National Land Transport (Roads to Recovery List) Variation Instrument (No.2) 2025

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2025L01035 Not in force Legislative Instrument

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Explanatory Statement

Issued by authority of the Delegate of the Minister for Infrastructure, Transport, Regional Development and Local Government

National Land Transport Act 2014

National Land Transport (Roads to Recovery List) Variation Instrument (No. 2) 2025

 

Authority

The National Land Transport (Roads to Recovery List) Variation Instrument (No. 2) 2025 (the Instrument) is made under subsection 88(2) of the National Land Transport Act 2014.

Purpose

The Instrument varies the National Land Transport (Roads to Recovery List) Determination 2024 (the Determination). The purpose of the Instrument is to introduce a new funding recipient on account of the de‑amalgamation of the former East Arnhem Regional Council into the revised East Arnhem Regional Council and Groote Archipelago Regional Council.

Background

The National Land Transport (Roads to Recovery List) Determination 2024 made on 14 May 2024 specifies the Commonwealth funding to be provided under the Roads to Recovery Program for the funding period of 1 July 2024 to 30 June 2029. Details of the recipients and the amounts received under the Roads to Recovery Program are contained in Schedule 1 of the Determination.

Compliance with statutory preconditions

Under s 88(2) of the National Land Transport Act 2014, the Minister may vary the Determination to redirect some or all of a named recipient’s funding amount, where one or more persons or bodies takes over responsibility for all or part of a particular area for which the named recipient was responsible.

The former East Arnhem Regional Council and the boundaries of the local government area under its administration was constituted (as East Arnhem Shire) by gazette on 1 July 2008. Provision for funding to the East Arnhem Shire Council under the Roads to Recovery Program has continued in each subsequent funding period since the council was established. This satisfies the requirement under s 88(2)(a) of the National Land Transport Act 2014.

The Groote Archipelago Regional Council and the boundaries of the local government area under its administration was constituted on 1 September 2024 by gazette, in which the boundaries of the East Arnhem Region were changed to reflect the removal of the area to be administered by the Groote Archipelago Regional Council. The East Arnhem Regional Council has yet to receive any of its funding allocation under the Roads to Recovery Program (2024-29). This satisfies the requirement under 88(2)(b) of the National Land Transport Act 2014.

Summary of the National Land Transport (Roads to Recovery List) Variation Instrument (No. 2) 2025

The amount in item 1 of the Schedule 1 to the Instrument varies the amount specified in the Determination to reflect the reduced geographical size of the funding recipient on account of the de-amalgamation mentioned above.

Item 2 of Schedule 1 to the Instrument introduces the Groote Archipelago Regional Council as a Roads to Recovery funding recipient and directs some of the funding previously prescribed for the East Arnhem Regional Council to it.

The National Land Transport (Roads to Recovery List) Variation Instrument (No. 2) 2025 is a legislative instrument for the purposes of the Legislation Act 2003, but is exempt from disallowance under s 88(5) of the National Land Transport Act 2014.

The variation of amounts payable to funding recipients due to the de-amalgamation of the former East Arnhem Regional Council is an administrative decision and affects the distribution of a fixed amount of funding amongst those recipients. The disallowance of this variation would potentially have undesirable consequences for other funding recipients. As such it is not considered appropriate for disallowance.

The National Land Transport (Roads to Recovery List) Variation Instrument (No. 2) 2025 commences the day after it is registered.

Consultation

In relation to the National Land Transport (Roads to Recovery List) Determination 2024, between January and May 2024, the then Department of Infrastructure, Transport, Regional Development, Communications and the Arts consulted with local government associations, State and Territory Local Government Grants Commissions, and Government departments. Comment was invited by survey, workshop, and email. The department received more than 200 responses to the survey. The majority of responses expressed support for the existing model of funding distribution. Some feedback was provided, considered and subsequently the instrument distributed funding in the same way as the prior funding period, with a positive impact on stakeholders given a universal percentage funding increase.

At the time of its commencement, 551 organisations were identified to be funding recipients. Section 88(2) of the Act contains provisions for the instrument to be varied in instances where an amount of funding prescribed for a person or body is now the responsibility of another person or body, and allows the Minister or Delegate to redirect some or all of the funding to the other person or body.

On 15 March 2025, officials were elected for the newly formed Groote Archipelago Regional Council which took on responsibility for a portion of the former East Arnhem Regional Council; necessitating arrangements to be made to redistribute part of East Arnhem Regional Council’s funding allocation to Groote Archipelago Regional Council.

The department consulted the Northern Territory Grants Commission regarding the appropriate redistribution of the Roads to Recovery funding allocation between East Arnhem Regional Council and Groote Archipelago Regional Council. This resulted in the funding redistribution being calculated based on the length of each council’s local road network.

On 9 July 2025, the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts met with representatives from the East Arnhem Regional Council and the Groote Archipelago Regional Council to discuss the proposed redistribution of allocation from the former East Arnhem Regional Council, using road length as a determining factor. Both councils expressed support for this method of determining their share of the funding allocation.

No further consultation was held with other funding recipients in the National Land Transport (Roads to Recovery List) Determination 2024 to discuss the redistribution of allocation resulting from the de-amalgamation of the East Arnhem Regional Council as they were not affected by the change.

Overview

The National Land Transport (Roads to Recovery List) Variation Instrument (No. 2) 2025 was enacted under the authority of the Delegate of the Minister for Infrastructure, Transport, Regional Development and Local Government, pursuant to subsection 88(2) of the National Land Transport Act 2014. This legislative instrument was introduced to address the funding distribution issues arising from the de-amalgamation of the former East Arnhem Regional Council into the revised East Arnhem Regional Council and the newly established Groote Archipelago Regional Council. The primary objective of this variation is to ensure that the funding allocation under the Roads to Recovery Program accurately reflects the geographical responsibilities of the respective councils. This adjustment is necessary to maintain the integrity of the funding distribution model and to comply with the statutory requirements outlined in the Act. The Instrument modifies the National Land Transport (Roads to Recovery List) Determination 2024 by redistributing the funding allocation to account for the changes in council boundaries. The variation process involved consultation with relevant stakeholders, including the Northern Territory Grants Commission, and meetings with the East Arnhem Regional Council and Groote Archipelago Regional Council to agree on the method of redistribution based on road length. This approach ensures a fair and administratively manageable adjustment to the funding allocations, reflecting the new governance structures while maintaining the overall funding framework under the Roads to Recovery Program.

Scope and Application

The National Land Transport (Roads to Recovery List) Variation Instrument (No. 2) 2025 applies to the redistribution of funding allocations under the Roads to Recovery Program, specifically for the funding period from 1 July 2024 to 30 June 2029. This Instrument varies the National Land Transport (Roads to Recovery List) Determination 2024, primarily to account for the de-amalgamation of the former East Arnhem Regional Council into the revised East Arnhem Regional Council and Groote Archipelago Regional Council. The Instrument introduces the Groote Archipelago Regional Council as a new funding recipient, while adjusting the funding allocation for the East Arnhem Regional Council to reflect the change in geographical boundaries. The Instrument is made under subsection 88(2) of the National Land Transport Act 2014 and commences the day after it is registered. While the Instrument is exempt from disallowance under section 88(5) of the Act, it has been developed following consultation with relevant stakeholders, including the Northern Territory Grants Commission and the two affected councils.

Key Provisions

The National Land Transport (Roads to Recovery List) Variation Instrument (No. 2) 2025 primarily serves to adjust the funding allocations for the Roads to Recovery Program following the de-amalgamation of the former East Arnhem Regional Council into the revised East Arnhem Regional Council and the newly formed Groote Archipelago Regional Council. Section 88(2) of the National Land Transport Act 2014 mandates that the Minister may vary the funding allocations where there is a change in responsibility for an area previously covered by a funding recipient. In this case, the Instrument reflects these changes by reducing the funding allocated to the East Arnhem Regional Council and introducing a new allocation for the Groote Archipelago Regional Council. The obligations under this Instrument are clearly defined in Schedule 1, which details the specific adjustments to the funding amounts. The primary obligation is for the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts to ensure that the funding redistribution is implemented in a manner that accurately reflects the changes in council boundaries and responsibilities. This involves calculating the new funding allocations based on the length of each council’s local road network, as agreed upon during consultations with the Northern Territory Grants Commission and confirmed by representatives of both councils. Breach of the obligations outlined in the Instrument could have significant consequences. While the Instrument itself does not specify explicit penalties for non-compliance, failure to adhere to the mandated funding redistribution could potentially lead to legal challenges or disputes over the legitimacy of the funding allocations. Additionally, any misallocation of funds could result in financial mismanagement, affecting the efficiency and effectiveness of the Roads to Recovery Program. Such breaches may also lead to administrative or corrective actions by the relevant authorities to ensure that the intended funding distribution is achieved. The Instrument does not detail specific penalties for non-compliance, but the consequences of failing to meet the obligations could be severe. There could be financial repercussions for the Department if the funding is not redistributed as specified, potentially impacting the overall budget of the Roads to Recovery Program. Furthermore, any misallocation of funds could result in legal actions from affected parties, such as the councils involved, leading to further administrative burdens and potential financial liabilities. The Instrument’s provisions ensure that the funding is distributed in a manner that is both fair and reflective of the current council boundaries and responsibilities.

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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.