EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Establishment of FCA Litigants' Fund 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 FCA Litigants' Fund Special Account 2017 (the special account).
The special account is being established to assist the Federal Court of Australia to continue to manage activities in relation to moneys paid to the Court by parties to proceedings.
Parties to proceedings are often required to pay money to a Court. Such money may be returned to these parties, or paid to other parties, upon settlement of a case. The special account provides an appropriation authority for this purpose.
The balance of the special account may be debited as ordered by the Court, a Judge or a Registrar in accordance with the Federal Court Rules 2011.
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 Federal Court of Australia was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted by the Australian Parliament to provide a framework for the management of the Commonwealth's financial resources, aiming to improve public governance, performance, and accountability. The Act addresses the need for a coherent and transparent system for the appropriation and management of public funds. This determination, made under subsection 78(1) of the PGPA Act, establishes the FCA Litigants' Fund Special Account 2017 to support the Federal Court of Australia in managing financial activities related to proceedings, ensuring that moneys paid by parties to proceedings can be appropriately returned or transferred as per the Court's orders. The policy objective is to facilitate efficient and effective financial management within the Court, supporting its operations in handling litigation-related funds.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (Establishment of FCA Litigants' Fund Special Account 2017) is an instrument made under the authority of the Minister for Finance to establish the FCA Litigants' Fund Special Account 2017. This special account is created to assist the Federal Court of Australia in managing activities related to moneys paid to the Court by parties to proceedings. The account allows for the management of funds that are paid into the Court by parties involved in legal proceedings, which may be returned to the parties or paid to other parties upon settlement of a case. The balance of the special account can be debited as ordered by the Court, a Judge, or a Registrar in accordance with the Federal Court Rules 2011. The establishment of such special accounts is facilitated by the PGPA Act, which provides the legislative framework for setting aside amounts within the Consolidated Revenue Fund for spending on specified purposes, thereby complying with constitutional requirements for appropriation of funds.
Key Provisions
The main operative sections of the PGPA Act Determination (Establishment of FCA Litigants' Fund Special Account 2017) are found in sections 78 and 79. Section 78(1) allows the Minister for Finance to establish a special account, which has been used to create the FCA Litigants' Fund Special Account 2017 (paragraph 1). Section 79 outlines the process for tabling and disallowance of such determinations in the Parliament (paragraph 6). The special account is designed to facilitate the management of moneys paid to the Federal Court of Australia by parties to legal proceedings. These funds can either be returned to the parties or transferred to other parties following the settlement of a case (paragraph 2). The balance of the account can be debited as directed by the Court, a Judge, or a Registrar, in accordance with the Federal Court Rules 2011 (paragraph 3).
The obligations and requirements imposed by this Act include the establishment of the special account, which sets aside funds within the Consolidated Revenue Fund for specific purposes related to the Federal Court of Australia (paragraphs 1 and 2). The Minister for Finance must table a copy of the determination in each House of the Parliament, and the determination is subject to disallowance by either House (paragraph 6). The Federal Court of Australia was consulted in the preparation of this determination, ensuring that the requirements of the court are met (paragraph 9). Payments made for the purposes of the special account are supported by an appropriation in the PGPA Act (paragraph 4).
For breaches of the provisions outlined in this determination, there are no specific offences, penalties, or civil/criminal consequences mentioned in the text. However, the disallowance process in section 79 of the PGPA Act provides a mechanism for the Parliament to reject the establishment of the special account if deemed inappropriate (paragraph 6). If a determination is not disallowed by either House of the Parliament within the specified period, it comes into effect as per subsection 79(5) of the PGPA Act (paragraph 6).