Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

I seek leave to move amendments (1) and (3), as circulated in my name, together.

Leave not granted.

I move amendment (1), as circulated in my name:

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

I have put to this chamber some important amendments. They are best practice, and they are the gold standard for how a government should spend public money. They would also end pork-barrelling, a corrupt practice that buys votes and that Australians are absolutely sick and tired of. My amendments would require all grants programs to have clear and publicly available merit-based selection criteria and guidelines. A requirement for each grant program to have guidelines and selection criteria might seem perfectly obvious, but right now it is optional under the Commonwealth Grants Rules and Guidelines. This has serious consequences for fairness in spending public money. It means that public money can be spent without rules and safeguards. Clearly, this is ridiculous, and these amendments will fix this so that the government can be upfront about who can apply for grants and the criteria that must be satisfied to be awarded that grant. We are talking about tens of billions of taxpayers' dollars after all.

This is common sense. This is the very least that our nation would expect of any government. I think this is very fair and sensible amendment, and I asked the government to consider that amendment.

Question unresolved.

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

As the question is unresolved, in accordance with standing order 188 the question will be included in the Federation Chamber's report to the House.

Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

I move amendment (3), as circulated in my name:

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

Schedule 2 — Grants administration reforms

Financial Framework (Supplementary Powers) Act 1997

1 After Part 2

Insert:

Part 2A — Grants administration

Division 1 — Preliminary

42 Simplified outline of this Part

This Part defines the resource management framework as an overarching accountability framework for the proper use and management of public resources, including for grants administration.

This framework provides responsible Ministers, accountable authorities and officials with the flexibility to:

(a) administer grants that contribute to a range of government outcomes; and

(b) work together with non-government stakeholders, such as industry, small business and the not-for-profit sector.

Division 3 sets out, as part of this framework, some specific requirements for grants administration.

Division 4 establishes the Parliamentary Joint Committee on Grants Administration, which has a role in the resource management framework.

42A Definitions

In this Part:

Committee means the Parliamentary Joint Committee on Grants Administration (see Division 4 of Part 2A).

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

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

CRF has the meaning given by the Public Governance, Performance and Accountability Act 2013.

grant has the meaning given by section 42B.

grant agreement means a written agreement formalising a grant.

GrantConnect means the Australian Government's central grants public reporting repository.

Note: In 2024, this repository could be accessed at https://help.grants.gov.au.

grants administration includes all processes involved in the grants lifecycle, including:

(a) designing grant opportunities and activities; and

(b) preparing program guidelines for the relevant grants program; and

(c) assessing and selecting grantees; and

(d) preparing and executing grant agreements; and

(e) ongoing management of grantees and grant activities; and

(f) evaluating grant opportunities and activities.

program guidelines, for a grants program, has the meaning given by section 44L.

proper has the meaning given by the Public Governance, Performance and Accountability Act 2013.

public resources has the meaning given by the Public Governance, Performance and Accountability Act 2013.

resource management framework has the meaning given by section 43A.

responsible Minister has the meaning given by the Public Governance, Performance and Accountability Act 2013.

42B 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).

Division 2 — Resource Management Framework

43 Background to the Resource Management Framework

Ministers, accountable authorities and officials, and the third parties they deal with, operate within an environment of legislation and government policy. Within this broad context, the resource management framework consists of the legislation, policy and guidance governing the management of public resources.

This framework contains an overarching requirement that accountable authorities govern Commonwealth entities in a way that promotes proper use and management of public resources.

The key legislative requirements in this framework are located in this Part and the Public Governance, Performance and Accountability Act 2013 and in rules made under that Act.

Ministers, accountable authorities and officials are subject to these requirements. Officials need to advise their Ministers about the requirements that their Ministers are subject to.

43A Meaning of resource management framework

(1) The resource management framework is the overarching accountability framework for the proper use and management of public resources, including for grants administration, and consists of:

(a) requirements in this Part; and

(b) requirements in the Public Governance, Performance and Accountability Act 2013; and

(c) requirements prescribed by the rules for the purposes of that Act; and

(d) requirements prescribed by the regulations for the purposes of this paragraph; and

(e) policy guidance in instruments made by the Finance Minister under subsection 105C(1) of that Act.

Note: For paragraph (e), in 2024 the relevant instrument is the Commonwealth Grants Rules and Guidelines 2017. Part 2 of that instruments sets out key principles for grant administration. In 2024, those Guidelines could be viewed on the Department's website (http://www.finance.gov.au).

(2) Without limiting paragraph (1)(b), that paragraph includes requirements in the following provisions of the Public Governance, Performance and Accountability Act 2013:

(a) section 15 (about the accountable authority of a Commonwealth entity governing the entity in a way that promotes the proper use and management of public resources);

(b) section 19 (about the accountable authority of a Commonwealth entity keeping the responsible Minister informed of the activities of the entity etc.);

(c) sections 21 and 22 (about the accountable authority of a Commonwealth entity complying with policies of the Australian Government).

43B Governing Commonwealth entities in accordance with the resource management framework

(1) The responsible Minister, accountable authority, and officials of a Commonwealth entity must comply with the requirements in the resource management framework.

(2) The accountable authority of a Commonwealth entity must ensure that the entity complies with any requirements in the resource management framework to which the entity is subject.

Note: These requirements include those set out in Division 3.

Division 3 — Additional requirements for grants administration

Subdivision A — Objectives and general requirements for grants administration

44 Objectives of grants administration

(1) The objective of grants administration is to promote proper use and management of public resources through collaboration with government and non-government stakeholders to achieve government policy outcomes.

(2) This objective is achieved through compliance with the following:

(a) the legislative, policy and reporting requirements and guidance set out in the resource management framework that are applicable to grants administration;

(b) whole-of-government and individual Commonwealth entity grants administration practices.

44A Requirement for internal guidelines, controls etc. relating to grants administration

A Commonwealth entity's:

(a) internal guidelines and policies, and operational guidance and controls, relating to grants administration; and

(b) program guidelines for grants programs;

must be consistent with the resource management framework.

44B Requirements for performing grants administration

A Commonwealth entity must perform its grants administration in a way that:

(a) is proportionate to the risks identified and outcomes sought; and

(b) achieves value with relevant money; and

(c) involves effective and efficient governance and accountability; and

(d) achieves probity and transparency; and

(e) is consistent with the resource management framework.

44C Requirement to record legal authority and constitutional head of power supporting grants

A Commonwealth entity must, before a grant is approved under the entity's grants program, record:

(a) the legal authority supporting the grant; and

(b) the constitutional head of power supporting the grant.

Note 1: Examples of legal authority are:

(a) section 32B; and

(b) specific legislation such as Part II of the Disability Services Act 1986; and

(c) section 23 of the Public Governance, Performance and Accountability Act 2013.

Note 2: Ministers, accountable authorities and officials also have obligations under the resource management framework relating to approving the commitment of relevant money, including:

(a) a Minister being satisfied, after making reasonable inquiries, that the expenditure would be a proper use of relevant money (see section 71 of the Public Governance, Performance and Accountability Act 2013); and

(b) approvals of proposed commitments of relevant money be recorded in writing (see rules prescribed under that Act).

Subdivision B — Requirements for planning and design of grant programs

44D Initial planning

(1) An official of a Commonwealth entity must establish and document whether a proposed arrangement is a grant before applying the resource management framework to it.

(2) An official of a Commonwealth entity who is involved in the entity's grants program must:

(a) prepare draft program guidelines for all new grant opportunities under the grants program, and prepare revised draft program guidelines if significant changes are made to the program; and

(b) have regard to any key principles for grants administration set out in instruments made by the Finance Minister under subsection 105C(1) of the Public Governance, Performance and Accountability Act 2013; and

(c) ensure the draft program guidelines and related internal guidance are consistent with the resource management framework; and

(d) brief the responsible Minister for the entity on the draft program guidelines; and

(e) advise the responsible Minister for the entity on the relevant requirements of resource management framework, if the responsible Minister is considering approving the proposed commitment of relevant money for a grant under the grants program.

44E Third party administering grants for a Commonwealth entity

(1) If a Commonwealth entity has an arrangement with a third party for the third party to administer grants on behalf of the entity, the accountable authority of the entity must ensure the arrangement:

(a) is in writing; and

(b) promotes the proper use and management of other CRF money; and

(c) requires the third party to administer the grants so that the resource management framework is fully complied with.

Working collaboratively across government

(2) The accountable authority and officials of a Commonwealth entity involved in grants administration must work together across government and with non-government stakeholders.

(3) When determining what the acquittal or reporting requirements are for those grants, the officials must have regard to information collected by Commonwealth Government regulators that is available to the officials.

Subdivision C — Approving commitments of relevant money for grants

44F Role of officials

Approver is the accountable authority or an official

(1) If the accountable authority, or an official, (the approver) of a Commonwealth entity approves the proposed commitment of relevant money for a grant under a grants program, the approver must record in writing:

(a) the basis for the approval relative to the program guidelines for the grants program; and

(b) how the approval achieves value with relevant money.

Obligations on officials if approver is the responsible Minister

(2) If the responsible Minister for the Commonwealth entity is to approve the proposed commitment of relevant money for a grant under a grants program, an official of the entity must provide written advice to the Minister that, at a minimum:

(a) explicitly states that the spending proposal being considered for approval is a grant; and

(b) provides information on the applicable requirements of the resource management framework (particularly any ministerial reporting obligations), including the legal authority for the grant; and

(c) outlines the application and selection process followed, including the selection criteria, that were used to select potential grantees; and

(d) includes the merits of the proposed grant relative to the program guidelines for the grants program, and whether the proposed grant achieves value with relevant money.

(3) While the official does not have to rank all grants when briefing the responsible Minister on the merits of a specific grant or group of grants, the official should, at a minimum, indicate:

(a) which grant applications fully meet the selection criteria; and

(b) which applications partially meet the selection criteria; and

(c) which applications do not meet any of the selection criteria.

Any specific recommendations regarding grant applications for approval can be in addition to this information.

44G Role of the Minister as the approver

(1) The responsible Minister for a Commonwealth entity must not approve the proposed commitment of relevant money for a grant under a grants program before receiving written advice under section 44F from an official of the entity on the merits of the proposed grant.

(2) If the responsible Minister gives that approval, the Minister must record in writing:

(a) the basis for the approval relative to the program guidelines for the grants program; and

(b) how the approval achieves value with relevant money.

44H Minister approving grants within the Minister's own electorate

(1) A responsible Minister for a Commonwealth entity may approve the proposed commitment of relevant money in relation to a grant within the Minister's own electorate.

Note: A Minister includes a Parliamentary Secretary (see the Ministers of State Act 1952).

(2) However, if the Minister does so, the Minister must:

(a) prepare a report about the grant that includes a brief statement of:

(i) the reasons for the approval; and

(ii) if the approval was contrary to the advice or recommendations of an official of the entity (see subsection 44J(1))—the reasons for giving the approval contrary to that advice or those recommendations; and

(b) table the report in each House of the Parliament no later than 2 sitting days of that House after the day of the approval; and

(c) publish the report on GrantConnect no later than 2 business days after the day of the approval.

(3) Subsection (2) does not apply if:

(a) the Minister is a Senator; or

(b) the grant is one that has been approved Australia-wide, state-wide, or across a region that is larger than the Minister's own electorate, on the basis of a formula.

44J Minister approving grants contrary to advice or recommendations

(1) The responsible Minister for a Commonwealth entity may approve the proposed commitment of relevant money for a grant contrary to the advice or recommendations made by an official of the entity under section 44F.

(2) However, if the Minister (including a Senator) does so, the Minister must:

(a) prepare a report about the grant that includes a brief statement of reasons for giving the approval contrary to the official's advice or recommendations; and

(b) table the report in each House of the Parliament no later than 2 sitting days of that House after the day of the approval; and

(c) publish the report on GrantConnect no later than 2 business days after the day of the approval.

(3) Subsection (2) does not apply if the Minister has already prepared, tabled and published a report about the grant under section 44H.

Subdivision D — Public reporting for grant programs

44K Scope and role of accountable authorities

(1) This Subdivision applies to a Commonwealth entity's grants administration for a grants program it is delivering or is proposing to deliver.

(2) The accountable authority of the Commonwealth entity must ensure that the entity complies with this Subdivision for the grants program.

Note Effective disclosure and reporting arrangements for grants administration is essential for reasons of transparency and public accountability. Reliable and timely information on grants awarded is a precondition for public and parliamentary confidence in the quality and integrity of grants administration.

44L Making and publishing program guidelines

(1) The responsible Minister for the Commonwealth entity must, by legislative instrument, determine program guidelines for the grants program that include the following:

(a) the grant opportunity process;

(b) the process (including selection criteria) for assessing grant applications and selecting grantees;

(c) the process for notifying selected grantees and entering into grant agreements with them;

(d) the key responsibilities and expectations of grantees under the grant agreements;

(e) the process for monitoring and evaluating grantees and grant activities.

Note 1: For paragraph (a), the grant opportunity process is the specific grant round or process where grants are available. This process includes mentioning whether grant opportunities are open or targeted.

Note 2: A draft of the program guidelines must be prepared by an official of the Commonwealth entity (see subsection 44D(2)).

(2) The program guidelines for the grants program must be determined under subsection (1) at least 30 days before the first day applications for grants may be made under the grants program.

(3) The Commonwealth entity must ensure that the program guidelines are publicly available on GrantConnect:

(a) as soon as practicable; and

(b) at least 7 days before the first day applications for grants may be made under the grants program.

(4) Subsection (2) and paragraph (3)(b) do not apply for the grants program if the grants program relates to a national disaster or emergency.

Note: As they are a legislative instrument, the program guidelines will also be tabled in each House of the Parliament within 6 sitting days after being registered (see subsection 38(1) of the Legislation Act 2003).

44M Reporting information about each grant under the program

(1) The Commonwealth entity must report information about each grant under the grants program:

(a) on the entity's website on or before the day the grant takes effect; and

(b) on GrantConnect no later than 7 days after the day the grant takes effect.

The information can be removed from the entity's website once it is accessible on GrantConnect.

(2) Information reported under subsection (1) about a grant must specify:

(a) whether the grant agreement for the grant contains any confidentiality provisions; and

(b) if the grant agreement does so—the reasons for doing so.

(3) If an official of the Commonwealth entity determines that reporting some information about the grant would be contrary to a law (such as the Privacy Act 1988), or the grant agreement for the grant, the Commonwealth entity must:

(a) comply with subsection (1) as much as is legally possible; and

(b) document the reasons for not fully complying with subsection (1); and

(c) take reasonable steps to ensure that future grant agreements do not prevent full compliance with subsection (1).

Note: For paragraph (a), it may be possible, for example, to omit the name of the grantee and other personal information that may contravene the Privacy Act 1988, and report other grant details.

(4) If an official of the Commonwealth entity determines that complying with subsection (1) about the grant could adversely affect the achievement of government policy outcomes, the responsible Minister for the entity may seek an exemption from the Finance Minister.

44N Additional reporting requirements for grants programs worth at least $100 million

(1) This section applies to the grants program (the reportable program) if the total amount of money forming part of the CRF that is available for grants under:

(a) the reportable program; and

(b) each other grants program (if any) of the Commonwealth entity that:

(i) is being or is proposed to be delivered in a financial year in which the reportable program is being or is proposed to be delivered (the current financial year); or

(ii) was delivered in any of the previous 3 financial years;

and that relates to the same or similar subject matter as the reportable program;

is at least $100 million (the reportable program threshold).

Note 1: The $100 million threshold is not limited to grants actually given in the current financial year or in the previous 3 financial years.

Note 2: This section applies separately (in parallel):

(a) for each of the other grants programs covered by paragraph (b) that is being or is proposed to be delivered in the current financial year; and

(b) for each financial year in which the reportable program is being or is proposed to be delivered.

(2) The Commonwealth entity must prepare a report about each of the following stages of the reportable program:

(a) the making under subsection 44L(1) of the program guidelines for the reportable program;

(b) the assessment and selection of grantees;

(c) the entering into of grant agreements with selected grantees;

(d) the conclusion of the reportable program (which should include an evaluation of the program's effectiveness).

(3) The Commonwealth entity must give each report prepared under subsection (2) about a stage of the reportable program to the Parliamentary Joint Committee on Grants Administration:

(a) within 30 days after the day that stage was completed; or

(b) such longer period as the Committee allows.

(4) Each report prepared under subsection (2) must comply with the requirements:

(a) approved by the Parliamentary Joint Committee on Grants Administration; and

(b) prescribed by the rules.

(5) The Parliamentary Joint Committee on Grants Administration must table the report in each House of the Parliament no later than 2 sitting days of that House after the day the Committee receives it.

Division 4 — Parliamentary Joint Committee on Grants Administration

45 Parliamentary Joint Committee on Grants Administration

As soon as practicable after the commencement of this section and the first session of each Parliament, a joint committee of members of the Parliament, to be known as the Parliamentary Joint Committee on Grants Administration, is to be appointed:

(a) according to the practice of the Parliament; and

(b) as required in this Division.

45A Membership of the Committee

(1) The Committee is to consist of 16 members as follows:

(a) 6 members of the Senate appointed by the Senate;

(b) 10 members of the House of Representatives appointed by that House.

(2) No more than 8 of the Committee's members may be from a recognised political party that forms part of the Government.

(3) The Chair of the Committee must not be from a recognised political party that forms part of the Government.

(4) A member of the Committee ceases to hold office:

(a) when the House of Representatives expires by effluxion of time or is dissolved; or

(b) if the member ceases to be a member of the House of the Parliament by which the member was appointed; or

(c) if the member resigns the member's office as provided by subsection (5) or (6).

(5) A member appointed by the Senate may resign the member's office by writing signed by the member and delivered to the President of the Senate.

(6) A member appointed by the House of Representatives may resign the member's office by writing signed by the member and delivered to the Speaker of that House.

(7) Either House of the Parliament may appoint one of its members to fill a vacancy amongst the members of the Committee appointed by that House.

45B Functions of the Committee

The functions of the Committee are:

(a) to oversee Commonwealth grant administration, including:

(i) scrutinising grant program guidelines made under subsection 44L(1), and regularly reporting to Parliament; about those guidelines; and

(ii) scrutinising reports from Ministers under sections 44H and 44J regarding grant approvals, and regularly reporting to Parliament about those reports; and

(iii) any other matter relating to Commonwealth grants administration that the Committee resolves is of public importance; and

(iv) referrals from any House; and

(v) referrals from the Joint Committee of Public Accounts and Audit; and

(b) to consider, and report quarterly to each House of the Parliament, each report given to the Committee under section 44N during the quarter.

45C Powers and proceedings of the Committee

Meetings

(1) The Committee may meet at such times and at such places within Australia:

(a) as the Committee, by resolution, determines; or

(b) subject to any resolution of the Committee, as the Chair determines.

Quorum and voting

(2) At a meeting of the Committee, 6 members constitute a quorum.

(3) All questions to be decided by the Committee are to be decided by a majority of the votes of the members present.

(4) The Chair or other member presiding has a deliberative vote and, in the event of an equality of votes, also has a casting vote.

(5) If the members present do not vote unanimously, the manner in which each member votes must, if a member so requires, be recorded in the minutes and in the Committee's report.

Other matters

(6) All other matters relating to the powers and proceedings of the Committee are to be determined by resolution of both Houses of the Parliament.

45D Annual report

(1) The Committee must, in relation to each financial year, prepare a report on the performance of its functions during the year.

(2) The Committee must table the report in each House of the Parliament.

Public Service Act 1999

3 After subsection 41B(2)

Insert:

(2A) Paragraph (1)(a) does not apply for an alleged breach of the Code of Conduct relating to the resource management framework (within the meaning of the Financial Framework (Supplementary Powers) Act 1997).

4 After subsection 41B(9)

Insert:

(9A) Paragraph (9)(b) does not apply for a breach of the Code of Conduct relating to the resource management framework (within the meaning of the Financial Framework (Supplementary Powers) Act 1997).

My amendment goes to robust reporting to parliament. Again, I would say it is absolutely fundamental that parliament is dealt into decisions when it comes to how taxpayers' monies are spent. We need to know, as a nation and as a parliament, not only that grants have fair, transparent and publicly available guidelines and selection criteria, as I mentioned in my first amendment, but also that, when a minister decides to make a decision that is not in line with the recommendations from the department, they come to the parliament and report those in a timely manner. This is really best practice about who is best placed to receive a grant. There may indeed be legitimate reasons why a minister decides to go against departmental advice, and they should have no problem in coming to the parliament to do that.

In responding to this amendment, the government may well say that there's already a Senate order requiring the finance minister to report on which ministers have awarded grants against official advice. But, Deputy Speaker Wilkie, I put it to you and to the government that this happens once a year. It hardly achieves the transparency and accountability we should all expect. And, in the meantime, while we're waiting for that once-a-year special revelation, we shouldn't have to wait for a media investigation or indeed an audit report to uncover pork-barrelling.

This is an important amendment. It's not a difficult amendment. It's one that could easily be accepted by the government. To be frank, I'm at a loss to understand why the government would wish to oppose such a sensible amendment.

Question unresolved.

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

As the question is unresolved, in accordance with standing order 188 the question will be included in the Federation Chamber's report to the House.

Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

by leave—I move amendments (2) and (4), standing in my name, together:

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

(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 grantfor 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.

My remaining amendments would create a joint parliamentary committee on grants administration and investment mandates. This committee will oversee grants administration, including compliance with guidelines. Grants over $100 million would be referred to the committee for additional oversight.

These are sensible amendments, and I thank the Centre for Public Integrity for working with me on them. They're gold standard amendments. They have support from some of the most experienced and respected legal minds in this country—indeed, the same legal minds that the now government called upon frequently when in opposition, when they were railing in this place against the alleged pork-barrelling of the former government.

I think it's an extraordinary situation, to be truthful, that anyone in this place would have a problem with any of these amendments, which, quite frankly, irrespective of whether you're in government or opposition—or, indeed, whether you sit in the golden spot on the crossbench—only seek to make us all do better. I call on all members of this place from all political parties to back me in these reforms and not turn a blind eye to my efforts to end pork-barrelling just because it's something that everyone does. That's something our teenagers say to us: 'Everyone else is doing it; let's do it too.' We should be so much better than that. I say: back my amendments, end pork-barrelling and go with me on this.

My next amendments, amendments (2) and (4), replicate the current Minister for Finance's own private member's bill introduced in the Senate in 2021. For those members sitting here right now listening to this, I implore you to go and have a look at that bill. This is your own finance minister's bill. It was called the Public Governance, Performance and Accountability Amendment (Improved Grants Reporting) Bill 2021. Those amendments put by Senator Gallagher at the time would force ministers who award grants in their own electorate or against departmental recommendations to report the decision to the finance minister within just 30 days of the approval, and then the finance minister has to table that report in the parliament within five sitting days. That was in the finance minister's very own bill. As I said before, the government might say that ministers currently do this once a year. But it really isn't good enough, and I would argue that the Minister for Finance thinks it isn't good enough either. It really stifles transparency in government grant-making.

I'm saying to the government: if you can't accept my 'end pork-barrelling' amendments as they stand, then support your own finance minister in what she was seeking to do. When the senator introduced her 'improved grants reporting' bill, she said that her bill:

… will dramatically reduce the time ministers are able to hide their dodgy decisions from the Australian community, and there is no reasonable argument for any senator in this place—

and, I would say, any member in this House—

particularly those on the government benches, to oppose this bill.

We know all too well about dodgy decisions. The member for Curtin just mentioned a particularly egregious and well-publicised one. I have spoken about them at length, the Australian National Audit Office has reported on them at length and, indeed, members of the current government have been very noisy in the past about these things.

I know that Senator Gallagher, like me, supports integrity in public expenditure. I thank her and other members of the government for meeting with me to discuss these amendments. I think that if the government fails to support amendments that simply replicate a bill previously introduced by their own finance minister then, really, I don't know what to say! So I call on them to dial up on their own integrity and to support these amendments.

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

I'll put the question on the member for Indi's amendments (2) and (4).

Question unresolved.

As the question is unresolved, in accordance with standing order 188 the question will be included in the Federation Chamber's report to the House on the bill—the Minister on indulgence?

Stephen Jones (Whitlam, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Thank you, Deputy Speaker Wilkie, for your indulgence. I would like to thank all members who have contributed to the debate, including the member for Indi and the member for Curtin for their contributions. I will make a few remarks in relation to those in a moment.

This bill has a long history. Members in this place who have been here for a while will understand the long history to this bill arising out of a series of High Court decisions in the Williams matter. The objective of this bill is to put beyond doubt spending decisions—in particular, grant decisions by the Commonwealth. The purpose and effect of the bill will be to put beyond doubt the consistent operation of the Financial Framework (Supplementary Powers) Act with how it has been understood to operate. This includes in circumstances where other general legislative authority may be available. The amendments will confirm the validity of government spending programs that rely on section 32B of that act, as well as any other government involvement in companies in reliance on section 39B of the FFSP Act in circumstances where other general powers could be relied on. The changes in the bill simply clarify the position to what has always been the common understanding.

In view of other things that are going on in the House, I'll keep my comments in relation to the amendments moved by the member for Indi very, very brief. I have no doubt about the genuineness of the position from which the member for Indi is coming on her amendments. I'll just simply note that the government is committed to increasing transparency and accountability for government decision-making. This follows other steps that we've taken, which you, Deputy Speaker Wilkie, and the member for Indi feel very passionately about, including the establishment of the National Anti-Corruption Commission.

As the member is aware, and as other members are aware, the Prime Minister has indicated that there is work underway to strengthen the Commonwealth grants framework, including possible enhancements to rules and guidelines which will do everything that goes to the issues motivating the member for Indi's amendments. That includes integrity, accountability, probity and transparency. We're considering these matters in detail and announcements will be made once they're finalised—I can inform the House of those. And, given that we have all this work underway, we believe that it would be pre-emptory to consider and agree to the amendments that have been moved in good faith by the member for Indi and which have been supported by others at this stage.

With those brief comments, I commend the bill to the House.

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

I thank the Assistant Treasurer and Minister for Financial Services. As it is necessary to resolve certain questions to enable further questions to be considered in relation to the bill, in accordance with standing order 195, the bill will be returned to the House for further consideration.