EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Seafarers 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 Seafarers Special Account 2018 (the special account) to replace the Seafarers Rehabilitation and Compensation Account (the SRC Account).
The special account is being established to assist the Seafarers Safety, Rehabilitation and Compensation Authority (the Authority) to continue to manage monies in relation to the Seacare program. The program is authorised by the relevant provisions of the Seafarers Rehabilitation and Compensation Act 1992, the Seafarers Rehabilitation and Compensation Levy Act 1992, and the Seafarers Rehabilitation and Compensation Levy Collection Act 1992.
The special account enables the Authority to continue to use a special account to credit and debit amounts for the program after the sunsetting of the SRC Account on 1 April 2018.
The Government has introduced the Seafarers and Other Legislation Amendment Bill 2016 to Parliament. The Bill, if passed by Parliament, will repeal the special account and replace it with a special account established in legislation, under section 80 of the PGPA Act.
The operating context of special accounts
A special account may be established, varied or revoked 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 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 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.
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 Jobs and Small Business was consulted in the preparation of this determination.
Overview
The PGPA Act Determination (Seafarers Special Account 2018) was enacted by the Minister for Finance in 2018, under the authority of the Public Governance, Performance and Accountability Act 2013. This legislation was introduced to address the need for a continued mechanism to manage the funds related to the Seacare program, which supports the rehabilitation and compensation of seafarers, following the sunsetting of the Seafarers Rehabilitation and Compensation Account on 1 April 2018. The Seafarers Safety, Rehabilitation and Compensation Authority required a structured approach to manage these funds, and the Seafarers Special Account 2018 was established to provide that mechanism. The special account allows the Authority to credit and debit amounts for the Seacare program, ensuring the program's continuity until the proposed legislative changes are enacted. The policy objective of this determination is to facilitate the ongoing administration of the Seacare program by providing a dedicated financial account.
Scope and Application
The PGPA Act Determination (Seafarers Special Account 2018) establishes the Seafarers Special Account 2018 to replace the Seafarers Rehabilitation and Compensation Account, which was set to sunset on 1 April 2018. This determination applies to the Seafarers Safety, Rehabilitation and Compensation Authority, enabling it to continue managing funds in relation to the Seacare program as authorised by the Seafarers Rehabilitation and Compensation Act 1992, Seafarers Rehabilitation and Compensation Levy Act 1992, and Seafarers Rehabilitation and Compensation Levy Collection Act 1992. The special account allows the Authority to credit and debit amounts for the Seacare program following the termination of the SRC Account. The determination is made under the Public Governance, Performance and Accountability Act 2013, which applies to the Commonwealth of Australia, and sets aside specific funds within the Consolidated Revenue Fund for the specified purposes of the Seacare program. The Seafarers and Other Legislation Amendment Bill 2016, if passed, will eventually replace this special account with one established by an Act of Parliament.
Key Provisions
The main operative sections of this determination establish the Seafarers Special Account 2018, as per subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), to replace the Seafarers Rehabilitation and Compensation Account (SRC Account) (subsection 78(1)). The special account is designed to facilitate the Seafarers Safety, Rehabilitation and Compensation Authority in managing funds under the Seacare program. The Seacare program is authorised under the Seafarers Rehabilitation and Compensation Act 1992, the Seafarers Rehabilitation and Compensation Levy Act 1992, and the Seafarers Rehabilitation and Compensation Levy Collection Act 1992. This account allows the Authority to credit and debit amounts for the Seacare program following the termination of the SRC Account on 1 April 2018.
The establishment of the special account imposes obligations on the Seafarers Safety, Rehabilitation and Compensation Authority to manage the funds within the account for the Seacare program. This includes ensuring that payments made from the account comply with the purposes specified in the determination and are supported by an appropriation in the PGPA Act. The special account determination also mandates that the Finance Minister table a copy of the determination in each House of the Parliament, as per subsection 79(3) of the PGPA Act. Additionally, the determination is subject to disallowance by either House of the Parliament, as stipulated in subsection 79(4) of the PGPA Act.
Failure to comply with the provisions of this determination could result in legal consequences, though specific offences, penalties, or civil/criminal consequences are not detailed in the text. However, the determination is subject to disallowance by either House of the Parliament under subsection 79(4) of the PGPA Act. If neither House passes a resolution to disallow the determination, it comes into effect on the day immediately after the last day it could have been disallowed, or on a later day if specified in the determination (subsection 79(5) of the PGPA Act). It is important to note that a Statement of Compatibility with Human Rights is not required for this determination, as per subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011.