EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Establishment of Australian Building Codes Board Special Account 2017)
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 Australian Building Codes Board Special Account 2017 (the special account).
The special account is being established to assist the Department of Industry, Innovation and Science to continue to ensure that funds contributed by nine governments are properly managed and used for the purposes agreed by the governments.
The Department is responsible for the management of these monies, and for administering them to assist in creating nationally consistent building codes, standards, regulatory requirements and regulatory systems in the design, construction and use of buildings, in accordance with the participating governments’ agreements.
The operating context of special accounts
A special account may be established, varied or revoked under the PGPA Act: by a determination made by the Minister for Finance (under section 78) or by an Act (see section 80).
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) 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 under 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 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 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.
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 Industry, Innovation and Science was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 was enacted to address the need for a robust framework to ensure the financial management and performance of the Australian Public Service align with best practices and legislative requirements. This Act was introduced by the Parliament of Australia, aiming to establish a consistent, transparent, and accountable governance system across the public sector. The PGPA Act Determination (Establishment of Australian Building Codes Board Special Account 2017) under this Act facilitates the creation of a special account to manage funds contributed by nine governments, ensuring these funds are properly allocated for the development and implementation of nationally consistent building codes and standards. This determination underscores the policy objective of maintaining efficient and effective financial management within the public sector, supporting the overarching goal of enhancing public sector performance and accountability.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 PGPA Act Determination (Establishment of Australian Building Codes Board Special Account 2017) is a legislative instrument made under the authority of the Minister for Finance to establish the Australian Building Codes Board Special Account 2017. This special account serves to facilitate the Department of Industry, Innovation and Science in its role of managing funds contributed by nine governments to develop and enforce nationally consistent building codes, standards, and regulatory systems. The special account is intended to ensure that these funds are used strictly for the agreed purposes outlined by the participating governments. The jurisdiction and scope of this determination are limited to the Commonwealth level, with the special account being an appropriation mechanism within the Consolidated Revenue Fund as defined by the Constitution. The determination is subject to disallowance by either House of the Parliament, with a disallowance period commencing from the day the determination is tabled in the House and ending on the fifth sitting day after tabling. If the determination is not disallowed, it comes into effect on the day immediately after the disallowance period or on a later specified day. The determination is not subject to disallowance under section 42 of the Legislation Act 2003, hence a Statement of Compatibility with Human Rights is not required. The Department of Industry, Innovation and Science was consulted in the preparation of this determination.
Key Provisions
The PGPA Act Determination (Establishment of Australian Building Codes Board Special Account 2017) (F2017L00255) under section 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) establishes a special account to support the Department of Industry, Innovation and Science in managing funds from nine governments for the creation of nationally consistent building codes, standards, and regulatory systems. This account ensures the proper use and management of these funds for the agreed purposes. A special account is an appropriation mechanism that sets aside money in the Consolidated Revenue Fund for specific spending purposes. It is established by a determination made by the Minister for Finance or by an Act, as stipulated in sections 78 and 80 of the PGPA Act. These accounts are critical for the Commonwealth Executive Government to manage its finances in accordance with section 83 of the Constitution, which states that money cannot be drawn from the Treasury without an appropriation made by law.
The obligations imposed by this Act on the Department of Industry, Innovation and Science include ensuring that the funds contributed by the nine governments are used strictly for the purposes outlined in their agreements. The Department is responsible for the management and administration of these funds to support the development of nationally consistent building codes, standards, regulatory requirements, and regulatory systems. This involves ensuring that all activities undertaken with these funds are transparent, accountable, and in line with the objectives of the participating governments. The Finance Minister must table a copy of the determination in each House of the Parliament, as required by subsection 79(3) of the PGPA Act, and the determination is subject to disallowance by either House during the disallowance period specified in subsection 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.
There are no specific offences, penalties, or consequences mentioned for breaches of this determination. However, the PGPA Act and other relevant legislation provide for a range of penalties for breaches of financial management and governance obligations. These may include administrative penalties, civil penalties, and criminal sanctions, depending on the nature and severity of the breach. The exact penalties would be determined in accordance with the specific provisions of the PGPA Act and other applicable laws. The establishment of the special account and the management of the funds within it are intended to ensure compliance with these obligations and to avoid any potential breaches that could lead to penalties or other consequences.