ATTACHMENT

Details of the Financial Management and Accountability Amendment Regulation 2012 (No. 5)

Section 1 - Name of Regulation

This section provides that the title of the Regulation is the Financial Management and Accountability Amendment Regulation 2012 (No. 5).

 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 - Amendment of the Financial Management and Accountability Regulations 1997

This section provides that the Financial Management and Accountability Regulations 1997 (Principal Regulations) are amended as set out in Schedule 1.

Schedule 1 - Amendments

Schedule 1 amends the Principal Regulations to:  

*         add new Part 7B (Parliamentary Budget Office) to enable the Finance Minister to make guidelines under section 64 of the FMA Act to govern the engagement between Commonwealth bodies and the Parliamentary Budget Officer (item 1);

*         amend Schedule 1 to add the National Health Funding Body as a prescribed agency (item 2); and

*         amend Schedule 1AA to ensure there is legislative authority for particular Government spending by: adding 1 new grant to Part 3; adding 8 new programs to Part 4; and amending 13 program descriptions in Part 4 (items 3-14).

Item [1] - Part 7B

 

This item adds new regulation 22E (Assistance to Parliamentary Budget Officer) in a new Part 7B (Parliamentary Budget Officer) to the Principal Regulations.

 

Subsection 64(1) of the FMA Act provides that the Principal Regulations can authorise a Minister to issue guidelines to officials on matters about which regulations can be made.  New regulation 22E enables the Finance Minister to make guidelines under section 64 of the FMA Act governing the engagement between Commonwealth bodies and the Parliamentary Budget Officer.  If these guidelines are made, they apply to all officials required assist the Parliamentary Budget Officer.

 

The guidelines may cover:

*         the provision of information to the Parliamentary Budget Officer;

*         requirements for the confidentiality of advice given to the Parliamentary Budget Officer; and

*         the making of adequate arrangements for the provision of the assistance.

 

Subsection 64(2) of the FMA Act provides that guidelines may not create offences or impose penalties.

 

Subsection 64(3) of the FMA Act provides that if the guidelines are made under new regulation 22E, they will be a non-disallowable legislative instrument that is not be subject to the sunsetting requirements in the Legislative Instruments Act 2003.  The guidelines will take effect on, or after, the day they are registered in accordance with the Legislative Instruments Act 2003, providing that day is on or after the day that the Regulation commences.

Item [2] - Schedule 1, item 158A

National Health Funding Body (NHFB) was established when the National Health Reform Amendment (Administrator and National Health Funding Body) Act 2012 commenced on 25 June 2012 to support the Administrator of the National Health Funding Pool (the Administrator).  The NHFB is an important element of the National Health Reform Agreement, which provides for Commonwealth payments to the States for public hospital services, together with some State payments, to be paid through the National Health Funding Pool.

 

This item prescribes the NHFB as an FMA Act agency by adding the NHFB to Schedule 1 of the Principal Regulations.  The head of the NHFB, responsible for the day to day administration of the new agency, is the Chief Executive Officer.  Staff of the NHFB will be engaged under the Public Service Act 1999.

Item [3] - Schedule 1AA, item 303.001

This item adds the International Trade Remedies Adviser Project Funding Agreement (new item 303.001) managed by the Australian Customs and Border Protection Service in the Attorney-General's portfolio to Part 3 of Schedule 1AA of the Principal Regulations.

The grant arrangement with the Australian Industry Group, under the International Trade Remedies Adviser Project Funding Agreement, is used to employ and support an adviser to facilitate access by small and medium enterprises to increase their awareness and understanding of, Australia's anti-dumping and countervailing system.  This grant is added to Schedule 1AA to ensure that there is legislative authority for the Australian Customs and Border Protection Service to make payments in relation to that grant.

 

The International Trade Remedies Adviser Project Grant is part of the program referred to on pages 114 and 115 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.2, Attorney-General's Portfolio.

Item [4] - Schedule 1AA, item 401.006

This item amends the program description of a Department of Agriculture, Fisheries and Forestry program in Schedule 1AA of the Principal Regulations.

This item replaces the program description for the Regional Food Producers Innovation and Productivity Program (item 401.006) with a description that is consistent with previously published documents.  This program assists the regional food industry to improve productivity and profitability through innovation in processing and value-adding.  The amendments to the program description in item 401.006 ensure that the program description in Schedule 1AA more accurately describes the program and so provides legislative authority to continue arrangements for spending on this program.

 

The Regional Food Producers Innovation and Productivity program is referred to on pages 24 and 41 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.1, Agriculture, Fisheries and Forestry Portfolio.

Item [5] - Schedule 1AA, item 401.012

This item amends the name of a Department of Agriculture, Fisheries and Forestry program in Schedule 1AA of the Principal Regulations.

 

Currently the program in item 401.012 of Schedule 1AA is headed Live Cattle Exports - Business Assistance Official Development Assistance and Improved Supply Chain.  This item replaces that heading with a heading that more accurately reflects the fact that the program applies to the welfare of all live animal exports, not just live cattle exports.  This item broadens the heading in item 401.012 to Live Animal Exports - Business Assistance Improved supply chain and Official Development Assistance.

 

The Live Animal Exports - Business Assistance Official Development Assistance (ODA) and Improved Supply Chain (ISC) program is referred to on pages 26 and 52 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.1, Agriculture, Fisheries and Forestry Portfolio.

Item [6] - Schedule 1AA, after item 401.017

This item adds 6 Department of Agriculture, Fisheries and Forestry programs to Schedule 1AA of the Principal Regulations to ensure that there is legislative authority for the government to make arrangements to spend money on the following programs:

*         the Science and Innovation Awards for Young People (new item 401.018) - to encourage science, innovation and technology in rural industries and help to advance the careers of young scientists through national recognition of their research ideas.  This program is referred to on pages 26 and 52 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.1, Agriculture, Fisheries and Forestry Portfolio;

*         the Australian Pest Animal Research Program (new item 401.019) - to support applied research and extension projects that develop and promote improved integrated approaches for managing the impacts of pest animals (of national significance to agriculture but with benefits also flowing to the environment). The program also undertakes analysis to help prioritise Australian Government investment in pest animal management.  This program is referred to on pages 26 and 52 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.1, Agriculture, Fisheries and Forestry Portfolio;

*         the Plant Biosecurity and Response Reform Program (new item 401.020) - to continue to reform Australia's biosecurity system to integrate biosecurity activities, scientific capabilities and analysis across the biosecurity continuum, and to strengthen partnerships between all governments in Australia and other countries, industry and the broader community, in line with government priorities and the Intergovernmental Agreement on Biosecurity.  This program is referred to on pages 63 and 69 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.1, Agriculture, Fisheries and Forestry Portfolio;

*         the Australian Wine Industry- support program (new item 401.021) - to support the Australian wine industry in relation to the sales and profitability of the industry.  This program is referred to on pages 26 and 52 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.1, Agriculture, Fisheries and Forestry Portfolio;

*         the Australian Collaborative Land Use & Management Program (ACLUMP) (new item 401.022) - to promote and support the development of nationally consistent land use and land management practices information for Australia.  This program is referred to on pages 26 and 52 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.1, Agriculture, Fisheries and Forestry Portfolio; and

*         the National Biosecurity Committee (NBC) small project fund (new item 401.023) - to provide support for projects that assist in progressing key NBC priorities or national biosecurity policy issues.  This fund is referred to on pages 63 and 69 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.1, Agriculture, Fisheries and Forestry Portfolio.

Item [7] - Schedule 1AA, after item 402.027

This item adds the Attorney-General's Department program, the Disaster Income Recovery Subsidy (DIRS) to Schedule 1AA of the Principal Regulations (new item 402.027), to ensure that there is legislative authority to support payments to individuals who have experienced a loss of income as a direct result of a natural disaster.

The DIRS was most recently referred to in program 1.7 on page 37 of the Portfolio Budget Statements 2011-12, Budget Related Paper No.1.2, Attorney -General's Portfolio.  If activated, the DIRS would be administered under that program.

Item [8] - Schedule 1AA, after item 410.024

This item adds a new program for the Department of Families, Housing, Community Services and Indigenous Affairs to Schedule 1AA of the Principal Regulations (new item 410.025), to ensure that there is legislative authority to assist people seeking to attend memorial services in connection with the Bali bombings.

Item [9] - Schedule 1AA, items 421.001 to 421.005

This item amends the programs descriptions for 5 Department of Regional Australia, Local Government, Arts and Sport's programs in Schedule 1AA of the Principal Regulations to ensure that the legislative authority is broad enough to support arrangements for payments under these programs:

*         Regional Development (item 421.001) to broaden the description beyond activities associated with regional economies.  This program is referred to on pages 34-40 the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.16, Regional Australia, Local Government, Arts and Sports Portfolio;

*         Local Government and Community (item 421.002 of Schedule 1AA) to broaden the description beyond activities associated with regional infrastructure.  This program is referred to on pages 40-42 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.16, Regional Australia, Local Government, Arts and Sports Portfolio;

*         Territories (item 421.003) to capture activities associated with maintaining and improving the legislative framework. This program is referred to on pages 40-42 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.16, Regional Australia, Local Government, Arts and Sports Portfolio;

*         Arts and Cultural Development (item 421.004) to capture activities associated with maintaining and improving the legislative framework. This program is referred to on pages 47-52 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.16, Regional Australia, Local Government, Arts and Sports Portfolio; and

*         Sports and Recreation (item 421.005) to add activities to protect the integrity of sport. This program is referred to on pages 53-58 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.16, Regional Australia, Local Government, Arts and Sports Portfolio.

Item [10] - Schedule 1AA, item 425.002

This item amends the description for the Department of Sustainability, Environment, Water, Population and Communities program, Environmental Information and Research (item 425.002) in Schedule 1AA of the Principal Regulations to clarify the activities associated with addressing forms of whaling that may not be deemed to be technically commercial.

The Environmental Information and Research program is referred to on pages 38-41 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.18, Sustainability, Environment, Water, Populations and Communities Portfolio.

Item [11] - Schedule 1AA, item 425.004

This item amends the description for the Department of Sustainability, Environment, Water, Population and Communities program, Management of Hazardous Wastes, Substances and Pollutants (item 425.004) in Schedule 1AA of the Principal Regulations to better reflect the full scope of this program, in particular to clarify that a purpose of this program is to reduce waste and pollution and to increase resource recovery.

The Management of Hazardous Waste program is referred to on pages 48-50 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.18, Sustainability, Environment, Water, Populations and Communities Portfolio.

Item [12] - Schedule 1AA, item 425.007 and 425.008

This item would amend the descriptions for 2 Department of Sustainability, Environment, Water, Population and Communities programs in Schedule 1AA of the Principal Regulations:

*         Water Reform (item 425.007) to support a grant to the Australian Water Association to promote greater awareness of the capability of Australian companies operating overseas.  This program is referred to on pages 59-65 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.18, Sustainability, Environment, Water, Populations and Communities Portfolio; and

*         Sustainable Rural Water Use and Infrastructure Program (item 425.008) to ensure the description encompasses recipients other than farmers, reflects the aim of a transparent water market, addresses the efficient use of environmental water, and covers research relating to river systems.  This program is referred to on pages 59-65 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.18, Sustainability, Environment, Water, Populations and Communities Portfolio.

Item [13] - Schedule 1AA, item 425.011

This item amends the description for the Department of Sustainability, Environment, Water, Population and Communities program, National Water Security Plan for Cities and Towns (item 425.011) in Schedule 1AA of the Principal Regulations, by replacing it with a broader description that reflects that this program does not only provide funding to governments and local authorities.

The National Water Security Plan for Cities and Towns program is referred to on pages 59-65 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.18, Sustainability, Environment, Water, Populations and Communities Portfolio.

 

Item [14] - Schedule 1AA, item 425.013

This item amends the description for the Department of Sustainability, Environment, Water, Population and Communities program, Restoring the Balance in the Basin (item 425.013) in Schedule 1AA of the Principal Regulations, by replacing it with a broader description that reflects the scope of the program beyond open tender approaches.

The Restoring the Balance in the Basin program is referred to on pages 59-65 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.18, Sustainability, Environment, Water, Populations and Communities Portfolio.