Public Governance, Performance and Accountability Amendment (Procurement by Corporate Commonwealth Entities) Rules 2017

Administered by Department of Finance

Legislation au F2017L01619 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 Rule 2014

 

Public Governance, Performance and Accountability Amendment (Procurement by Corporate Commonwealth Entities) Rules 2017

 

Section 105B of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) provides the Finance Minister with the authority to, by written instrument, make provisions about procurement by Commonwealth entities and companies.

 

Section 105B(1)(b) of the PGPA Act allows the Finance Minister to, by written instrument, make provisions about procurement for corporate Commonwealth entities who are prescribed in the rules. Corporate Commonwealth entities that the Finance Minister has designated as body corporates that are subject to the Commonwealth Procurement Rules are listed in section 30 of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).

 

The Public Governance, Performance and Accountability Amendment (Procurement by Corporate Commonwealth Entities) Rules 2017 (the Amendment Rules) amends section 30 of the PGPA Rule to add two corporate Commonwealth entities as entities prescribed to adhere to the Commonwealth Procurement Rules. The entities are the National Portrait Gallery of Australia, and the Australian Digital Health Agency.

 

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

 

The Amendment Rules will come into effect on 1 January 2018.

 

Consultation

 

The Amendment Rules has been prepared in consultation with the relevant areas within the Department of Finance, the Trade and Investment Law Branch, Department of Foreign Affairs and Trade, National Portrait Gallery of Australia and the Australian Digital Health Agency.

 


Attachment A

 

Details of the Public Governance, Performance and Accountability Amendment (Procurement by Corporate Commonwealth Entities) Rules 2017

Section 1—Name

This section provides that the title of the Rules is the Public Governance, Performance and Accountability Amendment (Procurement by Corporate Commonwealth Entities) Rules 2017 (the Amendment Rules).

 

Section 2—Commencement

This section provides that the Amendment Rules will commence on 1 January 2018.

 

Section 3—Authority

This section provides that the Amendment Rules are made under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

 

Section 4—Schedules

This section provides that each instrument that is specified in a Schedule to the Amendment Rules is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

 

Schedule 1—Amendments

Public Governance, Performance and Accountability Rule 2014

Item 1—Section 30

This item prescribes the Australian Digital Health Agency in section 30 of the PGPA Rule. The list in section 30 of the PGPA Rule prescribes the corporate Commonwealth entities that are subject to the Commonwealth Procurement Rules, or any instrument created by the Finance Minister concerning procurement that affects those corporate Commonwealth entities.

 Item 2 – Section 30

This item prescribes the National Portrait Gallery of Australia in section 30 of the PGPA Rule. The list in section 30 of the PGPA Rule prescribes the corporate Commonwealth entities that are subject to the Commonwealth Procurement Rules, or any instrument created by the Finance Minister concerning procurement that affects corporate Commonwealth entities.

 


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 (Procurement by Corporate Commonwealth Entities) Rules 2017 (the Amendment Rules) are 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 Amendment Rules amend the Public Governance, Performance and Accountability Rule 2014 to list two corporate Commonwealth entities: the National Portrait Gallery of Australia, and the Australian Digital Health Agency to prescribe them as corporate Commonwealth entities that must comply with the Commonwealth Procurement Rules.  

 

Human rights implications

The Amendment Rules do not impinge on any applicable rights or freedoms.

 

Conclusion

The Amendment Rules are compatible with human rights as the rules do not raise any human rights issues.

 

Overview

The Public Governance, Performance and Accountability Amendment (Procurement by Corporate Commonwealth Entities) Rules 2017 were enacted to enhance the regulatory framework governing procurement processes within specific corporate Commonwealth entities, in line with the Public Governance, Performance and Accountability Act 2013 (PGPA Act). This legislative instrument was introduced to address a gap in the existing procurement regulations by ensuring that the National Portrait Gallery of Australia and the Australian Digital Health Agency adhere to the Commonwealth Procurement Rules. These rules were developed under the authority of the Finance Minister and were designed to bring about uniformity and transparency in procurement practices across designated entities. The rules were formulated through consultations with relevant departments and agencies, including the Department of Finance and the Trade and Investment Law Branch, ensuring a collaborative approach to governance and accountability.

Scope and Application

The Public Governance, Performance and Accountability Amendment (Procurement by Corporate Commonwealth Entities) Rules 2017 amends the Public Governance, Performance and Accountability Rule 2014, extending the application of the Commonwealth Procurement Rules to two additional corporate Commonwealth entities. Specifically, the Amendment Rules add the National Portrait Gallery of Australia and the Australian Digital Health Agency to the list of entities prescribed in section 30 of the PGPA Rule, thereby making these entities subject to the Commonwealth Procurement Rules. This legislative amendment ensures that these two entities adhere to the same procurement regulations as other designated corporate Commonwealth entities. The Amendment Rules are a legislative instrument under the Legislation Act 2003 and came into effect on 1 January 2018. The rules were developed in consultation with relevant departments and the entities themselves, ensuring that the changes are both practical and legally sound. No exclusions, exemptions, or thresholds are specified in the Amendment Rules, which means that the listed entities must comply with the procurement rules in their entirety.

Key Provisions

The Public Governance, Performance and Accountability Amendment (Procurement by Corporate Commonwealth Entities) Rules 2017 (Amendment Rules) primarily amend the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) to include the National Portrait Gallery of Australia and the Australian Digital Health Agency as entities subject to the Commonwealth Procurement Rules. Section 1 of the Amendment Rules states the title of the rules, while Section 2 sets the commencement date of 1 January 2018. Section 3 identifies the authority under which the Amendment Rules are made, namely the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Section 4 clarifies that the rules amend or repeal specified instruments as outlined in the schedules. The Amendment Rules impose obligations on the National Portrait Gallery of Australia and the Australian Digital Health Agency to comply with the Commonwealth Procurement Rules. These rules are designed to ensure that procurement activities of these entities adhere to prescribed standards, which include transparency, accountability, and efficiency in public resource management. By being listed in section 30 of the PGPA Rule, these entities must now abide by the procurement regulations that govern other corporate Commonwealth entities, ensuring consistency in procurement practices across the Commonwealth. The Amendment Rules do not explicitly outline specific offences, penalties, or consequences for non-compliance within the rules themselves. However, non-compliance with the Commonwealth Procurement Rules could potentially lead to civil or criminal liabilities under the broader PGPA Act. The PGPA Act may include provisions for investigations, fines, and other enforcement actions for breaches of procurement regulations. The maximum penalties for such breaches would be in accordance with the PGPA Act and other relevant legislation governing public procurement. Overall, the Amendment Rules serve to integrate the National Portrait Gallery of Australia and the Australian Digital Health Agency into the existing framework for procurement by corporate Commonwealth entities, ensuring these entities follow standardised procurement processes as outlined in the Commonwealth Procurement Rules. This integration aims to enhance the efficiency and effectiveness of procurement activities within these entities, aligning them with the broader objectives of the PGPA Act.

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Area of Law
Administrative Law
Public Governance, Performance and Accountability
Instrument
Regulation
Concepts
Commencement Provisions
Regulatory Standards
Prohibited Conduct

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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.