EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act (Indian Ocean Territories Special Account 2014 - Establishment) Determination 02
(the Determination)
Purpose of the Determination
The Determination is made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and establishes the Indian Ocean Territories Special Account 2014.
Special account determinations
In accordance with section 81 of the Constitution, all revenues or moneys raised or received by the Commonwealth Executive Government form one Consolidated Revenue Fund (CRF). Section 83 of the Constitution provides that such money may not be spent except under an appropriation made by law.
A special account established by determination is an appropriation mechanism that sets aside amounts within the CRF for spending on the purposes specified in that determination. Such determinations are made by the Minister for Finance under section 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. Payments for the purposes of a special account that is established by a determination are supported by an appropriation contained in section 78(4) 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. Subsection 79(4) of the PGPA Act provides that special account determinations are subject to disallowance by either House of the Parliament.
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. Within five sitting days of tabling, either House may pass a resolution to disallow the determination. If the determination is not disallowed, 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.
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 A special account determination will, therefore, be repealed on the earlier of 1 April or 1 October falling on or after the tenth anniversary of registration of the determination.
Special account determinations may be varied or revoked by a subsequent determination being made in accordance with subsection 78(3) 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 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.
Operation of the Determination
The determination establishes a special account to assist in making payments for delivering essential services and providing infrastructure within the Indian Oceans Territories. The special account is to be managed by the Department of Infrastructure and Regional Development.
The Commonwealth Government is responsible for the provision of essential services such as power, water, healthcare and medical supplies, and the management of infrastructure such as ports and airports in the Indian Ocean Territories. The Commonwealth also owns rental property in the Territories.
These services are provided with the assistance of the Western Australian Government and private contractors. The special account may be credited with amounts received from people who receive these services.
Consultation
The Department of Infrastructure and Regional Development was consulted in the preparation of the determination. As the 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).
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted by the Parliament of Australia to provide a modern framework for public sector financial management and accountability. The Act was introduced to address the need for improved governance, performance, and accountability mechanisms in the Commonwealth's financial management. The PGPA Act was enacted to ensure that the Commonwealth's financial resources are managed efficiently and effectively, and to provide greater transparency and accountability to the Parliament and the public. The Minister for Finance, as the responsible authority under the PGPA Act, made the Public Governance, Performance and Accountability Act 2013 (Indian Ocean Territories Special Account 2014 - Establishment) Determination to establish a special account within the Consolidated Revenue Fund for the purpose of delivering essential services and providing infrastructure within the Indian Ocean Territories. The determination was made under subsection 78(1) of the PGPA Act, and it outlines the types of amounts that may be credited to the special account and the purposes for which amounts may be debited from the account. The special account is to be managed by the Department of Infrastructure and Regional Development, and it will assist in making payments for delivering essential services and providing infrastructure within the Indian Ocean Territories.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 PGPA Act (Indian Ocean Territories Special Account 2014 - Establishment) Determination establishes a special account to manage funds specifically for the delivery of essential services and infrastructure within the Indian Ocean Territories. This special account, known as the Indian Ocean Territories Special Account 2014, is established under subsection 78(1) of the PGPA Act and is intended to facilitate the management of finances dedicated to these purposes. The account is managed by the Department of Infrastructure and Regional Development, which is tasked with overseeing the provision of services such as power, water, healthcare, medical supplies, and the maintenance of infrastructure like ports and airports in the Territories. This account can be credited with amounts received from individuals or entities who benefit from these services, thereby ensuring a dedicated funding stream for the specified activities. The special account determination is subject to disallowance by either House of the Parliament within five sitting days of tabling, and it will be repealed on the earlier of 1 April or 1 October falling on or after the tenth anniversary of its registration. The Determination applies solely to internal machinery of government purposes, and thus, consultation with external stakeholders was not required, as per sections 17 and 18 of the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of this Determination, as outlined in the explanatory statement, include the establishment of the Indian Ocean Territories Special Account 2014 under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) (section 1). This special account is intended to manage funds specifically for delivering essential services and providing infrastructure within the Indian Ocean Territories (section 2). The Department of Infrastructure and Regional Development is designated to manage this special account (section 3).
The obligations imposed by the Act on the parties it governs include the responsibility of the Commonwealth Government to provide essential services such as power, water, healthcare, and medical supplies, as well as managing infrastructure such as ports and airports within the Indian Ocean Territories (section 4). The special account may receive contributions from individuals who benefit from these services, thereby aiding in the funding of such initiatives (section 5).
For breach of the provisions outlined in the Determination, there are no explicit criminal or civil penalties mentioned. However, given that the Determination is a legislative instrument subject to disallowance, it could be disallowed by either House of the Parliament within five sitting days of tabling, as per subsection 79(3) of the PGPA Act. If the determination is not disallowed, it comes into effect on the specified date or the day after the disallowance period ends (subsection 79(4)). Additionally, the special account determination is subject to sunsetting provisions under Part 6 of the Legislative Instruments Act 2003, meaning it will be repealed on the earlier of 1 April or 1 October following the tenth anniversary of its registration (subsection 79(3) of the PGPA Act). The account may also be varied or revoked by a subsequent determination made in accordance with subsection 78(3) of the PGPA Act.