EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Bureau of Meteorology 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 Bureau of Meteorology SOETM Special Account 2018 (the special account) to replace the Services for Other Entities and Trust Moneys – Bureau of Meteorology Special Account (the SOETM account) which will sunset on 1 October 2018.
The special account is being established to enable the Bureau of Meteorology to continue to hold and expend amounts on behalf of persons or entities other than the Commonwealth, such as amounts held on behalf of other countries as a result of treaties.
Once the special account is established, the SOETM account will be repealed and an amount equivalent to the amount standing to the credit of that account immediately before its repeal will be credited to the special account.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 the Bureau of Meteorology to continue to use a special account to credit and debit amounts after the SOETM account is repealed.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. This 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
The Bureau of Meteorology was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to establish a framework for financial management, performance, and accountability in the Commonwealth public sector. This Act aimed to address issues related to the management of public funds, ensuring that the public sector operates efficiently, effectively, and in accordance with legal and policy requirements. The PGPA Act provides the legislative basis for the establishment of special accounts, which are designed to hold and manage funds for specific purposes. The PGPA Act Determination (Bureau of Meteorology SOETM Special Account 2018) was introduced to establish the Bureau of Meteorology SOETM Special Account 2018, replacing the existing Services for Other Entities and Trust Moneys – Bureau of Meteorology Special Account, which was set to sunset on 1 October 2018. This determination was made under subsection 78(1) of the PGPA Act by the Minister for Finance and aims to ensure the Bureau of Meteorology can continue to hold and expend amounts on behalf of other entities, such as other countries under treaty obligations. This legislative instrument ensures continuity in financial management practices for the Bureau of Meteorology while complying with the provisions of the PGPA Act.
Scope and Application
This determination under the Public Governance, Performance and Accountability Act 2013 establishes the Bureau of Meteorology SOETM Special Account 2018, designed to replace the existing Services for Other Entities and Trust Moneys – Bureau of Meteorology Special Account which will cease to exist on 1 October 2018. The new special account will enable the Bureau of Meteorology to continue holding and expending funds on behalf of persons or entities other than the Commonwealth, such as amounts held due to treaties with other countries. The determination mandates that the amount credited to the new special account will be equivalent to the amount standing to the credit of the repealed SOETM account immediately before its repeal. This legislative instrument, being a special account determination, is subject to disallowance by either House of the Parliament, but it does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under the Legislation Act 2003. The Bureau of Meteorology was consulted in the preparation of this determination.
Key Provisions
This determination, issued under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), establishes the Bureau of Meteorology SOETM Special Account 2018 to replace the existing Services for Other Entities and Trust Moneys – Bureau of Meteorology Special Account, which will sunset on 1 October 2018 (subsection 78(1)). This new special account is designed to allow the Bureau of Meteorology to continue managing and expending funds on behalf of entities other than the Commonwealth, such as other countries under treaty obligations. Once established, the existing SOETM account will be repealed, and the balance standing to its credit will be transferred to the new special account (subsection 78(1)). This continuity ensures that the Bureau of Meteorology can maintain its operations without interruption.
The obligations imposed by this determination include the requirement for the Bureau of Meteorology to adhere to the specific purposes outlined for the special account, which involve managing and disbursing funds for entities other than the Commonwealth (subsection 78(1)). The Minister for Finance is mandated to table a copy of this determination in each House of Parliament, ensuring transparency and parliamentary oversight (subsection 79(3)). Additionally, the special account determinations must be subject to disallowance by either House of Parliament, with the disallowance period commencing on the day the determination is tabled and ending on the fifth sitting day after tabling (subsection 79(4), 79(5)).
Failure to comply with the provisions of this determination can lead to significant consequences. While the determination itself does not specify any particular offences or penalties, breaches of the PGPA Act or related regulations could result in civil or criminal penalties. For example, unauthorized use of public funds could lead to prosecution under the Criminal Code Act 1995, with penalties including fines and imprisonment. Moreover, mismanagement of funds could result in disciplinary action against public officers and potential financial penalties imposed by the Commonwealth.
This 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 2013 (subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011). The Bureau of Meteorology was consulted during the preparation of this determination to ensure that its operational needs are met effectively and legally.