EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Health SOETM Special Account Amendment 2025)
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 Determination (Health SOETM Special Account 2021) (the principal determination). The principal determination establishes the Health SOETM Special Account 2021 (the special account). This determination amends the principal determination following the machinery of government changes which commenced on 13 May 2025 (Administrative Arrangements Order dated 13 May 2025 (AAO)).
The AAO renames the Department of Health and Aged Care to the Department of Health, Disability and Ageing, and transfers responsibility for matters such as services and policy for the National Disability Insurance Scheme from the Department of Social Services to the Department Health, Disability and Ageing.
The determination amends the principal determination to update the accountable authority responsible for the special account and reflect the change in its subject matter.
These minor administrative amendments to the principal determination reflect the AAO on 13 May 2025.
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 Health, Disability and Ageing was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to establish a framework for the financial management, reporting, and performance of Commonwealth entities. It was introduced to address the need for improved accountability, transparency, and efficiency in the management of public funds and resources. The PGPA Act Determination (Health SOETM Special Account Amendment 2025) was made under the authority of the Minister for Finance to amend the earlier PGPA Act Determination (Health SOETM Special Account 2021). This amendment follows changes in the machinery of government, specifically the renaming of the Department of Health and Aged Care to the Department of Health, Disability and Ageing and the transfer of responsibilities related to the National Disability Insurance Scheme. The purpose of this amendment is to update the accountable authority for the special account and reflect the changes in its subject matter. The Department of Health, Disability and Ageing was consulted in the preparation of this determination, which is subject to disallowance by either House of the Parliament but does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under the Legislation Act 2003.
Scope and Application
The PGPA Act Determination (Health SOETM Special Account Amendment 2025) applies to the Health SOETM Special Account established under the Public Governance, Performance and Accountability Act 2013. It amends the original Health SOETM Special Account 2021 determination following changes in the machinery of government, specifically the renaming of the Department of Health and Aged Care to the Department of Health, Disability and Ageing, and the transfer of responsibilities for the National Disability Insurance Scheme from the Department of Social Services to the Department of Health, Disability and Ageing. This amendment updates the accountable authority responsible for the special account and reflects the new subject matter, in line with the Administrative Arrangements Order dated 13 May 2025. These amendments are minor administrative changes to ensure the account operates within the new government structure. The special account, established under the PGPA Act, is an appropriation mechanism that sets aside amounts within the Consolidated Revenue Fund for spending on specified purposes. The determination is subject to disallowance by either House of the Parliament, and if not disallowed, it will commence on the day immediately after the last day on which it could have been disallowed.
Key Provisions
The main operative sections of the PGPA Act Determination (Health SOETM Special Account Amendment 2025) (paragraph 1) amend the existing PGPA Act Determination (Health SOETM Special Account 2021). This amendment follows the changes in the machinery of government, as per the Administrative Arrangements Order dated 13 May 2025, which includes the renaming and reassigning of responsibilities of the Department of Health and Aged Care to the Department of Health, Disability and Ageing. The purpose of this amendment is to update the accountable authority for the special account and reflect the change in its subject matter. This ensures that the special account aligns with the new departmental structure and responsibilities.
The Act imposes several obligations and requirements on the parties involved. Firstly, the Minister for Finance must make this determination under subsection 78(3) of the PGPA Act. The Finance Minister also has the responsibility to table a copy of such determinations in each House of the Parliament, as mandated by subsection 79(3) of the PGPA Act. Additionally, these determinations are subject to disallowance by either House of the Parliament, with the disallowance period starting on the day a special account determination is tabled and ending on the fifth sitting day of the House after the determination was tabled in that House (subsection 79(4)). If neither House passes a resolution to disallow a special account determination, it will commence 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)).
In terms of offences, penalties, or consequences for breach, the Act does not explicitly state any penalties for non-compliance with the determination. However, if a special account determination is disallowed by either House of the Parliament, it will not come into effect, and the special account will not be established as amended. The special account will continue to operate under the terms of the principal determination until a new determination is made or the existing one is revoked. It is important for the accountable authority and other relevant parties to ensure compliance with the requirements of the Act to avoid any legal or financial implications arising from non-compliance.