PGPA Act Determination (IP Australia SOETM Special Account 2021)

Administered by Department of Finance

Legislation au F2021L00705 In force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance

Public Governance, Performance and Accountability Act 2013

PGPA Act Determination (IP Australia SOETM Special Account 2021)

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 IP Australia SOETM Special Account 2021 (the special account) for IP Australia (the Entity). IP Australia is prescribed as a listed entity for the purposes of the PGPA Act by the Public Governance, Performance and Accountability Rule 2014.

The special account is being established to enable the Entity to hold and expend amounts for a range of purposes including for, on behalf of, or jointly with, other persons or entities, such as amounts held for joint activities with other governments, other Commonwealth entities, Commonwealth companies and other entities. The special account also enables the Entity to hold and expend amounts held on trust, or for the benefit of another person, amounts in relation to agreements with other governments and amounts received that are permitted or required to be repaid. The balance of the special account may also be reduced without making a real or notional payment, which would have the effect of reducing the available appropriation for the purposes of the special account. ‘SOETM’ is an abbreviation of the term ‘Services for Other Entities and Trust Moneys’.

This special account will effectively replace the Services for Other Entities and Trust Moneys – IP Australia Special Account (SOETM special account), established by the Financial Management and Accountability (Establishment of Special Account for IP Australia) Determination 2011/11, which is due to sunset on 1 October 2021 under section 50 of the Legislation Act 2003.

Once the special account is established, the determination establishing the SOETM special account will be repealed and an amount equivalent to the amount standing to the credit of the SOETM special account immediately before its repeal will be credited to the special account as its opening balance.

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 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 later of the day immediately after the last day on which it could have been disallowed, or 1 July 2021. The Director-General of IP Australia is the accountable authority of IP Australia under sub item 12(c) in Schedule 1 of the Public Governance, Performance and Accountability Rule 2014. The Director-General of IP Australia will be the accountable authority responsible for the special account on commencement of this 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 Entity was consulted in the preparation of this determination.

Overview

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted by the Parliament of Australia to provide a modern framework for the financial management and accountability of Commonwealth entities. The Act aims to ensure that public money is spent effectively, efficiently, economically, and ethically. This legislation introduced a unified framework for financial management and accountability across the Commonwealth. The PGPA Determination (IP Australia SOETM Special Account 2021) was issued under the authority of the Minister for Finance to establish the IP Australia SOETM Special Account 2021. This special account replaces the existing Services for Other Entities and Trust Moneys – IP Australia Special Account, which was set to sunset on 1 October 2021. The new account enables IP Australia to manage funds for various purposes, including joint activities with other governments, Commonwealth entities, and other organisations, as well as holding amounts on trust or for the benefit of another person. The policy objective of this determination is to facilitate the effective management and accountability of funds held by IP Australia for specified purposes, ensuring compliance with the requirements of the PGPA Act.

Scope and Application

The PGPA Act Determination (IP Australia SOETM Special Account 2021) is made under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to establish the IP Australia SOETM Special Account 2021 for the entity IP Australia, which is a prescribed listed entity under the PGPA Act. This special account is intended to replace the previous Services for Other Entities and Trust Moneys – IP Australia Special Account, which is due to sunset on 1 October 2021. The special account enables IP Australia to hold and expend amounts for various purposes, including for, on behalf of, or jointly with other persons or entities, such as amounts held for joint activities with other governments, other Commonwealth entities, Commonwealth companies and other entities, as well as amounts held on trust or for the benefit of another person. The balance of the special account may be reduced without making a real or notional payment, effectively reducing the available appropriation for the purposes of the special account. This determination is subject to disallowance by either House of the Parliament, and if not disallowed, it will commence on the later of the day immediately after the last day on which it could have been disallowed, or 1 July 2021.

Key Provisions

The key provisions of this determination (F2021L00705) under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) establish the IP Australia SOETM Special Account 2021 (subsection 78(1) and (3)). This special account enables IP Australia to hold and expend funds for various purposes, including joint activities with other governments, entities, or for trust moneys (subsection 78(1)). The special account replaces the previous SOETM special account established in 2011 (subsection 78(3)), with its balance transitioning to the new account before the repeal of the prior determination. A special account is an appropriation mechanism within the Consolidated Revenue Fund (CRF), allowing specific funds to be set aside for designated purposes as outlined in the establishing determination or Act (subsection 78(4) and 80(1)). These accounts are established either by a Minister's determination or by an Act, and they require an appropriation in the PGPA Act to support expenditure. The obligations imposed by this Act include the establishment of the special account to facilitate financial transactions for specified purposes, and the requirement for IP Australia to manage these transactions in compliance with the Act (subsection 78(1)). The Director-General of IP Australia is designated as the accountable authority for the special account, responsible for ensuring compliance with the Act's provisions (sub item 12(c) in Schedule 1 of the Public Governance, Performance and Accountability Rule 2014). This includes maintaining accurate records and ensuring that all activities under the special account adhere to the prescribed purposes and legal requirements. Any breaches of the provisions of this Act may result in legal consequences, including penalties for non-compliance. However, the specific penalties are not detailed within the determination itself, and would be subject to other relevant legislation. The disallowance process outlined in the PGPA Act provides a mechanism for parliamentary scrutiny of the determination, though it does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under the Legislation Act 2003 (subsection 79(2)). The accountable authority, in this case the Director-General of IP Australia, must ensure adherence to these provisions to avoid potential legal repercussions.

Area of Law: Finance & Banking Law; Administrative Law
Instrument: Statutory Instrument
Concepts: Definitions & Interpretation; Commencement Provisions; Repeal & Amendment; Compliance Obligations

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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