EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Royal Australian Mint Special Account 2023)
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 Royal Australian Mint Special Account 2023 (the special account) for the Royal Australian Mint (the Mint).
The Mint is a listed entity under the PGPA Act and also operates under the Currency Act 1965. The Mint is self-funded and operates on a commercial basis through the sale of coins and other non-taxation revenue raising activities.
The special account is being established to enable the Mint to continue to hold, collect and expend amounts for a range of purposes, including to make payments in relation to the purchase, production, supply, storage, sale, display and distribution of coinage, medals, dies, tokens, plaques, and other like items; and to make payments in relation to the management and operation of the Mint (which includes maintaining the National Coin Collection and Mint’s gallery, and engaging with the public via outreach programs). The special account will also allow the Mint to hold, collect and expend non-taxation revenue and receipts in relation to the Mint’s gift shop, e-shop, cafe, renting Mint’s vault services, providing tooling and other production services to other organisations, and providing brokerage services to other countries and foreign entities in relation to gaining legal tender status in other countries for their collectible products. The special account also supports the Mint to hold, collect and expend amounts in relation to its management and operation, including staff costs, equipment, and production costs. The balance of the special account may 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.
This special account will effectively replace the Royal Australian Mint Special Account, established by the FMA Act (Royal Australian Mint Special Account) Determination 2013/04 which is due to sunset on 1 October 2023 under section 50 of the Legislation Act 2003.
The legislative instrument establishing the Royal Australian Mint Special Account will be revoked when the special account is established. The determination requires that, immediately after the special account is established, an amount equal to the amount standing to the credit of the Royal Australian Mint Special Account immediately prior to the commencement of the instrument establishing the special account 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 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 mentioned in paragraph 79(5)(a) of the PGPA Act (which is the day immediately after the last day on which it could have been disallowed). The Chief Executive Officer of the Royal Australian Mint 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 Department of the Treasury and the Royal Australian Mint were consulted in the preparation of this determination.