EXPLANATORY STATEMENT
Issued by 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 (2026 Measures No. 1) Rules 2026
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) set out a framework for regulating resource management by Commonwealth entities and companies.
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.
Paragraph 103(e) of the PGPA Act provides that the rules may make provision for the name or purposes of a non-corporate Commonwealth entity that is prescribed by the rules to be a listed entity.
The definition of listed entity in section 8 of the PGPA Act provides that an Act or the rules may prescribe as a listed entity, any body (except a body corporate), person, group of persons or organisation (whether or not part of a Department of State); or any combination of bodies (except bodies corporate), persons, groups of persons or organisations (whether or not part of a Department of State).
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 (2026 Measures No. 1) Rules 2026 (Amendment Rules) amends the PGPA Rule to repeal clause 12AA of Schedule 1 which prescribes the National Commission for Aboriginal and Torres Strait Islander Children and Young People (National Commission) as a listed entity, a type of non-corporate Commonwealth entity for the purposes of finance law as defined by the PGPA Act. The National Commission will continue to be prescribed as a listed entity under new primary legislation, the National Commission for Aboriginal and Torres Strait Islander Children and Young People Act 2026 (the Act). Parliament passed the Act on 25 March 2026, and the Governor‑General provided Royal Assent on 26 March 2026.
The principal instrument amended by the Amendment Rules, the PGPA Rule, is exempt from sunsetting pursuant to paragraph 54(2)(b) of the Legislation Act 2003, which provides that instruments prescribed by regulation are not subject to sunsetting.
The exemption was inserted by the Legislation (Exemptions and Other Matters) Amendment (2023 Measures No. 1) Regulations 2023 as item 53A in the table at section 12 of the Legislation (Exemptions and Other Matters) Regulations 2015.
The PGPA Rule was made exempt from sunsetting pursuant to the following criteria (as provided for in the Attorney-General's Department’s Guide to managing sunsetting of legislative instruments):
- sufficiently large and complex that the administrative burden associated with remaking the instrument would outweigh any regulatory benefit
- subject to regular review, and
- subject to regular amendment.
Further details on the basis for the exemption from sunsetting can be found in the explanatory statement to the Legislation (Exemptions and Other Matters) Amendment (2023 Measures No. 1) Regulations 2023.
The Amendment Rules are a legislative instrument for the purposes of the Legislation Act 2003.
The Amendment Rules are subject to section 48A of the Legislation Act 2003, which automatically repeals legislative instruments whose only effect is to amend or repeal one or more other legislative instruments.
Details of the Amendment Rules are set out at Attachment A. A statement of compatibility with human rights is at Attachment B.
The whole of the instrument commences on 1 July 2026.
Consultation
The Amendment Rules were developed in consultation with the Department of Social Services. No concerns were raised during this process.
The Amendment Rules were drafted by the Office of Parliamentary Counsel.
ATTACHMENT A
Details of the Public Governance, Performance and Accountability Amendment (2026 Measures No. 1) Rules 2026
Section 1 – Name
This section states the name of this instrument is the Public Governance, Performance and Accountability Amendment (2026 Measures No. 1) Rules 2026 (the Amendment Rules).
Section 2 – Commencement
This section provides that the whole of the instrument commences on 1 July 2026.
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 Schedule 1 to this instrument.
Schedule 1—Amendments
Public Governance, Performance and Accountability Rule 2014
Item 1 – Clause 12AA of Schedule 1
This item repeals clause 12AA of Schedule 1 to the PGPA Rule which prescribes the National Commission for Aboriginal and Torres Strait Islander Children and Young People (National Commission) as a listed entity, a type of non-corporate Commonwealth entity for the purposes of the PGPA Act.
From the commencement of this item, the National Commission as a listed entity will no longer be prescribed under the PGPA Rule and will instead continue to be prescribed in new primary legislation, the National Commission for Aboriginal and Torres Strait Islander Children and Young People Act 2026 (the Act). Section 33 of the Act also prescribes the National Commission as a listed entity for the purposes of the finance law and the National Commissioner as its accountable authority. Clause 12AA will no longer be necessary once the Act commences on 1 July 2026.
The Act is a key component of the Australian Government’s response to meeting commitments under the National Agreement on Closing the Gap. The transition to primary legislation provides for the National Commissioner to implement and exercise the full range of functions and powers required to achieve the intention of the role and influence systemic change for better outcomes. These functions are focused on the rights, interests, development, safety and wellbeing of Aboriginal and Torres Strait Islander children and young people and include undertaking public advocacy.
ATTACHMENT B
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
(2026 Measures No. 1) Rules 2026
This Legislative Instrument is 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) and the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) establish a framework for regulating resource management by Commonwealth entities and companies.
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.
Paragraph 103(e) of the PGPA Act provides that the rules may make provision for the name or purposes of a non-corporate Commonwealth entity that is prescribed by the rules to be a listed entity.
The definition of listed entity in section 8 of the PGPA Act provides that an Act or the rules may prescribe as a listed entity, any body (except a body corporate), person, group of persons or organisation (whether or not part of a Department of State); or any combination of bodies (except bodies corporate), persons, groups of persons or organisations (whether or not part of a Department of State).
The Public Governance, Performance and Accountability Amendment (2026 Measures No. 1) Rules 2026 (Amendment Rules) amends Schedule 1 to the PGPA Rule to repeal clause 12AA which prescribes the National Commission for Aboriginal and Torres Strait Islander Children and Young People (National Commission) as a listed entity, a type of non-corporate Commonwealth entity for the purposes of finance law as defined by the PGPA Act. The National Commission will continue to be prescribed as a listed entity under new primary legislation, the National Commission for Aboriginal and Torres Strait Islander Children and Young People Act 2026, (the Act). Parliament passed the Act on 25 March 2026, and the Governor‑General provided Royal Assent on 26 March 2026.
Human rights implications
The Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
The Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Senator the Hon Katy Gallagher
Minister for Finance