Public Governance, Performance and Accountability Amendment (2026 Measures No. 1) Rules 2026

Administered by Department of Finance

Legislation au F2026L00608 In force Legislative Instrument

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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  

Overview

The Public Governance, Performance and Accountability Amendment (2026 Measures No. 1) Rules 2026 were enacted to amend the Public Governance, Performance and Accountability Rule 2014 in response to the new primary legislation, the National Commission for Aboriginal and Torres Strait Islander Children and Young People Act 2026. These rules were introduced by the Minister for Finance under the authority of the Public Governance, Performance and Accountability Act 2013, which establishes a framework for resource management by Commonwealth entities and companies. The primary objective of these rules is to ensure the continued regulation of the National Commission for Aboriginal and Torres Strait Islander Children and Young People as a listed entity, while transitioning its designation from the PGPA Rule to the new Act, thereby maintaining consistency and coherence in governance and accountability mechanisms. The rules were developed in consultation with the Department of Social Services, reflecting the Australian Government's commitment to Closing the Gap and improving outcomes for Aboriginal and Torres Strait Islander children and young people. The Public Governance, Performance and Accountability Amendment (2026 Measures No. 1) Rules 2026 are exempt from sunsetting, ensuring that the regulatory framework remains robust and adaptable to future needs. The commencement of these rules aligns with the new Act on 1 July 2026, facilitating a seamless transition and reinforcing the legislative support for the National Commission's critical role.

Scope and Application

The Public Governance, Performance and Accountability Amendment (2026 Measures No. 1) Rules 2026 amends the Public Governance, Performance and Accountability Rule 2014 by repealing clause 12AA of Schedule 1, which previously prescribed the National Commission for Aboriginal and Torres Strait Islander Children and Young People as a listed entity under the Public Governance, Performance and Accountability Act 2013. This change follows the establishment of the National Commission for Aboriginal and Torres Strait Islander Children and Young People Act 2026, which now governs the Commission as a listed entity. The amendment ensures that the National Commission continues to be recognised as a listed entity but under the new primary legislation rather than the PGPA Rule. The Amendment Rules are a legislative instrument made under the Public Governance, Performance and Accountability Act 2013 and will commence on 1 July 2026. The Public Governance, Performance and Accountability Rule 2014, amended by the Amendment Rules, is exempt from sunsetting due to its complexity and regular review. The new primary legislation, the National Commission for Aboriginal and Torres Strait Islander Children and Young People Act 2026, ensures the Commission’s continued operation and functionality in line with the Australian Government’s commitments under the National Agreement on Closing the Gap.

Key Provisions

The Public Governance, Performance and Accountability Amendment (2026 Measures No. 1) Rules 2026 (Amendment Rules) amends the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) to repeal clause 12AA of Schedule 1, which previously prescribed the National Commission for Aboriginal and Torres Strait Islander Children and Young People (National Commission) as a listed entity. This change means that the National Commission will no longer be prescribed as a listed entity under the PGPA Rule but will instead be prescribed under the new primary legislation, the National Commission for Aboriginal and Torres Strait Islander Children and Young People Act 2026 (the Act). This transition is set to take effect from 1 July 2026, the commencement date of the Amendment Rules. The PGPA Act and PGPA Rule establish a framework for regulating resource management by Commonwealth entities and companies, with the Finance Minister having the authority under section 101 of the PGPA Act to make rules by legislative instrument to prescribe matters giving effect to the Act. These rules can include provisions for the name or purposes of non-corporate Commonwealth entities, such as the National Commission, to be prescribed as listed entities. The Amendment Rules impose the obligation on the PGPA Rule to cease prescribing the National Commission as a listed entity once the Amendment Rules come into effect. This change ensures that the National Commission's status as a listed entity will be governed by the new primary legislation rather than the PGPA Rule. The Act, which was passed by Parliament on 25 March 2026 and received Royal Assent on 26 March 2026, will prescribe the National Commission as a listed entity and provide the necessary framework for the National Commission to implement its functions and exercise its powers. The PGPA Rule is exempt from sunsetting, meaning it is not subject to automatic repeal after a certain period, due to its complexity and the need for regular review and amendment. Under the Amendment Rules, there are no specific offences, penalties, or civil or criminal consequences outlined for breaches of the rules. However, non-compliance with the provisions of the PGPA Act or the PGPA Rule could potentially lead to administrative or legal consequences depending on the nature and severity of the breach. The PGPA Act and associated regulations provide mechanisms for enforcement and compliance, including the ability to impose fines or other sanctions for non-compliance with prescribed requirements. The compatibility statement indicates that the Amendment Rules do not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011, thereby affirming their compatibility with human rights.

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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.