EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(Prime Minister and Cabinet’s Portfolio Measures No. 3) 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 (Prime Minister and Cabinet’s Portfolio Measures No. 3) Regulations 2025 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the National Aborigines and Islanders Day Observance Committee (NAIDOC) Local Grants program (the program). The program is administered by the National Indigenous Australians Agency (NIAA), part of the Prime Minister and Cabinet portfolio.
The program supports community-based NAIDOC Week celebrations that recognise the history, culture, and achievements of First Nations people. The program provides one-off grants to both First Nations and non-Indigenous legal entities to support activities that promote the expression, engagement, and revitalisation of Aboriginal and Torres Strait Islander cultures, promoting a broader understanding and acceptance of the unique place of Aboriginal and Torress Strait Islander cultures in Australian society.
NAIDOC Week celebrations have been held annually since 1975.The program has been administered on behalf of the Australian Government by the NIAA since 2020 and supported by the Australian Government since at least 2005, to promote the expression of Aboriginal and Torres Strait Islander cultures through NAIDOC Week activities.
Funding of $3.0 million is available for 2025-26. The funding allocation for the program is announced publicly each year by the Minister for Indigenous Australians when the annual grants round is opened.
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 NIAA.
Attachment A
Details of the Financial Framework (Supplementary Powers) Amendment
(Prime Minister and Cabinet’s Portfolio Measures No. 3) Regulations 2025
Section 1 – Name
This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Prime Minister and Cabinet’s Portfolio Measures No. 3) 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 item in Schedule 1 amends Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on an activity administered by the National Indigenous Australians Agency (NIAA), part of the Prime Minister and Cabinet portfolio.
Item 1 – In the appropriate position in Part 4 of Schedule 1AB (table)
This item adds one new table item to Part 4 of Schedule 1AB.
Table item 762 – NAIDOC Local Grants
New table item 762 establishes legislative authority for government spending on the National Aborigines and Islanders Day Observance Committee (NAIDOC) Local Grants program (the program).
The terms ‘Aboriginal and Torres Strait Islander’ and ‘First Nations’ are used interchangeably throughout this attachment, and no distinction is intended.
The program supports community-based NAIDOC Week celebrations that recognise the history, culture, and achievements of First Nations people. NAIDOC Week was established in 1975 and is marked across Australia every year, beginning on the first Sunday in July and finishing on the second Sunday.
NAIDOC Week has its origins in protest staged in Sydney on 26 January 1938, to draw attention to the status and treatment of Aboriginal Australians. In subsequent years, a Day of Mourning (which became known as Aborigines Day) was held annually on the Sunday prior to Australia Day. The date was later moved to the first Sunday in July and shifted the focus from a day of protest to a day to celebrate Aboriginal culture. NAIDOC stands for ‘National Aborigines and Islanders Day Observance Committee’ (the Committee). In 1974, the Committee was comprised of all Aboriginal members for the first time and in 1975, the Committee decided that celebrations and events should occur across a week. This week has become known as NAIDOC Week.
The program has been administered on behalf of the Australian Government by the NIAA since 2020 and supported by the Australian Government since at least 2005. The program provides one-off grants, which aims to promote the expression, engagement and re-vitalisation of Aboriginal and Torres Strait Islander cultures and promote a broader understanding and acceptance of the unique place of Aboriginal and Torres Strait Islander cultures in Australian society.
The program’s grants opportunity is announced each year by the Minister for Indigenous Australians on the day applications open. 2025 marked 50 years of the week-long NAIDOC Week celebrations, and the theme, The Next Generation: Strength, Vision & Legacy, celebrated the achievements of the past and the bright future ahead (https://ministers.
pmc.gov.au/mccarthy/2025/local-grants-now-open-50th-national-naidoc-week-celebrations).
Grants available under the program are low in funding value, with the maximum funding available for an individual grant capped at $25,000. Grants awarded are one-off, short-term agreements, for activities generally to be held during NAIDOC Week each year in the first week of July, or between 1 July and 31 October of that year.
Activities and events typically supported through the program include:
- family fun days;
- cultural activities, including Welcome to Country;
- arts based activities, including design work, painting, dancing, crafts and storytelling;
- Elders activities;
- bush tucker and other community cooking activities;
- NAIDOC themed sporting activities or competitions; and
- other activities that actively promote reconciliation.
The NIAA has undertaken internal reviews and made amendments to the program over the last few years. The amendments have sought to streamline the grants process and ensure that grants can be delivered as efficiently as possible, and commensurate with the high volume and low funding value of grants delivered through the program.
To be eligible for funding, the proposed activity or event must support the Government’s commitment to celebrate, support, and raise awareness of First Nations histories and cultures within the wider community and meets the objectives of the grant opportunity. Both First Nations and non-Indigenous legal entities may apply. Non-Indigenous organisations are strongly encouraged to provide a Letter of Support from their relevant local First Nations communities or stakeholders.
Funding preference is given to Indigenous organisations as set out in the grant opportunity guidelines in the following order:
- organisations with at least 51 per cent First Nations ownership and at least 51 per cent First Nations control; then
- organisations with at least 50 per cent First Nations ownership, control or management; then
- non-Indigenous organisations:
- applying on behalf of a First Nations organisation in a consortium arrangement (where the non-Indigenous organisation is the lead organisation); then
- that have not previously received NAIDOC funding; then
- with a Reconciliation Action Plan.
Funding allocated to the program is distributed across the NIAA’s eleven regional service areas according to Indigenous population (currently based on 2021 Census population data), and with an adjustment based on remoteness to account for higher costs in regional and remote locations.
Funding amount and arrangements, merits review and consultation
Funding of $3.0 million in 2025-26 has been allocated for the item, which will come from Program 1.4: Culture and Capability, part of Outcome 1. Details are set out in the Portfolio Budget Statements 2025-26, Budget Related Paper No. 1.13, Prime Minister and Cabinet Portfolio (National Indigenous Australians Agency) at page 199.
Funding will be provided through one-off grants to eligible providers through a
demand-driven process (for grants of $10,000 or less) or open, competitive process (for grants of more than $10,000 and up to $25,000 only). The grants 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 NIAA will develop grant opportunity guidelines and will have regard to the nine key principles in administering the grant. The guidelines, along with information about the grants will be made available on the GrantConnect website (www.grants.gov.au), and the grants will be administered by the NIAA.
Delegates of the NIAA’s Chief Executive Officer under the Financial Framework (Supplementary Powers) Act 1997 (FFSP Act) will be responsible for approving Commonwealth funding provided to eligible organisations for the program. Delegation is provided to the NIAA Regional Managers (Senior Executive Service Band 1 officers) to make funding decisions for grants in their service region. Each delegate will make funding decisions within relevant legislations and policy consistent with the PGPA Act, the FFSP Act and the CGRPs. Information about final decisions will be made available on the GrantConnect website (www.grants.gov.au).
Independent merits review of decisions made in connection with the grant are not considered appropriate because these decisions relate to the provision of a one-off grant to a certain service provider, over other service providers. The Administrative Review Council (ARC) has recognised that it is justifiable to exclude merits review in relation to decisions of this nature (see paragraphs 4.16 to 4.19 of the guide, What decisions should be subject to merit review? (ARC guide)).
Further, delegated decision-makers will approve grants with consideration of the eligibility requirements, assessors scoring (if applicable), funding preference priorities, regional distribution of funding and the availability of grant funding. Noting the high volume and low funding value of the grants and the critical timeframes for the program which requires funding to be delivered in advance of NAIDOC Week, it is not administratively feasible to undertake merits review of decisions. Merits review costs money. Given that the Government must allocate resources in an effective way, it would be inappropriate to provide a system of merits review where the cost of that system would be vastly disproportionate to the significance of the decision under review. The ARC recognised where decisions which have limited impact that the costs of the review cannot be justified is justifiable to exclude merits review in relation to decisions of this nature (see paragraph 4.56 of the ARC guide).
The NIAA may provide feedback to applicants, if requested, however funding decisions are not able to be reconsidered. 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 design of the program has been informed by consultation and feedback received from the Department of Finance with advice from the Department of the Prime Minister and Cabinet and the Grant Design Working Group consisting of representatives from the NIAA Grants and Finance Group, Integrity Group and Regional Offices. Consultations informed the development of the grant opportunity guidelines, including giving regard to the needs and expectations of the local communities, compliance and eligibility requirements, assessment and funding decision processes, and probity and integrity considerations.
The grant design of the program incorporates ongoing feedback received regarding previous Indigenous Advancement Strategy-funded NAIDOC Local Grant activities, including from providers and communities across Australia, and from the NIAA’s Regional Offices and National Offices.
Constitutional considerations
Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective 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’.
Funding for the program will be used to benefit First Nations peoples by contributing to NAIDOC Week events and activities which are designed to celebrate, support, and raise awareness of First Nations histories and cultures. Greater community awareness of First Nations histories and cultures is a matter of importance for First Nations peoples. First Nations organisations are given funding preference and applications from non-Indigenous organisations are strongly encouraged to demonstrate the support of the relevant First Nations community.
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 (Prime Minister and Cabinet’s Portfolio Measures No. 3) 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 (Prime Minister and Cabinet’s Portfolio Measures No. 3) Regulations 2025 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the National Aborigines and Islanders Day Observance Committee (NAIDOC) Local Grants program (the program). The program is administered by the National Indigenous Australian Agency (NIAA), part of the Prime Minister and Cabinet portfolio.
The program supports community-based NAIDOC Week celebrations that recognise the history, culture, and achievements of First Nations people. The program provides one-off grants to both First Nations and non-Indigenous legal entities to support activities that promote the expression, engagement, and revitalisation of Aboriginal and Torres Strait Islander cultures, promoting a broader understanding and acceptance of the unique place of Aboriginal and Torress Strait Islander cultures in Australian society.
NAIDOC Week celebrations have been held annually since 1975.The program has been administered on behalf of the Australian Government by the NIAA since 2020 and supported by the Australian Government since at least 2005, to promote the expression of Aboriginal and Torres Strait Islander cultures through NAIDOC Week activities.
Funding of $3.0 million in 2025-26 is available to support the 2025 NAIDOC Week celebrations with the theme, The Next Generation: Strength, Vision & Legacy.
Human rights implications
This disallowable legislative instrument engages the following rights:
- the rights of equality and non-discrimination – Article 3 of the International Covenant on Economic, Social and Cultural Rights (ICESCR), read with Article 2; Articles 3, 16 and 26 of the International Covenant on Civil and Political Rights (ICCPR), read with Article 2; Article 5 of the International Convention on the Elimination of All Forms of Racial Discrimination (CERD), read with Article 2; and Article 5 of the Convention on the Rights of Persons with Disabilities (CRPD), read with Article 4; and
- the rights of Indigenous Peoples – Article 2 of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
Rights of equality and non-discrimination
Article 2(1) of the ICESCR requires that each State Party to the Covenant 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 Covenant by all appropriate means, including particularly the adoption of legislative measures.
Article 2(1) of the ICCPR requires that each State Party to the Covenant undertakes to respect and to ensure to all individuals within its territory and subject to its jurisdiction 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.
Article 2(2) of the ICCPR requires, where not already provided for by existing legislative or other measures, each State Party to the Covenant undertakes to take the necessary steps to adopt such laws or other measures as may be necessary to give effect to the rights recognised in the Covenant.
Article 2(1)(c) of the CERD requires each State Party to the Convention to take effective measures to review governmental, national and local policies, and to amend, rescind or nullify any laws and regulations which have the effect of creating or perpetuating racial discrimination wherever it exists.
Article 4(1)(a) of the CRPD requires each State Party to the Convention to adopt all appropriate legislative, administrative and other measures for the implementation of the rights recognized in the Convention.
The rights of equality and non-discrimination are contained in Article 3 of the ICESCR, Articles 3, 16 and 26 of the ICCPR, Article 5 of the CERD and Article 5 of the CRPD. These rights recognise that all human beings have the right to be treated equally and not to be discriminated against.
The program positively engages with the rights of equality and non-discrimination by providing opportunities for non-Indigenous Australians to celebrate, connect with, and learn from, Australia’s First Nations people. The program aims to promote broader understanding and acceptance of the unique place of First Nations cultures in Australian society.
Rights of Indigenous Peoples
Australia is a signatory to the UNDRIP and is committed to supporting its principles, including Free, Prior and Informed Consent , through policy, programs, and engagement with First Nations peoples. Although UNDRIP is not a legally binding treaty and does not create enforceable rights under Australian law, it provides important guidance on the rights of Indigenous peoples. The Australian Government actively incorporates UNDRIP principles into its work as a matter of policy and practice, reflecting a strong commitment to respectful and inclusive decision-making with Aboriginal and Torres Strait Islander people.
Article 2 of the UNDRIP recognises that Indigenous peoples and individuals are free and equal to all other peoples and individuals and have the right to be free from any kind of discrimination, in the exercise of their rights, particularly those based on their Indigenous origin or identity.
Article 5 of the UNDRIP recognises that Indigenous peoples have the right to maintain and strengthen their distinct political, legal, economic, social and cultural institutions, while retaining their right to participate fully, if they so choose, in the political, economic, social and cultural life of the State.
The program positively engages with the UNDRIP by supporting the expression, engagement and re-vitalisation of First Nations cultures and communities and increasing First Nations peoples’ participation in the social and economic life of Australia.
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