Wednesday, 15 May 2024

Financial Management Amendment (Gender Responsive Budgeting) Bill 2024

Introduction and first reading

The PRESIDENT (18:36): I have a further message from the Legislative Assembly:

The Legislative Assembly presents for the agreement of the Legislative Council ‘A Bill for an Act to amend the Financial Management Act 1994 in relation to gender responsive budgeting and for other purposes’.

Harriet SHING (Eastern Victoria – Minister for Housing, Minister for Water, Minister for Equality) (18:36): I move:

That the bill be now read a first time.

Motion agreed to.

Read first time.

Harriet SHING: I move, by leave:

That the second reading be taken forthwith.

Motion agreed to.

Statement of compatibility

Harriet SHING (Eastern Victoria – Minister for Housing, Minister for Water, Minister for Equality) (18:37): I lay on the table a statement of compatibility with the Charter of Human Rights and Responsibilities Act 2006:

In accordance with section 28 of the Charter of Human Rights and Responsibilities Act (Vic) 2006, (the Charter), I make this Statement of Compatibility with respect to the Financial Management Amendment (Gender Responsive Budgeting) Bill 2024.

In my opinion, the Financial Management Amendment (Gender Responsive Budgeting) Bill 2024 (the Bill), as introduced to the Legislative Council, is compatible with the human rights set out in the Charter. I base my opinion on the reasons outlined in this statement.

Overview of the Bill

The purpose of the Bill is to amend the Financial Management Act 1994 (the FMA) to:

a) include in the principles of sound financial management a requirement to consider and promote gender equality and inclusivity in the pursuit of spending and taxing policies

b) provide for a statement of the gender impacts of the budget to be prepared in association with the budget for each financial year

c) provide for the Minister to request a gender impact assessment (GIA) in relation to any matter under the FMA. This is intended to be used in limited circumstances where the Gender Equality 2020 (GE Act) does not apply.

The Bill makes no consequential amendments to other legislation.

Human Rights Issues

No Charter rights are limited by the Bill. The Bill broadly promotes the rights enshrined in section 8 of the Charter by embedding gender responsive budgeting (GRB) practice into the FMA. In particular, the Bill promotes section 8(2) of the Charter which provides that every person has the right to enjoy their human rights without discrimination, and section 8(3) which sets out the right to equality before the law and equal protection of the law.

I therefore consider that this Bill is compatible with the Charter.

Hon Jaclyn Symes MP

Attorney-General

Minister for Emergency Services

Second reading

Harriet SHING (Eastern Victoria – Minister for Housing, Minister for Water, Minister for Equality) (18:37): I move:

That the bill be now read a second time.

Ordered that second-reading speech be incorporated into Hansard:

Gender inequality negatively affects the lives of women, girls and gender diverse people. It continues to be a persistent challenge with gender gaps affecting outcomes for Victorians. Today, the Victorian Government fulfils its commitment to introduce Gender Responsive Budgeting into legislation. By embedding Gender Responsive Budgeting into legislation, we are acknowledging an inherent role of government to ensure gender impacts are considered through the funding process, which is one of our more powerful tools for effecting positive change. This is an important next step in the journey toward gender equality for all Victorians.

Victoria has been leading gender equality efforts in Australia, with our historical gender equality achievements starting back in 2016, with the release of Safe and Strong: A Victorian Gender Equality Strategy. This was followed by the publication of a Gender Equality Budget Statement with the 2017–18 Budget and every year since, then the passage of the nation leading Gender Equality Act 2020 and the introduction of Gender Responsive Budgeting practices in 2021. Building on these achievements, this Bill will keep Victoria at the forefront of gender equality in Australia.

Gender Responsive Budgeting is fundamental to promoting gender equality through the way budgets are constructed and funds are collected and spent, to ensure that better gender equality outcomes are achieved. Gender Responsive Budgeting does not mean a specific ‘budget for women’. Instead, it aims to reduce inequalities between women, men and gender diverse people by requiring gender analysis of how all budget policies affect them differently.

In Victoria, the practice of Gender Responsive Budgeting started with the 2022–23 Budget and has continued to grow and become more mainstream across the Victorian Public Service. Setting legal foundations will help ensure its sustainability in the longer-term, ensuring that Governments of the future continue to address the specific needs of all Victorians.

Embedding Gender Responsive Budgeting within Victoria’s primary financial management and accountability legislation – the Financial Management Act 1994 – demonstrates our commitment to ensuring that good and responsible budgeting also considers and promotes gender equality. Incorporating these provisions into the FMA signals that gender analysis is fundamental to good budgeting practice and highlights the role the budget has in achieving gender equality.

Turning to the specific provisions of the Bill:

This legislation establishes a high level, overarching principle; ensures gendered reporting as part of the budget; and builds on the existing requirements of the Gender Equality Act 2020 to help ensure that gender is considered as part of key revenue and expenditure decisions.

The Financial Management Act 1994 set outs principles of sound financial management that the Government must follow. These principles include consideration of financial reporting, taxing and spending policies, and disclosure of financial information. The Bill adds a new principle to include a commitment to gender equality and inclusivity, thus binding future

governments in Victoria to Gender Responsive Budgeting as a fundamental principle of financial management. This principle will be supported by specific tools and practices which are not necessarily legislated as they may continue to change and evolve over time.

Accountability and transparency are important elements of all reform. The Bill includes a requirement for the annual budget papers to include a statement of the gender impacts of the budget. The legislation does not specify details of what must be published. This provides flexibility for future governments to determine the form of this statement, while requiring governments to report on the overall impacts of the budget. This flexibility ensures that reporting stays fit for purpose as governments, the economy or Victoria change with time.

Finally, the Bill will also empower the Treasurer to request a Gender Impact Assessment in relation to any matter under the FMA. In most cases, major policy or funding proposals would meet the Gender Equality Act 2020 requirement for a Gender Impact Assessment of having a direct and significant impact on the public. However, if there are circumstances in which policy or funding proposals do not meet this requirement, the Treasurer will be able to use this power to require Gender Impact Assessments. Examples might include funding for business case development, or funding for pre-commercialisation research – where the impact on the public is not direct and is not likely to manifest until many years and many steps later. It is intended that this power only be used to create additional requirements, beyond those of the Gender Equality Act 2020. There is no circumstance in which this power can be used to lessen the requirements of that Act.

The Bill has been the subject of extensive consultation within Government to ensure that the proposals were necessary and practicable.

This Bill will not only deliver on the Government’s commitment to embedding Gender Responsive Budgeting practice for the future, but will help to move us closer to that vision where all Victorians are able to live in a safe and equal society, have access to equal power, resources and opportunities and are treated with dignity, respect and fairness.

I commend the Bill to the house.

Georgie CROZIER (Southern Metropolitan) (18:37): I move, on behalf of my colleague Mr Mulholland:

That debate on this bill be adjourned for one week.

Motion agreed to and debate adjourned for one week.