16th May 2024, 4:54 PM – Representatives Financial Framework (Supplementary Powers) Amendment Bill 2024 - Report from Federation Chamber - Improved grants reporting

The majority voted against amendments (2) and (4) moved by Indi MP Helen Haines (Independent), which means they failed.

Amendment text

(2) Clause 2, page 2 (at the end of the table), add:

7. Schedule 3

The day after this Act receives the Royal Assent.

(4) Page 12 (after line 34), at the end of the Bill, add:

Schedule 3 — Improved grants reporting

Financial Framework (Supplementary Powers) Act 1997

1 Before Part 3

Insert:

Part 2B — Reportable grants approved under instruments

46 Simplified outline of this Part

This Part provides for some reporting requirements for certain grants.

46A Definitions

In this Part:

corporate Commonwealth entity has the meaning given by the Public Governance, Performance and Accountability Act 2013.

grant has the meaning given by section 46B.

reportable grant means a grant which is approved:

(a) based on an application which:

(i) an official has recommended should be rejected; or

(ii) does not meet any of the relevant selection criteria; or

(b) by a Minister, who is a member of the House of Representatives, for a grantee in their electorate.

46B Meaning of grant

(1) A grant is an arrangement for the provision of financial assistance by or on behalf of the Commonwealth, or by or on behalf of a corporate Commonwealth entity:

(a) under which relevant money or other CRF money is to be paid to a grantee other than the Commonwealth; and

(b) which is intended to help address one or more of the Australian Government’s policy outcomes while assisting the grantee achieve its objectives.

(2) Without limiting subsection (1), a grant may take a variety of forms including payments made:

(a) as a result of competitive or non-competitive selection processes; or

(b) where particular criteria are satisfied; or

(c) on a one-off or ad hoc basis.

Note: Types of grants include, for example, research grants, grants providing for the delivery of services, grants that help fund infrastructure, and grants that help build capacity.

(3) Despite subsection (1), none of the following arrangements are grants :

(a) the acquisition of goods and services by a Commonwealth entity for its own use, or on behalf of another entity;

(b) an act of grace payment approved under section 65 of the Public Governance, Performance and Accountability Act 2013 ;

(c) a payment of compensation made under:

(i) an arrangement relating to defective administration; or

(ii) an arrangement relating to employment conditions; or

(iii) an arrangement established by a law;

(d) a payment to a person of a benefit or an entitlement established by a law;

(e) a tax concession or offset;

(f) an investment or loan;

(g) a payment:

(i) to a State under section 96 of the Constitution; or

(ii) to a State or Territory for the purposes of the Federal Financial Relations Act 2009 ;

unless the Commonwealth has a determinative input into the final recipients of the payments;

(h) a payment made for the purposes of the Local Government (Financial Assistance) Act 1995 ;

(i) a payment made for the purposes of the Australian Education Act 2013 ;

(j) a payment made for the purposes of the Higher Education Support Act 2003;

(k) a payment of assistance for the purposes of Australia’s international development assistance programme, which is treated by the Commonwealth as official development assistance;

(l) a payment of a charitable donation by a non-corporate entity from monies received from individuals for that purpose;

(m) a membership payment for the purposes of complying with Australia’s obligations under international treaties;

(n) a payment, or notional payment, from one Commonwealth entity to another;

(o) a notional payment by a Commonwealth entity to itself.

Note: Additional guidance on the range of arrangements referred to in this subsection is available on the Department’s website (http:///www.finance.gov.au).

46C Reportable grants approved under instruments

(1) This section applies if a Minister:

(a) approves a grant in accordance with an instrument made under section 105C of the Public Governance, Performance and Accountability Act 2013 ; and

(b) the grant is a reportable grant.

(2) If the Minister approves a reportable grant, the Minister must provide a written report to the Finance Minister within 30 days of approving the reportable grant.

(3) The report must include a statement of reasons that explains the basis on which the Minister approved the reportable grant.

(4) If the Minister is a member of the House of Representatives and the Minister approves a reportable grant for a grantee in their electorate, the Minister must include this information in the statement of reasons in subsection (3).

(5) Subsection (4) does not apply if the reportable grant is awarded Australia-wide, state-wide or across a region on the basis of a formula, and the reportable grant falls in the relevant Minister’s electorate.

(6) The Finance Minister must table a copy of the report in each House of Parliament within 5 sitting days of that House after receiving the report.