EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Energy Special Account Amendment 2022)
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 (Energy Special Account 2015 — Establishment) Determination 2015/07 (the principal determination). The principal determination establishes the Energy Special Account 2015 (the special account). This determination amends the principal determination following the machinery of government changes which commenced on 1 July 2022 (Administrative Arrangements Order dated 23 June 2022 (AAO)). The AAO confers responsibility for energy policy on the new Department of Climate Change, Energy, the Environment and Water.
The determination amends the principal determination to:
- update the accountable authority responsible for the special account, and
- make minor drafting amendments.
These minor administrative amendments to the principal determination reflect the machinery of government changes and make the Secretary of the Department of Climate Change, Energy, the Environment and Water responsible for the special account which supports energy policy related activities.
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 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 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 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 Climate Change, Energy, the Environment and Water was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted by the Parliament of Australia to establish a framework for the management of public money, ensuring accountability and transparency in the use of public resources. One of the key mechanisms introduced by the Act is the establishment of special accounts, which set aside funds for specific purposes. The PGPA Act Determination (Energy Special Account Amendment 2022) was issued under the authority of the Minister for Finance to amend the PGPA Act (Energy Special Account 2015 — Establishment) Determination 2015/07. This amendment was necessary following the machinery of government changes that took effect on 1 July 2022, which included the creation of the Department of Climate Change, Energy, the Environment and Water. The amendment updates the accountable authority for the Energy Special Account to reflect this change, ensuring that the account continues to support energy policy-related activities effectively. This adjustment is part of the ongoing effort to streamline administrative processes and maintain the integrity of financial management within the government.
Scope and Application
The PGPA Act Determination (Energy Special Account Amendment 2022) applies to the Energy Special Account established under the PGPA Act, which is an appropriation mechanism within the Consolidated Revenue Fund set aside for spending on specified energy policy related activities. The determination is made under subsection 78(3) of the PGPA Act to amend the PGPA Act (Energy Special Account 2015 — Establishment) Determination 2015/07 following changes in the machinery of government. Specifically, the amendments update the accountable authority responsible for the special account to the Secretary of the Department of Climate Change, Energy, the Environment and Water. This reflects the conferral of responsibility for energy policy to this department. The amendments also include minor drafting changes. The determination applies nationally as it amends a federal instrument made under the PGPA Act. There are no exclusions, exemptions, or thresholds specified in the determination itself, however the operation of the Energy Special Account would be subject to any relevant legislative or administrative provisions. The determination does not extend or restrict the application of the principal determination through subordinate instruments, as it directly amends that instrument.
Key Provisions
This determination amends the PGPA Act (Energy Special Account 2015 — Establishment) Determination 2015/07 to reflect the machinery of government changes which commenced on 1 July 2022. The key provision of this amendment is the update of the accountable authority responsible for the Energy Special Account (section 78(3) PGPA Act). This change aligns with the Administrative Arrangements Order dated 23 June 2022, which conferred responsibility for energy policy on the new Department of Climate Change, Energy, the Environment and Water. The Secretary of this department is now responsible for the special account which supports energy policy related activities. In addition to this major change, minor drafting amendments have been made to ensure clarity and consistency within the determination.
The obligations imposed on the accountable authority include the management and oversight of the special account, ensuring that funds are used strictly for the specified purposes outlined in the determination. The accountable authority is responsible for reporting on the account's activities and financial transactions to the Minister for Finance. This reporting requirement is crucial for maintaining transparency and accountability in the use of public funds. Furthermore, the accountable authority must ensure that all expenditures from the account are authorised and within the scope of the appropriation made by law.
Breaching the obligations set out in the PGPA Act or this determination could lead to civil or criminal consequences. Under the PGPA Act, breaches may result in disciplinary action against public officers, including potential termination of employment. Additionally, the misuse of funds from the Energy Special Account could lead to criminal charges, such as fraud or embezzlement, depending on the severity and intent of the breach. The maximum penalties for such criminal offences can vary, but they may include substantial fines and imprisonment. It is important for the accountable authority to adhere to the legal requirements to avoid these serious consequences.