Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) Regulation 2016

Administered by Department of Finance

Legislation au F2016L01922 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(Social Services Measures No. 4) Regulation 2016

 

The Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) 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 FF(SP) Act applies to Ministers and the accountable authorities of non‑corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013. 

 

Section 65 of the FF(SP) Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

 

Section 32B of the FF(SP) 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.  Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs. 

 

Schedule 1 to the Regulation amends the Principal Regulations to amend table item 83 in Part 4 of Schedule 1AB, which establishes legislative authority for the Government to fund Financial Counselling Australia Incorporated (FCA) as part of the Commonwealth Financial Counselling and Financial Capability – Capability Building program, within the Financial Wellbeing and Capability (FWC) activity.  The FWC activity is administered by the Department of Social Services.

 

The objective of the FWC activity is to provide financial counselling and financial capability services, especially to those most at risk of financial and social exclusion and disadvantage, to navigate financial crises and build financial wellbeing, capability and resilience.  Services include providing crisis support, financial capability services, financial counselling, and access to microfinance products. 

 

The amendment to table item 83 adds financial capability workers and services to the objectives of the Commonwealth Financial Counselling and Financial Capability – Capability Building program.  This will clarify the legislative authority for funding financial capability workers and services.

 

In addition, amended table item 83 removes the reference to the funded organisation, FCA, which has changed its name to provide flexibility for any future changes to the organisation’s name or provider arrangements.  A further amendment corrects the reference to the name of an international covenant.

 

Details of the Regulation are set out at Attachment A.  A Statement of Compatibility with Human Rights is at Attachment B. 

 

The Regulation is a legislative instrument for the purposes of the Legislation Act 2003.  The Regulation commences 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 Social Services.

 

A regulation impact statement is not required as the Regulation only applies to non‑corporate Commonwealth entities and does not adversely affect the private sector.

 

 

 

Details of the Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) Regulation 2016

 

Section 1 – Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) Regulation 2016.

 

Section 2 – Commencement

 

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislation. 

 

Section 3 – Authority

 

This section provides that the Regulation is made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 – Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedules to the Regulation.

 

Schedule 1 – Amendments

 

Item 1 –Part 4 of Schedule 1AB (table item 83)

 

This item amends table item 83 in Part 4 of Schedule 1AB by repealing and substituting a new table item 83.  This table item establishes legislative authority for the Government to provide funding to Financial Counselling Australia Incorporated (FCA), as part of the Commonwealth Financial Counselling and Financial Capability – Capability Building program, within the Financial Wellbeing and Capability (FWC) activity.  The FWC activity is administered by the Department of Social Services.

 

The objective of the FWC activity is to provide financial counselling and financial capability services, especially to those most at risk of financial and social exclusion and disadvantage, to navigate financial crises and build financial wellbeing, capability and resilience.  Services include providing crisis support, financial capability services, financial counselling, and access to microfinance products. 

 

The amendment to table item 83 adds financial capability workers and services to the objectives of the Commonwealth Financial Counselling and Financial Capability – Capability Building program.  This will clarify the legislative authority for funding financial capability workers and services.

 

Under the FWC activity, funding is provided to the funded organisation for the following activities:

  • online and national 1800 telephone services which ensure key online and telephone based information and resources are developed and enhanced including ensuring an early intervention approach to the delivery of essential services and consistent and quality service provision;
  • the national financial counselling conference which contributes to professional development requirements for financial counsellors and financial capability workers and enhances their knowledge and the sharing of best practice, including changes to legislative and regulatory frameworks, to provide consistent and quality service to consumers; and
  • Indigenous initiatives which contribute to the professional development requirements and sharing of best practice for Indigenous people, or people who provide financial counselling and financial capability services predominantly to Indigenous people.

 

The Capability Building program aims to build and maintain the capability of workers to provide consistent and quality services to individuals and families experiencing financial difficulties to prevent them falling into entrenched financial hardship and welfare dependence.  Financial capability workers are appropriately trained and qualified to provide financial literacy and education services, with the aim of helping people to build long-term capability to budget, manage their money better and make informed choices.

 

In addition, amended table item 83 removes the reference to the funded organisation, FCA, which has changed its name.  The amendment will provide flexibility for any future changes to the organisation’s name or provider arrangements.

 

A further amendment corrects a typographical error in the reference to the International Covenant on Economic, Social and Cultural Rights.

 

Funding for this item comes from Program 2.1: Families and Communities, which is part of Outcome 2: Families and Communities, as set out in the Portfolio Budget Statements 2016‑17, Budget Related Paper No. 1.15a, Social Services Portfolio at page 64.  Total funding for the Capability Building program is up to $1 million (from the available FWC activity allocation) from 1 July 2015 to 30 June 2017.   

 

Current funding for FCA is provided through a grant agreement, as executed by the delegate of the Secretary of the Department of Social Services, which is in accordance with the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Guidelines. 

 

Future spending decisions in relation to this item will be made by the Secretary of the Department of Social Services, or the Secretary’s delegate.  This includes decisions about whether direct, restricted or open competitive grant processes would take place.  Selection documentation would be made available for such grant processes on the Department’s grants website (www.dss.gov.au/grants) in line with departmental policy and the Commonwealth Grants Rules and Guidelines.

 

The program is unsuitable for merits review as the funded organisation is uniquely qualified to undertake these services as it is the only national provider with an extensive understanding of, and proven performance history in, supporting the financial counselling and financial capability sector.

 

The funded organisation has established a financial counselling and financial capability website, manages the national telephone financial counselling 1800 Helpline, develops and supports national standards for financial counselling and financial capability and co-ordinates the national financial counselling and financial capability conference including supporting people who provide financial counselling and financial capability services predominantly to Indigenous persons to attend the national conference.

 

Further information about the FWC activity can be found at www.dss.gov.au/communities-and-vulnerable-people/programmes-services/financial-wellbeing-and-capability.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

  • the communications power (section 51(v));
  • the bankruptcy and insolvency power (section 51(xvii));
  • the social welfare power (section 51(xxiiiA));
  • the territories power (section 122);
  • the invalid and old age pensions power (section 51(xxiii));
  • the aliens power (section 51(xix));
  • the immigration power (section 51(xxvii));
  • the external affairs power (section 51(xxix)); and
  • the race power (section 51(xxvi)).

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 (Social Services Measures No. 4) Regulation 2016

 

This Regulation 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 FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) 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 FF(SP) Regulations specify the arrangements, grants and programs.  The FF(SP) Act applies to Ministers and the accountable authorities of non‑corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013. 

 

Schedule 1 to the Regulation amends the FF(SP) Regulations to amend table item 83 in Part 4 of Schedule 1AB.  Table item 83 establishes legislative authority for the Government to fund Financial Counselling Australia Incorporated (FCA) as part of the Commonwealth Financial Counselling and Financial Capability – Capability Building program, within the Financial Wellbeing and Capability activity, which is administered by the Department of Social Services.

 

The amendment to table item 83 adds financial capability workers and services to the objectives of the Commonwealth Financial Counselling and Financial Capability – Capability Building program.  In addition, amended table item 83 removes the reference to the funded organisation, FCA, which has changed its name; and corrects a typographical error. 

 

The Minister for Social Services has portfolio responsibility this matter.

 

Human rights implications

 

The Regulation does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This Regulation is compatible with human rights as it does not raise any human rights issues.

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance

Overview

The Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) Regulation 2016 was enacted to amend the Financial Framework (Supplementary Powers) Regulations 1997, thereby providing legislative authority for the funding of financial capability workers and services within the Financial Wellbeing and Capability (FWC) activity. This regulation was introduced by the Parliament of Australia to address a gap in the existing legislative framework, specifically concerning the need to clarify and update the legislative authority for funding financial capability services, which are crucial for assisting individuals and families facing financial difficulties. The objective of the regulation is to align the legislative provisions with the current operational needs of the Department of Social Services, ensuring that the Commonwealth can effectively provide the necessary financial counselling and capability services to those most at risk of financial exclusion. The regulation was made under the authority of the Financial Framework (Supplementary Powers) Act 1997, which allows the Commonwealth to make, vary, and administer arrangements and grants for specified programs. By amending table item 83 in Part 4 of Schedule 1AB of the Principal Regulations, the amendment ensures that the legislative framework is flexible enough to accommodate future changes in the names or arrangements of the funded organisations. Additionally, the regulation corrects a typographical error in the reference to an international covenant, ensuring the accuracy and integrity of the legislative text. The regulation is compatible with human rights as it does not engage any of the applicable rights or freedoms, and it aims to enhance the delivery of essential financial services to vulnerable populations.

Scope and Application

The Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) Regulation 2016 amends the Financial Framework (Supplementary Powers) Regulations 1997, clarifying the legislative authority for funding financial capability workers and services under the Commonwealth Financial Counselling and Financial Capability – Capability Building program within the Financial Wellbeing and Capability activity. This activity, administered by the Department of Social Services, aims to provide financial counselling and capability services to individuals and families at risk of financial exclusion. The Regulation applies to Ministers and accountable authorities of non-corporate Commonwealth entities, as defined under the Public Governance, Performance and Accountability Act 2013. It specifies that funding can be provided to an organisation for online and telephone services, national conferences, and Indigenous initiatives. The amendment also removes the reference to the funded organisation, FCA, to allow flexibility for future changes, and corrects a typographical error. The Regulation does not adversely affect the private sector and is compatible with human rights as it does not raise any human rights issues. The Regulation commences on the day after it is registered on the Federal Register of Legislation.

Key Provisions

The Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) Regulation 2016 (the Regulation) amends the Financial Framework (Supplementary Powers) Regulations 1997 to update the legislative authority for funding Financial Counselling Australia Incorporated (FCA) and to clarify the objectives of the Commonwealth Financial Counselling and Financial Capability – Capability Building program. Specifically, Schedule 1 of the Regulation amends table item 83 in Part 4 of Schedule 1AB to add financial capability workers and services to the objectives of the program, to remove the reference to FCA (which has changed its name), and to correct a typographical error. These changes provide the necessary legislative authority for funding financial capability workers and services and ensure the program can continue to operate effectively under any future changes to the funded organisation’s name or provider arrangements. The Regulation imposes obligations on the Commonwealth to make, vary and administer arrangements and grants for the specified programs, in this case, the Commonwealth Financial Counselling and Financial Capability – Capability Building program within the Financial Wellbeing and Capability activity. The Department of Social Services is responsible for administering this activity, which provides funding to FCA (now referred to in a generic manner to allow for future changes) for various activities including online and telephone services, the national financial counselling conference, and Indigenous initiatives. The program aims to build and maintain the capability of workers to provide consistent and quality services to individuals and families experiencing financial difficulties. The Regulation also specifies that funding for this program comes from Program 2.1: Families and Communities, as set out in the Portfolio Budget Statements 2016-17, and that total funding for the program is up to $1 million from 1 July 2015 to 30 June 2017. Breach of the Regulation, which primarily involves failure to adhere to the specified legislative authority for funding or to administer the program as outlined, may result in legal and financial consequences. The Financial Framework (Supplementary Powers) Act 1997 provides the overarching framework under which the Regulation operates, and non-compliance with the Act could lead to civil or criminal penalties as outlined in the Act. However, the specific Regulation itself does not explicitly detail penalties for non-compliance. The primary consequences of non-compliance would likely stem from the failure to correctly implement the legislative authority for funding and program administration, potentially leading to legal challenges or financial penalties as prescribed by the relevant Acts and Regulations. The Regulation is compatible with human rights as it does not engage any of the applicable rights or freedoms under the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011. The Statement of Compatibility with Human Rights confirms that the Regulation does not raise any human rights issues, ensuring that its implementation aligns with human rights standards.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.