Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) Regulations 2022

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) Regulations 2022

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 powers in the FF(SP) 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 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. Section 32D of the FF(SP) Act confers powers of delegation on Ministers and the accountable authorities of non-corporate Commonwealth entities, including subsection 32B(1) of the Act. Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs.

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

The Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) Regulations 2022 (the Regulations) amend table item 510 in Part 4 of Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Community-led Solutions program (the program), formerly named the Cashless welfare support services program. The program is administered by the Department of Social Services.

The program will deliver on the Government’s election commitment, published in the Plan for a Better Future to abolish the Cashless Debit Card (CDC). The commitment is being implemented through the Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Act 2022, which received Royal Assent on 30 September 2022.

The amended table item 510 provides legislative authority for the program to support both former and transitioning CDC participants and current, former and transitioning Income Management (IM) participants. Support services delivered under the program will include supports that aim to provide pathways to employment or economic development, improve community function, and provide longer term and more intensive supports to address potential social harms such as alcohol, other drug misuse and violence.

The program will operate in communities where cashless welfare arrangements exist, or formerly existed, including CDC sites of Ceduna in South Australia, the East Kimberley and Goldfields in Western Australia, Bundaberg/Hervey Bay and Cape York in Queensland, and the Northern Territory. IM participants, including those who volunteer under a new program, will also be able to access these services. These programs will comprise new, ongoing and ceasing initiatives to 30 June 2026. 

Funding of approximately $159.1 million over four years from 2022-23 will be available to the program.

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 Social Services.

A regulation impact statement is not required as the Regulations only apply to non‑corporate Commonwealth entities and do not adversely affect the private sector.

Details of the Financial Framework (Supplementary Powers) Amendment

(Social Services Measures No. 4) Regulations 2022

Section 1 – Name

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Social Services Measures No. 4) Regulations 2022.

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 are amended as set out in the Schedule to the Regulations.

Schedule 1 – Amendments

Financial Framework (Supplementary Powers) Regulations 1997

Item 1 – Part 4 of Schedule 1AB (cell at table item 510, column headed “Program”)

Table item 510 in Part 4 of Schedule 1AB establishes legislative authority for government spending on the Cashless welfare support services program, which is administered by the Department of Social Services (the department).

Item 1 amends table item 510 by repealing the cell in the column headed “Program” and substituting with “Community-led Solutions”. The amendments align the program’s name with the name in the Government’s election commitment to abolish the Cashless Debit Card (CDC).

Item 2 – Part 4 of Schedule 1AB (table item 510, column headed “Objective(s)”)

Item 2 amends table item 510 by omitting “participants of the Cashless Debit Card program” and substituting “recipients of social security payments in areas in which the Cashless Debit Card program or the Income Management program are or have operated (including to support Cashless Debit Card program and Income Management program participants while they transition off the programs)” in the column headed “Objective(s)”.

The amendments will extend the scope of table item 510 beyond participants of the CDC program. Community-led Solutions will support former participants and people eligible for social security payments in former CDC sites and current Income Management (IM) locations upon the abolition of the CDC.

Item 3 – Part 4 of Schedule 1AB (table item 510, column headed “Objective(s)”, paragraphs (f) and (g))

Item 3 amends table item 510 by repealing the paragraphs (f) and (g) in the column headed “Objective(s)” and substituting with:

(f)    services that assist recipients of a social security payment to manage their payment, including improvement of their financial and digital literacy;

(g)   infrastructure which facilitates recipients of a social security payment to access the internet;

(h)   projects which create jobs for recipients of social security payments.

The amendments extend existing and establishing new support services to participants transitioning off the CDC, IM and people eligible for social security payments in former CDC and IM locations.

Item 4 – Part 4 of Schedule 1AB (at the end of the cell at table item 510, column headed “Objective(s)”)

Item 4 amends table item 510 by adding “; or (d) undertaken in, or in relation to, a Territory.” at the end of the cell under the column headed “Objective(s)”. The amendments provide for an additional constitutional considerations that the program will also fund projects in the Northern Territory under the territory power of the Constitution.

The Community-led Solutions program (the program) will deliver on the Government’s election commitment, published in the Plan for a Better Future to abolish the Cashless Debit Card (CDC). The commitment is being implemented through the Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Act 2022, which received Royal Assent on 30 September 2022.

The program aims to support people in former CDC and IM sites with high levels of social harm, such as domestic violence, abuse and addiction issues and other anti-social behaviour. The continuation of support services provided to current CDC program participants following the abolition of the CDC is in line with the Government’s election commitment.

The program will support both former and transitioning CDC participants and current, former and transitioning IM participants. Support services delivered under the program will include supports that aim to provide pathways to employment or economic development, improve community function, and provide longer term and more intensive supports to address potential social harms such as alcohol, other drug misuse and violence.

The program will operate in communities where cashless welfare arrangements exist, or formerly existed. Between 2016 and March 2023, the CDC operated in the regional areas of East Kimberley and Goldfields in Western Australia, Ceduna in South Australia, Bundaberg/Hervey Bay and the Cape York in Queensland, and the Northern Territory. IM operates in 12 place based locations across Australia, including the Northern Territory, the Aṉangu Pitjantjatjara Yankunytjatjara Lands in South Australia and the Ngaanyatjarra Lands in Western Australia.

IM participants, including those who volunteer under a new program, will also be able to access these services. These programs will comprise new, ongoing and ceasing initiatives to 30 June 2026. The intended purpose of the funded initiatives within the program remains unchanged. 

The Government has worked collaboratively with local leaders and existing service providers to identify critical issues and support needs in the community. New funding of approximately $159.1 million over four years from 2022-23 will be allocated across two elements to continue the delivery of support services under the program, including drug and alcohol rehabilitation, mental health services, additional family support services, targeted youth activities, digital connectivity and financial counselling services.

The first element will continue currently funded services, acting as an immediate response as CDC participants start transitioning off the card from September 2022, and will also provide funding for additional services immediately following the abolition of the CDC.

The Local Partners are a feature of the current and future CDC program and employ local people to provide face to face support for individuals to manage their CDC. This includes allowing people to check their balances and replace lost cards. These Local Partners have taken on a valuable role as a key conduit in their communities, helping connect people with government services and payments.

The program would see the Local Partners becoming a broader source of support for people, while retaining the employment opportunities for First Nations peoples in the communities. This will occur alongside the second element of the program (to co‑design supports with communities commencing in January 2024).

The second element will be a longer term approach aligned with the priority reforms under the National Agreement on Closing the Gap and will deliver co-designed initiatives with joint decision making in each former CDC region, with funding agreements in place from January 2024.

The department will deliver the program through an open competitive and one-off, ad hoc grants opportunity to external organisations in accordance with applicable legislative requirements under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Commonwealth Grants Rules and Guidelines 2017 (CGRGs).

The Secretary of the department or a delegate will be responsible for approving Commonwealth funding for the program in accordance with the Financial Framework (Supplementary Powers) Act 1997 (FF(SP) Act). All delegates responsible for making funding decisions will be Senior Executive Service (SES) officers and will have appropriate skills, qualifications and experience, with a strong understanding of the objectives of the program and the relevant legislation.

Eligible funding recipients will be required to nominate projects they intend to spend the grant money on in a work schedule, which will need to be approved before funding is provided. Approval will be based on whether the work schedule complies with the requirements set out in the grant agreement and the grant opportunity guidelines. The department will set up a Selection Advisory Panel (SAP) that will provide strategic oversight, advice and recommendations to the decision maker under the FF(SP) Act, who will be responsible for approving the grant expenditure.

The SAP will be made up of departmental officers who manage the stakeholder engagement, delivery, research, analysis and subsequent policy development for the program as well as officials from other government agencies such as the National Indigenous Australians Agency, the Department of Employment and Workplace Relations, and the Department of Infrastructure, Transport, Regional Development, Communications and the Arts. Where possible, representatives and experts from CDC communities may also sit on an Advisory Group to provide relevant information to the SAP.

The department’s support services area will work with the Grants Services Office within the Community Grants Hub to inform the design and implementation of grant opportunity guidelines and produce grant round specific documentation.

The program guidelines will also ensure that grants are designed and implemented in line with the CGRGs. Information about the grants, including the guidelines will be available on the GrantConnect website (www.grants.gov.au). The department’s Community Grants Hub will administer the grants. Grants awarded will be published on GrantConnect within 21 days of a grant agreement taking effect.

There are a variety of safeguards and limitations that apply to the exercise of delegated powers under the FF(SP) Act, including the requirement that delegates comply with any directions of the Minister for Social Services (the Minister) or the Secretary of the department given for the purposes of subsections 34D(2) and (4) of the FF(SP) Act. Under the PGPA Act, the accountable authority must govern the affairs of the entity in a way that promotes proper use and management of public resources for which the accountable authority is responsible, and implement measures to ensure that officials of the entity comply with legal requirements. These duties applies to all aspects of the department’s resource management, including grants administration. Grants administration is undertaken proportionately to the risks identified and outcomes sought, ensuring that it is consistent with the Risk Management Framework and the CGRGs.

Funding decisions made in connection with these programs are not considered suitable for independent merits review, as generally they are decisions relating to the allocation of a finite resource, from which all potential claims for a share of the resource cannot be met. In addition, any funding that has already been allocated would be affected if the original decision was overturned. The Administrative Review Council (ARC) has recognised that it is justifiable to exclude merits review in relation to decisions of this nature (see paragraphs 4.11 to 4.19 of the guide, What decisions should be subject to merit review? (ARC’s guide)).

Where one-off grants are made in connection with delivering these programs, merits review of decisions made in connection with the grant would not be considered appropriate as these decisions relate to the provision of a one-off grant to a certain service provider, over other service providers. The 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 ARC’s guide).

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 Minister has consulted with affected communities through the broader community consultation process undertaken on the abolition of the CDC program. Feedback from these consultations supports the proposal.

The department has been in consultation with stakeholders from the CDC regions on the abolition of the CDC. Cashless welfare support services are place-based and community-led, with local leaders and existing service providers involved in identifying critical issues and support needs in the community. Stakeholders, including Indigenous experts, local community leaders and Empowered Communities, have welcomed the opportunity to ensure there is a cohesive and coordinated approach to the design, selection and delivery of future initiatives. Consultation will be ongoing, including with employment organisations, and will inform which grants are approved.

Consistent with the partnership principles in the Closing the Gap framework, the Government is committed to consulting with communities, including First Nations communities, on reforms to IM to identify better local solutions to address harm related to alcohol, drug use and gambling, and to support community members who are experiencing crisis and disadvantage. The Minister, the Minister for Indigenous Australians, the Assistant Minister for Social Services and Assistant Minister for Indigenous Australians have commenced consultation activities in IM locations.

Funding of approximately $159.1 million for the program is included in the
2022-23 October Budget under the measure ‘Abolish the Cashless Debit Card’ for a period of four years commencing in 2022-23. Details are set out in Budget October 2022-23, Budget Measures, Budget Paper No. 2 at page 175.

Funding for this item will come from Program 2.1: Families and Communities, which is part of Outcome 2. Details are set out in Portfolio Budget Statements 2022-23, Budget Related Paper No. 1.14, Social Services Portfolio at pages 17, 24 and 194.

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 social welfare power (section 51(xxiiiA));
• the external affairs power (section 51(xxix)); and
• the territories power (section 122).

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 community level infrastructure and digital connectivity component of the program will assist to build cell towers and satellites to provide welfare recipients in areas in which CDC and IM have operated, or continue to operate, with the ability to access the internet.

Social welfare power

The social welfare power in section 51(xxiiiA) of the Constitution empowers the Parliament to make laws with respect to the provision of maternity allowances, widows’ pensions, child endowment, unemployment, pharmaceutical, sickness and hospital benefits, medical and dental services (but not so as to authorise any form of civil conscription), benefits to students and family allowances.

The financial capability building services and financial counselling component of the program will assist social security recipients in areas in which CDC and IM have operated, or continue to operate, to be financially literate, which will assist them to manage their social security payments.

External affairs power

Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to ‘external affairs’. The external affairs power supports legislation implementing Australia’s international obligations under treaties to which it is a party.

Convention on the Elimination of All Forms of Discrimination against Women [1981] UNTS 1249 (CEDAW)

Australia has obligations under the CEDAW, in particular:

• Article 2 requires States Parties to ‘condemn discrimination against women in all its forms, agree to pursue by all appropriate means and without delay a policy of eliminating discrimination against women’;
• Article 3 provides that States Parties ‘shall take all appropriate measures, including legislation, to ensure the full development and advancement of women, for the purpose of guaranteeing them the exercise and enjoyment of human rights and fundamental freedoms on a basis of equality with men’;
• Article 5(a) provides that States Parties shall take all appropriate measures ‘to modify the social and cultural patterns of conduct of men and women, with a view to achieving the elimination of prejudices and customary and all other practices which are based on the idea of the inferiority or the superiority of either of the sexes or on stereotyped roles for men and women’; and
• Article 16 provides that States Parties ‘shall take all appropriate measures to eliminate discrimination against women in all matters relating to marriage and family relations’.

The domestic and family violence services component of the program is directed at preventative measures to reduce violence against women. These measures will assist in eliminating discrimination against women, including in matters relating to marriage and family relations, noting that domestic and family violence affects disproportionately the ability of women to enjoy their rights and freedoms on a basis of equality with men.

Convention on the Rights of the Child [1990] UNTS 1577 (CRC)

Australia has obligations under the CRC, in particular:

• Article 4 provides that States Parties ‘shall undertake all appropriate legislative, administrative, and other measures for the implementation of the rights recognised in the present Convention. With regard to economic, social and cultural rights, States Parties shall undertake such measures to the maximum extent of their available resources and, where needed, within the framework of international co-operation’;
• Article 6(2) provides that States Parties ‘shall ensure to the maximum extent possible the survival and development of the child’;
• Article 18(2) provides that States Parties ‘shall render appropriate assistance to parents and legal guardians in the performance of their child-rearing responsibilities and shall ensure the development of institutions, facilities and services for the care of children’; and
• Article 19(1) provides that States Parties ‘shall take all appropriate legislative, administrative, social and educational measures to protect the child from all forms of physical or mental violence, injury or abuse, neglect or negligent treatment, maltreatment or exploitation, including sexual abuse, while in the care of parent(s), legal guardian(s) or any other person who has the care of the child’. Article 19(2) states that such measures should ‘include effective procedures for the establishment of social programmes to provide necessary support for the child and for those who have the care of the child’.

The domestic and family violence services component of the program is directed at preventative measures to reduce violence against children, including through rehabilitating children who are victims of family violence. These measures will help ensure children’s development through protecting children from all forms of violence and provide necessary support for children and for those who have care of children. The family support services component of the program is aimed at providing support to families to protect the safety and wellbeing of children while in the care of parent(s), legal guardian(s) or any other person who has care of these children.

International Covenant on Economic, Social and Cultural Rights [1976] UNTS 993 (ICESCR)

Australia has obligations under the ICESCR, in particular:

• Article 6(1) states that States Parties ‘recognise the right to work, which includes the right of everyone to the opportunity to gain his living by work which he freely chooses or accepts, and will take appropriate steps to safeguard this right’;
• Article 6(2) states that the steps taken to achieve full realisation of this right ‘shall include technical and vocational guidance and training programmes, policies and techniques to achieve steady economic, social and cultural development and full and productive employment under conditions safeguarding fundamental political and economic freedoms to the individual’; and
• Article 12(1) requires States Parties to ‘recognise the right of everyone to the enjoyment of the highest attainable standard of physical and mental health’. Article 12(2)(c) states that steps necessary to achieve full realisation of this right include those necessary for the ‘prevention, treatment and control of epidemic, endemic, occupational and other diseases’.

The substance abuse rehabilitation component of the program is aimed at preventing, reducing and directly treating drug and alcohol abuse, which will help improve individuals’ physical and mental health.

The job readiness programs, training, education, employment and employment-related services component of the program will implement part of a policy designed to promote full and productive employment by assisting social security recipients in areas in which CDC and IM have operated, or continue to operate, to improve their skills and prospects of obtaining employment.

The mental health support services component of the program is aimed at providing training assessment and treatment, rehabilitation and case management services, which help improve individuals’ physical and mental health.

The component of the program involving targeted youth activities, mentoring programs, and community engagement and participation, is focussed on assisting young people to gain employment so that they may engage in full and productive employment.

International Labour Organization’s (ILO) Convention concerning Employment Policy
(ILO Convention 122)

Australia has obligations under the ILO Convention 122, in particular:

• Article 1 states that ‘[w]ith a view to stimulating economic growth and development, raising levels of living, meeting manpower requirements and overcoming unemployment and underemployment, each Member shall declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment’; and
• Article 2 states that each Member ‘shall, by such methods and to such extent as may be appropriate under national conditions – (a) decide on and keep under review within the framework of a coordinated economic and social policy, the measures to be adopted for attaining the objectives specified in Article 1; (b) take such steps as may be needed including when appropriate the establishment of programmes, for the application of these measures’.

The job readiness programs, training, education, employment and employment-related services component of the program will assist social security recipients in areas in which CDC and IM have operated, or continue to operate, who are either unemployed or underemployed to improve their skills and prospects of obtaining employment.

International Labour Organization’s (ILO) Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO Convention 142)

Australia has obligations under the ILO Convention 142, in particular:

• Article 1 provides that each Member ‘shall adopt and develop comprehensive and
  co-ordinated policies and programmes of vocational guidance and vocational training, closely linked with employment, in particular through public employment services’;
• Article 2 provides that each Member ‘shall establish and develop open, flexible and complementary systems of general, technical and vocational education, educational and vocational guidance and vocational training, whether these activities take place within the system of formal education or outside it’;
• Article 3 provides that each Member ‘shall gradually extend its systems of vocational guidance, including continuing employment information, with a view to ensuring that comprehensive information and the broadest possible guidance are available to all children, young persons and adults, including appropriate programmes for all handicapped and disabled persons’; and
• Article 4 provides that each Member ‘shall gradually extend, adapt and harmonise its vocational training systems to meet the needs for vocational training throughout life of both young persons and adults in all sectors of the economy and branches of economic activity and at all levels of skill and responsibility’.

The job readiness programs, training, education, employment and employment-related services component of the program will form a comprehensive and coordinated policy and program of vocational guidance and training aimed at assisting social security recipients in areas in which CDC and IM have operated, or continue to operate, including those with disability, to improve their skills and prospects of obtaining employment.

The component of the program involving targeted youth activities, mentoring programs, and community engagement and participation, is focussed on assisting young people to gain employment so that they may engage in full and productive employment.

Territories power

Section 122 of the Constitution empowers the Parliament to make laws with respect to ‘any territory’.

The program will also fund projects in the Northern Territory.

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) Regulations 2022

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 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 powers in the FF(SP) 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 (Social Services Measures No. 4) Regulations 2022 (the Regulations) amend table item 510 in Part 4 of Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Community-led Solution program (the program), formerly named the Cashless welfare support services program. The program is administered by the Department of Social Services.

The program will deliver on the Government’s election commitment, published in the Plan for a Better Future to abolish the Cashless Debit Card (CDC). The commitment is being implemented through the Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Act 2022, which received Royal Assent on 30 September 2022.

The amended table item 510 provides legislative authority for the program to support both former and transitioning CDC participants and current, former and transitioning Income Management (IM) participants. Support services delivered under the program will include supports that aim to provide pathways to employment or economic development, improve community function, and provide longer term and more intensive supports to address potential social harms such as alcohol, other drug misuse and violence.

The program will operate in communities where cashless welfare arrangements exist, or formerly existed, including CDC sites of Ceduna in South Australia, the East Kimberley and Goldfields in Western Australia, Bundaberg/Hervey Bay and Cape York in Queensland, and the Northern Territory. IM participants, including those who volunteer under a new program, will also be able to access these services. These programs will comprise new, ongoing and ceasing initiatives to 30 June 2026.

Human rights implications

This disallowable legislative instrument engages the following right:

• the right to work – Articles 6, 7, 11 and 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR), read with Article 2; Article 1 of the International Labour Organization’s Convention concerning Employment Policy (ILO Convention 122); and Articles 1 to 4 of the International Labour Organization’s Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO Convention 142).

Right to work

Article 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 realisation of the rights recognised in the Covenant by all appropriate means, including particularly the adoption of legislative measures.

The steps to be taken by a State Party to achieve the full realisation of this right shall include technical and vocational guidance and training programs, policies and techniques to achieve steady economic, social and cultural development and full and productive employment under conditions safeguarding fundamental political and economic freedom to the individual.

Article 6 of the ICESCR provides that the States Parties recognise the right to work, which includes the right of everyone to the opportunity to gain his living by work which he freely chooses or accepts, and will take appropriate steps to safeguard this right.

Article 7 of the ICESCR provides that the States Parties recognise the right of everyone to the enjoyment of just and favourable conditions of work, which ensure, in particular:

(c)   equal opportunity for everyone to be promoted in his employment to an appropriate higher level, subject to no considerations other than those of seniority and competence; and

(d)   rest, leisure and reasonable limitation of working hours and periodic holidays with pay, as well as remuneration for public holidays.

Article 11 of the ICESCR provides that the States Parties recognise the right of everyone to an adequate standard of living for himself and his family, including adequate food, clothing and housing, and to the continuous improvement of living conditions. The States Parties will take appropriate steps to ensure the realisation of this right, recognising the essential importance of international co-operation based on free consent.

Article 12 of the ICESCR provides that the States Parties recognise the right of everyone to the enjoyment of the highest attainable standard of physical and mental health.

Article 1 of ILO Convention 122 provides that ‘each Member shall declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment’. Article 2 of ILO Convention 122 provides that each Member shall ‘decide on and keep under review, within the framework of a coordinated economic and social policy, the measures to be adopted for attaining the objectives specified in Article 1’, and ‘take such steps as may be needed, including when appropriate the establishment of programmes, for the application of these measures.’

Article 1 of ILO Convention 142 states that each Member ‘shall adopt and develop comprehensive and coordinated policies and programs of vocational guidance and vocational training, closely linked with employment, in particular through public employment services.’

Article 2 of ILO Convention 142 provides that these policies and programs shall take due account of ‘employment needs, opportunities and problems, both regional and national’; ‘the stage and level of economic, social and cultural development’; and ‘the mutual relationships between human resources development and other economic, social and cultural objectives.’

Article 3 of ILO Convention 142 provides that these policies and programs ‘shall be pursued by methods that are appropriate to national conditions.’

Article 4 of ILO Convention 142 states that these policies and programs ‘shall be designed to improve the ability of the individual to understand and, individually or collectively, to influence the working and social environment.’

This disallowable legislative instrument will enable the program to continue to promote the right to work by providing opportunities for employment in former CDC sites and current IM locations, including vocational guidance and training, to give recipients of social security payments in those areas the relevant skills and capacity to enable them to find long-term employment. This will be achieved by continuing to provide job readiness programs, training, education and employment services and support to social security recipients in these areas who are either unemployed or underemployed. Additionally, targeted youth activities and mentoring programs will continue to assist young people to gain employment.

This disallowable legislative instrument will also continue to promote access for recipients of social security payments in former CDC and current IM locations to full, productive and freely chosen employment by assisting to remove barriers to employment.

Conclusion

This disallowable legislative instrument is compatible with human rights because it promotes the protection of human rights.

Senator the Hon Katy Gallagher

Minister for Finance