This Act gives the Commonwealth authority to commit and manage specified public funds through arrangements and grants and to form or take part in companies, with operational powers exercisable by Ministers, accountable authorities and delegates. Regulations define which programs and companies are covered, and grants to States/Territories must be documented in written agreements. It matters because it creates statutory fiscal authority, channels administrative discretion, and imposes contractual obligations on recipients.
This Act grants the Commonwealth targeted statutory powers to commit and manage public money held in the CRF framework and to form or acquire participation in companies, subject to the scope set by regulations. Concretely, it authorises the Commonwealth to make, vary or administer arrangements under which relevant money or other CRF money is, or may become, payable, to make grants of financial assistance to States, Territories or other persons, and to form or acquire interests in companies, where those arrangements, grants, programs or companies are specified in the regulations (see s 32B(1)-(2), s 39B(1)-(2), and the simplified outline at s 2A). The Finance Minister has express power to exercise company-formation and share‑acquisition powers on behalf of the Commonwealth (s 39B(3)), and may delegate those functions to an accountable authority (s 40).
Mechanically, the Act does three things. First, it creates a statutory power to commit CRF resources by arrangement or grant, but only for arrangements, grants or programs that the regulations specify or classify (s 32B(2)). Second, it prescribes procedural and contractual form for grants to States and Territories: those grants must have their terms and conditions set out in a written agreement between the Commonwealth and the recipient (s 32C(2)). Third, it authorises the Commonwealth to form, participate in or acquire shares in companies that are identified in the regulations and whose objects or proposed activities are likewise specified in the regulations (s 39B(1)-(2)). The Governor‑General may make regulations necessary to carry the Act into effect (s 65).
The Act embeds the Commonwealth’s CRF powers within the broader finance law architecture: it must be read together with the finance law under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) (s 6). At the same time, the Act sets limits on reliance on a particular PGPA provision: section 23 of the PGPA Act, which deals with accountable authorities’ powers in relation to arrangements and commitments, does not authorise an accountable authority to exercise the Commonwealth power under s 32B (s 32DB). The Act binds the Crown in right of the Commonwealth, but explicitly provides that it does not make the Crown liable to prosecution for an offence (s 3). It extends extraterritorially unless a contrary intention appears (s 4). Delegation routes are spelled out in detail, enabling Ministers and accountable authorities to delegate to officials, and permitting subdelegation by accountable authorities in specified circumstances (ss 32D, 32DA, 40).
Current sections
Direct links to the current provisions in Financial Framework (Supplementary Powers) Act 1997.
19
Part 1
Preliminary
Part 1—Preliminary
1
Short title
1 Short title
This Act may be cited as the Financial Framework (Supplementary Powers) Act 1997.
2
Commencement
2 Commencement
(1) Subject to subsection (2), this Act commences on a day to be fixed by Proclamation.
(2) If this Act does not commence under subsection (1) by 1 July in the next calendar year after the calendar year in which this Act receives the Royal Assent, it commences on that 1 July.
2A
Simplified outline of this Act
2A Simplified outline of this Act
This Act confers on the Commonwealth, in certain circumstances, powers:
(a) to make arrangements under which relevant money and other CRF money can be spent, or to make grants of financial assistance; and
(b) to form, or otherwise be involved in, companies.
The arrangements, grants, programs and companies (or classes of arrangements or grants) in relation to which these powers are conferred are specified in the regulations.
3
This Act binds the Crown
3 This Act binds the Crown
This Act binds the Crown in right of the Commonwealth, but does not make the Crown liable to be prosecuted for an offence.
4
This Act extends to things outside Australia
4 This Act extends to things outside Australia
This Act extends to acts, omissions, matters and things outside Australia (unless the contrary intention appears).
5
Definitions
5 Definitions
In this Act:
accountable authority has the meaning given by the Public Governance, Performance and Accountability Act 2013.
Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013.
Minister includes the President of the Senate or the Speaker of the House of Representatives.
non‑corporate Commonwealth entity has the meaning given by the Public Governance, Performance and Accountability Act 2013.
official has the meaning given by the Public Governance, Performance and Accountability Act 2013.
other CRF money has the meaning given by the Public Governance, Performance and Accountability Act 2013.
relevant money has the meaning given by the Public Governance, Performance and Accountability Act 2013.
6
Relationship with the finance law
6 Relationship with the finance law
This Act and the regulations are to be read together with the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013).
Part 2
Supplementary powers to make commitments to spend money and be involved in companies etc.
Part 2—Supplementary powers to make commitments to spend money and be involved in companies etc.
32B
Supplementary powers to make commitments to spend relevant money and other CRF money etc.
32B Supplementary powers to make commitments to spend relevant money and other CRF money etc.
(1) The Commonwealth may make, vary or administer:
(a) an arrangement under which relevant money or other CRF money is, or may become, payable by the Commonwealth; or
(b) a grant of financial assistance to a State or Territory; or
(c) a grant of financial assistance to a person other than a State or Territory.
(2) However, the Commonwealth may only make, vary or administer an arrangement or grant under subsection (1) if the arrangement or grant, as the case may be:
(a) is specified in the regulations; or
(b) is included in a class of arrangements or grants, as the case may be, specified in the regulations; or
(c) is for the purposes of a program specified in the regulations.
Note: The Public Governance, Performance and Accountability Act 2013 deals with the use and management of public resources (including relevant money and other CRF money).
(3) A power conferred on the Commonwealth by subsection (1) may be exercised on behalf of the Commonwealth by a Minister or an accountable authority of a non‑corporate Commonwealth entity.
Note: For the power to delegate, see section 32D.
(4) In this section:
administer:
(a) in relation to an arrangement—includes give effect to; or
(b) in relation to a grant—includes make, vary or administer an arrangement that relates to the grant.
arrangement includes contract, agreement or deed.
make, in relation to an arrangement, includes enter into.
vary, in relation to an arrangement or grant, means:
(a) vary in accordance with the terms or conditions of the arrangement or grant, as the case may be; or
(b) vary with the consent of the non‑Commonwealth party or parties to the arrangement or grant, as the case may be.
32C
Terms and conditions for grants
32C Terms and conditions for grants
Scope
(1) This section applies to a grant of financial assistance under section 32B.
Terms and conditions
(2) If the recipient of the grant is a State or Territory, the terms and conditions on which that financial assistance is granted are to be set out in a written agreement between the Commonwealth and the recipient.
(3) An agreement under subsection (2) may be entered into on behalf of the Commonwealth by a Minister or an accountable authority of a non‑corporate Commonwealth entity.
Note: For the power to delegate, see section 32D.
(4) If the recipient of the grant is a person other than a State or Territory, subsection (2) does not, by implication, prevent the grant from being made subject to terms and conditions.
32D
Minister or accountable authority may delegate powers
32D Minister or accountable authority may delegate powers
Delegation by a Minister
(1) A Minister may, by writing, delegate any or all of his or her powers under section 32B or 32C to an official of any non‑corporate Commonwealth entity.
Note: An accountable authority may delegate a power delegated under this section (see section 32DA).
(2) In exercising powers under a delegation, the delegate must comply with any directions of the Minister concerned.
Delegation by an accountable authority
(3) An accountable authority of a non‑corporate Commonwealth entity may, by writing, delegate any or all of his or her powers under section 32B or 32C to an official of any non‑corporate Commonwealth entity.
(4) In exercising powers under a delegation, the delegate must comply with any directions of the accountable authority concerned.
32DA
Accountable authority may sub‑delegate powers
32DA Accountable authority may sub‑delegate powers
(1) An accountable authority of a non‑corporate Commonwealth entity may, by writing, delegate to an official (the second delegate) of any non‑corporate Commonwealth entity powers and functions that have been delegated to the accountable authority by a Minister under section 32D.
(2) The power or function, when exercised or performed by the second delegate, is taken for the purposes of this Act to have been exercised or performed by the Minister.
(3) If the accountable authority is subject to directions in relation to the exercise of a power, or the performance of a function, delegated to the accountable authority under section 32D, then:
(a) the accountable authority must give corresponding directions to the second delegate; and
(b) the accountable authority may give other directions (not inconsistent with those corresponding directions) to the second delegate in relation to the exercise of that power or the performance of that function.
(4) The second delegate must comply with any directions of the accountable authority.
32DB
Relationship with section 23 of the Public Governance, Performance and Accountability Act 2013
32DB Relationship with section 23 of the Public Governance, Performance and Accountability Act 2013
Section 23 of the Public Governance, Performance and Accountability Act 2013 (which deals with the power of accountable authorities in relation to arrangements and commitments) does not authorise the accountable authority of a non‑corporate Commonwealth entity to exercise, on behalf of the Commonwealth, a power conferred on the Commonwealth by section 32B of this Act.
39B
Supplementary powers to form companies etc.
39B Supplementary powers to form companies etc.
Formation of company etc.
(1) The Commonwealth may form, or participate in the formation of, a company if, were it to come into existence, the company would be a company:
(a) that is specified in the regulations; and
(b) whose objects or proposed activities are specified in the regulations.
Acquisition of shares in company etc.
(2) The Commonwealth may acquire shares in, or become a member of, a company in circumstances that would result in the company becoming a Commonwealth company if:
(a) the company is specified in the regulations; and
(b) the company’s objects or proposed activities are specified in the regulations.
Finance Minister’s power
(3) A power conferred on the Commonwealth by subsection (1) or (2) may be exercised on behalf of the Commonwealth by the Finance Minister.
Note: For the power to delegate, see section 40.
Definitions
(5) In this section:
acquire includes acquire by subscription.
Commonwealth company has the same meaning as in the Public Governance, Performance and Accountability Act 2013.
40
Finance Minister may delegate powers
40 Finance Minister may delegate powers
(1) The Finance Minister may, by written instrument, delegate to an accountable authority of a non‑corporate Commonwealth entity the Finance Minister’s powers or functions under section 39B.
(2) In exercising powers or functions under a delegation, the delegate must comply with any directions of the Finance Minister.
41
Executive power of the Commonwealth
41 Executive power of the Commonwealth
This Part does not, by implication, limit the executive power of the Commonwealth.
Part 3
Miscellaneous
Part 3—Miscellaneous
65
Regulations
65 Regulations
The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
Source text
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1—Preliminary
1 Short title
1 Short title
This Act may be cited as the Financial Framework (Supplementary Powers) Act 1997.
2 Commencement
2 Commencement
(1) Subject to subsection (2), this Act commences on a day to be fixed by Proclamation.
(2) If this Act does not commence under subsection (1) by 1 July in the next calendar year after the calendar year in which this Act receives the Royal Assent, it commences on that 1 July.
2A Simplified outline of this Act
2A Simplified outline of this Act
This Act confers on the Commonwealth, in certain circumstances, powers:
(a) to make arrangements under which relevant money and other CRF money can be spent, or to make grants of financial assistance; and
(b) to form, or otherwise be involved in, companies.
The arrangements, grants, programs and companies (or classes of arrangements or grants) in relation to which these powers are conferred are specified in the regulations.
3 This Act binds the Crown
3 This Act binds the Crown
This Act binds the Crown in right of the Commonwealth, but does not make the Crown liable to be prosecuted for an offence.
4 This Act extends to things outside Australia
4 This Act extends to things outside Australia
This Act extends to acts, omissions, matters and things outside Australia (unless the contrary intention appears).
5 Definitions
5 Definitions
In this Act:
accountable authority has the meaning given by the Public Governance, Performance and Accountability Act 2013.
Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013.
Minister includes the President of the Senate or the Speaker of the House of Representatives.
non‑corporate Commonwealth entity has the meaning given by the Public Governance, Performance and Accountability Act 2013.
official has the meaning given by the Public Governance, Performance and Accountability Act 2013.
other CRF money has the meaning given by the Public Governance, Performance and Accountability Act 2013.
The practical effect is to create supplementary, regulation‑conditioned routes for the executive to commit CRF money and to enter corporate forms, with the finance law providing the normative frame for resource management, and with delegated officials able to exercise the powers when authorised and subject to directions (see ss 32B(3), 32D(1)-(4), 32DA(1)-(4), 39B(3), 40(1)-(2)).
Main concepts
The Act relies on a small set of interlocking statutory concepts, many of which are defined in the PGPA Act and imported by cross‑reference. Relevant money, other CRF money, accountable authority, non‑corporate Commonwealth entity, official and Finance Minister are all terms defined by the PGPA Act and used throughout this Act (see s 5). Those definitions govern the source of funds that may be committed under this Act and the institutional actors who may exercise the powers.
CRF money and relevant money: The Act repeatedly authorises commitments involving "relevant money" and "other CRF money" (see s 32B). These are technical finance concepts under the PGPA Act that determine what pools of Commonwealth funds the Act can touch. The Act itself does not redefine them; rather it imports the PGPA definitions and requires that this Act be read with the finance law (s 6). Practitioners must therefore consult the PGPA Act to know precisely which funds are in scope.
Arrangement vs grant: The Act distinguishes between "arrangements" (broadly including contracts, agreements and deeds, s 32B(4) definition) and "grants of financial assistance" (s 32B(1)(b)-(c), s 32C). An arrangement can be an arrangement under which money is payable or may become payable. A grant to a State or Territory triggers a specific form requirement: the terms and conditions must be in a written agreement (s 32C(2)). For grants to non‑State recipients, the Act explicitly leaves open the ability to impose terms and conditions but does not impose the written agreement requirement (s 32C(4)).
Regulatory specification as scope control: The Act delegates substantial substantive scope to the regulations. The Commonwealth may only make or vary an arrangement or grant under s 32B if the arrangement or grant is specified in the regulations, included in a class of arrangements or grants specified there, or is for purposes of a program specified in the regulations (s 32B(2)). Likewise, formation, participation in or acquisition of company interests is limited to companies and activities specified in the regulations (s 39B(1)-(2)). The Governor‑General is given regulation‑making power to prescribe matters required or convenient for carrying out the Act (s 65).
Delegation architecture: Ministers may delegate powers under ss 32B and 32C to officials of any non‑corporate Commonwealth entity (s 32D(1)). Accountable authorities of non‑corporate Commonwealth entities may also delegate those powers to officials (s 32D(3)). Accountable authorities may further sub‑delegate powers that were delegated to them by a Minister to a second delegate (s 32DA(1)). Acts by a second delegate are taken to be acts of the Minister (s 32DA(2)). Delegates and subdelegates must comply with directions of the delegator (ss 32D(2),(4); 32DA(3)-(4)). For company powers, the Finance Minister may delegate to an accountable authority (s 40(1)), and delegates must comply with the Finance Minister’s directions (s 40(2)).
Relationship with PGPA Act: The Act is to be read with the finance law (s 6). However, s 32DB clarifies that s 23 of the PGPA Act does not authorise an accountable authority to exercise on behalf of the Commonwealth the specific powers conferred by s 32B. That is a statutory carve‑out that requires use of this Act’s delegation rules to lawfully exercise those Commonwealth powers.
Other legal features: The Act binds the Crown in right of the Commonwealth but excludes criminal prosecution of the Crown (s 3). It extends to acts and things outside Australia (s 4). The Act does not, by implication, limit the executive power of the Commonwealth (s 41). The Act contains no substantive penalty provisions; the text delegates enforcement and implementation mechanics to the finance law and the regulations (see s 6 and s 65).
Who it affects
This Act affects several institutional actors and classes of private parties through its allocation of decision rights, delegation routes and funding pathways.
The Commonwealth and its budgetary actors: The Commonwealth is the primary payer and decision maker under the Act. It may commit "relevant money" or "other CRF money" under arrangements and grants, and it may form companies or acquire membership or shares, but only within the scope set by regulations (s 32B(1)-(2), s 39B(1)-(2)). The Finance Minister is singled out for company powers and may exercise those powers on behalf of the Commonwealth (s 39B(3)). The Finance Minister may delegate those powers to an accountable authority of a non‑corporate Commonwealth entity (s 40(1)).
Ministers and presiding officers: The statutory definition of "Minister" includes the President of the Senate and the Speaker of the House of Representatives (s 5). That technical definition means that, subject to the remainder of the Act, the instruments authorising delegation or exercise of power could technically be conferred on those officeholders in the same manner as on other Ministers. Ministers may exercise the s 32B and s 32C powers or delegate them in writing to an official of any non‑corporate Commonwealth entity (s 32D(1)).
Accountable authorities and non‑corporate Commonwealth entities: Accountable authorities of non‑corporate Commonwealth entities may exercise s 32B and s 32C powers on behalf of the Commonwealth (s 32B(3)), may enter agreements required by s 32C(3), and may delegate their powers to officials (s 32D(3)). They may also sub‑delegate powers conferred to them by Ministers to officials in accordance with s 32DA. However, s 32DB restricts reliance on s 23 of the PGPA Act as authorising an accountable authority to exercise s 32B powers; accountable authorities must therefore operate under this Act’s delegation framework when exercising Commonwealth powers under s 32B.
Officials and delegates: Officials of non‑corporate Commonwealth entities are the operational agents who will most commonly exercise the delegated powers. Delegations and subdelegations must be in writing and delegates must comply with directions of their delegator (ss 32D(1),(3), 32D(2),(4), 32DA(1),(3)-(4), 40(1)-(2)). The Act therefore affects administrative staffing, recordkeeping and governance processes within entities that will be delegated powers.
States and Territories: When the Commonwealth makes a grant of financial assistance to a State or Territory under s 32B, the terms and conditions must be set out in a written agreement (s 32C(2)). That creates contractual obligations and negotiation points between Commonwealth agencies and State/Territory governments and may require intergovernmental coordination.
Other recipients and members of the public: Persons other than States or Territories can be recipients of grants under s 32B(1)(c). For such recipients, the Act does not require the same written agreement form but does not prevent terms and conditions being imposed (s 32C(4)). Private parties that are potential recipients or counterparties to arrangements will therefore be subject to whatever eligibility, terms and compliance requirements the regulations and the delegations specify.
Companies and corporate stakeholders: The Commonwealth can form, participate in the formation of, or acquire membership or shares in companies where the company and its objects or proposed activities are specified in the regulations (s 39B(1)-(2)). That affects potential private sector partners, shareholders, directors and creditors of any such company.
Taxpayers and public resource managers: Because the Act authorises commitments of relevant and CRF money, it implicates taxpayers as the ultimate funders. The Act ties into the PGPA Act and the finance law (s 6), so accountable authorities and finance officers responsible for appropriations and financial management are affected by the governance and reporting obligations that the finance law imposes.
Finally, the Act affects legal advisers and compliance officers, who must apply the Act’s delegation and agreement requirements, consult the regulations for scope, and ensure that exercise of power aligns with the finance law and any directions issued under the delegation chain.
Key duties and rights
This Act creates statutory powers and prescribes procedural duties and direction obligations but does not create substantive private rights beyond the terms of any grant or arrangement made under it.
Commonwealth powers and conditions: The Commonwealth has the statutory power to make, vary or administer arrangements that commit relevant or other CRF money, and to make grants of financial assistance to States, Territories or other persons, but only where the arrangement, grant or program is specified in the regulations or is in a class specified there (s 32B(1)-(2)). The Commonwealth also has power to form, participate in the formation of, or acquire membership or shares in companies where both the company and its objects or proposed activities are specified in the regulations (s 39B(1)-(2)). Those are rights of the Commonwealth to act, constrained by the regulatory list.
Written agreement duty for State/Territory grants: When the recipient of a grant is a State or Territory, the terms and conditions on which financial assistance are granted must be set out in a written agreement between the Commonwealth and the recipient (s 32C(2)). That duty creates a contractual formality and implies negotiation, signature and recordkeeping obligations. The agreement may be entered into on behalf of the Commonwealth by a Minister or an accountable authority of a non‑corporate Commonwealth entity (s 32C(3)).
Terms and conditions for other recipients: If the recipient is a person other than a State or Territory, the Act states that subsection (2) (the written agreement requirement) does not, by implication, prevent the grant from being made subject to terms and conditions (s 32C(4)). In other words, the Commonwealth may impose conditions on non‑State grants but is not bound by the same written agreement obligation.
Delegation duties and direction obligations: Ministers and accountable authorities may delegate their powers under ss 32B and 32C in writing to officials of any non‑corporate Commonwealth entity (s 32D(1), (3)). Delegates must comply with any directions of the delegator (s 32D(2), (4)). Accountable authorities may further sub‑delegate to a second delegate powers delegated to them by a Minister (s 32DA(1)). When a second delegate exercises the power, it is taken to have been exercised by the Minister (s 32DA(2)). Where the accountable authority is subject to directions from the Minister, the accountable authority must give corresponding directions to the second delegate and may give other non‑inconsistent directions (s 32DA(3)-(4)). The Finance Minister’s delegations for company powers carry the same direction compliance obligation (s 40(2)). These provisions establish duties of documentation (written delegation instruments) and compliance with directions for delegates.
Relationship with finance law duties: The Act must be read together with the finance law under the PGPA Act (s 6). That ties the exercise of these supplementary powers into the broader duties, standards and accountability mechanisms under the PGPA Act for use and management of public resources. However, s 32DB expressly disapplies reliance on s 23 of the PGPA Act as an authorisation for accountable authorities to exercise s 32B powers, thereby requiring use of this Act’s delegation processes.
Binding the Crown but no criminal liability: The Act binds the Crown in right of the Commonwealth (s 3), which means the Crown is subject to the Act’s operation; however, the Crown is not made liable to prosecution for an offence by the Act (s 3). The Act contains no specific penalty provisions; therefore, rights of enforcement will be located in the finance law and regulations.
Regulatory prescription and obligations: The regulations, made under s 65, will determine which arrangements, grants, programs and companies are within scope. Where the regulations prescribe matters, persons exercising the powers have the duty to ensure that any arrangement, grant or company formation sits within the regulatory categories. The Act grants the Governor‑General power to make necessary or convenient regulations to give effect to the Act (s 65), creating a delegated legislative source of duties and eligibility criteria.
Finally, the Act preserves executive power and does not curtail it by implication (s 41), meaning that duties and rights created by other executive instruments may co-exist with, but must not fall outside, the statutory constraints in this Act.
Penalties and enforcement
The Act contains no express criminal offences, penalty schedules or administrative fines. The only provision touching on prosecutorial exposure is the declaration that the Act binds the Crown in right of the Commonwealth but does not make the Crown liable to be prosecuted for an offence (s 3). The immediate consequence of the Act’s text is that any enforcement architecture for misuse, breach of grant terms, or misapplication of funds will derive from the finance law (the PGPA Act), the regulations made under this Act, and any contract or agreement entered under the Act.
Enforcement instruments likely to be applicable under the Act are therefore external to the Act itself. The Act requires that it be read together with the finance law (s 6), and the PGPA Act contains compliance, accountability, and administrative remedies that govern the use and management of public resources. Section 32DB expressly modulates the interaction with the PGPA Act by providing that s 23 of the PGPA Act does not authorise an accountable authority to exercise the Commonwealth power under s 32B. That carve‑out limits one particular pathway for lawful exercise but does not eliminate the broader PGPA suite of obligations and remedies applicable to accountable authorities and officials.
Delegation compliance and directions: Delegates must comply with directions of the delegator (s 32D(2),(4); s 32DA(4); s 40(2)). Non‑compliance with written directions, improper delegation, or failure to follow the Act’s formalities (for example, failing to have a written agreement where required under s 32C(2) for State/Territory grants) would create internal governance breaches that the accountable authority and the finance law framework can address administratively. The Act does not itself create a statutory penalty for such procedural failures.
Contractual and civil remedies: For grants and arrangements that create contractual obligations (for example, the written agreements required by s 32C(2)), civil remedies for breach will depend on the contract terms and general principles of contract law. The Act does not prescribe remedies for breach of grant agreements. Remedies for misuse of funds, restitution, or claims against recipients will therefore be governed by the grant agreements, the regulations and the PGPA Act’s provisions.
Regulatory enforcement: The Governor‑General may make regulations necessary to carry out the Act (s 65). Those regulations may, subject to the constitutional limits of delegated legislation, impose compliance obligations and sanctions. Any enforcement powers, administrative penalties or compliance frameworks that govern arrangements, grants, programs or companies formed under this Act will therefore normally be found in those regulations and in the finance law.
International or extraterritorial enforcement: The Act applies to acts and omissions outside Australia (s 4), but it contains no mechanism for extraterritorial enforcement. Any enforcement of obligations performed overseas will therefore depend on the terms of agreements, the regulatory design, and the interaction with foreign law and jurisdictional arrangements.
Accountability and audit: The Act’s link to the PGPA Act (s 6) imports the finance law’s audit, reporting and accountability frameworks as the structural enforcement mechanisms for the use of relevant money and other CRF money. In practice, audit, reporting, internal directions, and PGPA governance processes will be the primary enforcement mechanisms, not criminal sanctions embedded in this Act.
How it interacts with other laws
This Act explicitly cross‑references and is intended to operate together with the finance law, that is the Public Governance, Performance and Accountability Act 2013 (PGPA Act) (s 6). The Act imports a number of definitional terms from the PGPA Act, including "relevant money", "other CRF money", "accountable authority", "non‑corporate Commonwealth entity", "official" and "Finance Minister" (s 5). That means the operational scope of this Act is functionally dependent on how those terms are defined and administered under the PGPA Act.
Carve‑out from s 23 of the PGPA Act: The Act contains a specific limiting provision: section 32DB states that s 23 of the PGPA Act, which deals with the power of accountable authorities in relation to arrangements and commitments, does not authorise the accountable authority of a non‑corporate Commonwealth entity to exercise, on behalf of the Commonwealth, a power conferred on the Commonwealth by s 32B of this Act. In practice, this creates an interaction in which accountable authorities cannot simply rely on the general PGPA s 23 authority to commit Commonwealth funds under the supplementary powers in s 32B; they must be acting under the authority of this Act and its delegation framework. That interacts with the PGPA delegation and accountability architecture and requires careful legal analysis when an accountable authority purports to bind the Commonwealth.
Delegation and PGPA duties: While the Act establishes its own delegation rules (ss 32D, 32DA, 40), accountable authorities and officials exercising delegated powers under this Act will remain subject to the PGPA Act’s broader duties for proper use and management of public resources, recordkeeping, reporting and audit. The Act’s directions and delegation obligations create a layered governance framework with duties at both the Act level and the PGPA level.
Contract law and grant agreements: Grants to States and Territories must be recorded in written agreements (s 32C(2)). Those agreements will be contracts enforceable under general contract law, subject to the constitutional law limitations on contractual liability for the Crown and the Crown’s limited criminal exposure under this Act (s 3). For non‑State recipients, the Act does not prevent the imposition of terms and conditions (s 32C(4)), so contractual frameworks and civil remedies under private law will govern disputes and enforcement.
Companies law and corporate forms: Section 39B authorises the Commonwealth to form companies or to acquire membership or shares in companies specified in the regulations. Any such company will be subject to the Corporations Act and other corporate and insolvency laws unless a statutory exception applies. The Act itself does not displace corporate law; rather it confers power on the Commonwealth to create or participate in companies, which means corporate governance, director duties and statutory reporting in the Corporations Act framework will generally apply to those companies once formed.
Administrative law and judicial review: Exercises of power under this Act by Ministers, the Finance Minister, accountable authorities or delegates will be administrative actions subject to judicial review at common law and under statutes that govern administrative decisions. The Act provides delegation mechanisms and direction obligations that will inform questions of lawful exercise, but the Act does not exclude judicial review. The Act’s preservation of executive power (s 41) does not immunise administrative decisions from legal challenge.
Regulations and delegated legislation: The Governor‑General is empowered to make regulations required or permitted by the Act or necessary or convenient to give effect to the Act (s 65). Those regulations are the primary vehicle for specifying which arrangements, grants, programs and companies fall within the Act’s scope. The text of the regulations will therefore materially affect how the Act operates alongside other legislative frameworks.
Extrinsic constitutional interaction: The Act binds the Crown (s 3) and applies extraterritorially unless a contrary intention appears (s 4). That raises potential constitutional and international law interactions where the Commonwealth makes commitments overseas or enters corporate arrangements with cross‑border effects, but the Act itself does not provide specific mechanisms to resolve conflicts with foreign law; resolution will depend on general principles of private international law and public international law.
Amendment history
The supplied text contains the short title, commencement and the substantive provisions but does not include any express amendment schedule or textual history aside from the commencement rule in s 2. The Act is cited as the Financial Framework (Supplementary Powers) Act 1997 (s 1). Section 2 contains the commencement mechanism: the Act commences on a day fixed by Proclamation, with a fallback that if the Act does not commence by 1 July in the calendar year following the year in which Royal Assent was given, it commences on that 1 July (s 2(1)-(2)). That commencement default is the only temporal staging provision contained in the supplied text.
No amending provisions are set out in the text provided, and there are no schedules or notes indicating how later amendments are to be integrated. The Act delegates substantive scope to regulations (s 65), which means that consequential operational detail is expected to be supplied by subordinate legislation rather than by statutory amendments to this Act itself. The simplified outline at s 2A summarises the Act’s conferral of power but does not indicate any previous amendments. There is therefore no internal amendment chronology available in the supplied text.
Practitioners must therefore rely on the current consolidated version of the Act and on the relevant regulations to know the present scope of powers. Any later parliamentary amendments would alter the Act’s text; they are not recorded in the material you provided. The Act’s interaction with the finance law (s 6) also means that changes to the PGPA Act could materially alter the practical import of the terms imported by reference, even if this Act’s own text remains unchanged.
If you need a statutory amendment timeline, one must be prepared from parliamentary and legislative records, which are not included in the supplied text. The supplied text provides the operative provisions as they stand, with commencement mechanics and delegation frameworks, but no further amendment history.
Litigation history
The provided Act text contains no references to case law, judicial decisions, or litigation history. There are no judicial determinations, reported cases, or references to disputes included in the text you supplied. The Act names no cases and records no litigation outcomes.
Because the Act’s practical operation interfaces with the PGPA Act, claims arising from the use or misuse of funds committed under this Act would likely be litigated under the PGPA framework, contract law, administrative law or other applicable statutes. However, the supplied text itself does not identify any judicial consideration or precedent.
In the absence of case citations or litigation notes in the supplied material, the only reliable statement is that the document does not include a litigation history. Any analysis of judicial treatment, contested delegation, or disputes over the Act’s validity would require searching court records and case law databases, and examining decisions that interpret the PGPA Act and powers to commit public funds or to form Commonwealth companies. Those materials are not part of the text provided.
If a reader requires an authoritative litigation history, they should consult reported decisions and tribunal records for matters that involved s 32B, s 39B or the PGPA Act provisions referred to by s 6 and s 32DB. The statutory text supplied does not itself supply litigation guidance.
Gotchas
The Act’s design concentrates real operational power in delegated instruments and regulations, and that creates several practical pitfalls that arise directly from the statutory text.
Scope is delegated to regulations: The Commonwealth may only exercise the spending, grant and company powers where the arrangement, grant, program or company is specified in, or included in a class specified in, the regulations (s 32B(2); s 39B(1)-(2)). If a proposed commitment or company is not captured by the regulations, there is no statutory power under this Act to make it. Practitioners must therefore check the regulations before asserting authority under the Act.
Reliance on the PGPA Act is limited in one respect: Section 32DB withdraws s 23 of the PGPA Act as an authorisation for an accountable authority to exercise s 32B powers on behalf of the Commonwealth. That means an accountable authority cannot rely on PGPA s 23 instead of this Act’s delegation framework. Failure to observe this carve‑out will render an exercise of power potentially unauthorised, even if the PGPA framework appears to permit it.
Delegation formalities matter: Delegations must be in writing (ss 32D(1),(3), 32DA(1), 40(1)). Delegates must comply with directions (ss 32D(2),(4), 32DA(4), 40(2)). Accountable authorities sub‑delegating powers received from a Minister must give corresponding directions where the authority itself is subject to directions (s 32DA(3)). Informal delegation or absence of documented directions risks invalidity of action and exposes officers to PGPA compliance consequences.
Different form requirements for State grants versus other recipients: Grants to States and Territories must have terms and conditions set out in a written agreement (s 32C(2)), and such agreements may be entered into by a Minister or an accountable authority (s 32C(3)). For non‑State recipients the Act does not impose the same written agreement requirement, but it also does not preclude conditions (s 32C(4)). That asymmetry matters for enforceability, recordkeeping and negotiation; assuming uniform form without checking the Act risks non‑compliance for State grants.
Crown immunity from prosecution but not from other accountability: The Act binds the Crown (s 3) yet states that it does not make the Crown liable to prosecution for an offence. This is a narrow immunity statement; it does not exclude administrative accountability, contractual liability, or political oversight. Expect audit, parliamentary scrutiny, and PGPA compliance processes to apply even if criminal prosecution is barred by this provision.
Extratalerritorial reach requires caution: The Act extends to acts, omissions, matters and things outside Australia unless a contrary intention appears (s 4). That may bring cross‑border transactions and corporate structures into scope, but the Act provides no transnational enforcement mechanism. Practitioners must consider foreign law, jurisdictional constraints and practical enforceability before structuring extraterritorial commitments under the Act.
No penalties in the Act: The absence of express penalty provisions means that regulatory and contractual design must explicitly set out compliance obligations, sanctions and remedies. Do not assume statutory fines or criminal offences are available; design agreements and regulations to create enforceable obligations where needed.
Preservation of executive power: Section 41 states the Part does not, by implication, limit the executive power of the Commonwealth. That can create overlap or ambiguity between prerogative executive decision‑making and statutory powers under the Act. Careful legal analysis is required where executive action might be undertaken outside the Act’s regulatory lists but in reliance on inherent executive authority.
Minister definition includes presiding officers: The statutory definition of "Minister" includes the President of the Senate and the Speaker of the House of Representatives (s 5). That is unusual in practice and raises questions about the intended scope of persons who may be treated as a "Minister" for exercising powers or delegations. Practitioners should confirm whether it is intended that presiding officers exercise these executive functions in practice.
Company participation constraints: The Commonwealth can form or acquire interests in companies only if the company and its objects or activities are specified in the regulations (s 39B(1)-(2)). The regulations therefore control which corporate ventures are possible; assuming a broad corporate power absent regulatory specification is a mistake.
Recordkeeping and audit implications: Given the link to the finance law and the delegation rules, failure to keep clear delegation instruments, written agreements for State grants, and records of directions could undermine the validity of transactions and expose entities to PGPA audits. Ensure documentation meets both this Act’s written instrument requirements and PGPA recordkeeping standards.
How to comply
If you are an accountable authority, official or advice team tasked with implementing this Act, compliance requires aligning delegation, documentation, regulatory checks and PGPA obligations before acting.
Check the regulations first: Before proposing or entering any arrangement, grant or company‑formation action under this Act, confirm that the specific arrangement, class, program or company is authorised by the regulations as required by s 32B(2) and s 39B(1)-(2). If the item is not captured, do not proceed under this Act.
Use the correct statutory pathway for State grants: For grants to States and Territories, ensure the terms and conditions are set out in a written agreement as mandated by s 32C(2). Record who is authorised to sign on behalf of the Commonwealth: either a Minister or an accountable authority, as permitted by s 32C(3). Maintain versioned signed agreements and ensure they are consistent with PGPA obligations.
Document delegated authorities in writing: All delegations under ss 32D, 32DA and 40 must be in writing. Prepare written delegation instruments that specify the scope, conditions and any directions that the delegate must follow (s 32D(1),(3), s 32DA(1), s 40(1)). Keep delegation instruments readily auditable and track any subdelegation chains and accompanying directions.
Issue and preserve directions: Delegates and subdelegates are required to comply with directions from the delegator (ss 32D(2),(4), 32DA(4), 40(2)). Where the accountable authority is themselves subject to directions by the Minister, ensure corresponding directions are transmitted to second delegates (s 32DA(3)). Keep written records of all directions and confirmations of compliance.
Align with PGPA duties and reporting: Because the Act must be read with the finance law (s 6), comply with PGPA Act obligations on appropriation, use of public resources, financial reporting, audit and internal control. Ensure that actions taken under this Act are treated consistently within the entity’s PGPA governance frameworks.
Design grants and arrangements with enforceable terms: For non‑State grants, although the Act does not require written agreements, it does not prevent conditions (s 32C(4)). Draft grant agreements to include clear eligibility, performance, reporting, audit and remedy provisions; provide for recovery clauses and events of default to enable remedial action without relying on absent statutory penalties.
For company formation or acquisition: Verify regulatory authorisation for the specific company and its objects (s 39B(1)-(2)) before formation or subscription. Ensure corporate steps comply with the Corporations Act and other corporate governance requirements. Seek separate legal advice on director duties and conflicts if the Commonwealth will be a member or shareholder.
Maintain audit and recordkeeping discipline: Keep full administrative records demonstrating regulatory scope checks, delegation instruments, written agreements for State grants, directions to delegates, approvals by Ministers or Finance Minister and PGPA compliance certifications. These records will be material in any audit or review.
Avoid reliance on PGPA s 23 to exercise s 32B powers: Section 32DB prevents relying on s 23 of the PGPA Act to justify an accountable authority exercising the Commonwealth’s s 32B powers. Use the delegation mechanisms in this Act to secure authority before acting.
Consider extraterritorial implications: Where activities will occur outside Australia (s 4), map foreign legal obligations and practical enforceability. Document legal advice concerning cross‑border enforceability and ensure agreements anticipate jurisdictional issues.
Ensure political and parliamentary coordination: Given that the Act binds the Crown and involves public money, coordinate with relevant Ministers, the Finance Minister and central finance offices to ensure that decisions align with government policy and appropriation limits. Confirm that any regulatory specification has been made and is current.
Train delegates and officials: Provide training and guidance to officials who will receive delegations to ensure they understand the scope limits, direction compliance obligations and PGPA duties. Make compliance manuals available and require periodic attestation of adherence to directions and grant conditions.
Design internal controls for recovery and remediation: Because the Act does not create statutory penalties, build contractually enforceable recovery mechanisms, suspension rights, and performance reporting triggers into grant and arrangement documentation to enable practical remediation and financial recovery where necessary.
Review regulatory updates regularly: Because the Act’s scope is regulated, set a process for monitoring changes to the regulations under s 65. Any expansion or contraction of the listed arrangements, grants, programs or companies will affect what actions are authorised under the Act.
Following these concrete steps will align day‑to‑day operations with the Act’s written delegation requirements, the regulatory scope control, and the finance law obligations that govern the use of relevant and other CRF money.
Section 4This Act extends to things outside Australia
relevant money has the meaning given by the Public Governance, Performance and Accountability Act 2013.
6 Relationship with the finance law
6 Relationship with the finance law
This Act and the regulations are to be read together with the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013).
Part 2 Supplementary powers to make commitments to spend money and be involved in companies etc.
Part 2—Supplementary powers to make commitments to spend money and be involved in companies etc.
32B Supplementary powers to make commitments to spend relevant money and other CRF money etc.
32B Supplementary powers to make commitments to spend relevant money and other CRF money etc.
(1) The Commonwealth may make, vary or administer:
(a) an arrangement under which relevant money or other CRF money is, or may become, payable by the Commonwealth; or
(b) a grant of financial assistance to a State or Territory; or
(c) a grant of financial assistance to a person other than a State or Territory.
(2) However, the Commonwealth may only make, vary or administer an arrangement or grant under subsection (1) if the arrangement or grant, as the case may be:
(a) is specified in the regulations; or
(b) is included in a class of arrangements or grants, as the case may be, specified in the regulations; or
(c) is for the purposes of a program specified in the regulations.
Note: The Public Governance, Performance and Accountability Act 2013 deals with the use and management of public resources (including relevant money and other CRF money).
(3) A power conferred on the Commonwealth by subsection (1) may be exercised on behalf of the Commonwealth by a Minister or an accountable authority of a non‑corporate Commonwealth entity.
Note: For the power to delegate, see section 32D.
(4) In this section:
administer:
(a) in relation to an arrangement—includes give effect to; or
(b) in relation to a grant—includes make, vary or administer an arrangement that relates to the grant.
arrangement includes contract, agreement or deed.
make, in relation to an arrangement, includes enter into.
vary, in relation to an arrangement or grant, means:
(a) vary in accordance with the terms or conditions of the arrangement or grant, as the case may be; or
(b) vary with the consent of the non‑Commonwealth party or parties to the arrangement or grant, as the case may be.
32C Terms and conditions for grants
32C Terms and conditions for grants
Scope
(1) This section applies to a grant of financial assistance under section 32B.
Terms and conditions
(2) If the recipient of the grant is a State or Territory, the terms and conditions on which that financial assistance is granted are to be set out in a written agreement between the Commonwealth and the recipient.
(3) An agreement under subsection (2) may be entered into on behalf of the Commonwealth by a Minister or an accountable authority of a non‑corporate Commonwealth entity.
Note: For the power to delegate, see section 32D.
(4) If the recipient of the grant is a person other than a State or Territory, subsection (2) does not, by implication, prevent the grant from being made subject to terms and conditions.
32D Minister or accountable authority may delegate powers
32D Minister or accountable authority may delegate powers
Delegation by a Minister
(1) A Minister may, by writing, delegate any or all of his or her powers under section 32B or 32C to an official of any non‑corporate Commonwealth entity.
Note: An accountable authority may delegate a power delegated under this section (see section 32DA).
(2) In exercising powers under a delegation, the delegate must comply with any directions of the Minister concerned.
Delegation by an accountable authority
(3) An accountable authority of a non‑corporate Commonwealth entity may, by writing, delegate any or all of his or her powers under section 32B or 32C to an official of any non‑corporate Commonwealth entity.
(4) In exercising powers under a delegation, the delegate must comply with any directions of the accountable authority concerned.
32DA Accountable authority may sub‑delegate powers
32DA Accountable authority may sub‑delegate powers
(1) An accountable authority of a non‑corporate Commonwealth entity may, by writing, delegate to an official (the second delegate) of any non‑corporate Commonwealth entity powers and functions that have been delegated to the accountable authority by a Minister under section 32D.
(2) The power or function, when exercised or performed by the second delegate, is taken for the purposes of this Act to have been exercised or performed by the Minister.
(3) If the accountable authority is subject to directions in relation to the exercise of a power, or the performance of a function, delegated to the accountable authority under section 32D, then:
(a) the accountable authority must give corresponding directions to the second delegate; and
(b) the accountable authority may give other directions (not inconsistent with those corresponding directions) to the second delegate in relation to the exercise of that power or the performance of that function.
(4) The second delegate must comply with any directions of the accountable authority.
32DB Relationship with section 23 of the Public Governance, Performance and Accountability Act 2013
32DB Relationship with section 23 of the Public Governance, Performance and Accountability Act 2013
Section 23 of the Public Governance, Performance and Accountability Act 2013 (which deals with the power of accountable authorities in relation to arrangements and commitments) does not authorise the accountable authority of a non‑corporate Commonwealth entity to exercise, on behalf of the Commonwealth, a power conferred on the Commonwealth by section 32B of this Act.
39B Supplementary powers to form companies etc.
39B Supplementary powers to form companies etc.
Formation of company etc.
(1) The Commonwealth may form, or participate in the formation of, a company if, were it to come into existence, the company would be a company:
(a) that is specified in the regulations; and
(b) whose objects or proposed activities are specified in the regulations.
Acquisition of shares in company etc.
(2) The Commonwealth may acquire shares in, or become a member of, a company in circumstances that would result in the company becoming a Commonwealth company if:
(a) the company is specified in the regulations; and
(b) the company’s objects or proposed activities are specified in the regulations.
Finance Minister’s power
(3) A power conferred on the Commonwealth by subsection (1) or (2) may be exercised on behalf of the Commonwealth by the Finance Minister.
Note: For the power to delegate, see section 40.
Definitions
(5) In this section:
acquire includes acquire by subscription.
Commonwealth company has the same meaning as in the Public Governance, Performance and Accountability Act 2013.
40 Finance Minister may delegate powers
40 Finance Minister may delegate powers
(1) The Finance Minister may, by written instrument, delegate to an accountable authority of a non‑corporate Commonwealth entity the Finance Minister’s powers or functions under section 39B.
(2) In exercising powers or functions under a delegation, the delegate must comply with any directions of the Finance Minister.
41 Executive power of the Commonwealth
41 Executive power of the Commonwealth
This Part does not, by implication, limit the executive power of the Commonwealth.
Part 3 Miscellaneous
Part 3—Miscellaneous
65 Regulations
65 Regulations
The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.