EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Austrade SOETM Special Account 2018)
Purpose of this determination
This determination is made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to establish the Austrade SOETM Special Account 2018 (the special account) to replace the Services for Other Entities and Trust Moneys – Department of Resources, Energy and Tourism Special Account (the SOETM account) which will sunset on 1 October 2018.
The special account is being established to continue to enable the Australian Trade and Investment Commission (Austrade) to hold and expend amounts on behalf of persons or entities other than the Commonwealth, such as contributions from state and territory governments towards joint tourism projects and activities.
Once the special account is established, the SOETM account will be repealed and an amount equivalent to the amount standing to the credit of that account immediately before its repeal will be credited to the special account.
This determination will enable Austrade to continue to use a special account to credit and debit amounts after the SOETM account is repealed.
The operating context of special accounts
A special account may be established, varied or revoked by a determination made by the Minister for Finance under s 78 of the PGPA Act, or by an Act.
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) appropriates the CRF for the purposes of a special account established by a determination, and subsection 80(1) appropriates the CRF for the purposes of a special account established by an Act.
Special account determinations
Special account determinations are legislative instruments for the purposes of 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.
Subsection 79(5) provides that, if neither House passes a resolution to disallow a special account determination, the determination commences 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. The determination does not specify a later day, so commences on the day mentioned in paragraph 79(5)(a) of the PGPA Act.
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
Austrade was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to establish a modernised framework for the financial management of the Commonwealth, focusing on improving the efficiency and effectiveness of public sector financial management. This Act was introduced to address the need for a more contemporary and transparent approach to managing public finances, thereby ensuring accountability and performance. The PGPA Act Determination (Austrade SOETM Special Account 2018) was made under the authority of the Minister for Finance to establish a new special account, the Austrade SOETM Special Account 2018, which is intended to replace the existing Services for Other Entities and Trust Moneys – Department of Resources, Energy and Tourism Special Account. This determination facilitates the continuation of Austrade's ability to manage funds on behalf of other entities, such as contributions from state and territory governments for joint tourism initiatives, ensuring that the administrative processes remain uninterrupted after the repeal of the old special account on 1 October 2018. The policy objective of this determination is to maintain the integrity and functionality of Austrade's financial operations in accordance with the provisions of the PGPA Act.
Scope and Application
This determination, issued under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), establishes the Austrade SOETM Special Account 2018 to replace the existing Services for Other Entities and Trust Moneys – Department of Resources, Energy and Tourism Special Account, which is set to sunset on 1 October 2018. The purpose of this special account is to continue enabling the Australian Trade and Investment Commission (Austrade) to manage and disburse funds on behalf of entities other than the Commonwealth, such as state and territory governments contributing to joint tourism initiatives. This legislative instrument aims to ensure the smooth continuation of financial management practices for these specific purposes, following the repeal of the previous special account. The determination is subject to disallowance by either House of the Parliament, as outlined in subsection 79(4) of the PGPA Act, but no disallowance period is specified, meaning it will commence on the day after the disallowance period ends if neither House disallows it.
Key Provisions
The main sections of this determination (F2018L01111) under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) establish the Austrade SOETM Special Account 2018 to replace the Services for Other Entities and Trust Moneys – Department of Resources, Energy and Tourism Special Account (SOETM account), which is set to sunset on 1 October 2018 (subsection 78(1)). The special account is intended to allow the Australian Trade and Investment Commission (Austrade) to continue holding and expending funds on behalf of entities other than the Commonwealth, such as state and territory governments contributing to joint tourism projects (subsection 78(4)). Upon the repeal of the SOETM account, an amount equivalent to the credit standing in that account will be credited to the new special account (subsection 80(1)). This ensures a seamless transition in handling such funds.
The obligations imposed by this determination on Austrade and other relevant entities primarily concern the management and use of funds within the special account. These entities must ensure that all transactions within the account strictly adhere to the purposes outlined in the determination. This includes proper record-keeping and accounting practices to maintain transparency and accountability in the handling of these funds. Austrade is also responsible for ensuring that any activities funded through this account align with the objectives of promoting trade and investment, particularly in tourism, as intended by the contributing entities.
There are no explicit offences or penalties outlined within the determination itself. However, breaches of the conditions set forth in the PGPA Act or the terms of the special account could lead to significant legal and financial consequences. For instance, misuse of funds or failure to comply with accounting standards could result in disciplinary action, fines, or other penalties as stipulated by relevant financial and administrative laws. Given the nature of the funds involved, there could also be implications under broader Commonwealth financial management regulations, which might include civil or criminal penalties depending on the severity of the breach.
The disallowance process outlined in the PGPA Act provides a mechanism for parliamentary scrutiny of the determination. This process allows for either House of the Parliament to disallow the determination within a specified period, which is the fifth sitting day after it is tabled. If neither House passes a resolution to disallow the determination, it will commence on the day immediately after the disallowance period ends, as specified in subsection 79(5)(a) of the PGPA Act. This ensures that the establishment of the special account is subject to parliamentary oversight and approval.