PGPA Act Determination (Defence Endowments, Bequests and Other Trust Moneys Special Account 2019)

Administered by Department of Finance

Legislation au F2019L00992 In force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance

Public Governance, Performance and Accountability Act 2013

PGPA Act Determination (Defence Endowments, Bequests, Services and Trust Moneys Special Account 2019)

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 Defence Endowments, Bequests, Services and Trust Moneys Special Account 2019 (the special account).

The special account is being established to enable the Department of Defence (Defence) to continue to hold and expend amounts on behalf of persons other than the Commonwealth, such as amounts held as a result of a trust, endowment, bequest, legacy, or other contribution received by Defence from a person outside the Commonwealth. The special account will also allow Defence to manage amounts related to services provided to or undertaken on behalf of parties other than the Commonwealth, such as joint activities with other governments and the provision of services to participants in the Young Endeavour Youth Program.

The special account is generally intended to replace the following special accounts:

  • Defence Endowments Special Account, which will sunset on 1 October 2019;
  • Fedorczenko Legacy Special Account, which will sunset on 1 October 2019;
  • Services for Other Entities and Trust Moneys – Defence Special Account, which will sunset on 1 October 2019;
  • Young Endeavour Youth Program Special Account, which sunsetted on 1 April 2019.

Once the special account is established, the legislative instruments establishing the three special accounts which will sunset on 1 October 2019, will be repealed and an amount equivalent to the sum of the amounts standing to the credit of those three special accounts immediately before the repeal will be credited to the special account as its opening balance.

In addition, funds previously credited to  Defence’s departmental appropriation from the Young Endeavour Youth Program Special Account (YEYPSA) (which sunsetted on 1 April 2019), in accordance with item 9 of subsection 27(2) of the Public Governance, Performance and Accountability Rule 2014, will be credited to this special account.  The actual amount credited will be the amount originally transferred from the YEYPSA, adjusted for all YEYPSA-related transactions that occurred between 1 April 2019 and the date the funds are credited to this special account and debited from  Defence’s departmental appropriation.

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 section 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 Minister for Finance 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

Defence 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 the governance, management, and accountability of public sector entities in Australia, ensuring efficient and effective use of public resources. This Act was introduced to address the need for clear and consistent governance and accountability standards across all Commonwealth entities, thereby enhancing the integrity and performance of public administration. The PGPA Act was enacted by the Parliament of Australia and its policy objective is to establish a unified and coherent governance framework that promotes accountability, performance, and integrity within the public sector. Under this Act, the Minister for Finance is authorised to establish special accounts, such as the Defence Endowments, Bequests, Services and Trust Moneys Special Account 2019, to manage specific financial activities that do not fit within the regular appropriations process. This particular special account was created to allow the Department of Defence to manage funds received from external sources, such as trusts, bequests, and services provided to non-Commonwealth entities, ensuring these funds are used for their intended purposes.

Scope and Application

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (Defence Endowments, Bequests, Services and Trust Moneys Special Account 2019) applies to the Department of Defence within the Commonwealth of Australia. It allows the Department of Defence to manage funds on behalf of entities and individuals outside the Commonwealth, such as trust, endowment, bequest, legacy, or other contributions received by Defence from external parties. The special account also facilitates the management of funds related to services provided to or undertaken on behalf of entities other than the Commonwealth, including joint activities with other governments and services for participants in the Young Endeavour Youth Program. The special account is established under the PGPA Act, which applies nationally across Australia. The establishment of this special account consolidates and replaces several existing special accounts, including the Defence Endowments Special Account, Fedorczenko Legacy Special Account, Services for Other Entities and Trust Moneys – Defence Special Account, and the Young Endeavour Youth Program Special Account, which have or will sunset on specified dates. The special account is established under the authority of the Minister for Finance and is subject to parliamentary scrutiny and potential disallowance, though a Statement of Compatibility with Human Rights is not required as it is not subject to disallowance under the Legislation Act 2013. The determination is subject to variation or revocation through subsequent determinations made in accordance with the PGPA Act.

Key Provisions

The main operative sections of this determination establish the Defence Endowments, Bequests, Services and Trust Moneys Special Account 2019 (section 1), which allows the Department of Defence (Defence) to manage funds received from entities outside the Commonwealth, such as trusts, endowments, bequests, legacies, and services provided to non-Commonwealth entities (section 2). This special account replaces previous accounts, which will be repealed once the new account is established (section 3). The determination also outlines the process of transferring funds from these previous accounts to the new one, ensuring continuity in financial management (section 4). The Act imposes obligations on Defence to accurately record and manage the funds within the special account, ensuring that they are used strictly for the purposes outlined in the determination. Defence must also report on the use of these funds in accordance with any reporting requirements set out in the PGPA Act or other relevant legislation (section 5). Additionally, Defence is required to ensure compliance with all applicable financial management policies and procedures, maintaining transparency and accountability in the handling of these funds. Failure to comply with the provisions of this determination may result in civil or criminal penalties, depending on the nature and severity of the breach. Under the PGPA Act, breaches that constitute serious misconduct or criminal offences can result in disciplinary action, fines, or even imprisonment (section 6). Additionally, any mismanagement of funds within the special account could lead to financial loss for the Commonwealth, resulting in potential civil liability for Defence. The exact penalties for breaches are determined by the severity of the misconduct and are in line with the penalties specified under the PGPA Act.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.