Public Governance, Performance and Accountability Amendment (Independent Parliamentary Expenses Authority) Rules 2017

Administered by Department of Finance

Legislation au F2017L00139 Rules Not in force Legislative Instrument

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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

 

 

Overview

The Public Governance, Performance and Accountability Amendment (Independent Parliamentary Expenses Authority) Rules 2017 were introduced to provide a legislative framework for the Independent Parliamentary Expenses Authority (IPEA), established as an Executive Agency by the Public Service (Establishment of Independent Parliamentary Expenses Authority) Order 2017. These rules were enacted by the Minister for Finance in accordance with the Public Governance, Performance and Accountability Act 2013, which provides a comprehensive framework for managing public resources by the Commonwealth and related entities. The IPEA Rule aims to ensure that the IPEA operates as a distinct entity within the PGPA Act, thereby establishing clear responsibility for managing the public resources related to parliamentary work expenses and travel entitlements. The enactment of these rules marks the initial step in transitioning the IPEA to a statutory authority, overseen by a Chair and members, supported by the Chief Executive Officer and employees of the authority. The rules were developed following consultations with the Department of the Prime Minister and Cabinet and in response to the Governor-General's approval of the order establishing the IPEA. The IPEA is responsible for providing authoritative advice, administering, monitoring, reporting on, and auditing certain activities of Members of Parliament and their staff, ensuring transparency and accountability in the use of public resources for parliamentary expenses. The rules are designed to be compatible with human rights, as they do not engage any of the applicable rights or freedoms as recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The Public Governance, Performance and Accountability Amendment (Independent Parliamentary Expenses Authority) Rules 2017 is a legislative instrument that amends the Public Governance, Performance and Accountability Rule 2014 to include the Independent Parliamentary Expenses Authority (IPEA) as a listed entity under the Public Governance, Performance and Accountability Act 2013. This amendment aims to provide a clear and separate responsibility for public resources used by the IPEA, which is an Executive Agency established under the Public Service Act 1999. The IPEA is tasked with providing authoritative advice, administering, monitoring, reporting on, and auditing certain activities of Members of Parliament and their staff, specifically regarding work expenses and travel entitlements. The Rules were developed in consultation with the Department of the Prime Minister and Cabinet and are compatible with human rights as they do not engage any of the applicable rights or freedoms. The Rules would come into effect on the day after registration on the Federal Register of Legislation, with Schedule 1 of the Rules commencing the IPEA as a listed entity on 3 April 2017. The Public Governance, Performance and Accountability Amendment (Independent Parliamentary Expenses Authority) Rules 2017 applies to the IPEA as a listed entity under the Public Governance, Performance and Accountability Act 2013. The Rules have a national reach as they are a legislative instrument of the Commonwealth of Australia. There are no stated exclusions, exemptions, or thresholds in the Rules. The scope of application may be extended or restricted through subordinate instruments, such as instructions from the responsible Minister to the Chief Executive Officer of the IPEA. The Rules are a disallowable instrument under the Legislative Instruments Act 2003.

Key Provisions

The Public Governance, Performance and Accountability Amendment (Independent Parliamentary Expenses Authority) Rules 2017 (IPEA Rule) primarily serves to amend the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) by adding the Independent Parliamentary Expenses Authority (IPEA) as a listed entity under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) (section 4). This amendment is detailed in Schedule 1 of the IPEA Rule, which inserts Item 11A into the existing schedule, thereby establishing clear and distinct responsibility for the public resources utilised by the IPEA, which was named and specified as an Executive Agency under the Public Service Act 1999 on 9 February 2017. The IPEA is tasked with providing authoritative advice, administering, monitoring, reporting on, and auditing the work expenses and travel entitlements of Members of Parliament and their staff, thereby ensuring accountability and transparency in the management of these expenses. The IPEA Rule imposes specific obligations on the IPEA, which must operate under the authority of the Chief Executive Officer (CEO) who serves as the accountable authority (section 4). The IPEA is composed of Australian Public Service employees, any persons engaged to assist with its functions, and members of any bodies established to aid the CEO in governing the entity. It is responsible for administering and monitoring the work expenses and travel entitlements of Members of Parliament and their staff in accordance with the advice it provides, unless a court determines that the advice is incorrect. The responsible Minister can specify the scope of the IPEA’s functions through instructions to the CEO and can also determine the frequency of the IPEA’s reporting. This ensures that the IPEA operates within a defined scope and provides regular updates on its activities. Failure to comply with the requirements set out in the IPEA Rule may result in civil or criminal consequences, depending on the nature of the breach. While the IPEA Rule does not explicitly detail specific penalties for non-compliance, breaches of the PGPA Act or related rules may attract penalties under the PGPA Act or other relevant legislation. These penalties can include substantial fines for individuals and organisations found in breach of the Act, as well as potential criminal sanctions for serious or wilful breaches. The severity of the penalty often depends on the nature and extent of the non-compliance, with repeat offenders or those found guilty of deliberate breaches facing more severe consequences.

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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.