Social and Community Services Pay Equity Special Account (Transition to National Disability Insurance Scheme) Specification 2017

Administered by Department of Social Services

Legislation au F2017L00530 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Social Services

 

Social and Community Services Pay Equity Special Account Act 2012

 

Social and Community Services Pay Equity Special Account (Transition to National Disability Insurance Scheme) Specification 2017

 

Purpose

The Social and Community Services Pay Equity Special Account (Transition to National Disability Insurance Scheme) Specification 2017 (the Specification) is made under subsection 7(4) of the Social and Community Services Pay Equity Special Account Act 2012 (the Act).

The Specification adds the National Disability Insurance Scheme as a program in Schedule 1 to the Act for the purpose of allowing the National Disability Insurance Agency to use funds standing to the credit of the special account established by the Act to assist organisations meet the costs of payments required to be made a result of a pay equity order.

Schedule 1 to the Act (together with Schedule 2) provides an exhaustive list of the Commonwealth programs that are within the scope of the Act. Schedule 3 provides a list of agreements and payments through which grants of financial assistance are made from the Commonwealth to the States and Territories.

The effect of this Specification is to redirect funding for the States and Territories under section 8 of the Act to funding for the National Disability Insurance Agency. The Commonwealth and the States have agreed through Bilateral Agreements that intergovernmental payments relating to disability services will cease once the National Disability Insurance Scheme is expected to reach full Scheme roll-out and that relevant payments would be made by the National Disability Insurance Agency under the National Disability Insurance Scheme. Funds standing to the credit of the account would be used by the National Disability Insurance Agency to support organisations affected by pay equity orders.

The Specification is a legislative instrument for the purposes of the Legislation Act 2003.


Background

 

The Act establishes the Account, which is a Special Account under section 83 of the Public Governance, Performance and Accountability Act 2013. The Account underpins the Commonwealth contribution to pay increases for social and community services sector workers in Commonwealthfunded programs. This extends to programs funded under agreements with and payments to States and Territories, such as National Partnership Payments and National Specific Purpose Payments.

 

Commonwealth supplementation is delivered through funding drawn down from the Account. The supplementation is then paid to assist employers:

-          who are covered by a pay equity order or to whom a pay equity order applies; and

-          who receive funding, directly or indirectly, from the Commonwealth for the purposes of a program, grant of financial assistance or specific purpose payment prescribed under the Act.

 

All of the programs within the scope of the Act, and therefore qualified to receive funds from the Account, are listed in Schedules 1 and 2 to the Act. Schedule 3 to the Act lists the grants of financial assistance or specific purpose payments for which specified amounts may be debited from the Account and credited to the COAG Reform Fund Account. Subsections 7(4) and 8(7) of the Act provide flexibility to ensure that the Schedules accurately reflect the programs, agreements and special purpose payments under which employers are able to receive assistance from the Act, and are therefore within the scope of the Act.

Commencement

Under subsections 7(5) and 8(8) of the Act, the Specification is not subject to the disallowance of instruments provisions set out in section 42 of the Legislation Act 2003. Instead, the Specification commences at the end of the disallowance period set out in section 9 of the Act. That is, on the day immediately after five sitting days has passed since the Specification is tabled in the House under section 38 of the Legislation Act 2003, and where no disallowance resolution referred to in subsection 9(2) of the Act has been passed.   

Consultation

The Department of Social Services has had extensive consultations with the Departments of Treasury and Finance.

Regulation Impact Statement (RIS)

This proposal is a minor machinery change within Government and does not change compliance costs.


Explanation of the provisions

Section 1

Section 1 provides how the Specification is to be cited, that is, as the Social and Community Services Pay Equity Special Account (Transition to National Disability Insurance Scheme) Specification 2017.

Section 2

Section 2 provides that the Specification commences on the day immediately after the last day on which a resolution referred to in subsection 9(2) of the Act could have been passed.

Schedule 1

Schedule 1 sets out how the Specification modifies the Act.

Schedule 1, item 1

Item 1 modifies Part 2 of Schedule 1 to the Act by adding the National Disability Insurance Scheme, as established by the  National Disability Insurance Scheme Act 2013, as a program. Adding this program to Schedule 1 will allow the National Disability Insurance Agency to use funds standing to the credit of the Account to assist organisations meet the costs of payments required to be made a result of a pay equity order.   

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Social and Community Services Pay Equity Special Account (Transition to National Disability Insurance Scheme) Specification 2017

 

The Specification 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 Act provides Commonwealth service providers with supplementation funding to assist them in paying the higher wage costs associated with the implementation of the Fair Work Australia Equal Remuneration Order for the Social and Community Services Sector.

 

All of the programs, special purpose payments or agreements within the scope of the Act, and therefore qualified to receive funds from the Special Account established under the Act, are listed in Schedules to the Act. Subsections 7(4) and 8(7) of the Act allow those Schedules to be amended and provide flexibility to ensure that the Schedules accurately reflect the programs, agreements and special purpose payments under which employers are able to receive assistance from the Act.

The effect of this Specification is to redirect funding for the States and Territories under section 8 of the Act to funding for the National Disability Insurance Agency.  The Commonwealth and the States have agreed through Bilateral Agreements that intergovernmental payments relating to disability services will cease once the National Disability Insurance Scheme is expected to reach full Scheme roll-out and that relevant payments would be made by the National Disability Insurance Agency under the National Disability Insurance Scheme. Funds standing to the credit of the account would be used by the National Disability Insurance Agency to support organisations affected by pay equity orders.

Human rights compatibility

This Specification is compatible with Article 7 of the International Covenant on Economic, Social and Cultural Rights which deals with the right to just and favourable conditions of work.

 

Christian Porter

Minister for Social Services

Overview

The Social and Community Services Pay Equity Special Account (Transition to National Disability Insurance Scheme) Specification 2017 was enacted to amend the Social and Community Services Pay Equity Special Account Act 2012, addressing the need to redirect funding from the states and territories to the National Disability Insurance Agency (NDIA). This legislative instrument was introduced by the Australian Government to ensure that funding is appropriately allocated to support organisations affected by pay equity orders as the transition to the National Disability Insurance Scheme progresses. The Specification was made under subsection 7(4) of the Social and Community Services Pay Equity Special Account Act 2012 and allows the NDIA to utilise funds from the special account to assist organisations meet the costs of payments required due to a pay equity order. The policy objective is to facilitate a smooth transition by ensuring that relevant funding is directed towards supporting the NDIA's role in disability services.

Scope and Application

The Social and Community Services Pay Equity Special Account (Transition to National Disability Insurance Scheme) Specification 2017 was made under subsection 7(4) of the Social and Community Services Pay Equity Special Account Act 2012 (the Act), with the purpose of enabling the National Disability Insurance Agency to use funds from the special account to assist organisations in meeting the costs of payments required as a result of a pay equity order. The Act establishes the special account and provides Commonwealth service providers with supplementation funding to help them manage the higher wage costs associated with the Fair Work Australia Equal Remuneration Order for the Social and Community Services Sector. The specification modifies the Act by adding the National Disability Insurance Scheme to the list of Commonwealth programs in Schedule 1, allowing the National Disability Insurance Agency to use funds from the special account to support organisations affected by pay equity orders. The Specification is a legislative instrument under the Legislation Act 2003. The Specification 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.

Key Provisions

The main operative sections of the Social and Community Services Pay Equity Special Account (Transition to National Disability Insurance Scheme) Specification 2017 (the Specification) are found in Schedule 1, item 1 (Schedule 1, item 1). This item modifies Part 2 of Schedule 1 to the Social and Community Services Pay Equity Special Account Act 2012 (the Act) by adding the National Disability Insurance Scheme (NDIS) as a program. This amendment enables the National Disability Insurance Agency (NDIA) to use funds standing to the credit of the special account to assist organisations in meeting the costs of payments required to be made as a result of a pay equity order. This is crucial in ensuring that the NDIS can support affected organisations during the transition period. The Act imposes specific obligations and requirements on the parties it governs. The primary requirement is that the NDIA can now use the funds from the special account to assist organisations that are affected by pay equity orders. This is a significant shift, as previously the funds were allocated for programs listed in Schedules 1 and 2 of the Act. Furthermore, the Commonwealth and the States have agreed that intergovernmental payments relating to disability services will cease once the NDIS is expected to reach full roll-out. This means that the NDIA will be responsible for making relevant payments under the NDIS. The Act also ensures that the Schedules are updated to accurately reflect the programs, agreements, and special purpose payments for which employers can receive assistance. The Specification does not explicitly detail offences, penalties, or civil/criminal consequences for breaches. However, any misuse of funds from the special account would likely fall under broader financial regulations and administrative laws. The Act and the Public Governance, Performance and Accountability Act 2013 provide the framework within which these funds must be managed, and any breach of these provisions could lead to administrative, civil, or criminal penalties as outlined in the relevant legislation. The precise consequences would depend on the nature and severity of the breach, and any subsequent investigations or legal proceedings. In summary, the Specification allows the NDIA to use the special account funds to support organisations affected by pay equity orders, aligning with the broader goal of transitioning to the NDIS. It imposes obligations on the NDIA to use these funds appropriately and in accordance with the terms of the Act. While the Specification itself does not detail specific penalties for breaches, existing laws would apply to any misuse of these funds.

Legal classification tags

Area of Law
Social Services
Disability Law
Instrument
Specification
Concepts
Reporting & Disclosure Obligations
Funding Mechanisms
Transitional Provisions
Catchwords
National Disability Insurance Scheme

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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.