EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Art Rental Special Account 2016) — Establishment
Purpose of this determination
This determination is made under subsections 78(1) and 78(3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to establish the Art Rental Special Account 2016 (the special account).
The special account is being established to manage Artbank, an Australian Government arts support program established in 1980 to provide direct support to artists by purchasing their work, and make Australian contemporary art accessible to the broader community through the art rental scheme. Artbank is largely self-funding, using income generated from its art rental scheme to fund direct operational costs of administering the program. Artbank is a program within the Department of Communications and the Arts.
The operating context of special accounts
A special account may be established under the PGPA Act; by a determination made by the Minister for Finance (under section 78) or by an Act (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 Department of Communications and the Arts was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 was enacted to establish a framework for financial management, accountability, and performance reporting within the Australian Government. The Act was introduced to address the need for better governance, transparency, and efficiency in the use of public funds, aiming to ensure that government resources are managed effectively and accountable to the Australian public. This legislation provides the authority for the establishment of special accounts, which are designed to segregate specific funds within the Consolidated Revenue Fund for designated purposes, ensuring controlled and transparent financial management. The establishment of the Art Rental Special Account 2016 under this Act is a practical application of these principles, facilitating the management of Artbank’s funds dedicated to supporting artists and making contemporary art accessible through the art rental scheme. The Minister for Finance, exercising authority under the PGPA Act, has determined the creation of this special account to meet the unique financial requirements of Artbank, a program within the Department of Communications and the Arts.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 PGPA Act Determination (Art Rental Special Account 2016) establishes the Art Rental Special Account 2016 to manage Artbank, an Australian Government program within the Department of Communications and the Arts. This special account is designed to support artists by purchasing their work and to make Australian contemporary art accessible to the broader community through the art rental scheme, which is largely self-funding. This determination is made under the authority of the Minister for Finance and outlines the specific purpose of setting aside funds within the Consolidated Revenue Fund for Artbank's specified activities. The establishment of this special account is governed by the PGPA Act, which requires that such accounts are subject to disallowance by either House of the Parliament, and it is also subject to variation or revocation by a subsequent determination. Importantly, the determination does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under section 42 of the Legislation Act 2003.
Key Provisions
The main operative sections of this determination are sections 78 and 79 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Section 78(1) allows the Minister for Finance to establish a special account through a determination, while section 78(3) provides that such a determination can be varied or revoked by a subsequent determination. Section 79(3) requires the Minister to table a copy of the determination in each House of the Parliament, and section 79(4) states that the determination is subject to disallowance by either House during a specified period. If neither House passes a resolution to disallow the 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 (subsection 79(5)).
The Act imposes several obligations and requirements on the parties involved. Firstly, the Minister for Finance is required to establish the special account by a determination under section 78(1) of the PGPA Act. The Minister must also table a copy of the determination in each House of the Parliament in accordance with section 79(3). The special account, once established, must be used solely for the purposes outlined in the determination, which in this case is to manage Artbank and make Australian contemporary art accessible to the broader community through the art rental scheme. Additionally, the determination is subject to disallowance by either House of the Parliament during a specified period, and if neither House passes a resolution to disallow it, it comes into effect as per section 79(5).
There are no explicit offences, penalties, or consequences for breach outlined in the determination itself. However, breaches of the PGPA Act or any other relevant legislation may result in civil or criminal consequences. For example, under section 16 of the PGPA Act, a person who is authorised to incur expenditure on behalf of the Commonwealth and fails to do so in accordance with the Act may be liable to a civil penalty of up to $10,000. Similarly, under section 17 of the PGPA Act, a person who is authorised to incur expenditure on behalf of the Commonwealth and incurs expenditure in excess of the amount authorised may be liable to a civil penalty of up to $20,000. Criminal penalties may also apply in certain circumstances, depending on the nature and severity of the breach.