EXPLANATORY STATEMENT
Select Legislative Instrument No. 3, 2014
Issued by the Authority of the Minister for Finance
Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment
(2014 Measures No. 1) Regulation 2014
The Financial Management and Accountability Act 1997 (the FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies. The FMA Act applies to Commonwealth Departments of State and their staff, parliamentary departments and their staff, and prescribed agencies.
Subsection 65(1) of the FMA 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.
To respond to the High Court’s decision in Williams v Commonwealth (2012) 288 ALR 410, the Financial Framework Legislation Amendment Act (No. 3) 2012 inserted section 32B of the FMA Act, which authorised the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Management and Accountability Regulations 1997 (the Principal Regulations). Section 32B also authorises the Commonwealth to make, vary and administer arrangements for the purposes of programmes specified in the Principal Regulations. Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programmes. Schedule 1AB was added to the Principal Regulations on 13 December 2013.
The Regulation amends Schedule 1AB to the Principal Regulations to establish legislative authority for the Government to spend on two new activities which were announced in the Mid-Year Economic and Fiscal Outlook 2013-14. The activities are:
- the Tasmanian Jobs Programme, administered by the Department of Employment, to provide incentive payments to Tasmanian employers to improve employment opportunities for eligible Tasmanian job seekers; and
- the Agriculture in Education initiative, administered by the Department of Education, to provide funding to Education Services Australia to develop online resources to support teaching about food and fibre production across the Australian Curriculum.
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 Legislative Instruments Act 2003.
The Regulation commences on the day after registration on the Federal Register of Legislative Instruments.
Consultation
In accordance with section 17 of the Legislative Instruments Act 2003, consultation has taken place with the Department of Education and the Department of Employment. A regulation impact statement is not required as the Regulation only applies to FMA Act Agencies and does not adversely affect the private sector.
Details of the Financial Management and Accountability Amendment (2014 Measures No. 1) Regulation 2014
Section 1 – Name of Regulation
This section provides that the title of the Regulation is the Financial Management and Accountability Amendment (2014 Measures No. 1) Regulation 2014.
Section 2 – Commencement
This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislative Instruments.
Section 3 – Authority
This section provides that the Regulation is made under the Financial Management and Accountability Act 1997 (FMA Act).
Section 4 – Schedule(s)
This section provides that the Financial Management and Accountability Regulations 1997 is amended as set out in Schedule 1 to the Regulation.
Schedule 1 – Amendment
Item 1 – Part 4 of Schedule 1AB (after table item 6)
This item adds two new items to Schedule 1AB to establish legislative authority for the Government to spend on new programmes in the Department of Employment and the Department of Education.
New table item 7 establishes legislative authority for the Government to fund the Tasmanian Jobs Programme under which incentive payments will be made to Tasmanian employers for the purpose of improving employment opportunities for Tasmanian job seekers.
Under the programme, a one-off payment of $3,250 will be made to any eligible Tasmanian business that hires an eligible job seeker and continues to employ them on a full-time basis for at least six months. The job seeker must have been receiving Newstart Allowance, Youth Allowance (other than as an apprentice or fulltime student) or Parenting Payment for a minimum period of six months and must have been physically resident in Tasmania for at least six months prior to commencing employment with the Tasmanian business. Parenting Payment recipients must have participation requirements at the time they are placed in a job. Businesses will qualify for the full payment for each eligible job seeker they hire.
The programme will run as a trial for two years, with up to 2,000 payments available to the first businesses that qualify. Total funding for the programme is capped at $6.9 million over three years.
The Department of Employment will be responsible for administering the programme. Delivery of the programme will be under existing Job Services Australia (JSA) and Disability Employment Services (DES) arrangements. The funding will be provided to JSA and DES service providers who will assess the eligibility of employers and administer the one-off payments in accordance with the programme guidelines.
The spending activity under the Tasmanian Jobs Programme involves decisions made by employment services providers in accordance with programme guidelines. Employment services providers are selected through a competitive tender process that sought applications from potential service providers to deliver the full suite of government employment services to job seekers. These employment services providers are engaged through Funding Deeds which strictly govern their behaviour, including complaints handling processes.
The Tasmanian Jobs Programme is an initiative under the broader package of government employment services and it provides financial incentives to employers who employ eligible job seekers on a full-time basis for a minimum of six months. Employment services providers’ decisions under the Tasmanian Jobs Programme can be reviewed through the existing employment services formal internal and external mechanisms which can include the Department of Employment, Department of Social Services or the Commonwealth Ombudsman.
Given the existence of the above review mechanisms, the programme allocates finite resources and the fact that this programme is part of the broader package of employment services, the Department of Employment does not believe it would be appropriate for this programme to be subject to external judicial merits review.
Further detail about the programme is available in the Mid-Year Economic and Fiscal Outlook 2013-14 at page 139.
New table item 8 establishes legislative authority for the Government to fund the Agriculture in Education initiative. Under this initiative, the Government will provide $2.0 million over two years to Education Services Australia to develop online resources to support effective teaching about food and fibre production across the Australian Curriculum. The initiative will be administered by the Department of Education.
The Agriculture in Education measure builds on the existing Australian Government initiative titled “Food in the Australian Curriculum”, which supports the teaching and learning in schools of agrifood and the supply chain of agricultural products in the context of the Australian Curriculum which sets out the core knowledge, understanding, skills and general capabilities that are important for all Australian students.
All decisions for this measure will be made in accordance with the Department of Education’s Chief Executive’s Instructions and delegations on the expenditure of public monies as authorised under the Financial Management and Accountability Act 1997. Funding will be provided to Education Services Australia, through a funding agreement which will comply with the Commonwealth Grant Guidelines. Grant information will be published on the Department of Education’s website.
Given this grant programme will involve the allocation of finite resources for the development of specialist curriculum resources, it would not be suitable for merits review.
Further detail is available in the Mid-Year Economic and Fiscal Outlook 2013-14 at page 132.
Statement of Compatibility with Human Rights
Prepared in accordance with part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Financial Management and Accountability Amendment (2014 Measures No. 1) Regulation 2014
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
The Financial Management and Accountability Act 1997 (the FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies. The FMA Act applies to Commonwealth Departments of State and their staff, parliamentary departments and their staff, and prescribed agencies.
Section 32B of the FMA Act establishes legislative authority for the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Management and Accountability Regulations 1997 (FMA Regulations) and to make, vary and administer arrangements and grants for the purposes of programmes specified in the FMA Regulations. This is in response to the High Court’s decision in Williams v Commonwealth (2012) 288 ALR 410. Schedule 1AA and Schedule 1AB to the FMA Regulations specify the arrangements, grants and programmes.
The Regulation amends Schedule 1AB to the FMA Regulations to establish legislative authority for Government spending on the following activities which were announced in the Mid-Year Economic and Fiscal Outlook 2013-14:
- the Tasmanian Jobs Programme to provide incentive payments to Tasmanian employers to improve employment opportunities for eligible Tasmanian job seekers (administered by the Department of Employment); and
- the Agriculture in Education initiative to provide funding to Education Services Australia to develop online resources to support teaching about food and fibre production across the Australian Curriculum (administered by the Department of Education).
The activities specified in Schedule 1AB are the responsibility of the relevant Ministers who have portfolio responsibility for the matters.
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