EXPLANATORY STATEMENT
Issued by authority of the Assistant Minister for Competition, Charities and Treasury, as delegate for the Minister for Industry and Science
Industry Research and Development Act 1986
Industry Research and Development (Enhancing Transparency Around Natural Disaster Fundraising Program) Instrument 2022
Subsection 33(1) of the Industry Research and Development Act 1986 (the Act) provides that the Minister for Industry and Science may, by disallowable legislative instrument, prescribe programs in relation to industry, innovation, science or research, including in relation to the expenditure of Commonwealth money under such programs.
Under subsection 33(6) of the Act, the Minister for Industry and Science has delegated the Minister’s power under subsection 33(1) to prescribe the Enhancing Transparency Around Natural Disaster Fundraising Program (the Program) to the Assistant Minister for Competition, Charities and Treasury.
Section 33 of the Act provides for a statutory framework to provide authority for Commonwealth spending activities in relation to industry, innovation, science and research programs. This allows the Government to respond quickly and appropriately to the need to implement innovative ideas and pilot programs on an ongoing basis and as opportunities arise. Prescribing programs in legislative instruments provides transparency and Parliamentary oversight of government programs and spending activities, whilst reducing the administrative burden on the Commonwealth.
Once a program is prescribed by the Minister under section 33, subsection 34(1) allows the Commonwealth to make, vary or administer arrangements in relation to activities under the prescribed program. Arrangements may include contracts, funding agreements or other arrangements, and may provide for money to be payable by the Commonwealth to one or more third parties. The power conferred on the Commonwealth by subsection 34(1) may be exercised on behalf of the Commonwealth by a Minister or an accountable authority of a non‑corporate entity, or by their delegate (under section 36).
Treasury and the Fundraising Institute Australia (FIA) have developed a Fundraising and Reporting During Natural Disasters Practice Note (practice note) which provides for minimum conduct standards for charities involved in natural disaster response and recovery activities. Compliance with the practice note is mandatory for members of the FIA. The purpose of the Industry Research and Development (Enhancing Transparency Around Natural Disaster Fundraising Program) Instrument 2022 (the Instrument) is to prescribe the Program. The Program provides funding, by way of a grant to FIA, to enable the FIA to develop and implement a voluntary framework for fundraising and reporting for charities involved in natural disaster response and recovery activities. including making the practice note available, by way of the internet, at no cost, to charities that are not members of the FIA who can choose to become signatories to the practice note.
Program decisions will be made by the Assistant Minister for Competition, Charities and Treasury or their delegate which is to be an SES employee.
The eligibility criteria for the Program would include that the recipient of the grant is the FIA.
The ad hoc grant will be provided to the FIA up to the amount of $53,348. The final funding amount will be dependent on an assessment of eligible expenses against the ad hoc grant Program guidelines. Subject to the FIA satisfying the eligibility criteria for the Program, the Assistant Minister will provide the grant to the FIA. Decisions of this nature, that is procedural decisions, are not suitable for review and are therefore generally excluded from merits review as set out in paragraphs 4.3 to 4.4 of the Administrative Review Council guidance, What decisions should be subject to merit review? at https://www.ag.gov.au/legal-system/administrative-law/administrative-review-council-publications/what-decisions-should-be-subject-merit-review-1999.
Persons who are otherwise affected by decisions or who have complaints about the Program will also have recourse to the Department of the Treasury (the Department). The Department investigates any complaints about the Program in accordance with its complaints policy and procedures. If a person is not satisfied with the way the Department handles the complaint, they may lodge a complaint with the Commonwealth Ombudsman.
For the purposes of subsection 33(3) of the Act, the Instrument specifies that the legislative power in respect of which the Instrument is made is the communications power (paragraph 51(v) of the Constitution). Paragraph 51(v) of the Constitution empowers the Parliament to make laws with respect to ‘postal, telegraphic, telephonic and other like services’.
The Program specified in the Instrument will assist charities to establish and maintain minimum standards of conduct whilst fundraising in relation to natural disasters and undertaking activities relating to responding to, and recovery from, natural disasters. This includes by developing a voluntary online framework that is readily and freely available to relevant charities.
There are no conditions that need to be met before the power to prescribe programs can be exercised.
Consultation
In accordance with section 17 of the Legislation Act 2003, the Attorney General’s Department and the Department of Industry, Science and Resources have been consulted on this Instrument.
Development of the Program was informed by feedback received on a Treasury consultation paper, ‘Development of a voluntary code for charities to improve transparency of charitable donations during natural disasters’. Submissions were received from charities involved in disaster response, including Red Cross, Salvation Army, Anglicare and St Vincent de Paul, peak bodies and law firms.
Details of the Instrument are set out in Attachment A.
The Instrument is a legislative instrument for the purposes of the Legislation Act 2003.
The Instrument commenced on the day after registration on the Federal Register of Legislation.
OBPR has advised that this proposal is unlikely to have a more than minor regulatory impact and that no Regulatory Impact Statement is required (OBPR22-03568).
A statement of Compatibility with Human Rights is at Attachment B.
ATTACHMENT A
Details of the Industry Research and Development (Enhancing Transparency Around Natural Disaster Fundraising Program) Instrument 2022
Section 1 – Name of the Instrument
This section provides the name of the Instrument as the Industry Research and Development (Enhancing Transparency Around Natural Disaster Fundraising Program) Instrument 2022.
Section 2 – Commencement
This section provides that the Instrument commences on the day after registration on the Federal Register of Legislation.
Section 3 – Authority
The Instrument is made under the Industry Research and Development Act 1986.
Section 4 – Definitions
This section includes definitions of terms used in the Instrument.
Section 5 – Prescribed Program
This section prescribes the Enhancing Transparency Around Natural Disaster Fundraising Program for the purposes of section 33 of the Act.
The Program provides funding, by way of a grant, to the FIA, to support the FIA to develop and implement a voluntary framework for fundraising and reporting which will be available to charities by way of the internet at no cost. The voluntary framework for fundraising and reporting will include a practice note and reporting templates.
Section 6 – Specified legislative power
The Instrument specifies that the legislative power in respect of which it is made are the powers of the Parliament to make laws with respect to postal, telegraphic, telephonic, and other like services (within the meaning of paragraph 51(v) of the Constitution).
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Industry Research and Development (Enhancing Transparency Around Natural Disaster Fundraising Program) Instrument 2022
This 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
The purpose of the Industry Research and Development (Enhancing Transparency Around Natural Disaster Fundraising Program) Instrument 2022 is to prescribe the Enhancing Transparency Around Natural Disaster Fundraising Program (the Program). The Program provides funding, by way of a grant to the Fundraising Institute of Australia, to develop and implement a voluntary framework for fundraising and reporting which will be available to charities, by way of the internet, at no cost.
Human rights implications
This Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Instrument is compatible with human rights as it does not raise any human rights issues.