EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Infrastructure, Transport, Regional Development and Communications 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 (Infrastructure, Transport, Regional Development and Communications SOETM Special Account 2021) (the principal determination). The principal determination establishes the Infrastructure, Transport, Regional Development and Communications 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 Infrastructure, Transport, Regional Development Communications and the Arts to the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts and transfers responsibility for matters such as sport and recreation to the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.
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 Infrastructure, Transport, Regional Development, Communications, Sport and the Arts was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 was enacted to provide a comprehensive framework for the financial management and accountability of Commonwealth entities, with a view to ensuring transparency, efficiency, and effectiveness in the use of public resources. This Act was introduced to address the need for a unified and robust legislative framework that would govern the financial management practices across various government departments and agencies. Enacted by the Parliament of Australia, the primary policy objective of the PGPA Act is to promote sound public sector governance, performance, and accountability. The Act establishes a consistent set of financial management standards and practices designed to ensure that public funds are used efficiently and effectively to achieve the intended outcomes. One of the mechanisms introduced under this Act is the establishment of special accounts, which are used to set aside specific funds for particular purposes, ensuring that spending is targeted and controlled according to predefined objectives.
Scope and Application
The PGPA Act Determination (Infrastructure, Transport, Regional Development and Communications SOETM Special Account Amendment 2025) applies to the Infrastructure, Transport, Regional Development and Communications SOETM Special Account, which is established under the Public Governance, Performance and Accountability Act 2013. The Act amends the principal determination following changes to the machinery of government, specifically renaming and reassigning responsibilities of the Department of Infrastructure, Transport, Regional Development Communications and the Arts to the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts. This change is a result of the Administrative Arrangements Order dated 13 May 2025, which necessitated minor administrative amendments to reflect the updated accountable authority for the special account. The Act operates within the Commonwealth jurisdiction and is subject to disallowance by either House of the Parliament. This determination does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under section 42 of the Legislation Act 2003, despite being subject to disallowance under section 79 of the PGPA Act. The Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts was consulted in the preparation of this determination.
Key Provisions
This determination amends the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to modify the Infrastructure, Transport, Regional Development and Communications SOETM Special Account 2021, established by the PGPA Act Determination (Infrastructure, Transport, Regional Development and Communications SOETM Special Account 2021). The amendments reflect changes in the machinery of government, specifically renaming and reassigning responsibilities within the relevant department (sections 1-4). The Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Special Account 2025, as amended, now reflects the updated account name and the accountable authority for the account, aligning with the new department's structure post the Administrative Arrangements Order dated 13 May 2025 (section 5).
The Act imposes several obligations on the accountable authority for the special account. These include ensuring that all expenditures are strictly in line with the purposes specified in the determination, and that all financial transactions are properly authorised and recorded (sections 78-79). The accountable authority must also ensure that any changes to the account's operations or purposes are reported to the Minister for Finance and are subject to parliamentary scrutiny and potential disallowance (section 79). Furthermore, the Act requires the Minister for Finance to table a copy of the determination in each House of the Parliament, making it subject to disallowance by either House within a specified period (section 79).
Breaches of the provisions outlined in the PGPA Act can lead to various civil or criminal consequences. For instance, if an accountable authority fails to comply with the Act's requirements, such as misusing funds or not adhering to the specified purposes of the special account, they could face disciplinary action or legal proceedings. The Act does not specify particular penalties for breaches related to special accounts; however, general provisions within the PGPA Act or other related legislation might apply, which could include fines or imprisonment for serious violations. It is important to note that the disallowance process provides a mechanism for parliamentary oversight and correction of any non-compliance by the accountable authority (section 79).