EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and the Public Service
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (SDO Special Account 2018)
Purpose of this determination
This determination is made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to establish the SDO Special Account 2018 (the special account).
The special account is being established to enable the Department of Finance (Finance) to facilitate the activities of the Service Delivery Office, a provider hub under the Government’s Shared Services Program (the Program).
The Government announced the Program in the 2015-16 Mid-Year Economic and Fiscal Outlook context, with the purpose of consolidating the provision of transactional and other common services to a small number of designated shared services provider hubs within Australian Government entities. The delivery of corporate services through a hub arrangement aims to help entities to free up resources to better focus on the delivery of their core services. The Program applies to all non-corporate Commonwealth entities, with corporate Commonwealth entities able to opt-in.
The Service Delivery Office (SDO) is one of the shared services provider hubs. The SDO provides corporate transactional and technical services to consuming entities (these include Commonwealth entities and Commonwealth companies in the General Government Sector, as well as territory governments). These services include: pay and conditions, payroll administration, accounts payable, accounts receivable, international travel, credit cards and ICT systems, software and other assets.
The operating context of special accounts
A special account may be established, varied or revoked by a determination made by the Minister for Finance and the Public Service under section 78 of the PGPA Act, or by an 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.
- Payments made for the purposes of a special account are supported by an appropriation in the PGPA Act; subsection 78(4) appropriates the CRF for the purposes of a special account established by a determination, and subsection 80(1) appropriates the CRF for the purposes of 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 Minister for Finance and the Public Service 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.
Subsection 79(5) provides that, if neither House passes a resolution to disallow a special account determination, the determination 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. The determination does not specify a later day, so commences on the day mentioned in paragraph 79(5)(a) of the PGPA Act.
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 Australian Government Solicitor and the Department of Finance were 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 public sector governance, performance, and accountability within the Australian Government. It was introduced to address the need for streamlined financial management and accountability across government entities. This Act was passed by the Parliament of Australia to ensure that public funds are managed responsibly and effectively. The PGPA Act Determination (SDO Special Account 2018) was made under the authority of the Minister for Finance and the Public Service to establish the SDO Special Account 2018. The purpose of this special account is to facilitate the activities of the Service Delivery Office, a provider hub under the Government’s Shared Services Program, which aims to consolidate the provision of transactional and common services to enhance the efficiency of government entities. This determination ensures that the necessary funds are appropriately allocated and managed to support the delivery of essential corporate services to various consuming entities.
Scope and Application
The PGPA Act Determination (SDO Special Account 2018) establishes the SDO Special Account 2018 to facilitate the activities of the Service Delivery Office, which is a provider hub under the Government's Shared Services Program. This special account is designed to support the provision of corporate transactional and technical services to consuming entities, including Commonwealth entities, Commonwealth companies in the General Government Sector, and territory governments. The services provided include pay and conditions, payroll administration, accounts payable, accounts receivable, international travel, credit cards, and ICT systems, software, and other assets. The account is established under subsection 78(1) of the PGPA Act, which allows the Minister for Finance and the Public Service to set aside amounts within the Consolidated Revenue Fund for spending on specified purposes. The establishment, variation, or revocation of special accounts is governed by the PGPA Act, and any such determinations must be tabled in each House of the Parliament and are subject to disallowance. However, this determination 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. The determination was prepared in consultation with the Australian Government Solicitor and the Department of Finance.
Key Provisions
The main operative sections of this determination, made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), establish the SDO Special Account 2018 (paragraph 1). This special account is designed to facilitate the activities of the Service Delivery Office (SDO), a provider hub under the Government’s Shared Services Program. The establishment of this account aims to consolidate the provision of transactional and other common services to a small number of designated shared services provider hubs within Australian Government entities, thereby helping entities to focus more on their core services (paragraph 2). This special account enables the Department of Finance to manage the funds set aside for the specific purposes outlined in the determination, including the provision of services such as pay and conditions, payroll administration, accounts payable, and accounts receivable, among others (paragraph 3).
The obligations imposed by the Act on the parties or entities it governs include the requirement that the Minister for Finance and the Public Service table a copy of the determination in each House of the Parliament within the timeframe specified in subsection 79(4) of the PGPA Act (paragraph 8). The Minister must also ensure that special account determinations are subject to disallowance by either House of the Parliament, with the disallowance period ending on the fifth sitting day after the determination was tabled in that House (paragraph 8). 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 (paragraph 9). The special account itself is designed to enable the Department of Finance to facilitate the activities of the SDO, ensuring that funds are set aside for specified purposes and that payments made for these purposes are supported by an appropriation in the PGPA Act (paragraphs 4 and 5).
There are no specific offences, penalties, or civil/criminal consequences for breach outlined in this determination. However, the disallowance process outlined in subsection 79(4) of the PGPA Act provides a mechanism for Parliament to review and potentially disallow the determination if it is deemed inappropriate or inconsistent with legislative intent (paragraph 8). If a determination is disallowed by either House of the Parliament, it will not come into effect, and any actions taken under the determination may be subject to legal scrutiny or review (paragraph 9). The requirement to table the determination in each House of the Parliament and subject it to disallowance ensures that the establishment of the SDO Special Account 2018 is subject to parliamentary oversight and scrutiny, providing a safeguard against improper or unauthorised use of public funds (paragraph 8).