EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Environment SOETM 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 (Environment SOETM Special Account 2020) (the principal determination). The principal determination establishes the Environment SOETM Special Account 2020 (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 transfers responsibility for matters such as environment protection and conservation of biodiversity from the former Department of Agriculture, Water and the Environment to the new Department of Climate Change, Energy, the Environment and Water.
The determination amends the principal determination to:
- change the name of the special account to reflect the change in its subject matter following the relevant machinery of government changes,
- 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.
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 to address the need for a unified framework for the financial management and accountability of Australian government entities, thereby improving transparency, efficiency, and effectiveness in public governance. This Act was introduced by the Parliament of Australia with a policy objective to ensure robust governance, performance, and accountability in the management of public resources. In response to recent machinery of government changes, the PGPA Act Determination (Environment SOETM Special Account Amendment 2022) was made under the authority of the Minister for Finance. This determination aims to update the Environment SOETM Special Account 2020, reflecting the transfer of responsibilities from the former Department of Agriculture, Water and the Environment to the newly established Department of Climate Change, Energy, the Environment and Water. The amendment includes changes to the name of the special account, updates to the accountable authority, and minor drafting adjustments to align with the new departmental structure.
Scope and Application
The PGPA Act Determination (Environment SOETM Special Account Amendment 2022) applies to the special account established under the Public Governance, Performance and Accountability Act 2013, which is now administered by the Department of Climate Change, Energy, the Environment and Water following the transfer of responsibilities from the former Department of Agriculture, Water and the Environment. This amendment follows the machinery of government changes that commenced on 1 July 2022, as outlined in the Administrative Arrangements Order dated 23 June 2022. The determination changes the name of the special account to reflect its new subject matter and updates the accountable authority to the Secretary of the Department of Climate Change, Energy, the Environment and Water, with minor drafting amendments made to align with the new departmental structure. This amendment is subject to disallowance by either House of the Parliament, as stipulated in the PGPA Act, although no Statement of Compatibility with Human Rights is required under the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The PGPA Act Determination (Environment SOETM Special Account Amendment 2022) (F2023L00047) amends the Public Governance, Performance and Accountability Act (PGPA Act) (Environment SOETM Special Account 2020) (principal determination) to reflect the machinery of government changes that took effect on 1 July 2022. This change involved the transfer of responsibilities such as environment protection and biodiversity conservation from the former Department of Agriculture, Water and the Environment to the new Department of Climate Change, Energy, the Environment and Water. The key amendments include changing the name of the special account to align with the new department's focus, updating the accountable authority for the special account to the Secretary of the new department, and making minor drafting adjustments. These changes are intended to ensure the special account operates smoothly under the new administrative arrangements.
Under this Act, the obligations of the accountable authority, in this case, the Secretary of the Department of Climate Change, Energy, the Environment and Water, include ensuring that the special account is used exclusively for the purposes specified in the principal determination. This entails adhering to the budgetary and financial management provisions outlined in the PGPA Act and other relevant legislation. The Secretary must also ensure that the account is managed transparently and in accordance with the requirements set out in the amended determination. This includes maintaining proper records and providing necessary reports to the relevant authorities as stipulated in the PGPA Act.
The Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches of its provisions. However, any failure to comply with the obligations under the PGPA Act or the amended determination could potentially lead to consequences under the broader framework of the PGPA Act, which includes administrative penalties, disciplinary action against public officials, or other corrective measures deemed appropriate by the relevant authorities. The penalties for breaches of the PGPA Act can include substantial fines and imprisonment, depending on the severity and nature of the breach. It is important for the accountable authority to ensure strict adherence to the requirements to avoid such repercussions.