Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No. 1) Rules 2017

Administered by Department of Finance

Legislation au F2017L00294 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 (Relevant Company) Rule 2016

 

Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No.1) Rules 2017

 

Section 85 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) provides the Finance Minister with the authority to form, or participate in forming a relevant company on behalf of the Commonwealth or to acquire shares or become a member of a relevant company in circumstances that would result in the relevant company becoming a Commonwealth company.  

 

Subsection 85(2) of the PGPA Act provides that a relevant company is prescribed, by kind and its objects or proposed activities, by a rule.  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. Relevant companies are prescribed in the Public Governance, Performance and Accountability (Relevant Company) Rule 2016 (the Relevant Company Rule).

 

The Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No.1) Rules 2017 (the Amendment Rules) amends the Relevant Company Rules to add two relevant companies: the first to assist with increasing the professional standards of financial advisers; the second to manage infrastructure to support shipbuilding and submarine programs.

 

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 the day after registration on the Federal Register of Legislation.

 

Consultation

 

The Amendment Rules have been prepared in consultation with the Department of the Treasury and relevant areas within the Department of Finance.

 


Attachment A

 

Details of the Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No.1) Rules 2017

Section 1—Name

This section provides that the title of the Rules is the Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No. 1) Rules 2017 (the Amendment Rules).

 

Section 2—Commencement

This section provides that the Amendment Rules will commence on the day after they are registered on the Federal Register of Legislation.

 

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 (Relevant Company) Rule 2016

Item 1—Section 5 (at the end of the table)

This item prescribes two kinds of relevant companies to the table of relevant companies in section 5 of the Relevant Company Rule.

The first relevant company prescribed will assist with increasing the professional standards of financial advisers, including by assisting with the setting of education and training standards and ethical standards.  Prescribing this relevant company provides the Finance Minister with authority under paragraph 85(1)(a) of the PGPA Act to form or participate in forming a relevant company for the prescribed purposes. Prescribing this relevant company also supports a new power in the Corporations Act 2001 (added by Corporations Legislation Amendment (Professional Standards of Financial Advisers) Act 2017), which provides the Minister for Revenue and Financial Services with the power to declare any such relevant company that is formed, to be a financial services standards body.

The second relevant company prescribed will assist with managing infrastructure assets to support current and future shipbuilding and submarine programs.  Prescribing this relevant company will provide the Finance Minister with authority under paragraph 85(1)(b) of the PGPA Act to acquire shares or become a member of an existing company.  In particular prescribing this relevant company enables the Finance Minister to acquire shares in subsidiary of the ASC Pty Ltd to perform the prescribed purposes.  The acquired company will become a Commonwealth company, and will be renamed Australian Naval Infrastructure Pty Ltd.


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 (Relevant Company) Amendment (2017 Measures No.1) 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 (Relevant Company) Rule 2016 to provide the Commonwealth with the legislative authority to form, or participate in forming in a new company to support increasing professional standards of financial advisers.  

 

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 they do not raise any human rights issues.

 

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance

 

Overview

The Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No.1) Rules 2017 were enacted to amend the Public Governance, Performance and Accountability (Relevant Company) Rule 2016. This legislative instrument was introduced by the Australian Parliament to address the need for the Commonwealth to have the authority to form or participate in the formation of specific companies to achieve certain objectives. The amendment was necessary to provide the Finance Minister with the authority to form a relevant company to support the enhancement of professional standards among financial advisers and another relevant company to manage infrastructure for shipbuilding and submarine programs. The policy objective is to ensure that the Commonwealth can effectively regulate and participate in entities that are critical to the national interest, particularly in areas requiring high professional standards and strategic infrastructure management. The Amendment Rules were made under section 101 of the Public Governance, Performance and Accountability Act 2013, which empowers the Finance Minister to prescribe matters by legislative instrument to give effect to the Act. These rules amend the Relevant Company Rule to include two new kinds of relevant companies, thereby expanding the scope of entities that can be established or acquired by the Commonwealth. The amendment supports the government’s initiatives in improving financial advisory standards and managing critical infrastructure, ensuring alignment with national security and economic interests. The Amendment Rules are compatible with human rights, as confirmed by the Statement of Compatibility with Human Rights, which indicates that they do not impinge on any applicable rights or freedoms.

Scope and Application

The Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No.1) Rules 2017 amends the Public Governance, Performance and Accountability (Relevant Company) Rule 2016 to prescribe two new relevant companies under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The first company will assist in enhancing the professional standards of financial advisers, including setting education, training, and ethical standards. This amendment enables the Finance Minister to form or participate in forming this company to support the new power in the Corporations Act 2001, which allows the Minister for Revenue and Financial Services to declare such a company as a financial services standards body. The second company will manage infrastructure assets to support current and future shipbuilding and submarine programs, allowing the Finance Minister to acquire shares or become a member of an existing company, which will then become a Commonwealth company and be renamed Australian Naval Infrastructure Pty Ltd. These Amendment Rules provide the legislative authority necessary for the Commonwealth to engage in these specified activities. The Amendment Rules are a legislative instrument made under section 101 of the PGPA Act, and they come into effect on the day after they are registered on the Federal Register of Legislation. The rules have been prepared in consultation with the Department of the Treasury and relevant areas within the Department of Finance. Importantly, the Amendment Rules do not impose any exclusions, exemptions, or thresholds beyond those already specified in the PGPA Act or the Relevant Company Rule 2016. A Statement of Compatibility with Human Rights, included in Attachment B, confirms that these rules are compatible with the human rights and freedoms recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Public Governance, Performance and Accountability (Relevant Company) Amendment (2017 Measures No. 1) Rules 2017 primarily serves to add new categories of relevant companies under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Section 4 of these Amendment Rules specifies two new kinds of relevant companies. The first is a company intended to enhance the professional standards of financial advisers, with a focus on establishing education and training standards as well as ethical standards (Section 4, Schedule 1, Item 1). The second is a company tasked with managing infrastructure assets to support current and future shipbuilding and submarine programs (Section 4, Schedule 1, Item 1). These additions allow the Finance Minister to either form new companies or acquire shares in existing ones under Sections 85(1)(a) and 85(1)(b) of the PGPA Act, respectively. These Amendment Rules impose certain obligations and requirements on the Finance Minister and relevant entities. The Finance Minister must ensure that any new companies formed or shares acquired align with the prescribed purposes outlined in the Amendment Rules. For companies involved in enhancing professional standards of financial advisers, the Minister must work towards setting and maintaining education, training, and ethical standards. For infrastructure management companies, the focus must be on supporting shipbuilding and submarine programs. Both companies must comply with the regulations set forth in the PGPA Act and any other relevant legislation. The Amendment Rules do not explicitly state any new offences or penalties for non-compliance. However, any breach of the PGPA Act or failure to adhere to the prescribed purposes could potentially lead to legal consequences under the existing framework of the PGPA Act. This might include administrative or judicial review, financial penalties, or other corrective measures as deemed necessary by the relevant authorities. The exact nature and severity of penalties would be determined based on the specific circumstances and the provisions of the PGPA Act.

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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.