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 A special account determination will, therefore, be repealed on the earlier of 1 April or 1 October falling on or after the tenth anniversary of registration of the determination.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).
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted by the Parliament of Australia to address the need for efficient and effective governance, performance, and accountability within the Commonwealth Executive Government. The Act was introduced to ensure that public funds are managed responsibly and that there is transparency and accountability in government operations. Under the authority of the Minister for Finance, the PGPA Act (Jervis Bay Territory Special Account 2014 - Establishment) Determination was made to establish a special account within the Consolidated Revenue Fund for spending on the purposes specified in the Determination. This special account, managed by the Department of Infrastructure and Regional Development, assists in making payments for delivering essential services and providing infrastructure within the Jervis Bay Territory. The Determination ensures that funds are appropriately allocated for these purposes and is subject to disallowance by either House of the Parliament. Additionally, it is subject to sunsetting provisions, ensuring it remains relevant and up-to-date.
Scope and Application
The Jervis Bay Territory Special Account 2014 - Establishment Determination, issued under the Public Governance, Performance and Accountability Act 2013, is a legislative instrument that establishes a special account for the delivery of essential services and infrastructure within the Jervis Bay Territory. This account is a mechanism within the Consolidated Revenue Fund, set aside for specific purposes as outlined in the determination, and is managed by the Department of Infrastructure and Regional Development. The account is funded by amounts credited from individuals or entities that receive services from private contractors employed by the Commonwealth Government to provide these services. The determination applies to the Commonwealth Executive Government and is intended to facilitate payments for essential services such as power, water, healthcare, medical supplies, and infrastructure management within the Jervis Bay Territory. The establishment of this special account is subject to disallowance by either House of the Parliament, and if not disallowed, it comes into effect on the specified date. Notably, the determination is not subject to disallowance under the Legislative Instruments Act 2003, and therefore does not require a Statement of Compatibility with Human Rights.
Key Provisions
The Jervis Bay Territory Special Account 2014 - Establishment Determination (F2014L01533) under section 78(1) of the Public Governance, Performance and Accountability Act 2013 establishes a special account to facilitate the delivery of essential services and infrastructure in the Jervis Bay Territory. This special account is managed by the Department of Infrastructure and Regional Development. It is designed to set aside specific amounts from the Consolidated Revenue Fund for spending on the designated purposes outlined in the Determination. This includes services such as power, water, healthcare, medical supplies, and infrastructure like ports and airports, as well as managing Commonwealth-owned rental properties in the Territory. The account can be credited with amounts received from individuals who use these services, provided by private contractors.
The Determination imposes obligations on the parties involved, primarily the Department of Infrastructure and Regional Development, to manage the special account in accordance with the provisions of the Public Governance, Performance and Accountability Act 2013. The Department must ensure that funds are allocated and spent strictly for the purposes specified in the Determination, which include delivering essential services and managing infrastructure in the Jervis Bay Territory. Additionally, the Determination requires the Department to ensure that all transactions are properly recorded and reported, maintaining transparency and accountability in the use of public funds. This includes crediting the account with amounts received from individuals using the services, ensuring that the account is used solely for its intended purposes.
For breaches of the provisions outlined in the Determination, there are potential civil and criminal consequences. Although the Determination itself does not specify particular offences, breaches of the PGPA Act could lead to penalties under that Act. For instance, misuse of public funds or failure to comply with the requirements for the management and reporting of the special account could result in disciplinary action against public officials. In more serious cases, criminal charges could be brought, leading to fines or imprisonment. The exact penalties would depend on the nature and severity of the breach, as defined under the PGPA Act. However, it is clear that non-compliance with the requirements of the Determination could have significant legal repercussions.