Overview

The Public Governance, Performance and Accountability Amendment (Services Australia) Rules 2020 were enacted to address the legislative framework for Services Australia, a non-corporate Commonwealth entity responsible for delivering government services and payments. The Act, originally passed in 2013, establishes a comprehensive regulatory structure for managing resources within the Commonwealth and its related entities. The amendment rules were introduced to align with the governance changes of Services Australia, which transitioned from a Department of State to an Executive Agency under the Public Service Act 1999. The Public Governance, Performance and Accountability Amendment (Services Australia) Rules 2020 were made under the authority of the Minister for Finance, ensuring that Services Australia is appropriately prescribed as a listed entity for finance law purposes. The rules came into effect on 1 February 2020, following consultations with relevant departments and entities, and are consistent with the human rights obligations as stated in the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The Public Governance, Performance and Accountability Amendment (Services Australia) Rules 2020 amends the Public Governance, Performance and Accountability Rule 2014 to prescribe Services Australia as a listed entity for the purposes of the finance law, as defined by the Public Governance, Performance and Accountability Act 2013. This legislative instrument applies to Services Australia, a non-corporate Commonwealth entity, which is responsible for the design, development, delivery, and coordination of government services and payments related to social security, child support, students, families, aged care, and health programs (excluding health provider compliance). The Amendment Rules came into effect on 1 February 2020, aligning with the decision to alter the governance arrangements of Services Australia by transitioning it from a Department of State to an Executive Agency under the Public Service Act 1999. The Order to Establish Services Australia as an Executive Agency, made on 5 December 2019, specifies the functions of Services Australia, which are listed as its purposes for the finance law. The Amendment Rules do not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011, and are therefore compatible with human rights. The Amendment Rules extend the application of the PGPA Act to Services Australia by including it as a listed entity in the PGPA Rule. This ensures that Services Australia is subject to the finance law framework established by the PGPA Act, thereby regulating its resource management by the Commonwealth. The Amendment Rules are a legislative instrument for the purposes of the Legislation Act 2003, and were developed following consultation with relevant departments and entities, including the Department of Social Services, Services Australia, and the Department of the Prime Minister and Cabinet. This ensures that the Amendment Rules appropriately address the governance changes to Services Australia and comply with the legislative requirements under the PGPA Act.

Key Provisions

The Public Governance, Performance and Accountability Amendment (Services Australia) Rules 2020 make amendments to the Public Governance, Performance and Accountability Rule 2014, which in turn is made under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The Amendment Rules (Section 4) specify that the PGPA Rule is amended as outlined in Schedule 1, which lists Services Australia as a prescribed entity for the purposes of the finance law. This amendment reflects the change in governance arrangements for Services Australia, where it will cease to be a Department of State and continue as an Executive Agency under the Public Service Act 1999 (PS Act) (Item 1). These rules impose certain obligations on Services Australia, requiring it to adhere to the governance and financial management frameworks set out in the PGPA Act. Services Australia is mandated to comply with the PGPA Act's provisions on accountability, reporting, and resource management. It must ensure that its operations are transparent, efficient, and aligned with the objectives of the PGPA Act. The rules specify the roles and responsibilities of the accountable authority, which includes the Chief Executive Officer and any other persons engaged under the PS Act to assist the Chief Executive Officer (new clause 22). In terms of consequences for non-compliance, the PGPA Act itself does not specify penalties for breaches of the rules made under it. However, non-compliance with the PGPA Act can lead to significant administrative, financial, and reputational consequences for Services Australia. These may include audits, investigations, and potential legal action under other applicable legislation. Furthermore, failure to comply with the finance law requirements could result in financial penalties or the imposition of corrective measures by the relevant authorities. The Amendment Rules also include a Statement of Compatibility with Human Rights, prepared in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011. This statement confirms that the Amendment Rules do not engage any of the applicable rights or freedoms recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011. As such, the Amendment Rules are considered compatible with human rights as they do not raise any human rights issues. This statement is an assurance to the public and stakeholders that the legislative changes do not infringe upon any fundamental human rights.