EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(Veterans’ Affairs Measures No. 1) 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 (Veterans’ Affairs Measures No. 1) Regulations 2025 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for the Government to provide a grant to the Institute of Veterans Advocacy Ltd (IVA), administered by the Department of Veterans’ Affairs, part of the Defence portfolio.
The IVA is an independent charitable entity that was established in March 2025, following comprehensive discussions by a working group established by the Ex-Service Organisation (ESO) Round Table to work with the department to consider options to strengthen advocacy, ethical and professional standards. The IVA will act as the professional association for veteran advocates setting competency and minimum training standards and administering a code of conduct and complaints mechanism. The purpose of the grant is to strengthen governance in the veteran advocacy sector, which is currently unregulated and is one of a suite of complementary reforms the Government is progressing to safeguard the integrity of the veteran support system.
The Government will provide funding of $3.0 million over four years from 2025-26 for a grant to the IVA to support establishment activities and operational arrangements and aims to:
- establish competency standards, a code of conduct and minimum training requirements for veteran advocates;
- professionalise veteran advocates and advocacy services in the community;
- improve confidence in the veteran community and provide assurance to veterans and their families that services provided from a registered veteran advocate are professional, high quality and are provisioned with a contemporary understanding of veteran entitlements;
- provide members with access to a range of benefits and tools, including improved and nationally consistent training and continued professional development; and
- lift the overall standard of veteran advocacy services nationally.
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 Veterans’ Affairs.
Attachment A
Details of the Financial Framework (Supplementary Powers) Amendment
(Veterans’ Affairs Measures No. 1) Regulations 2025
Section 1 – Name
This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Veterans’ Affairs Measures No. 1) 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 to be administered by the Department of Veterans’ Affairs (the department), part of the Defence portfolio.
Item 1 – In the appropriate position in Part 3 of Schedule 1AB (table)
This item adds one new table item to Part 3 of Schedule 1AB.
Table item 110 – Grant to the Institute of Veterans Advocacy Ltd
New table item 110 establishes legislative authority for the Government to provide a grant to the Institute of Veterans Advocacy Ltd (IVA) to support the operations of the IVA to act as the professional body for veteran advocates (the grant).
The Royal Commission into Defence and Veteran Suicide in its final report of 9 September 2024, recommended that the Government improve compensation advocacy by funding professional, paid advocates. The Government agreed to this recommendation in‑principle in its response to the final report on 2 December 2024.
The IVA is an independent charitable entity that was established in March 2025, following comprehensive discussions of a working group established by the Ex-Service Organisation Round Table (ESORT) to work with the department to consider options to strengthen advocacy, ethical and professional standards. The ESORT is part of the department’s National Consultative Forum and is intended to enhance the capacity of the Repatriation Commission and Military Rehabilitation and Compensation Commission. The ESORT addresses issues of strategic importance to the ex-service and defence communities and assists in setting strategic directions for the medium to long term. The working group membership brought together a range of perspectives including representatives of those that receive advocacy services, as well as those providing advocacy services.
The IVA will act as the professional association for veteran advocates and aims to strengthen governance in the veteran advocacy sector, which is currently unregulated. The grant is one of a suite of complementary reforms the Government is progressing to safeguard the integrity of the veteran support system.
The objectives of the grant are to support the IVA with establishment activities and operational arrangements. Funding of $3.0 million over four years from 2025-26 will support activities including:
- administration functions such as registering advocates and overseeing continued professional development;
- administering a code of conduct and taking action against members that do not comply;
- delivering a national complaints-handling mechanism to address concerns raised by the veteran community regarding the conduct of individual advocates, including referring complaints to other professional bodies where members are subject to another equivalent discipline process;
- working with the department on issues of common interest including the development and delivery of the Advocacy Training and Development Program which provides training for advocates who provide free advocacy services to the veteran community;
- secretariat and administration resources;
- travel and associated costs for in-person Board meetings four times a year;
- payment of professional liability/indemnity insurance premiums for IVA members;
- information technology (IT) and financial management infrastructure; and
- marketing and communication materials.
The intended outcomes of the grant to the IVA are to:
- establish competency standards, a code of conduct and minimum training requirements for veteran advocates;
- monitor compliance with continued professional development;
- professionalise veteran advocates and advocacy services in the community;
- improve confidence in the veteran community and provide assurance to veterans and their families that services provided from a registered veteran advocate are professional, high quality and are provisioned with a contemporary understanding of veteran entitlements;
- provide members with access to a range of benefits and tools, including improved and nationally consistent training and continued professional development; and
- lift the overall standard of veteran advocacy services nationally.
It is expected the IVA will have a public presence in the veteran and Ex-Service Organisation (ESO) community including a public website, branding, attending and presenting at relevant forums and issue communications to members and the wider community.
Funding amount and arrangements, merits review and consultation
Funding of $3.0 million over four years from 2025-26 will be included in the 2025-26 Mid‑Year Economic and Fiscal Outlook and the Portfolio Additional Estimates Statements for the Defence Portfolio (Department of Veterans’ Affairs). Funding for this item will come from Program 1.4: Assistance and Other Compensation for Veterans and Dependants, which is part of Outcome 1.
Funding will be provided as a one-off ad-hoc grant process to the IVA. The purpose of the funding is to support the IVA in its role as the professional association for veteran advocates and strengthen governance in the veteran advocacy sector.
The grant will be administered in accordance with the Commonwealth resource management framework, including the Public Governance, Performance and Accountability Act 2013, 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 regards to the nine key principles in administering the grant.
Information about the grant, including grant opportunity guidelines, will be made available on the GrantConnect website (www.grants.gov.au), and the grant will be administered by the Community Grants Hub, which is part of the Department of Social Services. 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 IVA. The delegate will be at the Senior Executive Service Band 3 level and have appropriate experience and knowledge to exercise this function.
Independent merits review of decisions made in connection with the grant are not considered suitable as they are decisions relating to the provision of a one-off grant to a certain service provider, over other service providers. In addition, decisions made in connection with the grant funding are decisions relating to the allocation of a finite resource, from which all potential claims for a share of the resource cannot be met. 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 4.11 to 4.19 of the guide, What decisions should be subject to merit review?).
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.
In any case, 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 department has continued to work with ESOs to consider how advocacy services could be strengthened to benefit veterans and families, including consultation on a national professional association for veterans’ advocates. Between August and October 2024, the department undertook a public consultation process on the ESORT endorsed proposal to establish an independent Institute of Veterans Advocacy. The proposal received broad support from the veteran community with a total of 95 submissions received from a range of ESOs, commercial advocacy providers, the legal sector and individual advocates and veterans. The submissions have been compiled into a final report, available at: www.dva.gov.au/documents-and-publications/institute-veterans-advocates-consultation, along with individual submissions (where permission to publish was provided) (www.dva.gov.au/about-us/engagement-and-consultation/how-we-consult-ex-service-community/eso-round-table-esort/institute-veterans-advocates-submissions-received).
On 26 August 2025, the Senate re-referred an inquiry into advocacy services relating to veteran compensation and income support to the Foreign Affairs, Defence and Trade References Committee (the committee). The committee received submissions from veterans, ESOs, veteran advocates, commercial advocacy providers and law firms and held public hearings on 26 September 2025. Themes arising from submissions and witness testimony included the appropriateness of commission-based fees, the lack of industry regulation and the need to ensure transparency and enforce minimum service and ethical standards across the advocacy sector.
On 4 November 2025, the committee tabled its report (www.aph.gov.au/Parliamentary
_Business/Committees/Senate/Foreign_Affairs_Defence_and_Trade/advocacy2025/Report) which made seven recommendations noting that:
- the veterans’ advocacy sector is not currently regulated, and professional oversight of work standards and conduct is severely limited; and
- this lack of oversight, combined with a lack of recourse options, has had a detrimental impact on the quality of advocacy services.
The grant aims to address Recommendation 7 of the report, that the department work closely with the IVA as it becomes operational to ensure that it provides effective professional standards and regulation of the veterans’ advocacy sector. Consultation with the IVA and the broader veteran community will continue throughout the life of the grant agreement.
Constitutional considerations
Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the defence power (section 51(vi)) of the Constitution.
Defence power
Section 51(vi) of the Constitution empowers the Parliament to make laws with respect to ‘the naval and military defence’ of the Commonwealth and States, and ‘the control of the forces to execute and maintain the laws of the Commonwealth’.
The grant will support the IVA to establish itself as the professional association that provides registration of veteran advocates.
Veterans and their families using services from an IVA registered advocate will be assured of the advocate’s credentials, standing and contemporary knowledge of the veteran entitlement system, and therefore have confidence in the services provided. Using the services of an IVA registered advocate will assist in ensuring veterans and their families can access their entitlements and are connected through to appropriate services and supports in a timely fashion.
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 (Veterans’ Affairs Measures No. 1) 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 (Veterans’ Affairs Measures No. 1) Regulations 2025 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for the Government to provide a grant to the Institute of Veterans Advocacy Ltd (IVA) to support the operations of the IVA to act as the professional body for veteran advocates (the grant), administered by the Department of Veterans’ Affairs (the department), part of the Defence portfolio.
The IVA is an independent charitable entity that was established in March 2025 following comprehensive discussions of a working group established by the Ex-Service Organisation (ESO) Round Table to work with the department to consider options to strengthen advocacy, ethical and professional standards. The IVA will act as the professional association for veteran advocates, setting competency and minimum training standards, and administering a code of conduct and complaints mechanism. The purpose of the grant is to strengthen governance in the veteran advocacy sector, which is currently unregulated and is one of a suite of complementary reforms the Government is progressing to safeguard the integrity of the veteran support system.
The Government will provide funding of $3.0 million over four years from 2025-26 for a grant to the IVA to support establishment activities and operational arrangements and aims to:
- establish competency standards, a code of conduct and minimum training requirements for veteran advocates;
- professionalise veteran advocates and advocacy services in the community;
- improve confidence in the veteran community and provide assurance to veterans and their families that services provided from a registered veteran advocate are professional, high quality and are provisioned with a contemporary understanding of veteran entitlements;
- provide members with access to a range of benefits and tools, including improved and nationally consistent training and continued professional development; and
- lift the overall standard of veteran advocacy services nationally.
Human rights implications
This disallowable legislative instrument engages the following human rights:
- the right to social security including social insurance - Article 9 of the International Covenant on Economic, Social and Cultural Rights (ICESCR), read with article 2;
- the right to health - Article 12 of the ICESCR; and
- the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control - Article 25 of the Universal Declaration of Human Rights (UDHR).
Right to social security
Article 2 of the ICESCR requires State Parties to take steps to progressively achieve the full realisation of the rights recognised in the ICESCR by all appropriate means, including particularly the adoption of legislative measures.
The right to social security, including social insurance is contained in Article 9 of the ICESCR which states that “The States Parties to the present Covenant recognise the right of everyone to social security, including social insurance.”
Table item 110 engages and promotes the right to social security including social insurance, by protecting veteran’s statutory entitlements for their service to the nation in the Australian Defence Force from commercial practices that seek to put profits ahead of veteran health and wellbeing, or otherwise poor performing advocates. This will be achieved by creating a new veteran advocacy governance arrangement that will address exploitative fee practices of commercial advocates, ensure advice provided is provisioned with a contemporary understanding of veteran entitlements and lift the overall quality of veteran advocacy services nationally.
Right to health
Article 12(1) of the ICESCR recognises the ‘right of everyone to the enjoyment of the highest attainable standard of physical and mental health’.
Table item 110 engages and promotes the right to the highest attainable standard of physical and mental health by ensuring those veterans who choose to pay for advocacy services, pay a fair and reasonable amount through an advocate registered with the IVA with the balance of their statutory incapacity and permanent impairment payments supporting them to maintain their physical and mental health and engage in daily-life, as intended under the Military Rehabilitation and Compensation Act 2004, the Veterans’ Entitlements Act 1986 and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988.
Right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control
Article 25(1) of the UDHR states that “Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control”.
Table item 110 engages and promotes this right by protecting veteran’s statutory entitlements for their service to the nation in the Australian Defence Force, from unreasonable commercial practices that seek to put profits ahead of veteran health and wellbeing, or otherwise poor performing advocates. This will be achieved by creating a new veteran advocacy governance arrangement that will address exploitative fee practices of commercial advocates, ensure advice provided is provisioned with a contemporary understanding of veteran entitlements and lift the overall quality of veteran advocacy services nationally.
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