EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Industry, Science, Energy and Resources 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 Determination (Industry, Science, Energy and Resources SOETM Special Account 2021) (the principal determination). The principal determination establishes the Industry, Science, Energy and Resources SOETM Special Account 2021 (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 renames the Department of Industry, Science, Energy and Resources the Department of Industry, Science and Resources, and transfers responsibility for matters such as energy policy for which this Department was previously responsible 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, and
- reflect the change in the name of the accountable authority responsible for the special account.
These minor administrative amendments to the principal determination reflect the machinery of government changes.
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 Industry, Science and Resources was consulted in the preparation of this determination.
Overview
The PGPA Act Determination (Industry, Science, Energy and Resources SOETM Special Account Amendment 2022) is a legislative instrument enacted under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to amend the existing Industry, Science, Energy and Resources SOETM Special Account. The determination was introduced to address the changes in the machinery of government that took effect on 1 July 2022, specifically the renaming and restructuring of the Department of Industry, Science, Energy and Resources into the Department of Industry, Science and Resources and the transfer of energy policy responsibilities to the Department of Climate Change, Energy, the Environment and Water. This determination ensures that the special account is accurately reflective of the new departmental structure and responsibilities. The enacting body for this determination is the Minister for Finance, and the policy objective is to ensure the smooth transition and administrative accuracy of the special account in light of the recent government reorganisation.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (Industry, Science, Energy and Resources SOETM Special Account Amendment 2022) applies to the Industry, Science, Energy and Resources SOETM Special Account, which has been renamed to reflect recent government machinery changes. Specifically, it adjusts the account's name and the accountable authority to align with the administrative arrangements order dated 23 June 2022, which transferred certain departmental responsibilities to a new Department of Climate Change, Energy, the Environment and Water. This determination modifies the original PGPA Act Determination (Industry, Science, Energy and Resources SOETM Special Account 2021), ensuring consistency and accuracy in light of the structural changes. The amendment reflects administrative updates rather than substantive policy changes, thereby maintaining the integrity and purpose of the special account within the Consolidated Revenue Fund.
Key Provisions
The key operative sections of this determination (F2023L00050) are sections 78(3) and 79(3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Section 78(3) empowers the Minister for Finance to vary a special account determination, while section 79(3) requires the Minister to table a copy of such determinations in each House of the Parliament. This particular determination amends the Industry, Science, Energy and Resources SOETM Special Account 2021 following the machinery of government changes that took effect on 1 July 2022, as specified in the Administrative Arrangements Order dated 23 June 2022. The amendments include changing the name of the special account to Industry, Science and Resources SOETM Special Account 2022 and updating the name of the accountable authority to reflect the renaming of the Department of Industry, Science, Energy and Resources to the Department of Industry, Science and Resources.
The obligations and requirements imposed by this determination on the parties and entities it governs are primarily administrative in nature. The Minister for Finance is required to make the determination under section 78(3) of the PGPA Act, and then table a copy of the determination in each House of the Parliament as per section 79(3). The special account itself is subject to the usual appropriation requirements under the PGPA Act, and the accountable authority, now the Department of Industry, Science and Resources, must ensure that funds are spent in accordance with the purposes set out in the determination.
The determination does not explicitly state any offences, penalties, or consequences for breach. However, it is subject to disallowance by either House of the Parliament under section 79(4) of the PGPA Act. If neither House passes a resolution to disallow the 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. In the event of a breach of the requirements of the special account, the applicable penalties would be determined by the PGPA Act and any other relevant legislation.
A Statement of Compatibility with Human Rights is not required for this determination, as it is not subject to disallowance under section 42 of the Legislation Act 2003, as per subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011. The Department of Industry, Science and Resources was consulted in the preparation of this determination, ensuring that the changes made reflect the machinery of government changes and maintain the integrity of the special account.