Go to top of page

Attachment 10.17.1

Financial Management Act Regulations – definition of grants

Payments to the States and local governments, and scholarships or ‘grants’ made by Commonwealth Authorities and Companies Act 1997 entities which are funded by bequests, donations or commercial activities (rather than public funds) are not covered by the Commonwealth Grants Guidelines.

FMA Regulation 3A(1) defines a ‘grant’ as an arrangement for the provision of financial assistance by the Commonwealth:

  1. under which money is to be paid to a recipient other than the Commonwealth; and
  2. which is intended to assist the recipient to achieve its goals; and
  3. which is intended to promote one or more of the Commonwealth’s policy objectives; and
  4. under which the recipient is required to act in accordance with any terms or conditions specified in the agreement.

The FMA Regulation 3A(2) also provides that the following arrangements are taken not to be grants:

  1. the procurement of property or services by an agency, including the procurement of the delivery of a service by a third party on behalf of an agency, these arrangements are covered by the Commonwealth Procurement Rules (CPRs);
  2. an act of grace payment approved under section 33 of the FMA Act;
  3. a payment of compensation made under:
    1. an arrangement relating to defective administration; or
    2. an arrangement relating to employment conditions; or
    3. an arrangement established by legislation;
  4. a payment to a person of a benefit or an entitlement established by legislation;
  5. a tax concession or offset;
  6. an investment or loan;
  7. financial assistance provided to a State in accordance with section 96 of the Australian Constitution;
  8. a payment to a State or a Territory that is made for the purposes of the Federal Financial Relations Act 2009, including the following:
    1. General Revenue Assistance; or
    2. Other General Revenue Assistance; or
    3. National Specific Purpose Payments; or
    4. National Partnership Payments;
  9. a payment that is made for the purposes of the Local Government (Financial Assistance) Act 1995;
  10. a payment that is made for the purposes of the Schools Assistance Act 2008;
  11. a payment that is made for the purposes of the Higher Education Support Act 2003; and
  12. a payment of assistance for the purposes of Australia’s international development assistance programme, which is treated by the Commonwealth as official development assistance.