running to celebrate Aboriginal and Torres Strait Islander peoples, cultures, strength, and achievements, to empower inspirational leaders.
The IMP has been funded in numerous iterations since 2010, reflecting government commitment to programs that improve health and wellbeing outcomes for Aboriginal and Torres Strait Islander people. Funding for the IMP was previously drawn from the Indigenous Australians’ Health Programme managed through the First Nations Health Division within the Department of Health, Disability and Ageing (Health Department). In 2025-26, the IMP funding was transferred to the Office for Sport Division within the department.
The Health Department routinely consults the community-controlled sector peaks, on Aboriginal and Torres Strait Islander health policy, planning, and funding, to assure community-led, culturally safe solutions.
Thus far, the program has successfully addressed a recognised need for increased physical activity and leverages sport as a meaningful and motivating engagement tool. Its face‑to‑face delivery model and strong role‑modelling, particularly from coaches, peers, and Rob De Castella, have contributed to high national demand and participant completion rates exceeding 80 per cent.
The IMF has ensured activities and participant needs are supported by drawing upon consultation inputs gathered by commissioned evaluators and the department, through evaluation and program management activities, including stakeholder interviews and surveys (participants, graduates, community representatives, staff and partners), review of performance and financial reporting, and observation of delivery and community engagement. It has been IMF’s role and responsibility to deliver eligible activities that respond to this information.
The eligible grant activities that the IMP will provide to achieve the objective are:
- recruiting, training, and supporting IMP participants to run marathon events;
- supporting IMP participants to be healthy lifestyle advocates in local communities;
- working with the First Nations community-controlled sector to ensure that IMP activities are culturally appropriate, through co-design and consultation activities; and
- specific workforce development and training strategies.
The department will also conduct project evaluation activities to inform performance and impact and governance and administrative activities relating to the grant activities.
The program demonstrates strong effectiveness, with participants reporting significant improvements in confidence, life skills, and long‑term health behaviours. Many graduates transition into leadership and community‑focused roles, amplifying the program’s impact. Graduate‑led initiatives, such as Deadly Running Groups, further strengthen community health, connection, and cross‑cultural engagement.
Eligible grant activities are published in the grant opportunity guidelines and are informed by the 2018 Social Return on Investment analysis of the IMP. This analysis included the development of a program logic model that articulates how the IMP delivers outcomes. It examined activity costs associated with the IMP and clarifies how they contribute to both short and long-term outcomes for stakeholders.
Additionally, activities are guided by an independent assessment of the IMP that was commissioned by the Health Department in 2020. This evaluation examined the appropriateness, effectiveness, efficiency and sustainability of the IMP, and included substantial evidence collected from interviews with a range of IMP stakeholders and other qualitative and quantitative data sources.
Both the logic model and the 2020 evaluation will continue to provide the benchmark for the ongoing evaluation of the IMP’s performance. The IMF plans activities and success measures aligned to the logic model on a yearly basis. This provides a framework for ongoing evaluation of program outcomes for graduates, their communities, and government alike.
The four IMP performance measures are:
- at least 12 First Nations participants across all states and territories;
- delivery of five workshops per year, with an expected 85 per cent attendance rate;
- delivery of educational and leadership training, with a target 90 per cent attendance rate; and
- participant marathon completion, with a target rate of 80 per cent.
Achievement of the IMP’s objectives and outcomes will also support:
- priority Reform Two, and advance Targets 1 and 14 of the National Agreement on Closing the Gap; and
- priorities of Australia’s National Sports Strategy, Sport Horizon, participation and inclusion.
Funding amount and arrangements, merits review and consultation
Funding of $1.2 million for the program was included in the 2026-27 Budget under the measure ‘Closing the Gap – further investments’ for a period of one year commencing in 2026-27. Details are set out in Budget 2026-27, Budget Measures, Budget Paper No. 2 at page 60.
Funding for this item will come from Program 7.1: Sport and Physical Activity, which is part of Outcome 7. Details are set out in the Portfolio Budget Statements 2026-27, Budget Related Paper No. 1.12, Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Portfolio at page 74.
Funding for the IMP will be delivered through a closed, non-competitive application-based grant process. The IMF have been identified as the only organisation eligible to apply. This approach is appropriate given the IMF was established with the purposes of managing the IMP. The grant opportunity will be administered by the Community Grants Hub, which is part of the Department of Social Services, in collaboration with the department.
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 and the Commonwealth Grants Rules and Principles 2024 (CGRPs). Consistent with the CGRPs, the department will develop grant opportunity guidelines and will have regard to the nine key principles in delivering the grant.
While the IMF is the only eligible organisation for this grant opportunity, an assessment process will still occur to assure continued value with relevant money. An assessment team comprised of officers from the department will be assembled to facilitate this process. Team members and delegates will declare any conflict of interests in the context of roles and responsibilities for the IMP grant. The eligibility of the IMP will be confirmed according to stipulation in the guidelines published on GrantConnect (www.grants.gov.au).
Standard eligibility criteria will also apply, whereby the IMF must not receive funding from another government source for the same purpose, nor be included on the National Redress Scheme or Gender Equality Agency website non-compliant list. Continued achievement of value with relevant money will remain a key requirement.
Once eligibility is confirmed, assessment of an application to be submitted by IMF will be assessed against pre-determined merit criteria (also published in the grant guidelines). The assessment criteria will consider: alignment with grant requirements, objectives and outcomes, organisational capacity and capability to deliver the grant activities, and efficient, effective, economical and ethical use of relevant money. An assessment moderation will be undertaken.
The assessment team will make a recommendation to the decision-maker to approve grant awards. A delegate of the Secretary of the department under the Financial Framework (Supplementary Powers) Act 1997 will be responsible for approving Commonwealth funding provided to the eligible organisation. The delegate will be at the Senior Executive Service Band 1 level and have appropriate experience and knowledge to exercise this function.
The grant award will be published on GrantConnect (www.grants.gov.au). This approach is in line with the requirements of the PGPA Act and the CGRPs when making decisions about Commonwealth expenditure.
Independent merits review of decisions made in connection with the grant is not considered appropriate because these decisions relate to the provision of a 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?).
The IMF remains an appropriate organisation for a grant arrangement continuation. This has been confirmed after a due diligence process that examined information available to the department, to determine previous grant agreement compliance, eligibility, and therefore the level of risk associated with adopting a single organisation eligibility approach that targets the IMF. To date, IMP has demonstrated value with relevant money.
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 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 Government’s continued support for the IMP was informed by the 2020 independent evaluation. The evaluation involved extensive consultation with IMP stakeholders from all key groups conducted through 39 semi-structured interviews. IMP stakeholders included participants, graduates from 2010-2019, IMF staff, First Nations community representatives, and other IMP stakeholders included partners, former staff, sponsors and ambassadors.
The Community representatives interviewed were family members of IMP participants or graduates, people from participants’ local communities (including those connected to program activities), and individuals from communities impacted by the IMP or involved in related activities (e.g. community events, running groups).
Community representatives viewed the IMP as a highly beneficial program that creates positive health, social, and motivational impacts, particularly through the influence of graduates in their local communities.
Key findings found IMP participants experience a range of health and wellbeing outcomes which led to them becoming role models, advocates and health leaders in their communities. Key issues identified included program effectiveness, cultural safety, Indigenous leadership and cultural governance, mental health and wellbeing support, community impact, sustainability and delivery risks, and the need for trauma‑informed practice and clearer support for graduates as role models.
IMP/IMF perspectives emphasised strong impacts (including leadership outcomes and community benefits) alongside opportunities to strengthen supports and governance. These views informed the evaluation’s findings and recommendations (for example, trauma‑informed wellbeing supports, strengthened Indigenous governance/leadership, improved data and partnership options), which in turn informed departmental assurance and decision‑making. These findings have continued to inform iterations of IMP across the years.
The National Indigenous Australians Agency (NIAA) also participated in the independent evaluation, and its advice has informed the ongoing implementation of the IMP. The evaluation noted that, as IMF is not an Indigenous corporation, it cannot access Indigenous specific grant funding. To assess the IMP’s appropriateness, the evaluation consulted the NIAA on similarities between the IMP and Indigenous specific programs it funds, including Commonwealth funding, the use of sport to engage young Indigenous people, opportunities to meet sports role models, and aims to support positive community level outcomes. By contrast, the evaluation findings found IMP to be comparable to grant opportunities that NIAA supports.
As part of the development of the 2025-26 IMP grant opportunity guidelines, the department engaged with the IMF, within the confines of probity advice, to ensure the guidelines remained culturally appropriate and represented continued value for money. The department will continue to work with the IMF and other key stakeholders (such as the NIAA), as appropriate, and ongoing consultation will continue throughout the life of the grant agreement and development of future grant opportunities.
Constitutional considerations
Noting that it is not a comprehensive statement of relevant constitutional considerations, the purpose of the item references the race power (section 51(xxvi)) of the Constitution.
Race power
Section 51(xxvi) of the Constitution empowers the Parliament to make laws with respect to ‘the people of any race for whom it is deemed necessary to make special laws’.
The IMP will promote healthy lifestyles and assist to reduce the burden of chronic disease within First Nations communities, by providing funding to recruit, train and support a group of First Nations people from various communities around Australia to undergo marathon training, participate in marathon events and complete an education program.
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. 3) 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. 3) Regulations 2026 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for the Government to provide a grant to the Indigenous Marathon Foundation Limited (the IMF) to continue the Indigenous Marathon Project (IMP). The grant to the IMF is administered by the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.
The IMP aims to promote healthy lifestyles and help reduce chronic disease in First Nations communities, by supporting young participants from across Australia to complete marathon training and an education program. As part of participating, IMP graduates return to their communities as healthy lifestyle leaders.
Funding of $1.2 million in 2026-27 is available for the IMF to deliver the following activities under the IMP:
- recruiting, training, and supporting IMP participants to run marathon events;
- supporting IMP participants to be healthy lifestyle advocates in local communities;
- working with the First Nations community-controlled sector to ensure that IMP activities are culturally appropriate, through co-design and consultation activities; and
- developing specific workforce development and training strategies.
Human rights implications
This disallowable legislative instrument engages the following rights:
- the right to health – Article 12 of the International Convent on Economic, Social and Cultural Rights (ICESCR), read with Article 2;
- the right to education – Articles 13 and 14 of the ICESCR;
- the right to take part in cultural life – Article 15 of the ICESCR;
- the rights of Indigenous peoples – Articles 14, 21 and 24 of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP);
- the right to non-discrimination and equality – Articles 2 and 3 of the ICESCR, and Article 26 of the International Covenant on Civil and Political Rights (ICCPR), read with Article 2; and
- the right to work and vocational training – Article 6 of the ICESCR, and the International Labour Organization Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO Convention 142).
Right to health
Article 2(1) of the ICESCR requires each State Party to ‘take steps… to the maximum of its available resources, with a view to achieving progressively the full realization’ of the rights recognised in the ICESCR ‘by all appropriate means, including particularly the adoption of legislative measures’.
Article 12(1) of the ICESCR recognises the ‘right of everyone to the enjoyment of the highest attainable standard of physical and mental health’.
Marathon training supports physical health and fitness while helping to reduce the risk of chronic disease. Structured training and wellbeing programs are associated with improved health outcomes for Aboriginal and Torres Strait Islander participants. This disallowable legislative instrument promotes the right to health by increasing access to activities that encourage healthy, active lifestyles.
Right to education
Article 13(1) of the ICESCR provides that the States Parties agree that education ‘…shall be directed to the full development of the human personality and the sense of dignity, and shall strengthen the respect for human rights and fundamental freedoms’.
Article 13(2)(c) of the ICESCR relates to providing higher education equally to all, on the basis of capacity and by every appropriate means.
The right to education is reinforced under Article 14 of the ICESCR by imposing a specific planning obligation by States Parties aimed at achieving free, compulsory primary education for all.
The IMP incorporates educational and leadership components that broaden opportunities for skills development and lifelong learning. In doing so, the IMP supports and advances the enjoyment of this right.
Right to take part in cultural life
Article 15(1) of the ICESCR recognises the right of everyone to take part in cultural life, to enjoy the benefits of scientific progress and its applications and to benefit from the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he is the author.
The IMP being delivered in partnership with Aboriginal and Torres Strait Islander community‑controlled organisations support culturally appropriate and inclusive participation. Leadership and training activities may also strengthen cultural identity and foster community connection.
Rights of Indigenous peoples
The UNDRIP informs the way governments engage with and protect the rights of Indigenous peoples. Of relevance to this program are the following:
- Article 14 – the right to education that reflects cultural methods and values.
- Article 21 – Indigenous peoples have the right to improvement of their economic and social conditions, including education, employment, health and development.
- Article 24 – the right to traditional medicines and health practices, and the highest attainable standard of physical and mental health.
The IMP exclusively supporting Aboriginal and Torres Strait Islander people promotes social, health, and educational development in culturally safe and appropriate ways. It also aligns with the principles of self‑determination and community‑led development by empowering communities to shape and deliver initiatives that meet their own needs.
Right to non-discrimination and equality
Article 2(2) of the ICESCR requires the States Parties to ‘undertake to guarantee that the rights enunciated in the present Covenant will be exercised without discrimination of any kind as to race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status’.
Article 3 of the ICESCR requires the States Parties to ‘undertake to ensure the equal right of men and women to the enjoyment of all economic, social and cultural rights set forth in the present Covenant’.
Article 2(2) of the ICCPR requires that each State Party ‘undertakes to take the necessary steps… to adopt such legislative or other measures as may be necessary to give effect to the rights’ recognised in the ICCPR.
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 IMP targeting Aboriginal and Torres Strait Islander people constitutes a special measure aimed at achieving substantive equality. Such measures are permitted and encouraged under international law where they support disadvantaged groups to attain equal enjoyment of their human rights.
Right to work and vocational training
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.
Further, 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 IMP provides leadership courses, structured training frameworks, and skills development initiatives supporting participants’ employability. The IMP strengthens individual capability and expands opportunities for future employment pathways.
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