EXPLANATORY STATEMENT
Issued by the authority of the Minister for Human Services
Commonwealth Services Delivery Agency Act 1997
Commonwealth Services Delivery Agency (Functions of Chief
Executive Officer) Direction 2011 (No. 2)
Authority
- Under paragraph 8(1)(c) of Commonwealth Services Delivery Agency Act 1997 (the Act), the Minister may give the Chief Executive Officer (Centrelink CEO) of the Commonwealth Services Delivery Agency (known as Centrelink) a written direction to perform specified functions. The Centrelink CEO has a number of functions under subsection 8(1) of the Act.
Background
2. Subsection 8(2) of the Act provides that a direction under paragraph 8(1)(c) is a legislative instrument, but neither section 42 nor Part 6 of the Legislative Instruments Act 2003 applies to the direction. This means that the Commonwealth Services Delivery Agency (Functions of Chief Executive Officer) Direction 2011 (No. 2) (the Direction) is neither subject to disallowance by Parliament nor automatic sunsetting after 10 years.
3. Centrelink currently works closely with Medicare Australia and the Department of Human Services in relation to the delivery of benefits and services to the public. The Service Delivery Reform initiatives announced by the Minister for Human Services on 16 December 2009 are increasing the interaction and co-operation between these agencies. The Government has announced an intention to merge Centrelink and Medicare Australia into the Department of Human Services on
1 July 2011, subject to the passage of legislation.
Management services
4. To support the stronger links between the Department of Human Services, Centrelink and Medicare Australia, it is proposed to bring some parts of the Department of Human Services and Medicare Australia under the day to day management of the Centrelink CEO. Some parts of Centrelink will be under the day to day management of the Chief Executive Officer of Medicare Australia. This will enable similar functions undertaken by the Department of Human Services, Centrelink and Medicare Australia to be better co-ordinated and aligned. This is intended to improve efficiency and the quality of the services provided to the public.
5. The accountabilities of the Centrelink CEO and the Chief Executive Officer of Medicare Australia will not change. It is not proposed that the Centrelink CEO assume responsibility for the delivery of any program currently delivered by the Department of Human Services or Medicare Australia.
6. This Direction expands the statutory functions of the Centrelink CEO to enable her to assist the Chief Executive Officer of Medicare Australia. It is intended that the specific assistance that will be provided will be the provision of management services.
7. This direction is intended to operate in parallel with the Commonwealth Services Delivery Agency (Functions of the Chief Executive Officer – Management Services) Direction 2010 which expands the statutory functions of the Chief Executive Officer of Centrelink to enable her to assist the Secretary of the Department of Human Services and the Medicare Australia (Functions of the Chief Executive Officer) Direction 2011 (No. 1), which expands the statutory functions of the Chief Executive Officer of Medicare Australia to enable her to assist the Centrelink CEO.
8. The Direction commences the day it is registered on the Federal Register of Legislative Instruments.
Consultation
9. It was not considered necessary to consult stakeholders external to the Government in relation to this Direction because the Direction deals solely with the internal governance arrangements for Centrelink and Medicare Australia.
Overview
The Commonwealth Services Delivery Agency (Functions of Chief Executive Officer) Direction 2011 (No. 2) was issued under the authority of the Commonwealth Services Delivery Agency Act 1997 by the Minister for Human Services. The Act empowers the Minister to direct the Chief Executive Officer (CEO) of the Commonwealth Services Delivery Agency (known as Centrelink) to perform specified functions. This Direction, which is not subject to disallowance by Parliament or automatic sunsetting after 10 years, aims to enhance the efficiency and quality of services provided to the public by facilitating closer coordination and alignment of functions between Centrelink, Medicare Australia, and the Department of Human Services. It does so by expanding the statutory functions of the Centrelink CEO to provide management services to the Chief Executive Officer of Medicare Australia, while maintaining the existing accountabilities of both CEOs. The Direction operates in tandem with other related directions to support the Service Delivery Reform initiatives and the proposed merger of Centrelink and Medicare Australia into the Department of Human Services.
Scope and Application
The Commonwealth Services Delivery Agency (Functions of Chief Executive Officer) Direction 2011 (No. 2) applies to the Chief Executive Officer of the Commonwealth Services Delivery Agency, known as Centrelink, and is intended to support the coordination and alignment of functions between Centrelink, Medicare Australia, and the Department of Human Services. This Direction expands the statutory functions of the Centrelink CEO to provide management services to the Chief Executive Officer of Medicare Australia, thereby enhancing the efficiency and quality of services provided to the public. This arrangement is part of broader Service Delivery Reform initiatives aimed at improving service delivery through increased interaction and cooperation between these agencies. The Direction does not alter the existing accountabilities of the Centrelink CEO or the Chief Executive Officer of Medicare Australia, nor does it propose that the Centrelink CEO assume responsibility for any programs currently delivered by the Department of Human Services or Medicare Australia. The Direction operates in parallel with other related directions, and it commences on the day it is registered on the Federal Register of Legislative Instruments. Given that this Direction pertains to internal governance arrangements, consultation with external stakeholders was deemed unnecessary.
Key Provisions
The main operative sections of the Commonwealth Services Delivery Agency (Functions of Chief Executive Officer) Direction 2011 (No. 2) pertain to the delegation of specific functions to the Chief Executive Officer (CEO) of Centrelink, which is a part of the Commonwealth Services Delivery Agency (section 2). This Direction allows the Centrelink CEO to perform management services for both the Department of Human Services and Medicare Australia, as well as to provide assistance to the CEO of Medicare Australia (section 5). This arrangement is intended to enhance the coordination and alignment of functions among these agencies, with the ultimate aim of improving service delivery to the public (section 4).
The obligations and requirements imposed by this Direction are primarily administrative and managerial. The Centrelink CEO is tasked with managing certain parts of the Department of Human Services and Medicare Australia, while some parts of Centrelink will be managed by the CEO of Medicare Australia (section 5). This arrangement is intended to foster better coordination and alignment of services without altering the existing accountabilities of either CEO (section 5). The Direction clarifies that the Centrelink CEO will not assume responsibility for any programs currently delivered by the Department of Human Services or Medicare Australia (section 5).
The Direction does not explicitly state any offences, penalties, or civil/criminal consequences for breaches. However, as a legislative instrument, any failure to comply with the Direction could potentially lead to legal challenges or administrative actions, particularly if such non-compliance were to result in significant service delivery issues or mismanagement. The Direction itself does not specify maximum penalties but relies on the general legal framework under which the Commonwealth Services Delivery Agency Act 1997 operates.