Public Governance, Performance and Accountability Amendment (2019 Measures No. 3) Rules 2019

Administered by Department of Finance

Legislation au F2019L00851 Rules Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Public Governance, Performance and Accountability Act 2013

 

Public Governance, Performance and Accountability Rule 2014

 

Public Governance, Performance and Accountability Amendment (2019 Measures No. 3) Rules 2019

 

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) sets out a framework for regulating resource management by the Commonwealth and relevant entities. Section 101 of the PGPA Act provides that the Finance Minister may make rules by legislative instrument to prescribe matters giving effect to the Act.

 

Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

 

The Public Governance, Performance and Accountability Amendment (2019 Measures No. 3) Rules 2019 (Amendment Rules) amend Schedule 1 to the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) to:

  • prescribe the National Faster Rail Agency as a listed entity for the purposes of the finance law as defined by the PGPA Act;
  • prescribe the National Indigenous Australians Agency as a listed entity for the purposes of the finance law as defined by the PGPA Act; and
  • clarify references to the ‘Minister’ for three listed entities (the Digital Transformation Agency, the National Mental Health Commission, and the North Queensland Water Infrastructure Authority).

 

Details of the Amendment Rules are set out at Attachment A. A Statement of Compatibility with Human Rights is at Attachment B.

 

The Amendment Rules are a legislative instrument for the purposes of the Legislation Act 2003.

 

The Amendment Rules commence on 1 July 2019.

 

Consultation

 

In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Infrastructure, Transport, Cities and Regional Development; the Department of the Prime Minister and Cabinet; the North Queensland Water Infrastructure Authority; the Digital Transformation Agency; Services Australia; the National Mental Health Commission; and the Department of Health.

Details of the Public Governance, Performance and Accountability Amendment (2019 Measures No. 3) Rules 2019

Section 1 – Name   

This section provides that the title of this instrument is the Public Governance, Performance and Accountability (2019 Measures No. 3) Rules 2019 (Amendment Rules).

 

Section 2 – Commencement 

This section provides that this instrument commences on 1 July 2019.

 

Section 3 – Authority

This section provides that this instrument is made under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

 

Section 4 – Schedules

This section provides that the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) is amended as set out in the Schedule to this instrument.

 

Schedule 1 – Amendments

 

Public Governance, Performance and Accountability Rule 2014

 

Item 1 – Subparagraphs 10(1)(e)(v) and (vi) of Schedule 1

This item clarifies that the ‘Minister’ in clause 10 of Schedule 1 refers to the ‘responsible Minister’ for the Digital Transformation Agency. This is consistent with the meaning of ‘responsible Minister’ as defined in section 8 of the PGPA Act.

 

Item 2 – After clause 12 of Schedule 1

 

This item inserts two new clauses 13 and 14 in Schedule 1.

 

The new clause 13 makes the National Faster Rail Agency a non‑corporate Commonwealth entity for the purposes of the PGPA Act by prescribing it as a listed entity in Schedule 1. It also sets out the accountable authority, officials and purposes of the National Faster Rail Agency, which will comprise the Chief Executive Officer and persons engaged under the Public Service Act 1999 to assist in the performance of the functions of the National Faster Rail Agency.

 

The functions of the National Faster Rail Agency are specified in the Order to Establish the National Faster Rail Agency as an Executive Agency which commences on 1 July 2019. Among other functions, the National Faster Rail Agency will have responsibility for leading the development and implementation of the Commonwealth Government’s 20-year Fast Rail Plan, including engagement with state and territory governments, industry and stakeholders; overseeing the development of business cases; identifying additional rail corridors that would benefit from faster rail services; and supporting the delivery of faster rail construction projects. The functions of the National Faster Rail Agency are listed in the new clause 13 as the entity’s purposes for the finance law.

 

The new clause 14 makes the National Indigenous Australians Agency a non‑corporate Commonwealth entity for the purposes of the PGPA Act by prescribing it as a listed entity in Schedule 1. It also sets out the accountable authority, officials and purposes of the National Indigenous Australians Agency, which will comprise the Chief Executive Officer and persons engaged under the Public Service Act 1999 to assist in the performance of the functions of the National Indigenous Australians Agency.

 

The functions of the National Indigenous Australians Agency are specified in the Order to Establish the National Indigenous Australians Agency as an Executive Agency which commences on 1 July 2019. Among other functions, the National Indigenous Australians Agency will have responsibility for leading and coordinating Commonwealth policy development, program design and implementation, as well as service delivery for Aboriginal and Torres Strait Islander peoples, including across portfolio agencies with Indigenous responsibilities. The National Indigenous Australians Agency will also lead and coordinate the development and implementation of Australia’s Closing the Gap targets in partnership with Indigenous Australians. The functions of the National Indigenous Australians Agency are listed in the new clause 14 as the entity’s purposes for the finance law.

 

Item 3 – Subparagraphs 15(e)(vii) and 15B(1)(e)(iii) and (iv) of Schedule 1

 

This item clarifies that the ‘Minister’ in clauses 15 and 15B of Schedule 1 refers to the ‘responsible Minister’ for the National Mental Health Commission and the North Queensland Water Infrastructure Authority respectively. This is consistent with the meaning of ‘responsible Minister’ as defined in section 8 of the PGPA Act.

 



 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Public Governance, Performance and Accountability Amendment (2019 Measures No. 3) Rules 2019

 

The Public Governance, Performance and Accountability Amendment (2019 Measures No. 3) Rules 2019 (Amendment Rules) are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the legislative instrument

 

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) establishes a framework for regulating resource management by the Commonwealth and relevant entities. Section 101 of the PGPA Act provides that the Minister for Finance may make rules by legislative instrument to prescribe matters giving effect to the Act.

 

The Amendment Rules amend Schedule 1 to the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) to:

  • prescribe the National Faster Rail Agency as a listed entity for the purposes of the finance law as defined by the PGPA Act;
  • prescribe the National Indigenous Australians Agency as a listed entity for the purposes of the finance law as defined by the PGPA Act; and
  • clarify references to the ‘Minister’ for three listed entities (the Digital Transformation Agency, the National Mental Health Commission, and the North Queensland Water Infrastructure Authority).

 

The Amendment Rules commence on 1 July 2019.

 

Human rights implications

 

The Amendment Rules do not engage any of the applicable rights or freedoms.

 

Conclusion

 

The Amendment Rules are compatible with human rights as they do not raise any human rights issues.

 

 

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance

 

Overview

The Public Governance, Performance and Accountability Amendment (2019 Measures No. 3) Rules 2019, made under the authority of the Minister for Finance, were enacted to amend the Public Governance, Performance and Accountability Rule 2014. This legislative instrument addresses the need to establish and define the roles and responsibilities of newly created Commonwealth entities, namely the National Faster Rail Agency and the National Indigenous Australians Agency, within the existing legislative framework. By prescribing these entities as listed entities under the Public Governance, Performance and Accountability Act 2013, the Amendment Rules ensure they are subject to the financial management and reporting requirements applicable to Commonwealth entities. Additionally, the Amendment Rules clarify the references to the 'Minister' for certain agencies to align with the definition of 'responsible Minister' as outlined in the PGPA Act. The rules were developed through consultation with relevant departments and agencies and are compatible with human rights, as affirmed in the Statement of Compatibility with Human Rights. The Public Governance, Performance and Accountability Amendment (2019 Measures No. 3) Rules 2019 were issued by the Australian Parliament and aim to enhance the regulatory framework for Commonwealth resource management by incorporating new agencies into the legislative scheme. These rules, which took effect on 1 July 2019, were designed to ensure that the newly established entities operate within a clear legal and financial governance structure, facilitating their functions and objectives. This amendment to the Public Governance, Performance and Accountability Rule 2014 ensures that the National Faster Rail Agency and the National Indigenous Australians Agency can effectively carry out their roles in developing and implementing national strategies related to fast rail and Indigenous affairs, respectively.

Scope and Application

The Public Governance, Performance and Accountability Amendment (2019 Measures No. 3) Rules 2019 amends the Public Governance, Performance and Accountability Rule 2014 to prescribe the National Faster Rail Agency and the National Indigenous Australians Agency as listed entities under the Public Governance, Performance and Accountability Act 2013. These rules also clarify the 'Minister' for three other entities: the Digital Transformation Agency, the National Mental Health Commission, and the North Queensland Water Infrastructure Authority. This legislative instrument, made under the authority of the Finance Minister, commenced on 1 July 2019 and is applicable nationally within the Commonwealth of Australia. The rules specifically target the governance and financial management of these entities to ensure compliance with the finance law as defined by the PGPA Act. Any subordinate instruments or regulations extending or modifying the application of these rules are not detailed in the provided explanatory statement, and there are no stated exclusions, exemptions, or thresholds within the scope of the Amendment Rules themselves.

Key Provisions

The Public Governance, Performance and Accountability Amendment (2019 Measures No. 3) Rules 2019 (Amendment Rules) primarily amend Schedule 1 of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule). Specifically, they introduce the National Faster Rail Agency and the National Indigenous Australians Agency as listed entities under the finance law as defined by the Public Governance, Performance and Accountability Act 2013 (PGPA Act) (Items 2 of Schedule 1). Furthermore, the Amendment Rules clarify the meaning of the term ‘Minister’ for three entities: the Digital Transformation Agency, the National Mental Health Commission, and the North Queensland Water Infrastructure Authority (Items 1 and 3 of Schedule 1). These amendments ensure that these entities are subject to the financial management requirements and reporting obligations outlined in the PGPA Act. Under the PGPA Act, the listed entities, including the newly added National Faster Rail Agency and National Indigenous Australians Agency, are required to adhere to the financial management standards and reporting requirements set out in the Act. This includes preparing annual financial statements and performance reports, maintaining accounting records, and ensuring compliance with the PGPA Act’s financial management policies and procedures. Additionally, these entities must ensure that their financial management practices align with the objectives and purposes outlined in the PGPA Act. Failure to comply with the requirements of the PGPA Act and the PGPA Rule can result in civil and criminal consequences. Under section 140 of the PGPA Act, a person who is found to have contravened a provision of the Act may be liable to a civil penalty not exceeding the greater of three times the benefit obtained, if any, from the contravention, or 50,000 penalty units (currently AUD 50,000). For a body corporate, the maximum penalty is 500,000 penalty units (currently AUD 500,000). Additionally, under section 139 of the PGPA Act, if a person is found to have intentionally contravened a provision of the Act, they may be liable to a criminal penalty, which can include imprisonment for up to five years, or both imprisonment and a fine. These penalties underscore the importance of compliance with the financial management requirements established by the PGPA Act. In summary, the Amendment Rules introduce the National Faster Rail Agency and the National Indigenous Australians Agency as listed entities under the PGPA Act, and clarify the term ‘Minister’ for three other entities. These amendments impose specific financial management and reporting obligations on these entities, with significant civil and criminal penalties for non-compliance.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.