EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Innovation, Science and Technology – Donations, Bequests and Sponsorship Special Account 2016) — Establishment
Purpose of this determination
This determination is made under subsections 78(1) and 78(3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to establish the Innovation, Science and Technology – Donations, Bequests and Sponsorship Special Account 2016 (the special account).
The special account is being established to hold, manage and expend donations/bequests/sponsorships/contributions received to:
- support specific activities which promote greater understanding and awareness of science, technology, engineering, mathematics and innovation within the community; and
- support science education and research which promotes science, technology, engineering, mathematics and innovation capacity in students, teachers and the community.
The operating context of special accounts
A special account may be established under the PGPA Act; by a determination made by the Minister for Finance (under section 78) or by an Act (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 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 Department of Industry, Innovation and Science was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to ensure that Australian public sector entities are accountable and transparent in their financial management. The Act was introduced to address the need for a robust framework governing public financial management. The PGPA Act was enacted by the Commonwealth Parliament, with the objective of improving governance, performance, and accountability within the public sector. To address specific funding needs for science, technology, engineering, mathematics, and innovation initiatives, the PGPA Act Determination (Innovation, Science and Technology – Donations, Bequests and Sponsorship Special Account 2016) was issued by the Minister for Finance. This determination establishes a special account to manage donations, bequests, sponsorships, and contributions dedicated to promoting science education and research and enhancing public understanding of science, technology, engineering, mathematics, and innovation.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (Innovation, Science and Technology – Donations, Bequests and Sponsorship Special Account 2016) establishes a special account for the receipt and management of donations, bequests, sponsorships, and contributions that support activities promoting greater understanding and awareness of science, technology, engineering, mathematics, and innovation, as well as science education and research. This special account operates within the Consolidated Revenue Fund (CRF) and is established under the authority of the Minister for Finance, in accordance with sections 78 and 78(3) of the PGPA Act. The special account is an appropriation mechanism that ensures funds are set aside and spent only for the specified purposes outlined in the establishing determination. Payments made from the account are supported by appropriations outlined in the PGPA Act. The determination is subject to disallowance by either House of Parliament but 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.
Key Provisions
Under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the Minister for Finance has established the Innovation, Science and Technology – Donations, Bequests and Sponsorship Special Account 2016 (subsections 78(1) and 78(3)). This special account is intended to manage and allocate donations, bequests, sponsorships, and contributions specifically to support activities that enhance the public's understanding and awareness of science, technology, engineering, mathematics, and innovation. Additionally, it aims to bolster science education and research, thereby increasing the capacity in these fields among students, teachers, and the broader community (subsections 78(1) and 78(3)). The special account functions as an appropriation mechanism within the Consolidated Revenue Fund (CRF), setting aside funds for designated purposes as outlined in the establishing determination or Act (section 81 of the Constitution).
The special account operates under the constraints of the PGPA Act, requiring that all payments made from it be supported by an appropriation. This is in accordance with subsections 78(4) and 80(1) of the PGPA Act, which mandates that the special account determinations must be tabled in both Houses of the Parliament (subsection 79(3) of the PGPA Act). Furthermore, these determinations are subject to disallowance by either House within a specified period (subsection 79(4) of the PGPA Act). If neither House passes a resolution to disallow the determination, it comes into effect on the day immediately after the disallowance period ends, or on a later day if specified (subsection 79(5) of the PGPA Act). Importantly, the Human Rights (Parliamentary Scrutiny) Act 2011 does not require a Statement of Compatibility with Human Rights for this determination because the special account determinations are not subject to disallowance under section 42 of the Legislation Act 2003 (subsection 79(2) of the PGPA Act).
The obligations imposed by the Act on the entities governed by it include strict adherence to the purposes outlined in the determination, ensuring that all funds managed within the special account are used solely for the support of science education and research activities. Any entity or individual handling funds within this special account must maintain detailed records and ensure transparency in their financial dealings to comply with the provisions of the PGPA Act. Failure to comply with these obligations may result in civil or criminal penalties. The specific consequences of non-compliance, including maximum penalties, are determined by the PGPA Act and may vary depending on the severity and nature of the breach. These penalties could range from fines to more severe sanctions, reflecting the importance of adhering to the established guidelines for the proper management of the special account.