Overview

The Public Governance, Performance and Accountability Amendment (Government Business Enterprise) Rules 2017 were introduced to amend the Public Governance, Performance and Accountability Rule 2014 under the authority of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Enacted by the Parliament of Australia, these rules are designed to address the need for a regulatory framework to oversee government business enterprises, ensuring that entities such as WSA Co Limited, which are established to fulfil public purposes like the development and operation of infrastructure, are appropriately governed and managed. The legislative instrument was developed in consultation with relevant departments and is compliant with human rights as outlined in the Human Rights (Parliamentary Scrutiny) Act 2011. The Amending Rules specify WSA Co Limited as a government business enterprise, thereby expanding the scope of entities regulated under the PGPA Act.

Scope and Application

The Public Governance, Performance and Accountability Amendment (Government Business Enterprise) Rules 2017 amends the Public Governance, Performance and Accountability Rule 2014 under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The Amending Rules designate WSA Co Limited as a government business enterprise (GBE) for the purposes of the PGPA Act. A GBE is a type of entity or company established and owned by the Commonwealth to deliver services or operate infrastructure in pursuit of a public purpose. The Amending Rules are applicable to the Commonwealth and the newly formed WSA Co Limited, which was incorporated as an Australian Public Company on 8 August 2017 and is tasked with building, developing, and operating Western Sydney Airport. The legislative authority for the formation of WSA Co is provided by the Airports Act 1996. The Amending Rules have a national jurisdictional reach as they pertain to Commonwealth entities and companies. There are no stated exclusions or exemptions in these Rules, and they come into effect on the day after registration. The Rules extend the application of the PGPA Act to WSA Co Limited by amending the PGPA Rule to include WSA Co Limited as a GBE. Additionally, a statement of compatibility with human rights has been provided, confirming that the Rules do not engage any of the rights or freedoms recognised or declared in the specified international instruments.

Key Provisions

The Public Governance, Performance and Accountability Amendment (Government Business Enterprise) Rules 2017 (Amending Rules) primarily amend the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) by adding WSA Co Limited (WSA Co) to the list of entities and companies prescribed as a government business enterprise (GBE) under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Section 8 of the PGPA Act defines a GBE as a specific type of entity or company established and owned by the Commonwealth to fulfil a public purpose in the delivery of services or operation of infrastructure. WSA Co, formed on 7 August 2017, is incorporated as an Australian Public Company, Limited by Shares and registered with the Australian Securities and Investments Commission. The legislative authority for forming WSA Co is provided by the Airports Act 1996, and it was established to build, develop and operate Western Sydney Airport. The Amending Rules impose several obligations and requirements on WSA Co and other relevant entities. By designating WSA Co as a GBE, the Rules subject the company to the regulatory framework set out in the PGPA Act and PGPA Rule. This includes compliance with the PGPA Act's provisions concerning financial reporting, auditing, and performance management. Additionally, WSA Co must adhere to the administrative guidelines and policies established by the Commonwealth to ensure that it operates efficiently and effectively in achieving its public purpose. The Rules also impose consequences for non-compliance with the requirements imposed by the PGPA Act and PGPA Rule. Although the specific offences, penalties, or civil/criminal consequences are not detailed in the Amending Rules, the PGPA Act generally provides for a range of enforcement mechanisms. These include financial penalties, corrective orders, and, in severe cases, criminal charges. The maximum penalties for offences under the PGPA Act can vary depending on the nature and severity of the breach but can include substantial fines and, for individuals, imprisonment. Compliance with the Act is crucial to avoid these potential consequences and ensure that WSA Co fulfils its intended public purpose effectively. In conclusion, the Public Governance, Performance and Accountability Amendment (Government Business Enterprise) Rules 2017 play a crucial role in integrating WSA Co Limited into the regulatory framework established by the PGPA Act. By doing so, the Rules ensure that WSA Co, as a GBE, operates within the parameters set forth by the Commonwealth, thereby maintaining accountability and transparency in the delivery of its services and infrastructure. The obligations and requirements imposed by the Rules are designed to uphold the public purpose for which WSA Co was established, while the potential penalties for non-compliance serve as a deterrent against deviations from the prescribed standards.