EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Christmas Island Phosphate Mining Rehabilitation 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 Christmas Island Phosphate Mining Rehabilitation Special Account 2016 (the special account).
The special account is being established to manage the funding for the rehabilitation of phosphate mine sites on Christmas Island in accordance with the terms of the lease between Phosphate Resources Limited (ACN 009 396 543) and the Commonwealth.
The amounts credited to the special account relate principally to conservation levies paid on a quarterly basis by Phosphate Resources Limited under the terms of its mining lease with the Commonwealth. These conservation levies will fund rehabilitation activities during the life of the mining lease on identified relinquished mine sites and after the mine site is closed beyond 2034.
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 Infrastructure and Regional Development was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to provide a comprehensive framework for public sector governance, performance, and accountability across the Commonwealth. One of the mechanisms introduced under the Act is the establishment of special accounts, which are designed to manage funds for specific purposes. The PGPA Act Determination (Christmas Island Phosphate Mining Rehabilitation Special Account 2016) was introduced to address the need for a dedicated account to manage the funding for the rehabilitation of phosphate mine sites on Christmas Island. This determination was made by the Minister for Finance under subsections 78(1) and 78(3) of the PGPA Act, following consultation with relevant stakeholders. The policy objective is to ensure that the funds raised from conservation levies paid by Phosphate Resources Limited are specifically allocated towards the rehabilitation of mine sites both during and after the operational life of the mines.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (Christmas Island Phosphate Mining Rehabilitation Special Account 2016) is a legislative instrument made under the PGPA Act to establish a special account dedicated to managing funds for the rehabilitation of phosphate mine sites on Christmas Island. This determination applies specifically to the entity Phosphate Resources Limited, which operates under the terms of a mining lease with the Commonwealth. The special account is designed to receive conservation levies paid by Phosphate Resources Limited, which will be used to fund rehabilitation activities both during the operational phase of the mining lease and post-closure, extending beyond 2034. The establishment of this special account falls within the Commonwealth's jurisdiction, with the funds being set aside within the Consolidated Revenue Fund in accordance with the constitutional provisions outlined in the PGPA Act. The special account determination can be varied or revoked by subsequent determinations made by the Minister for Finance and is subject to disallowance by either House of the Parliament, although it does not require a Statement of Compatibility with Human Rights. The Department of Infrastructure and Regional Development was consulted in the preparation of this determination, ensuring alignment with relevant policy and legislative frameworks.
Key Provisions
The main operative sections of this determination (sections 78 and 79 of the Public Governance, Performance and Accountability Act 2013) establish the Christmas Island Phosphate Mining Rehabilitation Special Account 2016. This special account is designed to manage funds for the rehabilitation of phosphate mine sites on Christmas Island, with the primary source of these funds being the conservation levies paid by Phosphate Resources Limited under its mining lease with the Commonwealth. These levies are intended to cover rehabilitation costs both during the mining lease and after it ends beyond 2034.
The Act imposes specific obligations on the parties involved. The Minister for Finance, under section 78, is required to establish this special account, ensuring that funds are set aside for the rehabilitation of the identified mine sites. Phosphate Resources Limited, as the mining entity, must pay the conservation levies as stipulated in its lease agreement with the Commonwealth. The determination also mandates that any changes to the special account must follow the legislative procedures outlined in the PGPA Act, including the requirement to table the determination in both Houses of Parliament and allow for a disallowance period.
The determination outlines potential consequences for breaches of the Act’s provisions. While the explanatory statement does not detail specific offences or penalties, it is implied that any non-compliance with the terms of the special account, such as failure to pay the required conservation levies, could lead to legal repercussions. Typically, breaches of obligations under the PGPA Act could result in financial penalties or other corrective actions as deemed necessary by the Commonwealth to ensure compliance with the Act's requirements.
In accordance with the legislation, the special account determinations are subject to disallowance by either House of the Parliament. If neither House passes a resolution to disallow a special account determination, it comes into effect on the day immediately after the disallowance period ends, or on a later day if specified in the determination. This ensures that there is a formal process for reviewing and potentially rejecting any changes made to the special account.