On 1 October 2024, the Commonwealth Grants Rules and Principles 2024 (CGRPs) replaced the Commonwealth Grants Rules and Guidelines 2017 (CGRGs).
The Australian Government grants framework promotes transparency, accountability and flexibility in grants administration to achieve government policy outcomes and ensure equitable access of grants to and for the benefit of the Australian public. The CGRPs establish the requirements for all non-corporate Commonwealth entities (NCEs) (and third parties undertaking grant administration on their behalf) in relation to grants administration.
The Australian Government grants framework consists of 4 elements:
- The PGPA Act and PGPA Rule provide the overarching accountability framework for Commmonwealth resource management requirements, including for grants administration for accountable authorities, officials and ministers of all Commonwealth entities.
- The CGRPs establish specific obligations for accountable authorities, officials, ministers and third parties involved in grants administration activities for NCEs and provide better practice guidance on the 9 key principles of grants administration. Division 6A of Part 2-4 of the PGPA Rule establishes equivalent obligations for officials and ministers involved in approving grants for corporate Commonwealth entities (CCEs).
- Other government policies relating to grants administration – for example, Grant Connected Policies and relevant Estimates Memorandums – establish additional requirements that NCE officials must consider in designing or awarding a grant. In some cases, these policies may also impose requirements on grant applicants or recipients.
- Whole of government guidance, tools and templates developed by the Department of Finance support entities to implement the other elements of the framework.
The Commonwealth Grants Rules and Principles 2024
The CGRPs are a legislative instrument made by the Minister for Finance under s105D of the PGPA Act. The CGRPs apply to accountable authorities and officials of NCEs, as well as ministers and third parties undertaking grant administration activities on behalf of NCEs. The CGRPs do not place mandatory requirements on grantees.
The CGRPs are divided into two parts:
- Part 1 sets out the mandatory requirements for accountable authorities, officials, ministers and third parties involved in grants administration for NCEs
- Part 2 provides better practice guidance on the 9 key principles that underpin Australian Government grants administration.
Officials must have regard to the key principles when undertaking grants administration.
Division 6A of Part 2-4 of the PGPA Rule sets out mandatory requirements that officials and ministers of CCEs must comply with when a minister is involved in approving grants for a CCE. CCEs are strongly encouraged to apply all elements of the CGRPs, including the key principles.
Grants administration guidance
Resource Management Guides (RMGs)
RMG-410 Commonwealth Grants provides an overview of the grants administration process as well as providing detailed guidance on several key topics including briefing requirements, Ministerial reporting requirements, evaluation strategies, sets out how to deliver election commitments through grants, and GrantConnect publication and reporting requirements.
RMG-411 Grants, Procurements and other financial arrangements provides guidance on common forms of financial arrangements available to achieve Australian Government policy objectives.
RMG-415 Commonwealth Grants and Procurement Connected Policies outlines the administrative framework to ensure future Grants-Connected Policies and Procurement-Connected Policies are applied effectively at a whole-of-government level.
RMG-419 Classifying Australian Government payments to other levels of government provides advice on the types of payments that are within scope of the federal financial relations framework, and the payment classification process undertaken by the Department of Finance.
Grant Connected Policies
Grant Connected Policies are whole-of-government policies that entities must consider before awarding a grant. These policies may impose requirements on grant applicants or recipients to be able to receive a grant. Grant Connected Policies are not part of the CGRPs, but are standalone polices that are the responsibility of the entity that owns the policy.
Entities should consider the following Grant Connected Policies:
- Australian Industry Participation Plans for Government Grants
- National Redress Scheme for Institutional Child Sexual Abuse Grant Connected Policy.
RMG-415 Commonwealth Grants and Procurement Connected Policies provides additional guidance and is available under Resource Management Guides in the right-hand menu.
Estimates Memorandums
Estimates Memorandums (EMs) provide advice on policy changes, whole-of-government processes and requirements, upcoming deadlines and specific actions that Commonwealth entities must take.
The Department of Finance circulates EMs to Commonwealth entities. If you would like a copy of EM 2018-39, EM 2024-16 or EM 2024-20 relating to additional requirements for grants administration, please check the Central Budget Management System (CBMS), contact your Budget Group Agency Advice Unit (AAU), or reach out to the drafting team.
