EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Social Services SOETM Special Account 2021)
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 Social Services SOETM Special Account 2021 (the special account) for the Department of Social Services (the Department).
The special account is being established to enable the Department to hold and expend amounts for a range of purposes including for, on behalf of, or jointly with, other persons or entities, such as amounts held for joint activities with other governments, other Commonwealth entities, Commonwealth companies and other entities. The special account also enables the Department to hold and expend amounts held on trust, or for the benefit of another person, amounts in relation to agreements with other governments and amounts received that are permitted or required to be repaid. The balance of the special account may be reduced without making a real or notional payment, for example, the balance may be returned to the Consolidated Revenue Fund (CRF) when the special account ceases. ‘SOETM’ is an abbreviation of the term ‘Services for Other Entities and Trust Moneys’.
This special account will replace the Services for Other Entities and Trust Moneys – Department of Families, Housing, Community Services and Indigenous Affairs Special Account (SOETM special account), which is due to sunset on 1 April 2021.
Once the special account is established, the legislative instrument establishing the SOETM special account will be repealed and an amount equivalent to the amount standing to the credit of the SOETM special account immediately before its repeal will be credited to the special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 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 does not specify a later day, and provides that it will commence on the day immediately after the last day on which it could have been disallowed, pursuant to 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 Department was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to address the need for a robust framework to govern public sector entities, ensuring efficient and accountable use of public resources. This Act provides mechanisms for establishing special accounts to manage funds designated for specific purposes. The PGPA Act Determination (Social Services SOETM Special Account 2021) was issued by the Minister for Finance under the authority granted by the PGPA Act to establish a special account for the Department of Social Services. This special account, replacing the existing Services for Other Entities and Trust Moneys – Department of Families, Housing, Community Services and Indigenous Affairs Special Account, aims to facilitate the management of funds held for joint activities with other governments, other Commonwealth entities, and other entities, as well as trust moneys and repayments. The determination ensures that these funds are managed effectively and transparently, aligning with the policy objectives of the PGPA Act.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 PGPA Act Determination (Social Services SOETM Special Account 2021) establishes the Social Services SOETM Special Account 2021 for the Department of Social Services, replacing the existing Services for Other Entities and Trust Moneys – Department of Families, Housing, Community Services and Indigenous Affairs Special Account, which is set to sunset on 1 April 2021. This special account is designed to allow the Department to hold and expend funds for various purposes, including those held on behalf of or jointly with other persons or entities, trust funds, amounts relating to agreements with other governments, and funds that must or may be repaid. The balance of the account can be reduced without a payment, and any remaining balance may be returned to the Consolidated Revenue Fund when the account ceases to exist. This determination, made under the PGPA Act, is subject to disallowance by either House of the Parliament, with the disallowance period ending five sitting days after the determination is tabled, unless specified otherwise. Notably, this determination does not require a Statement of Compatibility with Human Rights, as it is not subject to disallowance under the Legislation Act 2003. The Department of Social Services was consulted during the preparation of this determination.
Key Provisions
The main operative sections of the PGPA Act Determination (Social Services SOETM Special Account 2021) (F2021L00099) include subsections 78(1) and 78(3), which empower the Minister for Finance to establish the Social Services SOETM Special Account 2021 (subsection 78(1)) and to vary or revoke it under subsection 78(3). The special account is designed to facilitate the Department of Social Services in managing funds for various purposes, including joint activities with other governments and entities, and holding amounts on trust or for the benefit of another person (subsection 78(1)). The special account determination is subject to disallowance by either House of the Parliament within the disallowance period (subsection 79(3), 79(4), 79(5)). The account will replace the existing Services for Other Entities and Trust Moneys – Department of Families, Housing, Community Services and Indigenous Affairs Special Account, with the latter's balance credited to the new account as its opening balance (subsection 78(1)).
The obligations imposed by the Act on the parties governed by it include the requirement for the Department of Social Services to manage the funds within the special account for the specified purposes, ensuring that expenditures are made in accordance with the appropriation in the PGPA Act (subsection 78(4)). The Department is also required to comply with any variations or revocations made to the special account determination by the Minister for Finance (subsection 78(3)). Additionally, the Finance Minister must table a copy of the determination in each House of the Parliament and allow for a disallowance period as stipulated by the PGPA Act (subsection 79(3), 79(4)).
The legislation does not explicitly outline offences or penalties for breaches of the special account determination. However, the disallowance process provided by the PGPA Act (subsection 79(4)) serves as a mechanism for parliamentary scrutiny and potential disallowance of the determination if either House of the Parliament passes a resolution to disallow it within the specified period (subsection 79(4)). The absence of a Statement of Compatibility with Human Rights indicates that no specific human rights considerations have been highlighted in this determination (subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011).
The determination ensures that the Department of Social Services has the necessary financial mechanism to manage its activities effectively. By establishing the special account, the legislation allows the Department to hold and expend funds for various purposes, including joint activities with other entities and trust moneys. The disallowance process ensures that the Parliament has a mechanism to review and potentially disallow the special account determination, providing an additional layer of accountability and oversight. The absence of a Statement of Compatibility with Human Rights suggests that the determination does not conflict with human rights as outlined in the Human Rights (Parliamentary Scrutiny) Act 2011.