Commonwealth of Australia Explanatory Memoranda

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DISABILITY SERVICES AND INCLUSION (CONSEQUENTIAL AMENDMENTS AND TRANSITIONAL PROVISIONS) BILL 2023

                            2022-2023




     THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                  HOUSE OF REPRESENTATIVES




DISABILITY SERVICES AND INCLUSION (CONSEQUENTIAL AMENDMENTS
             AND TRANSITIONAL PROVISIONS) BILL 2023




         SUPPLEMENTARY EXPLANATORY MEMORANDUM



       Amendments to be moved on behalf of the Government




                   (Circulated by the authority of the
     Minister for Social Services, the Hon Amanda Rishworth MP)


DISABILITY SERVICES AND INCLUSION (CONSEQUENTIAL AMENDMENTS AND TRANSITIONAL PROVISIONS) BILL 2023 Amendments to be moved on behalf of the Government SUMMARY OF AMENDMENTS These amendments allow the Minister to make rules establishing a transitional Code of Conduct (Transitional Code). The substantive provisions of the Transitional Code will be in the same terms as the Code of Conduct rules made under clause 20 of the Disability Services and Inclusion Bill 2023. All providers of disability supports and services subject to the Schedule 3 savings provisions in this Bill, and providers of certain programs specified in the Financial Framework (Supplementary Powers) Regulations 1997 (FF(SP) Regulations), will be required to comply with the Transitional Code. This means existing providers are subject to the same Code of Conduct requirements as providers funded under the DSI Bill. FINANCIAL IMPACT STATEMENT These amendments will not alter the nil financial impact of this Bill. STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS The statement of compatibility with human rights appears at the end of this explanatory memorandum. NOTES ON AMENDMENTS Amendment 1 to Schedule 3, page 18 (after line 23), at the end of the Schedules adds a new Part 4 to that Schedule, dealing with a transitional code of conduct. Item 11 - Transitional code of conduct Sub-item (1) provides that the Minister may, by legislative instrument, make rules that make provision for or in relation to a Code of Conduct that applies to persons who continue to receiving funding under agreements entered into under the Disability Services Act 1986 (DS Act) and certain items in the FF(SP) Regulations. This sub-item allows the Minister to make rules providing for a Transitional Code, which will form part of the Code of Conduct rules to be made under clauses 20 and 36 of the DSI Bill. The substantive provisions of the Transitional Code will be in the same terms as the Code of Conduct rules made under the DSI Bill.


The Transitional Code will apply to all existing providers of disability supports and services funded under the DS Act and certain programs specified in the FF(SP) Regulations. Paragraphs 11(1)(a) and (b) apply the Transitional Code to entities receiving funding under the DS Act. Paragraphs 11(1)(c) and (d) apply the code of conduct to entities receiving funding under the FF(SP) Act. Paragraph 11(1)(a) provides that the transitional Code applies to eligible organisations within the meaning of the DS Act, where: • before commencement of the DSI Bill, the Minister approved the making of a grant of financial assistance to the organisation under Part II of the DS Act • immediately before commencement of the DSI Bill, an agreement with the organisation under section 15 of that Act is in effect in connection with that approval. Part II of the DS Act provides for grants of financial assistance to eligible organisations for employments services, advocacy services, research and development activities and a range of other eligible services. Paragraph 11(1)(b) applies the Transitional Code to a person or body who is a party to an arrangement that was entered into under Part III of the DS Act before commencement of the DSI Bill and that is in effect immediately before that commencement. Part III of the DS Act relevant provides for arrangements between the Commonwealth and other persons to provide rehabilitation programs. The effect of paragraphs 11(1)(a) and (b) is that the Transitional Code, once made, will apply to entities that are a party to an agreement or arrangement with the Commonwealth for funding under the DS Act at the time that the DSI Bill commences. Those entities may remain subject to the Transitional Code for as long as the agreement or arrangement is in effect. Paragraph 11(1)(c) applies the Transitional Code to a person to whom money is paid before, on or after commencement of the DSI Bill under an arrangement made before that commencement under section 32B of the FF(SP) Act, where the arrangement: • is in effect immediately before that commencement, and • is for the purposes of a program, or part of a program, that is specified in the rules. Paragraph 11(1)(d) applies the Transitional Code to a person to whom a grant of financial assistance is made before, on or after commencement of the DSI Bill under section 32B of the FF(SP) Act, where: • immediately before that commencement, an agreement between the person and the Commonwealth is in effect in connection with that grant, and • the grant is for the purposes of a program, or part of a program, that is specified in the rules.


The effect of paragraphs 11(1)(c) and (d) is that the Transitional Code may apply to persons who are a party to an agreement or arrangement with the Commonwealth for funding under section 32B of the FF(SP) Act so long as the agreement or arrangement was in effect immediately before the commencement of the DSI Bill. The agreement or arrangement must be for the purposes of a program, or part of a program, that is specified in the rules. Sub-item (2) provides that programs, or parts of programs, must be programs specified in the FF(SP) Regulations. This will include programs listed under Part 4 of Schedule 1AA to the FF(SP) Regulations as well as programs listed under Part 4 of Schedule 1AB of the FF(SP) Regulations. The ability to specify a part of a program ensures that the rules do not unintentionally capture activities that are not intended to be covered by the Transitional Code. For example, an item listed under Part 4 of Schedule 1AB of the FF(SP) Regulations may provide legislative authority for activities relating to people with disability as well as activities relating to carers. Most activities relating to carers generally will fall outside of the intended scope of the DSI Bill and entities providing that activity should not be required to comply with the Transitional Code. Sub-item (3) allows the rules to prescribe circumstances in which a person (such as a provider) breaches the Transitional Code because of an act or omission by a member of the key personnel (within the meaning of the DSI Bill) of the person or by an employee or individual otherwise engaged by the person. This makes it the responsibility of relevant persons to ensure that their key personnel, staff and contractors comply with the Transitional Code and take necessary and appropriate action if they do not. This is consistent with the operation of the Code of Conduct rules to be made under the DSI Bill. Sub-item (4) provides that the rules may not do the following: • create an offence or civil penalty; • provide powers of: o arrest or detention; or o entry, search or seizure; • impose a tax; • set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in the Bill; • directly amend the text of the Bill.


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 DISABILITY SERVICES AND INCLUSION (CONSEQUENTIAL AMENDMENTS AND TRANSITIONAL PROVISIONS) BILL 2023 The amendments are compatible with the human rights and freedoms recognised or declared in the international instrument listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. Overview of the Amendments These amendments allow the Minister to make rules establishing a transitional Code of Conduct (Transitional Code). The substantive provisions of the Transitional Code will be in the same terms as the Code of Conduct rules made under clause 20 of the Disability Services and Inclusion Bill 2023. The amendments enable the Code of Conduct to be applied to grant agreements and other arrangements under programs specified in the Financial Framework (Supplementary Powers) Regulations 1997 (FF(SP) Regulations) and to grant agreements under the Disability Services Act 1986 (DS Act). Human rights implications: The amendments engage the following rights: • the rights of people with disabilities - Article 5 and 16 of the Convention on the Rights of Persons with Disabilities (CRPD) Rights of people with disabilities The amendments engage the right of people with disability to equality and non- discrimination in Article 5 of the CRPD. Article 5 of the CRPD requires States Parties to recognise that all persons are equal before and under the law and are entitled without any discrimination to the equal protection and equal benefit of the law. States Parties shall prohibit all discrimination on the basis of disability and guarantee to persons with disabilities equal and effective legal protection against discrimination on all grounds. In order to promote equality and eliminate discrimination, States Parties shall take all appropriate steps to ensure that reasonable accommodation is provided. The amendments enable the Code of Conduct to apply to providers who are funded to deliver disability supports through the DS Act or FF(SP) Regulations. Existing providers will be subject to the same Code of Conduct requirements as providers funded under the DSI Bill. This means the same protections are in place for all people with disability who receive support from Commonwealth disability services outside the NDIS. Consistent application of the Code of Conduct supports and upholds the rights of people with disability to equality and non-discrimination.


Article 16 of the CRPD provides that States Parties shall take all appropriate measures to protect persons with disabilities from all forms of exploitation, violence and abuse. The requirement to comply with the Code of Conduct forms an important part of how the DSI Bill implements the Article 16 obligation by setting clear standards for provider conduct and the safe and ethical delivery of disability services and supports. Conclusion The amendment is compatible with human rights because it advances the protection of the rights of persons with disabilities in Australia consistent with the CRPD.


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