EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Climate Change, Energy, the Environment and Water SOETM Special Account Amendment 2026)
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 the PGPA Act Determination (Climate Change, Energy, the Environment and Water SOETM Special Account 2020) (the principal determination). The principal determination establishes the Climate Change, Energy, the Environment and Water Services for Other Entities and Trust Moneys Special Account 2020 (SOETM special account) for the Department of Climate Change, Energy, the Environment and Water (the Department).
This determination expands the crediting clauses of the principal determination to allow amounts standing to the credit of a sunsetting special account to be credited to the SOETM special account.
The PGPA Act (Water Resources Special Account 2016 – Establishment) Determination 2016/01 (the Water Resources Special Account instrument) establishes the Water Resources Special Account 2016. The Water Resources Special Account 2016 is used to manage external revenue contributed by States and Territories under intergovernmental agreements. The Water Resources Special Account instrument will sunset on 1 April 2026 under subsection 50(1) of the Legislation Act 2003 (the Legislation Act).
The balance of the sunsetting Water Resources Special Account 2016 relates to agreements between the Commonwealth and another government. This is consistent with the purposes of the SOETM special account, which was established to enable the Department to hold and expend amounts on behalf of persons or entities other than the Commonwealth, such as amounts held for joint activities with other governments and entities.
The new crediting clause in subsection 7(d) will allow any amounts equivalent to amounts standing to the credit of the Water Resources Special Account 2016 immediately prior to the sunsetting of the Water Resources Special Account instrument to be credited to the SOETM special account.
Following the sunsetting of the Water Resources Special Account instrument, the SOETM special account will be used to manage amounts previously managed under the Water Resources Special Account 2016.
The operating context of special accounts
A special account may be established by a determination made by the Minister for Finance (under section 78 of the PGPA Act) or by an Act (see section 80 of the PGPA 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.
- Expenditure for the purposes of a special account is 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 for the purposes of the Legislation Act. 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 of the House 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 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 specifies that it will commence on the day immediately after the last day on which it could have been disallowed.
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. 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. As such, a Statement of Compatibility with Human Rights is not required.
Consultation
The Department was consulted in the preparation of this determination.