EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Reef Trust 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 (Reef Trust Special Account 2014) Determination 01 (the principal determination). The principal determination establishes the Reef Trust Special Account 2014 (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 transfers responsibility for the subject matter of the special account from the former Department of Agriculture, Water and the Environment to the new Department of Climate Change, Energy, the Environment and Water.
The determination amends the principal determination to:
- update the accountable authority responsible for the special account, and
- make minor drafting amendments.
These minor administrative amendments to the principal determination reflect the machinery of government changes and make the Secretary of the Department of Climate Change, Energy, the Environment and Water responsible for the special account.
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 Climate Change, Energy, the Environment and Water was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to provide a framework for the efficient and effective management of public money and the delivery of public services. This Act was introduced to address the need for a coherent and consistent approach to the management of public resources and accountability in the public sector. Enacted by the Parliament of Australia, the policy objective of the PGPA Act is to ensure that public money is used effectively and efficiently and that public servants are held accountable for their actions. The PGPA Act Determination (Reef Trust Special Account Amendment 2022) was made under subsection 78(3) of the PGPA Act to amend the PGPA Act (Reef Trust Special Account 2014) Determination 01 following machinery of government changes. This amendment updates the accountable authority for the Reef Trust Special Account, transferring responsibility from the former Department of Agriculture, Water and the Environment to the new Department of Climate Change, Energy, the Environment and Water, and includes minor drafting changes.
Scope and Application
The PGPA Act Determination (Reef Trust Special Account Amendment 2022) applies to the Reef Trust Special Account, which was established under the PGPA Act (Reef Trust Special Account 2014) Determination 01. This determination amends the principal determination following the machinery of government changes that transferred responsibility for the special account from the former Department of Agriculture, Water and the Environment to the new Department of Climate Change, Energy, the Environment and Water. The amendment updates the accountable authority for the special account to the Secretary of the Department of Climate Change, Energy, the Environment and Water and makes minor drafting changes. This change was necessitated by the Administrative Arrangements Order dated 23 June 2022, which commenced on 1 July 2022. The determination does not extend to any exclusions, exemptions, or thresholds beyond what is specified in the principal determination and is subject to disallowance by either House of the Parliament.
Key Provisions
The main operative sections of the F2023L00052 (Explanatory statement) are subsections 78(3) and 79(3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). These sections allow the Minister for Finance to vary the Reef Trust Special Account 2014 Determination 01 (subsection 78(3)) and require the Minister to table a copy of the determination in each House of the Parliament (subsection 79(3)). The purpose of this determination is to update the accountable authority responsible for the special account and to make minor drafting amendments following the machinery of government changes that took effect on 1 July 2022.
The PGPA Act imposes certain obligations and requirements on the parties and entities it governs. Firstly, the Minister for Finance is required to make determinations that establish and vary special accounts. Secondly, the determinations are subject to disallowance by either House of the Parliament within a specified period, as outlined in subsection 79(4) of the PGPA Act. If neither House passes a resolution to disallow a special account 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 (subsection 79(5)).
In terms of offences, penalties, or civil/criminal consequences for breach, the Explanatory Statement does not provide specific information regarding maximum penalties. However, the PGPA Act and the Legislation Act 2003 outline the processes for disallowance and the potential consequences of non-compliance with the Act. Special account determinations are legislative instruments for the purposes of the Legislation Act 2003 and may be varied or revoked by a subsequent determination being made in accordance with subsection 78(3) of the PGPA Act. The disallowance period for special account determinations starts on the day a determination is tabled in the House and ends on the fifth sitting day of the House after the determination was tabled in that House.
Overall, the F2023L00052 (Explanatory statement) outlines the key provisions of the PGPA Act Determination (Reef Trust Special Account Amendment 2022) and provides a clear understanding of the obligations, requirements, and potential consequences for non-compliance with the Act. By updating the accountable authority responsible for the special account and making minor drafting amendments, the determination ensures that the Reef Trust Special Account 2014 remains effective and relevant in light of the recent machinery of government changes.