EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (AGS Special Accounts Amendments 2017)
Purpose of this determination
This determination is made under subsection 78(3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to vary provisions relating to the AGS Client Funds Special Account 2015 and the AGS Operational Special Account 2015.
The special account determinations are being varied to remove the clauses that cause the special accounts to cease in effect on 30 June 2017:
- subsection 2(b) of the PGPA Act (AGS Client Funds Special Account 2015 — Establishment) Determination 2015/03; and
- subsection 2(b) of the PGPA Act (AGS Operational Special Account 2015 – Establishment) Determination 2015/02.
Removal of these clauses ensures that the AGS Client Funds Special Account 2015 will continue in effect until it sunsets in accordance with the Legislation Act 2003. Subsection 2(b) of the AGS Operational Special Account 2015 will be replaced with a new subsection that amends the date the special account ceases in effect to 30 June 2019.
The operating context of special accounts
A special account may be established, varied or revoked under the PGPA Act: by a determination made by the Minister for Finance (under section 78) or by an Act (see section 80).
A special account is an appropriation mechanism that sets aside amounts within the Consolidated Revenue Fund (CRF) for spending on specified purposes. The purposes of a special account are set out in the establishing determination or Act.
In accordance with section 81 of the Constitution, all revenues or moneys raised or received by the Commonwealth Executive Government form one CRF. Section 83 of the Constitution provides that such money may not be drawn from the Treasury except under an appropriation made by law.
- A special account enables revenues or moneys raised or received to be set aside for the purposes of that special account.
- Payments made for the purposes of a special account are supported by an appropriation in the PGPA Act; subsection 78(4) for a special account established by a determination or subsection 80(1) for a special account established by an Act.
Special account determinations
Special account determinations are legislative instruments under the Legislation Act 2003. Special account determinations may be varied or revoked by a subsequent determination being made in accordance with subsection 78(3) of the PGPA Act.
In accordance with subsection 79(3) of the PGPA Act, the Finance Minister must table a copy of such determinations in each House of the Parliament. Subsection 79(4) of the PGPA Act provides that special account determinations are subject to disallowance by either House of the Parliament. The disallowance period starts on the day a special account determination is tabled in the House and ends on the fifth sitting day after the determination was tabled in that House.
If neither House passes a resolution to disallow a special account determination, under subsection 79(5) it comes into effect on the day immediately after the last day on which it could have been disallowed, or on a later day if specified in the determination.
Human Rights
A Statement of Compatibility with Human Rights is not required for this determination. Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under section 42 of the Legislation Act 2003. While determinations made or varied under subsections 78(1) or 78(3) of the PGPA Act are subject to disallowance under section 79 of the PGPA Act, subsection 79(2) provides that they are not subject to disallowance under section 42 of the Legislation Act 2003. As such, a Statement of Compatibility with Human Rights is not required.
Consultation
The Attorney-General’s Department was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted by the Parliament of Australia to provide a framework for the governance, performance, and accountability of the Commonwealth public sector. The Act aims to ensure that public sector entities are effectively managed, resources are used efficiently and effectively, and accountability is maintained. The PGPA Act Determination (AGS Special Accounts Amendments 2017) was issued under the authority of the Minister for Finance to address the problem of special accounts ceasing in effect on specific dates, which could disrupt the intended financial arrangements and accountability. The determination varies the provisions of the PGPA Act to allow the AGS Client Funds Special Account 2015 to continue until it sunsets according to the Legislation Act 2003 and to amend the cessation date for the AGS Operational Special Account 2015 to 30 June 2019. This ensures the smooth continuation of financial arrangements for the specified accounts.
Scope and Application
The PGPA Act Determination (AGS Special Accounts Amendments 2017) applies to the AGS Client Funds Special Account 2015 and the AGS Operational Special Account 2015, both established under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). This determination, made by the Minister for Finance, amends the original provisions to extend the effective dates of these special accounts, thereby ensuring they continue to operate beyond their initially stipulated sunset dates. The AGS Client Funds Special Account 2015 will now continue until it naturally expires under the Legislation Act 2003, while the AGS Operational Special Account 2015 will cease to be effective on 30 June 2019. This adjustment allows for continued financial management and accountability for specified purposes as outlined in the original determinations. The jurisdictional reach of this amendment is federal, applying across the Commonwealth of Australia, as it pertains to appropriations within the Consolidated Revenue Fund. There are no specific exclusions or thresholds mentioned in the text, and the determination is subject to disallowance by either House of the Parliament.
Key Provisions
The main operative sections of the PGPA Act Determination (AGS Special Accounts Amendments 2017) (F2017L00253) involve the amendment of two special account determinations: the PGPA Act (AGS Client Funds Special Account 2015 – Establishment) Determination 2015/03 and the PGPA Act (AGS Operational Special Account 2015 – Establishment) Determination 2015/02. The determination primarily seeks to remove clauses that would otherwise cause these special accounts to cease in effect on 30 June 2017, as per subsections 2(b) of these determinations. In particular, the AGS Client Funds Special Account 2015 will now continue until it sunsets in accordance with the Legislation Act 2003, while the AGS Operational Special Account 2015 will now cease in effect on 30 June 2019. This amendment ensures that these special accounts remain active for their intended purposes, subject to their respective sunset clauses.
The obligations and requirements imposed by this Act on the parties or entities it governs primarily involve the continued operation of the two special accounts mentioned. The AGS Client Funds Special Account 2015 and the AGS Operational Special Account 2015 must remain active until their specified sunset dates. This means that funds set aside within the Consolidated Revenue Fund (CRF) for these accounts must be available for spending on their designated purposes. The special accounts must be managed in accordance with the Public Governance, Performance and Accountability Act 2013, which includes provisions for the appropriation of funds and the oversight of their use. Additionally, the Finance Minister must table a copy of the special account determinations in each House of the Parliament, and these determinations are subject to disallowance by either House.
The PGPA Act Determination (AGS Special Accounts Amendments 2017) does not explicitly outline offences, penalties, or civil/criminal consequences for breach. However, any breach of the Public Governance, Performance and Accountability Act 2013 or its determinations could potentially result in legal consequences, including financial penalties or other civil or criminal sanctions as prescribed by relevant legislation. The determinations are subject to disallowance by either House of the Parliament, and if neither House passes a resolution to disallow a special account determination, it comes into effect on the day immediately after the last day on which it could have been disallowed, or on a later day if specified in the determination. It is important for the parties and entities governed by these determinations to adhere to the requirements set out in the PGPA Act and its determinations to avoid any potential legal repercussions.