EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act (Jervis Bay Territory Special Account 2014 - Establishment) Determination 03
(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 Jervis Bay Territory 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 purpose 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 A special account determination will, therefore, be repealed on the earlier of 1 April or 1 October falling on or after the tenth anniversary of registration of the determination.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 Jervis Bay Territory. 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 Jervis Bay Territory. The Commonwealth also owns rental property in the Territory.
These services are provided with the assistance of 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).