EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability Amendment
(Independent Parliamentary Expenses Authority) Rules 2017
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 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 (Independent Parliamentary Expenses Authority) Rules 2017 (IPEA Rule) would amend the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) to make the Independent Parliamentary Expenses Authority (IPEA) a listed entity.
Schedule 1 – Listed entities of the PGPA Rule prescribes certain bodies, persons, groups of persons or organisations to be listed entities under the PGPA Act. This amendment creates an item in Schedule 1 of the PGPA Rule to list the IPEA.
The functions of the IPEA are set out in subsection 6(5) of the Public Service (Establishment of Independent Parliamentary Expenses Authority) Order 2017 (the Order). The IPEA is responsible for giving authoritative advice, administering, monitoring, reporting on and auditing of Members of Parliament work expenses and travel entitlements of their staff.
The Order and the listing of IPEA in the PGPA Rule are intended as the first stage of providing for a reformed legislative framework for parliamentary work expenses. The IPEA would transition to a statutory authority, under the same name, comprising a Chair and members who would oversee the statutory functions of the IPEA, supported by the Chief Executive Officer and employees of the authority.
Details of the IPEA Rule are set out at Attachment A. A statement of compatibility with human rights is at Attachment B.
The IPEA Rule is a legislative instrument for the purposes of the Legislative Instruments Act 2003 and is a disallowable instrument.
Consultation
The amendments relating to Schedule 1 of the PGPA Rule were developed in consultation with the Department of the Prime Minister and Cabinet.
The amendment listing the IPEA as a non-corporate Commonwealth entity was developed in response to the Governor-General approving the Order to name the IPEA and specify its functions as an Executive Agency under the Public Service Act 1999 on 9 February 2017.
Attachment A
Details of the Public Governance, Performance and Accountability Amendment (Independent Parliamentary Expenses Authority) Rules 2017
Section 1—Name of rule
This section provides that the title of the rule is the Public Governance, Performance and Accountability Amendment (Independent Parliamentary Expenses Authority) Rules 2017 (IPEA Rule).
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, sections 1 to 4 of the IPEA Rule will commence on the day after it is registered on the Federal Register of Legislation, with Schedule 1 of the IPEA Rule commencing the IPEA as listed entity on 3 April 2017.
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
Public Governance, Performance and Accountability Rule 2014
Item 1 – After clause 11 of Schedule 1
This item inserts, after clause 11, a clause including the Independent Parliamentary Expenses Authority as a listed entity under the PGPA Act. This creates clear and separate responsibility for public resources utilised by the Executive Agency created by the Public Service (Establishment of Independent Parliamentary Expenses Authority) Order 2017 (the Order) issued by the Governor-General on 9 February 2017.
This new item 11A Independent Parliamentary Expenses Authority sets out the composition, name, accountable authority, officials and the purposes of the PGPA Act entity. These are consistent with the Order.
The IPEA will comprise the Chief Executive Officer (CEO) of the IPEA, Australian Public Service employees and any persons (including those known as members of the IPEA) engaged to assist with performing the functions of the IPEA. It will also include members of any body established to assist the CEO, who is the accountable authority of the entity, in governing the entity.
The IPEA has responsibility for giving authoritative advice, administering, monitoring, reporting on and auditing certain activities of Members of Parliament and their staff. These activities are referred to as MP work expense matters, or MOPS travel expenditure matters, and are defined in the Order. The responsible Minister may specify the scope of the advisory, administrative and monitoring functions of the IPEA that relate to Members of Parliament through instructions to the Chief Executive Officer. The responsible Minister may also specify the frequency of the IPEA’s reporting.
Where the IPEA provides advice about a particular matter, its employees, as well as any other officials who may be administering those matters, will generally administer the law or matter in accordance with that advice. (The limited exception to this general rule is in circumstances where a court has determined that IPEA’s advice was incorrect.) This will assist to provide certainty about what types of work expenses parliamentarians and their staff are able to claim.
To support the transition of functions to the IPEA, the definitions of MP work expense matter and MOPS travel expenditure matter in section 4 of the Order specify that matters that occur before, on, or after 3 April 2017 are included. This will enable the IPEA to perform its functions in relation to matters that relate to a period before it commences operations.
The IPEA would also be able to undertake activities subsequent to those listed as the responsible Minister may require, or that may be required by a law of the Commonwealth.
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 (Independent Parliamentary Expenses Authority) Rules 2017
The Public Governance, Performance and Accountability Amendment (Independent Parliamentary Expenses Authority) Rules 2017 (IPEA Rule) 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 IPEA Rule would amend the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) made under the PGPA Act.
The IPEA Rule would make an amendment to insert Item 11A in Schedule 1 to the PGPA Rule to add the Independent Parliamentary Expenses Authority as a listed entity under the PGPA Act. This creates clear and separate responsibility for public resources utilised by the Executive Agency created by the Public Service (Establishment of Independent Parliamentary Expenses Authority) Order 2017 (the Order) issued by the Governor-General on 9 February 2017.
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