EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act (Human Pituitary Hormones Special Account 2015—Establishment) Determination 2015/09
Purpose of this determination
This determination is made under subsections 78(1) and (3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and it:
- establishes the Human Pituitary Hormones Special Account 2015 (the special account).
- varies the Human Pituitary Hormones Special Account (the sunsetting special account).
This special account provides an appropriation mechanism for payments for support services and payments to recipients of pituitary-derived hormones and their families.
Between 1967 and 1985, some 2000 people were treated for infertility or short stature under the Australian Human Pituitary Hormone Program (AHPHP) with pituitary-derived hormones in Australia. The programme ceased in May 1985, after overseas reports of deaths from Creutzfeldt-Jakob disease (CJD) in individuals who may have received human pituitary hormones.
In Australia, four individuals have died from CJD following their participation in the AHPHP. Following the Australian and overseas deaths, many recipients and their families suffered from psychiatric illnesses due to the stress of not knowing whether or not they would contract CJD.
The CJD Support Group Network Pty Ltd (CJDSGN) is funded from the special account. The purpose is to support the CJDSGN to improve the wellbeing of pituitary hormone recipients and their families by reducing the anxiety associated with the risk of contracting CJD.
The special account is being established because the sunsetting special account, which was established in 2005, will sunset on 1 October 2015 under the Legislative Instruments Act 2003. This determination enables the balance of the sunsetting special account to be transferred to the special account before the sunsetting date, so that required payments may be made for the purposes of the special account. This determination differs from the determination that established the sunsetting special account only to the extent required to provide for the transfer of amounts to the special account and to make other updates or stylistic changes (for example, to reflect that it is made under the PGPA Act, rather than the Financial Management and Accountability Act 1997).
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 other than the PGPA Act (consistent with 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. Under section 83 of the Constitution, such money may not be spent except under an appropriation made by law.
- A special account enables moneys raised or received to be set aside for the purposes of that special account.
- Payments made for the purpose of a special account are supported by an appropriation contained in subsection 78(4) of the PGPA Act (for a determination established special account) and subsection 80(1) of the PGPA Act (for an Act established special account).
Special account determinations
Determinations establishing special accounts are made by the Minister for Finance under subsection 78(1) of the PGPA Act. A special account determination sets out the types of amounts that may be credited to the special account and the purposes for which amounts may be debited from the account.
Special account determinations may be varied or revoked in accordance with subsection 78(3) of the PGPA Act.
Subsection 79(2) of the PGPA Act provides that special account determinations are legislative instruments under the Legislative Instruments Act 2003. Special account determinations are subject to Part 6 (sunsetting) of the Legislative Instruments Act 2003. A special account determination will, therefore, be repealed on the earlier of 1 April or 1 October falling on or after the tenth anniversary of registration of the determination.
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 date of tabling. In effect, the determination is presented in each House for six days.
This determination will take effect, in accordance with subsection 79(5) of the PGPA Act, on the day immediately after the last day upon which either House could have passed a resolution disallowing the determination under section 79 of the PGPA Act. This determination stops having effect at the end of 31 October 2017.
Part 2 of the Determination 2015/09 provides for the balance of the sunsetting special account to be credited to the new special account established by this determination. This would mean that two special accounts with similar purposes would operate for a short period of time, until the balance is credited to the new special account.
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 Legislative Instruments 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, they are not subject to disallowance under section 42 of the Legislative Instruments Act 2003. As such, a Statement of Compatibility with Human Rights is not required.
Consultation
The Department of Health, the Australian Government Solicitor and the Office of Parliamentary Counsel were consulted in the preparation of this determination. As this determination is for internal machinery of government purposes only, no consultation was necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).