PGPA Act Determination (DPM&C SOETM Special Account 2018)

Overview

The Public Governance, Performance and Accountability Act 2013 was enacted to provide a framework for the management of the Commonwealth's finances and to enhance the transparency, accountability, and performance of government entities. This Act was introduced to address the need for a cohesive and robust system of governance and accountability in the management of public resources. The Act is administered by the Parliament of Australia, which is the enacting body responsible for establishing and modifying special accounts under section 78 of the PGPA Act. The policy objective of this legislation is to ensure that public funds are managed responsibly and efficiently, fostering trust and integrity in government operations. The PGPA Act Determination (DPM&C SOETM Special Account 2018) was made to establish the DPM&C SOETM Special Account 2018, replacing the existing Services for Other Entities and Trust Moneys Special Account 2008/13 that was set to sunset on 1 October 2018. This determination allows the Department of the Prime Minister and Cabinet to continue holding and expending funds on behalf of persons or entities other than the Commonwealth. The special account mechanism under the PGPA Act ensures that specific funds are set aside for designated purposes, in compliance with the constitutional requirement that all moneys raised or received by the Commonwealth form one Consolidated Revenue Fund. This approach maintains the integrity and designated use of public funds, supporting the overarching policy objectives of the PGPA Act.

Scope and Application

The PGPA Act Determination (DPM&C SOETM Special Account 2018) applies to the Department of the Prime Minister and Cabinet (the Department), allowing it to establish a special account for holding and expending amounts on behalf of persons or entities other than the Commonwealth. This determination serves to replace the existing Department of the Prime Minister and Cabinet Services for Other Entities and Trust Moneys Special Account 2008/13, which will sunset on 1 October 2018. The special account will facilitate the continued use of a dedicated account to credit and debit amounts after the repeal of the existing special account on 30 June 2018. The jurisdictional reach of this determination is within the Commonwealth, governed by the provisions of the PGPA Act and the Constitution of Australia, which mandates that all revenues and moneys raised or received by the Commonwealth Executive Government form one Consolidated Revenue Fund. The special account determinations, being legislative instruments under the Legislation Act 2003, may be varied or revoked by subsequent determinations made by the Minister for Finance. These determinations are subject to disallowance by either House of the Parliament, but a Statement of Compatibility with Human Rights is not required as they are not subject to disallowance under section 42 of the Legislation Act 2003.

Key Provisions

This determination under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) establishes the DPM&C SOETM Special Account 2018 to replace the existing Department of the Prime Minister and Cabinet Services for Other Entities and Trust Moneys Special Account 2008/13, which will cease to exist on 1 October 2018 (section 78(1)). The new special account will allow the Department of the Prime Minister and Cabinet to continue managing funds on behalf of entities other than the Commonwealth (section 78(1)). The remaining balance of the old account will be transferred to the new special account once it is established, ensuring a seamless transition (section 78(1)). The obligations imposed by the Act on the Department of the Prime Minister and Cabinet include the management and expenditure of funds held in the special account strictly in accordance with the purposes set out in the determination. The Department is required to ensure that all payments made from the special account are supported by an appropriation in the PGPA Act, either under subsection 78(4) for accounts established by a determination or subsection 80(1) for accounts established by an Act (section 83). Furthermore, the Minister for Finance must table a copy of this determination in each House of the Parliament, and the determination is subject to disallowance by either House during the disallowance period, which ends on the fifth sitting day after it was tabled (subsections 79(3) and 79(4)). If neither House passes a resolution to disallow the determination, 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 (subsection 79(5)). There are no specific offences, penalties, or consequences outlined in the determination for breaches of the Act's provisions. However, any failure to comply with the requirements of the PGPA Act or the terms of the special account determination could potentially lead to broader legal or administrative consequences under other provisions of the PGPA Act or related legislation. The overarching legislative framework ensures that the Department adheres to stringent financial management and accountability standards, with the ultimate aim of maintaining public trust and ensuring the efficient use of public funds.