Overview

The Public Governance, Performance and Accountability (Investment) Amendment Authorisation 2014 is a legislative instrument introduced to correct a technical error in the initial authorisation. Enacted by the Australian Government under Section 59(1)(b)(iii) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), it rectifies a mistake that inadvertently switched the investment authorisations of the Export Finance and Insurance Corporation and the Grains Research and Development Corporation. The authorisations, which are not subject to disallowance under Section 59(4) of the PGPA Act, were intended to continue the scope of investment approvals previously provided under the Commonwealth Authorities and Companies Act 1997. The amendment authorisation changes a reference in section 4 from “Part 4” to “Part 3,” effectively correcting the error and ensuring that the correct entities have the appropriate investment authorisations. The policy objective of this amendment is to maintain the integrity and effectiveness of the investment authorisations for the relevant Commonwealth entities.

Scope and Application

The Public Governance, Performance and Accountability (Investment) Amendment Authorisation 2014 applies to corporate Commonwealth entities that are authorised to invest their funds in certain financial instruments as per the Public Governance, Performance and Accountability Act 2013 (PGPA Act). This authorisation specifically amends a technical drafting error in the original Public Governance, Performance and Accountability (Investment) Authorisation 2014, ensuring that the investment authorisations for the Export Finance and Insurance Corporation and the Grains Research and Development Corporation are correctly assigned. This legislative instrument corrects the misallocation of investment authorisations that occurred due to an inadvertent error during the drafting process. The scope of the amendment is limited to the correction of this specific error and does not extend to any broader investment practices or new authorisations. The amendment is a legislative instrument that is not subject to disallowance, and it reflects the intention to continue the scope of investment approvals previously provided under the Commonwealth Authorities and Companies Act 1997.

Key Provisions

The main operative sections of the Public Governance, Performance and Accountability (Investment) Amendment Authorisation 2014, reference section 59 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). This Act allows corporate entities to invest funds that are not immediately needed for the purposes of the entity in certain instruments prescribed by the Act, or in investments approved in writing by the Finance Minister. Specifically, subparagraph 59(1)(b)(iii) of the PGPA Act empowers the Finance Minister to provide specific investment approvals for corporate Commonwealth entities. The 2014 Amendment Authorisation rectifies a technical drafting error that had inadvertently switched the investment authorisations of two corporate Commonwealth entities. This correction ensures that the authorisations now properly align with the intended entities as specified in section 4, which now correctly references “Part 3” for the Export Finance and Insurance Corporation instead of the previous erroneous reference to “Part 4” for the Grains Research and Development Corporation. The obligations and requirements imposed by the Act on the parties or entities it governs are primarily centred around the approval process for investments by corporate Commonwealth entities. Under section 59 of the PGPA Act, corporate entities must seek and obtain the necessary investment approvals from the Finance Minister for investments that fall outside the prescribed instruments. The 2014 Amendment Authorisation ensures that these approvals are correctly aligned with the respective entities, thereby preventing any potential financial mismanagement or misallocation of resources due to the technical error. This legislative instrument also clarifies the scope of permissible investments, reinforcing the importance of adherence to authorised investment instruments and procedures to maintain financial governance and accountability within the entities. Any breaches of the provisions set out in the Public Governance, Performance and Accountability Act 2013 and the 2014 Amendment Authorisation could lead to civil or criminal consequences, although the specific offences and penalties are not detailed in the Explanatory Statement. However, section 59(4) of the PGPA Act establishes these authorisations as legislative instruments that are not subject to disallowance, meaning that section 42 of the Legislative Instruments Act 2003 does not apply. This suggests that the authorisations are intended to be legally binding and enforceable, with non-compliance potentially resulting in serious repercussions for the entities involved. The consequences could include financial penalties, legal action, or other forms of administrative enforcement, depending on the nature and severity of the breach.