EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Sport and Recreation Special Account Amendment 2025)
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 Determination (Sport and Recreation Special Account 2016) — Establishment (the principal determination). The principal determination establishes the Sport and Recreation Special Account 2016 (the special account). This determination amends the principal determination following the commencement of the new Administrative Arrangements Order on 13 May 2025 (AAO). The AAO transferred responsibility for the subject matter of the special account from the Minister for Health, Disability and Ageing to the Minister for Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.
The determination amends the principal determination to update the accountable authority responsible for the special account.
These minor administrative amendments to the principal determination reflect the AAO on 13 May 2025 by making the Secretary of the Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Department 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 later of the day immediately after the last day on which it could have been disallowed or 1 September 2025.
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 Infrastructure, Transport, Regional Development, Communications, Sport and the Arts was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to improve the financial management and accountability of the Australian government. This legislation was introduced to address the need for more rigorous oversight and governance in the spending of public funds. The PGPA Act establishes the legal framework for the management of Commonwealth finances, including the establishment and operation of special accounts within the Consolidated Revenue Fund. The Act is overseen by the Parliament of Australia and aims to ensure transparency, efficiency, and effectiveness in the use of public resources. One of the key policy objectives of the PGPA Act is to enhance the accountability of government agencies by clearly defining their financial responsibilities and the mechanisms through which funds are appropriated and spent.
Scope and Application
The PGPA Act Determination (Sport and Recreation Special Account Amendment 2025) amends the PGPA Act Determination (Sport and Recreation Special Account 2016) following the transfer of responsibility for the subject matter of the special account from the Minister for Health, Disability and Ageing to the Minister for Infrastructure, Transport, Regional Development, Communications, Sport and the Arts, as per the new Administrative Arrangements Order commencing on 13 May 2025. This amendment ensures that the Secretary of the Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Department becomes the accountable authority for the special account. Special accounts, such as the Sport and Recreation Special Account, are established to set aside amounts within the Consolidated Revenue Fund for spending on specified purposes, with expenditure supported by an appropriation in the PGPA Act. These determinations are legislative instruments subject to disallowance by either House of the Parliament but are not subject to disallowance under the Legislation Act 2013, hence no Statement of Compatibility with Human Rights is required. The amendment reflects the updated administrative arrangements and ensures that the responsible authority aligns with the current ministerial portfolio.
Key Provisions
The main operative sections of this determination (subsection 78(3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act)) serve to amend the PGPA Act Determination (Sport and Recreation Special Account 2016) — Establishment, referred to as the principal determination. This amendment follows the transfer of responsibility for the special account from the Minister for Health, Disability and Ageing to the Minister for Infrastructure, Transport, Regional Development, Communications, Sport and the Arts, as stipulated in the new Administrative Arrangements Order on 13 May 2025. The purpose of this amendment is to update the accountable authority responsible for the Sport and Recreation Special Account 2016, ensuring that the Secretary of the Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Department is now accountable for the account. This adjustment reflects the changes in the Administrative Arrangements Order and maintains the integrity and purpose of the special account as outlined in the principal determination.
The obligations and requirements imposed by this determination on the parties involved are primarily administrative in nature. The Secretary of the Infrastructure, Transport, Regional Development, Communications, Sport and the Arts Department is now the accountable authority for the Sport and Recreation Special Account 2016. This means that the Secretary is responsible for ensuring that the account is managed in accordance with the provisions of the PGPA Act and the establishing determination. The Secretary must also ensure that all spending from the account is within the specified purposes and that all expenditures are appropriately authorised and recorded. Additionally, the determination mandates that the Finance Minister table a copy of the amended determination in each House of the Parliament, and it specifies that the determination will commence on the later of the day immediately after the last day on which it could have been disallowed or 1 September 2025.
The determination does not explicitly outline specific offences, penalties, or consequences for breach within its text. However, any breaches of the provisions set out in the PGPA Act, including mismanagement of the Sport and Recreation Special Account, could potentially lead to various civil or criminal consequences under the broader legislative framework. For instance, breaches of the PGPA Act could result in disciplinary action against public officers, fines, or other penalties as prescribed by relevant laws. The maximum penalties for such breaches would depend on the specific nature of the breach and the applicable provisions of the PGPA Act or other related legislation. Given the administrative nature of this determination, it is essential for the accountable authority to adhere strictly to the requirements to avoid any legal repercussions.