Attachment A – Financial Arrangements Matrix Financial Arrangement Substantive Purpose Criteria Authority required Example(s) Related Guidance Grant Promote policy objectives through the provision of financial assistance with or without conditions. Relevant money paid to a grantee other than the Commonwealth. Intended to help address one or more of the Australian Government’s policy outcomes while assisting the grantee to meet their objectives. Legislative authority is needed for entering into arrangements and spending for grants that are not categorised as the ordinary and functions of government. The legislative authority will either be in separate legislation or in a grant or program listed in Schedule 1AA or Schedule 1AB to the Financial Framework (Supplementary Powers) Regulations 1997. Competitive, non-competitive grant opportunities. One-off adhoc grants. Entitlements programs that are not supported by own legislation. Some sponsorships, subsidies and rebates. Gifts of relevant money or ex gratia payments. Commonwealth Grants and Guidelines 2017. , Reporting, Evaluating and Election Commitments Procurement Achieve policy objectives through the acquisition of goods and services for the Commonwealth's own use or for the use of third parties. The process of acquiring goods and/or services. May be for the Commonwealth’s own use or may be on behalf of third parties. Most procurement for an entity’s own use will be for the ordinary and well-recognised functions of government and will not require separate legislative authority from an appropriation in an Appropriation Act. However, spending relating to a procurement may require separate legislative authority where it is not for the ordinary and well-recognised functions of government. Procuring supplies and equipment, consultancy services, memberships, advertising and travel. Austender website. .
of relevant property To transfer relevant property to the recipient free of charge. The Commonwealth must have acquired or produced the property to use it as a gift, or the gift is expressly authorised by law, or the Finance Minister (or delegate) has authorised the gift in writing, or the gift is made in accordance with any requirements prescribed by the The power to make gifts of relevant property is established under section 66 of the PGPA Act. Gifts of relevant property to visiting dignitaries. Gifts of ex-government computers to public schools. – Noncorporate Commonwealth Entities. Compensation payments To compensate individuals or groups for financial losses or other adverse consequences caused by the Commonwealth. The criteria for a particular compensation payment will be set out in either its enabling legislation or the Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme). Payments made as part of the CDDA Scheme generally fall within the ordinary and well-recognised functions of government. Other compensation payment schemes will require their own legislation Payment in accordance with the CDDA Scheme. Payments made under section 73 of the Public Service Act 1999. Payments for the settlement of liability claims made in accordance with entity obligations under the Legal Services Directions.
Benefit and entitlement payments established by legislation To provide a benefit to individuals or groups that meet specified criteria as established by legislation. A right to a particular payment established in legislation and generally involves no obligation on the recipient to spend the proceeds, or account/ acquit the expenditure. Entitlements established by legislation must be supported by specific legislation (paragraphs 29 – 31 refers). Examples of entitlements established in legislation include pension payments made through the Social Security (Administration Act) 1999, payments to veterans through the Veterans' Entitlement Act 1986. Tax concession or offset Achieve policy objectives by directly reducing the amount of tax an individual or other bodies must pay. Specific categories of tax concessions and offsets are contained in taxation legislation administered by the Australian Taxation Office. All taxation legislation administered by the Australian Taxation Office. Fuel excise rebate. Australian Taxation Office. Investments Earning income or a profitable return for the Commonwealth. An arrangement that involves the purchase of an asset by the Commonwealth for the primary purpose of earning income or a profitable return. Investments are made the authority of specific enabling legislation or section 58 of the PGPA Act. Investments made under the Future Fund Act 1996.
Loans May be made for a variety of reasons, including policy purposes and as a means of facilitating repayments to the Commonwealth. An arrangement under which the Commonwealth advances a sum of relevant money to an external recipient with the recipient agreeing to repay that sum (with or without interest) on a future date or on demand. Loans that are not categorised as being for the ordinary and functions of government will require either separate legislation or will need to be listed in Schedule 1AA or 1AB to the Financial Framework (Supplementary Powers) Regulations 1997. Concessional loans. Act of grace payment To provide financial relief to individuals or other bodies where there is a moral obligation on the Commonwealth. A discretionary power of the Finance Minister or delegate to make payments on behalf of individuals or other bodies due to special circumstances. The power to make act of grace payments is established under section 65 of the PGPA Act. Cases where legislative and administrative provisions do not take sufficient account of the special circumstances of individual cases.