EXPLANATORY STATEMENT
Revocation of the Commonwealth Grant Guidelines – July 2009
The legislative authority under which the instrument is made
Subsection 65(1) of the Financial Management and Accountability Act 1997 (FMA Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the FMA Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the FMA Act.
Subsection 64(1) of the FMA Act provides that the regulations may authorise a Minister to issue guidelines to officials on matters within the Minister’s responsibility. Subregulation 7A(1) of the Financial Management and Accountability Regulations 1997 (FMA Regulations) enables the Finance Minister to issue guidelines (to be called the Commonwealth Grant Guidelines) about matters relating to grants administration.
Subsection 33(3) of the Acts Interpretation Act 1901 in general terms provides that where an Act confers a power to make, grant or issue any legislative instrument of a legislative or administrative character the power is construed to include a power to repeal, rescind, revoke, amend or vary the instrument.
Purpose of the instrument
The Minister for Finance and Deregulation has issued the updated Commonwealth Grant Guidelines (CGGs) (June 2013) under regulation 7A of the FMA Regulations, which become mandatory on 1 June 2013.
The updated CGGs (June 2013) replace the current CGGs introduced in July 2009. The CGGs establish the overarching Commonwealth grants policy framework and articulate the expectations for all agencies subject to the FMA Act. Within this overarching framework, agencies develop their own specific grants administration practices based on the mandatory requirements and better practice principles of grants administration as set out in the CGGs.
The updated CGGs (June 2013) provide chief executives and agency staff with the flexibility to design and administer granting activities (including grant programs) to meet varying government objectives and to work together with stakeholders, such as the not-for-profit sector, to achieve government policy objectives.
From 1 June 2013, all departments and agencies subject to the FMA Act will be required to comply with the updated CGGs (June 2013).
The CGGs (July 2009) remain applicable to 31 May 2013. This instrument revokes the CGGs (July 2009) when the updated CGGs (June 2013) become mandatory on 1 June 2013.