EXPLANATORY STATEMENT

Issued by the Authority of the Minister for Finance

Public Governance, Performance and Accountability Act 2013

Public Governance, Performance and Accountability Amendment

(Annual Reporting) 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 necessary or convenient to be prescribed for carrying out or 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 (Annual Reporting) Rules 2019 (Amendment Rules) would amend the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) relating to annual reports by prescribing that the annual reports of Commonwealth entities and companies are published using the digital reporting tool administered by the Finance Minister as soon as practicable after the annual report has been presented to the Parliament.

Information to be provided in the annual reports of Commonwealth entities is already prescribed in the PGPA Rule (Part 2.3 Planning, performance and accountability - Division 3A – Subdivision A—Annual report for non‑corporate Commonwealth entities; Division 3A - Subdivision B—Annual report for corporate Commonwealth entities; and Part 3‑3—Annual report for Commonwealth companies). These amendments to the PGPA Rule will prescribe reporting requirements for Commonwealth entities and companies; including establishing a compliance index requirement for corporate Commonwealth entities and Commonwealth companies similar to that at Schedule 2 for non-corporate Commonwealth entities.

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 is a legislative instrument for the purposes of the Legislative Instruments Act 2003.  The Amendment Rules commence on the day after they are registered on the Federal Register of Legislation.

Consultation

In accordance with section 17 of the Legislation Act 2003, consultation has taken place with Commonwealth entities and companies.

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

Attachment A

Details of the Public Governance, Performance and Accountability Amendment (Annual Reporting) Rules 2019

Section 1—Name of rule

This section provides that the title of the rule is the Public Governance, Performance and Accountability Amendment (Annual Reporting) Rules (PGPA Rules)

Section 2—Commencement

This section provides that each provision of the instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table.

Specifically, the whole of the Amendment Rules will commence on the day after it is registered on the Federal Register of Legislative Instruments.

Section 3—Authority

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

Section 4—Schedules

This section provides that each legislative instrument that is specified in a Schedule to this Rule is amended or repealed as set out, and that any item in a Schedule to this instrument operates or is applied as specified in the Schedule.

Schedule 1 – Amendments

Part 1 – Amendments commencing the day after the instrument is registered.

Public Governance, Performance and Accountability Rule 2014

Item 1 – Section 17AA  

This item amends the PGPA Rule to indicate the date that the Joint Committee of Public Accounts and Audit approved this Amendment Rules for Non-corporate Commonwealth entities. 

Item 2– After section 17AB

This item inserts section 17ABA requiring the annual report of a non‑corporate Commonwealth entity to published using the digital reporting tool administered by the Finance Minister, as soon as practicable after the annual report has been presented to the Parliament.

Item 3 – After paragraph 17AE(1)(a)

This item inserts section 17AE(1)(aa) requiring the details of the entities accountable authority, or members of the accountable authority, of the entity throughout the entire reporting period, including details on:

1. name of accountable authority or member;
2. position title of accountable authority or member;
3. the period as accountable authority or member within the reporting period.

Item 4 – After paragraph 17AG(4)(a)

This item inserts section 17AG(4)(aa) requiring the publication of statistics on the number of employees of the entity (with reference to ongoing employees and non-ongoing employees), at the end of the reporting period and the previous reporting period, in relation to each of the following:

1. full-time employees;
2. part-time employees;
3. gender;
4. location.

Item 5 – Section 17BA

This item amends the PGPA Rule to indicate the date that the Joint Committee of Public Accounts and Audit approved this Amendment Rules for corporate Commonwealth entities.

Item 6 – After section 17BC

This item inserts section 17BCA requiring the annual report of a corporate Commonwealth entity published using the digital reporting tool administered by the Finance Minister as soon as practicable after the annual report has been presented to the Parliament.

Item 7 – After paragraph 17BE(k)

This item inserts paragraph 17BE(ka), requiring the publication of statistics on the number of employees of the entity (with reference to ongoing employees and non-ongoing employees), at the end of that and the previous reporting period, in relation to each of the following:

e.       full-time employees;

f.        part-time employees;

g.      gender;

h.      location.

Item 8 – Paragraph 17BE(u)

This item clarifies that the annual report of a corporate Commonwealth entity must include the list of reporting requirements as set out in Schedule 2A.

Item 9 – After section 28C

This item inserts section 28CA requiring the annual report of a Commonwealth company to be published using the digital reporting tool administered by the Finance Minister as soon as practicable after the annual report has been presented to the Parliament.

Item 10 – After paragraph 28E(g)

This item inserts paragraph 28E(ga) requiring the publication of statistics on the number of employees of the entity (with reference to ongoing employees and non-ongoing employees), at the end of that and the previous reporting period, in relation to each of the following:

1. full-time employees;
2. part-time employees;
3. gender;
4. location.

Item 11 – Paragraph 28E(p)

This item clarifies that the annual report of a Commonwealth company must include the list of reporting requirements as set out in Schedule 2B.

Item 12 - In the appropriate position in Chapter 5

This item adds Part 5—Amendments made by the Public Governance, Performance and Accountability Amendment (Annual Reporting) Rules 2019 in the appropriate position of Chapter 5.

Section 35  Application of amendments made by the Public Governance, Performance and Accountability Amendment (Annual Reporting) Rules 2019

Section 35 provides that the amendments made to the PGPA Rule by the Public Governance, Performance and Accountability Amendment (Annual Reporting) Rules 2019 apply in relation to any reporting period that begins on or after 29 June 2018. In general, this means for those Commonwealth entities or companies that report on a financial year basis, the first reporting period will be 2018-19 and those that report on a calendar year basis, the first reporting period will be 2019. It also accommodates the first reporting period for Snowy Hydro Limited as a Commonwealth company, which covers the period 29 June 2018 to 30 June 2019.

Item 13 – Schedule 2 (heading)

This item omits “requirements” and substitutes this with “requirements—non-corporate Commonwealth entities”.

Item 14 – Clause 1 of Schedule 2 (after table item dealing with PGPA Rule Reference 17AE(1)(a)(iv))

This item inserts the additional content in the list of requirements for non-corporate Commonwealth entities.

Item 15 – Clause 1 of Schedule 2 (after table item dealing with PGPA Rule Reference 17AG(4)(a))

This item inserts the additional content for statistics on the entity’s employees in the list of requirements for non-corporate Commonwealth entities in schedule 2.

Item 16 – After Schedule 2

This item inserts “Schedule 2A—List of requirements — corporate Commonwealth entities” that provides a guide and table containing all of the mandatory elements that corporate Commonwealth entities must address in an annual report. This table must be included in the annual report to address the mandatory content requirement as specified by subsection 17BE(u) of the PGPA Rule.

This item inserts “Schedule 2B—List of requirements — Commonwealth company” that provides a guide and table containing all of the mandatory elements that Commonwealth companies must address in an annual report. This table must be included in the annual report to address the mandatory content requirement as specified by subsection 28E(q) of the PGPA Rule.

Attachment B

Statement of Compatibility with Human Rights

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

The Public Governance, Performance and Accountability Amendment (Annual Reporting) Rules 2019 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) establishes 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.

The Public Governance, Performance and Accountability Amendment (Annual Reporting) Rules 2019 (Amendment Rules) would amend the Public Governance, Performance and Accountability Rule 2014 made under the Public Governance, Performance and Accountability Act 2013.

The Amendment Rules would make amendments relating to mandatory reporting requirements for annual reports.

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 Mathias Cormann

Minister for Finance and the Public Service