Public Governance, Performance and Accountability Amendment (Abolition of National Mental Health Commission) Rules 2024

Administered by Department of Finance

Legislation au F2024L01187 Rules Not in force Legislative Instrument

Legislation content

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 (Abolition of National Mental Health Commission) Rules 2024

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.

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 (Abolition of National Mental Health Commission) Rules 2024 amends Schedule 1 of the PGPA Rule to repeal clause 15 and abolish the National Mental Health Commission (NMHC) as a listed entity on 30 September 2024.

Clause 15 of Schedule 1 of the PGPA Rule prescribes the NMHC as a listed entity, a type of non-corporate Commonwealth entity for the purposes of finance law as defined by the PGPA Act. Repealing this clause accords with the 2024-25 Budget decision to transfer the functions and funding of the NMHC to the Department of Health and Aged Care. The functions of the NMHC will be delivered by the Department of Health and Aged Care following its abolition as a listed entity.

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

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 30 September 2024.


Consultation

The amendments relating to repealing the NMHC as a listed entity for the purposes of the PGPA Act were developed in consultation with the Department of Health and Aged Care.

The Amendment Rules were drafted by the Office of Parliamentary Counsel.

ATTACHMENT A

Details of the Public Governance, Performance and Accountability Amendment (Abolition of National Mental Health Commission) Rules 2024  

Section 1 – Name of instrument

This section states that the name of this instrument is the Public Governance, Performance and Accountability Amendment (Abolition of National Mental Health Commission) Rules 2024 (the Amendment Rules).

Section 2 – Commencement

This section provides that the whole of the instrument commences on 30 September 2024.

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 15 of Schedule 1

 

This item repeals clause 15 of Schedule 1 to the PGPA Rule which prescribes the National Mental Health Commission (NMHC) as a listed entity. From the commencement of this item on 30 September 2024, the NMHC will cease as a non-corporate Commonwealth entity for the purposes of the PGPA Act, reflecting the Government’s decision to abolish the NMHC.  

 

The government announced its decision to reform the NMHC in the 2024-25 Budget. The reform responds to the findings from the independent investigation into the Commission in 2023, which found that the Commission had ‘outgrown its existing systems, practices and capabilities’.

 

As an interim step in the reform, the current functions and funding of the NMHC will transfer to the Department of Health and Aged Care while the most appropriate longer term arrangements are considered.

 

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
(Abolition of National Mental Health Commission) Rules 2024

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) establishes 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 Public Governance, Performance and Accountability Amendment (Abolition of National Mental Health Commission) Rules 2024 (Amendment Rules) amends Schedule 1 of the PGPA Rule by repealing clause 15, which prescribes the National Mental Health Commission (NMHC) as a listed entity for the purposes of finance law as defined in the PGPA Act. The Amendment Rules will abolish the NMHC as a listed entity on 30 September 2024.

The Amendment Rules accord with the 2024-25 Budget decision to transfer the functions and funding of the NMHC to the Department of Health and Aged Care.

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 (Abolition of National Mental Health Commission) Rules 2024 was enacted to amend the Public Governance, Performance and Accountability Rule 2014 in response to the government's decision to abolish the National Mental Health Commission (NMHC). The Rules were introduced by the Minister for Finance, under the authority conferred by the Public Governance, Performance and Accountability Act 2013. The policy objective is to transfer the functions and funding of the NMHC to the Department of Health and Aged Care, in line with the 2024-25 Budget decision. The Amendment Rules will repeal clause 15 of the PGPA Rule, which prescribed the NMHC as a listed entity, thereby abolishing the NMHC as a listed entity on 30 September 2024. This change ensures that the NMHC will no longer be a non-corporate Commonwealth entity for the purposes of the PGPA Act, and that its functions will be delivered by the Department of Health and Aged Care. The legislative instrument was developed in consultation with the Department of Health and Aged Care, reflecting the findings of an independent investigation into the NMHC that identified the need for reform due to the Commission having 'outgrown its existing systems, practices and capabilities'. The Amendment Rules are a legislative instrument for the purposes of the Legislation Act 2003, and a statement of compatibility with human rights is provided at Attachment B. The whole of the instrument commences on 30 September 2024.

Scope and Application

The Public Governance, Performance and Accountability Amendment (Abolition of National Mental Health Commission) Rules 2024 amends the Public Governance, Performance and Accountability Rule 2014, repealing clause 15 which prescribed the National Mental Health Commission (NMHC) as a listed entity for the purposes of the Public Governance, Performance and Accountability Act 2013. The amendment reflects the government’s decision to abolish the NMHC, which will cease to be a non-corporate Commonwealth entity for the purposes of the PGPA Act on 30 September 2024. This change aligns with the transfer of the NMHC's functions and funding to the Department of Health and Aged Care, as announced in the 2024-25 Budget. The Amendment Rules are made under the authority of the PGPA Act, specifically section 101, which allows the Finance Minister to make rules to give effect to the Act. The legislative instrument does not specify any exclusions or exemptions, and it is compatible with human rights, as it does not engage any of the applicable rights or freedoms. The rules will come into effect on 30 September 2024, marking the formal abolition of the NMHC as a listed entity.

Key Provisions

The Public Governance, Performance and Accountability Amendment (Abolition of National Mental Health Commission) Rules 2024 (Amendment Rules) amends the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) by repealing clause 15 of Schedule 1. This clause previously prescribed the National Mental Health Commission (NMHC) as a listed entity under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The repeal will take effect on 30 September 2024, which will result in the NMHC ceasing to be a non-corporate Commonwealth entity for the purposes of the PGPA Act. This change aligns with the decision to transfer the functions and funding of the NMHC to the Department of Health and Aged Care, as announced in the 2024-25 Budget. The Amendment Rules impose obligations on entities affected by the PGPA Act, specifically requiring them to comply with the new regulations that no longer list the NMHC as a prescribed entity. This means that from 30 September 2024, the NMHC will no longer be subject to the specific financial and governance regulations that apply to listed entities under the PGPA Act. Entities must adjust their compliance frameworks and reporting requirements accordingly to reflect the abolition of the NMHC as a listed entity. The Amendment Rules also require the Department of Health and Aged Care to take over the responsibilities and functions of the NMHC, ensuring a smooth transition and continuity of services. Breaching the provisions of the Amendment Rules could lead to various consequences, although the specific penalties are not detailed in the explanatory statement. Under the PGPA Act, non-compliance with prescribed rules may result in administrative penalties, including fines or other sanctions. For entities that fail to adjust their compliance frameworks to exclude the NMHC as a listed entity, this could result in financial penalties or other corrective actions by the responsible authorities. Additionally, failure to comply with the transitional arrangements for the transfer of functions and funding to the Department of Health and Aged Care may lead to disruptions in the delivery of mental health services and could incur further penalties or legal consequences. The Amendment Rules are designed to ensure that the abolition of the NMHC as a listed entity is implemented smoothly and in accordance with the 2024-25 Budget decision. By repealing clause 15 of the PGPA Rule, the Amendment Rules facilitate the transfer of the NMHC's functions and funding to the Department of Health and Aged Care, ensuring that mental health services continue to be provided effectively. The rules also ensure that entities subject to the PGPA Act are aware of and comply with the new regulatory framework, thereby maintaining the integrity and effectiveness of the financial management system for Commonwealth entities.

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Commencement Provisions
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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.