EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Establishment of Intellectual Property 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 Intellectual Property Special Account 2017 (the special account).
The special account is being established to assist IP Australia to continue to manage monies related to the development and administration of intellectual and industrial property systems, including those property rights related to inventions, trademarks, designs and plant breeders’ rights.
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
IP Australia was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to provide a framework for the management of public money, performance and accountability in the Australian Government. This legislation was introduced to address the need for a coherent and transparent system for the allocation, management, and reporting of government funds. The PGPA Act was enacted by the Parliament of Australia and its primary policy objective is to ensure that public resources are used efficiently, effectively, and economically. One of the mechanisms established by the PGPA Act is the creation of special accounts, which allow for the setting aside of funds for specified purposes. The PGPA Act Determination (Establishment of Intellectual Property Special Account 2017) is an example of such a mechanism, created to assist IP Australia in managing monies related to the development and administration of intellectual and industrial property systems.
Scope and Application
The PGPA Act Determination (Establishment of Intellectual Property Special Account 2017) is made under the authority of the Minister for Finance and establishes a special account within the Consolidated Revenue Fund to assist IP Australia in managing funds related to intellectual and industrial property systems, including those related to inventions, trademarks, designs and plant breeders’ rights. This account is part of the appropriation mechanisms under the PGPA Act that set aside funds for specific purposes, complying with constitutional requirements that funds cannot be drawn from the Treasury except under appropriation made by law. The establishment, variation or revocation of such accounts can be made by the Minister for Finance or by an Act, and are subject to disallowance by either House of the Parliament within a specific period after tabling. This particular determination does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under the Legislation Act 2003. IP Australia was consulted in the preparation of this determination, ensuring that the needs of the entity are appropriately met by the special account.
Key Provisions
The main operative sections of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (Establishment of Intellectual Property Special Account 2017) (section 1) establish the Intellectual Property Special Account 2017 (section 1). This special account is established to facilitate IP Australia in managing funds related to the development and administration of intellectual and industrial property systems, including rights related to inventions, trademarks, designs, and plant breeders’ rights (section 1). The special account is a mechanism that sets aside specific amounts within the Consolidated Revenue Fund for spending on these specified purposes (section 1).
The obligations and requirements imposed by this Act on the parties or entities it governs include the necessity for the Minister for Finance to table a copy of the determination in each House of the Parliament (subsection 79(3)) and the requirement that the determination is subject to disallowance by either House of the Parliament (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 (subsection 79(5)).
Any offences, penalties, or civil/criminal consequences for breach under this Act are not explicitly stated within the text of the Explanatory Statement. However, the legislative framework does include provisions for disallowance, which serves as a check on the implementation of the special account determination. 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 (subsection 79(4)). The potential for disallowance by either House of Parliament represents a significant consequence for any breach of the terms outlined in the determination.