EXPLANATORY STATEMENT
Issued by the Authority of the Acting Minister for Finance
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability Rule 2014
Public Governance, Performance and Accountability Amendment (Services Australia) Rules 2020
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 (Services Australia) Rules 2020 (Amendment Rules) amends Schedule 1 to the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) to prescribe Services Australia as a listed entity for the purposes of the finance law as defined by the PGPA Act.
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 commence on 1 February 2020.
Consultation
In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Social Services, Services Australia and the Department of the Prime Minister and Cabinet.
Details of the Public Governance, Performance and Accountability Amendment (Services Australia) Rules 2020
Section 1 – Name
This section provides that the title of this instrument is the Public Governance, Performance and Accountability Amendment (Services Australia) Rules 2020.
Section 2 – Commencement
This section provides that this instrument commences on 1 February 2020.
Section 3 – Authority
This section provides that this instrument is made under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Section 4 – Schedules
This section provides that the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) is amended as set out in the Schedule 1 to this instrument.
Schedule 1 – Amendments
Public Governance, Performance and Accountability Rule 2014
Item 1 – Schedule 1 (at the end of the Schedule)
This item prescribes Services Australia as a listed entity in Schedule 1 to the PGPA Rule. Services Australia will continue to be a non‑corporate Commonwealth entity for the purposes of the PGPA Act.
This is consistent with the Government’s decision to alter the governance arrangements of Services Australia with the entity ceasing as a Department of State and continuing as an Executive Agency under the Public Service Act 1999 (PS Act). This decision was reflected in the Administrative Arrangements Order made on 5 December 2019 with effect from 1 February 2020.
The new clause 22 sets out the accountable authority, officials and purposes of Services Australia, which will comprise of the Chief Executive Officer and persons engaged under the PS Act to assist the Chief Executive Officer. Services Australia will continue to be responsible for the design, development, delivery and co-ordination of government services and payments relating to social security, child support, students, families, aged care and health programs (excluding health provider compliance).
Services Australia was established as an Executive Agency under section 65 of the PS Act by the Order to Establish Services Australia as an Executive Agency (Order), made on 5 December 2019, to effect the change in governance arrangements commencing on 1 February 2020. The Order specifies the functions for Services Australia which are listed in the new clause 22 as the entity’s purposes for the finance law.
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 (Services Australia) Rules 2020
The Public Governance, Performance and Accountability Amendment (Services Australia) Rules 2020 (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 Minister for Finance may make rules by legislative instrument to prescribe matters giving effect to the Act.
The legislative instrument amends the Public Governance, Performance and Accountability Rule 2014 made under the PGPA Act by prescribing Services Australia as a listed entity for the purposes of the finance law.
Human rights implications
The Amendment Rules do not engage any of the applicable rights or freedoms.
Conclusion
The Amendment Rules are compatible with human rights as they do not raise any human rights issues.
The Hon Christian Porter MP
Attorney-General
Acting for the Minister for Finance