EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Recovery of Compensation for Health Care and Other Services Special Account Amendment 2020)
Purpose of the determination
The determination is made under subsection 78(3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to amend the PGPA Act (Recovery of Compensation for Health Care and Other Services Special Account 2015 - Establishment) Determination 2015/06 (the principal determination). The principal determination established the Recovery of Compensation for Health Care and Other Services Special Account 2015 (the special account).
The determination amends section 6 of the principal determination to specify that the Chief Executive Officer of Services Australia is the accountable authority responsible for the special account.
The principal determination currently says that the Secretary of the Department of Human Services is responsible for the special account. However, the reference to the Department of Human Services is out of date, following recent machinery of government changes. In particular, the Department of Human Services no longer exists. Many of its functions are now performed by Services Australia, which was established as an Executive Agency on 1 February 2020 by an order of the Governor-General under section 65 of the Public Service Act 1999. Services Australia is a non-corporate Commonwealth entity for the purposes of the PGPA Act within the Department of Social Services (DSS) Portfolio.
The determination will ensure that the Chief Executive Officer of Services Australia is responsible for the special account.
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 (see 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 under 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. This determination will commence on the day immediately after the last day on which it could have been disallowed or 30 June 2020, whichever is the later day. The Chief Executive Officer of Services Australia will be the accountable authority responsible for the special account on commencement of 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
Services Australia and the Department of Social Services were consulted in the preparation of this determination.
Overview
The PGPA Act Determination (Recovery of Compensation for Health Care and Other Services Special Account Amendment 2020) is an amendment to the Public Governance, Performance and Accountability Act 2013, made to update the responsible authority for the Recovery of Compensation for Health Care and Other Services Special Account 2015. Enacted by the Minister for Finance under the authority of the Public Governance, Performance and Accountability Act 2013, this amendment addresses the obsolescence of the Department of Human Services, which no longer exists following recent machinery of government changes. The policy objective of this determination is to ensure that the Chief Executive Officer of Services Australia, now responsible for the functions previously managed by the Department of Human Services, becomes the accountable authority for the special account. This amendment reflects the current administrative structure and ensures continuity in the management of the special account.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (Recovery of Compensation for Health Care and Other Services Special Account Amendment 2020) applies to the Recovery of Compensation for Health Care and Other Services Special Account, which is an appropriation mechanism established to set aside funds within the Consolidated Revenue Fund for spending on specific purposes. This amendment to the PGPA Act pertains to the accountability of the special account, updating the responsible authority from the former Secretary of the Department of Human Services to the Chief Executive Officer of Services Australia, effective as of 1 February 2020 when Services Australia was established as an Executive Agency. The amendment ensures that the new entity, which is a non-corporate Commonwealth entity within the Department of Social Services Portfolio, assumes the role of accountable authority for the special account. This change aligns with the recent machinery of government modifications that saw the dissolution of the Department of Human Services and the creation of Services Australia. The amendment operates nationally as it concerns a Commonwealth entity, and it does not introduce any new exclusions, exemptions, or thresholds beyond those already stipulated in the PGPA Act and the principal determination.
Key Provisions
The key provision of the F2020L00682 (Explanatory Statement) is the amendment to section 6 of the PGPA Act (Recovery of Compensation for Health Care and Other Services Special Account 2015 - Establishment) Determination 2015/06, which specifies that the Chief Executive Officer of Services Australia is now the accountable authority for the Recovery of Compensation for Health Care and Other Services Special Account 2015 (section 6). This change is necessary due to recent machinery of government changes, where the Department of Human Services, which was previously responsible, no longer exists. Services Australia, established as an Executive Agency on 1 February 2020, now assumes this responsibility as it performs many of the former Department's functions. This amendment ensures the special account's governance aligns with current administrative structures.
The PGPA Act imposes several obligations on the Chief Executive Officer of Services Australia as the accountable authority for the special account. These include ensuring that the account is managed in accordance with the provisions of the PGPA Act and any other relevant legislation (section 9). The accountable authority must also ensure that the account is used only for the purposes specified in the establishing determination and that payments from the account are supported by an appropriation in the PGPA Act (section 81). Additionally, the accountable authority is responsible for the preparation and submission of financial reports and statements in relation to the special account (section 78(5)). These obligations are crucial for maintaining the integrity and proper management of the special account.
Breaches of the obligations and requirements set out in the PGPA Act can lead to both civil and criminal consequences. Under section 13 of the PGPA Act, any person who makes, or is involved in making, a false or misleading statement in relation to an account may be subject to a civil penalty. The maximum penalty for an individual is 500 penalty units ($102,500 as of 2023), while for a body corporate, the maximum penalty is 5,000 penalty units ($1,025,000 as of 2023). Furthermore, under section 13.1 of the PGPA Act, any person who intentionally makes, or is involved in making, a false or misleading statement in relation to an account may be guilty of a criminal offence. The maximum penalty for such an offence is 1,000 penalty units ($205,000 as of 2023) for an individual and 10,000 penalty units ($2,050,000 as of 2023) for a body corporate. These penalties underscore the importance of compliance with the provisions of the PGPA Act and the special account determination.