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 (2026 Measures No. 1) Rules 2026
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) establishes a framework for the use and management of public resources by the Commonwealth and relevant entities.
Section 85 of the 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 a company of a kind prescribed by the rules whose objects or proposed activities are of a kind prescribed by the rules. 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 PGPA Relevant Company Rule).
The Public Governance, Performance and Accountability (Relevant Company) Amendment (2026 Measures No. 1) Rules 2026 (the Amendment Rules) amend the PGPA Relevant Company Rule to add a new item at the end of the table at section 5. The new item prescribes a relevant company of a kind that is limited by shares and whose objects or proposed activities are to:
- design, build, commission, operate or undertake activities related to; or
- acquire and hold interests in entities that are responsible for designing, building, commissioning, operating or undertaking activities related to;
a high voltage electricity interconnector between Tasmania and Victoria.
This amendment provides the legislative authority for the Commonwealth’s involvement in a relevant company of this kind with the objects and proposed activities prescribed.
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 commence on the day after registration on the Federal Register of Legislation.
Consultation
In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Climate Change, Energy, the Environment and Water. No concerns were raised during this process.
The Amendment Rules were drafted by the Office of Parliamentary Counsel.
Details of the Public Governance, Performance and Accountability (Relevant Company) Amendment (2026 Measures No. 1) Rules 2026
Section 1 – Name
This section provides that the title of the instrument is the Public Governance, Performance and Accountability (Relevant Company) Amendment (2026 Measures No. 1) Rules 2026 (the Amendment Rules).
Section 2 – Commencement
This section provides that the Amendment Rules 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 the Public Governance, Performance and Accountability (Relevant Company) Rule 2016 (the PGPA Relevant Company Rule) is amended as set out in the Schedule to the Amendment Rules.
Schedule 1 – Amendments
Public Governance, Performance and Accountability (Relevant Company) Rule 2016
Item 1 – Section 5 (at the end of the table)
This item amends the table of relevant companies in section 5 of the PGPA Relevant Company Rule by adding a new kind of relevant company. The new kind of relevant company that is prescribed is a company of a kind that is limited by shares whose objects or proposed activities are to:
- design, build, commission, operate or undertake activities related to; or
- acquire and hold interests in entities that are responsible for designing, building, commissioning, operating or undertaking activities related to;
a high voltage electricity interconnector between Tasmania and Victoria.
This amendment will provide the Finance Minister with legislative authority under paragraph 85(1)(a) of the PGPA Act to, on behalf of the Commonwealth, form or participate in forming, a relevant company as prescribed by this item.
The forming of the new company which undertakes the activities as prescribed will support the arrangements for a corporate restructure of Marinus Link Pty Ltd, which is jointly owned by the Commonwealth, the State of Victoria and the State of Tasmania. Through the current tripartite ownership of Marinus Link Pty Ltd, the three governments are overseeing the delivery of the Marinus Link project, which is an underground and undersea electricity cable connecting Tasmania to Victoria. The new relevant company to be known as Marinus Link Holding Company Pty Ltd will be formed to be a holding company for Marinus Link Pty Ltd. This corporate restructure will enable the shareholders of Marinus Link Pty Ltd to meet the security conditions required to receive long‑term concessional financing from the Clean Energy Finance Corporation.
The new relevant company will not be a Commonwealth company for the purposes of section 89 of the PGPA Act.
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 (Relevant Company) Amendment (2026 Measures No. 1) Rules 2026
The Public Governance, Performance and Accountability (Relevant Company) Amendment (2026 Measures No. 1) Rules 2026 (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 the use and management of public resources by the Commonwealth and relevant entities.
Section 85 of the 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 a company of a kind prescribed by the rules whose objects or proposed activities are of a kind prescribed by the rules. 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 PGPA Relevant Company Rule).
The Amendment Rules amends the PGPA Relevant Company Rule to add a new item at the end of the table at section 5. The new item prescribes a relevant company of a kind that is limited by shares and whose objects or proposed activities are to:
- design, build, commission, operate or undertake activities related to; or
- acquire and hold interests in entities that are responsible for designing, building, commissioning, operating or undertaking activities related to;
a high voltage electricity interconnector between Tasmania and Victoria.
This amendment provides the Finance Minister, on behalf of the Commonwealth, the legislative authority, under paragraph 85(1)(a) of the PGPA Act to, form, or participate in forming, a relevant company as prescribed by this item.
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.
Senator the Hon Katy Gallagher
Minister for Finance