EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Special Account Determination 2016/02 (Australia-Indonesia Partnership for Reconstruction and Development (Loans) Special Account 2015) — Revocation
Purpose of this determination
This determination is made under subsection 78(3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and it:
- revokes the determination that established Australia–Indonesia Partnership for Reconstruction and Development (Loans) Special Account 2015 (establishing determination).
The establishing determination is being revoked as the special account is no longer required.
The operating context of special accounts
A special account may be established under the PGPA Act; by a determination made by the Minister for Finance (under section 78) or by an Act (under section 80).
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.
- Payments made for the purposes of a special account are supported by an appropriation in the PGPA Act; subsection 78(4) for a determination established special account or subsection 80(1) for an Act established special account.
Special account revocations
Special account determinations are legislative instruments under 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 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 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.
A special Account revocation determination is repealed under subsection 48C(1) of the Legislation Act 2003 on the day after it takes effect in accordance with subsection 79(5) 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 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 Foreign Affairs and Trade was consulted in the preparation of this determination.
Overview
The PGPA Act Special Account Determination 2016/02, made under the Public Governance, Performance and Accountability Act 2013, revokes the earlier determination that established the Australia–Indonesia Partnership for Reconstruction and Development (Loans) Special Account 2015. This determination was enacted to address the need for a special account mechanism to manage specific funds within the Consolidated Revenue Fund for designated purposes. The Minister for Finance made this determination in accordance with subsection 78(3) of the PGPA Act, reflecting that the special account is no longer necessary. Special accounts under the PGPA Act are established to allocate funds for specific purposes, supported by appropriations as required by the PGPA Act. This revocation follows the legislative process outlined in the PGPA Act and Legislation Act 2003, including tabling in Parliament and a disallowance period. The revocation is also subject to consultation with relevant departments, in this case, the Department of Foreign Affairs and Trade.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 Special Account Determination 2016/02 (Australia-Indonesia Partnership for Reconstruction and Development (Loans) Special Account 2015) — Revocation, made under the authority of the Minister for Finance, revokes the earlier determination establishing the Australia–Indonesia Partnership for Reconstruction and Development (Loans) Special Account 2015. This revocation reflects that the special account is no longer required. The revocation determination is made under subsection 78(3) of the PGPA Act and is subject to disallowance by either House of Parliament, with a disallowance period starting on the day the determination is tabled and ending on the fifth sitting day after it was tabled. If neither House passes a resolution to disallow the determination, 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. This determination applies to the specific special account previously established to set aside funds within the Consolidated Revenue Fund for loans related to the Australia-Indonesia Partnership for Reconstruction and Development.
Key Provisions
The Special Account Determination 2016/02 (Australia-Indonesia Partnership for Reconstruction and Development (Loans) Special Account 2015) — Revocation revokes the prior determination that established the special account (section 78(3) of the PGPA Act). This revocation is due to the special account no longer being required. The special account in question, Australia-Indonesia Partnership for Reconstruction and Development (Loans) Special Account 2015, was created to manage funds for specific purposes related to the partnership between Australia and Indonesia. However, given the circumstances have changed, the account is no longer needed, leading to its revocation.
The PGPA Act allows for the creation of special accounts through determinations by the Minister for Finance or by legislative acts. A special account is an appropriation mechanism that allocates funds within the Consolidated Revenue Fund (CRF) for specific purposes. The purposes for the special account are outlined in the establishing determination. Under the Constitution, all revenues and moneys raised by the Commonwealth are deposited into the CRF, and these funds can only be drawn upon under an appropriation made by law. Special accounts facilitate the setting aside of these funds for particular objectives and ensure that payments made for these purposes are supported by the relevant appropriations outlined in the PGPA Act.
Entities and parties governed by the PGPA Act must adhere to the provisions outlined in the Act, including those related to special accounts. The Minister for Finance has the authority to establish, vary, or revoke special accounts through determinations, which must be tabled in each House of the Parliament (subsection 79(3) of the PGPA Act). These determinations are subject to disallowance by either House within a specified period (subsection 79(4) of the PGPA Act). If a determination is not disallowed, it comes into effect on the specified day (subsection 79(5) of the PGPA Act). The revocation of a special account determination follows legislative processes outlined in the Legislation Act 2003, with the revocation determination being repealed after it takes effect.
Breaches of the provisions under the PGPA Act, including those governing special accounts, may lead to legal consequences. However, this particular revocation determination does not specify any new offences or penalties. The existing legal framework would apply, and any breaches could result in civil or criminal penalties as outlined in the PGPA Act or other relevant legislation. The revocation itself does not introduce new penalties but follows the legal processes established for such revocations under the PGPA Act and the Legislation Act 2003.