Public Governance, Performance and Accountability (Relevant Company) Amendment (2026 Measures No. 1) Rules 2026

Administered by Department of Finance

Legislation au F2026L00521 Rules 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 (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

Overview

The Public Governance, Performance and Accountability (Relevant Company) Amendment (2026 Measures No. 1) Rules 2026 were enacted to provide legislative authority for the Commonwealth’s involvement in a relevant company focused on the development, construction, and operation of a high voltage electricity interconnector between Tasmania and Victoria. This legislative instrument amends the Public Governance, Performance and Accountability (Relevant Company) Rule 2016 by adding a new kind of relevant company to the list prescribed by the rules. Specifically, the amendment allows the Finance Minister to form or participate in forming a relevant company limited by shares, the activities of which are related to the design, construction, commissioning, operation, or management of a high voltage electricity interconnector between the two states. The enacting body for these rules is the Parliament of Australia, with the Minister for Finance having the authority to make these rules under Section 101 of the Public Governance, Performance and Accountability Act 2013. The policy objective is to facilitate the corporate restructuring of Marinus Link Pty Ltd, enabling the project to meet security conditions for receiving long-term concessional financing from the Clean Energy Finance Corporation. These Amendment Rules are compatible with human rights as outlined in the Human Rights (Parliamentary Scrutiny) Act 2011, with no engagement of applicable rights or freedoms. The rules aim to support the Marinus Link project, an essential infrastructure development connecting Tasmania and Victoria, thereby promoting energy security and sustainability while ensuring compliance with the legislative framework governing public resource management.

Scope and Application

The Public Governance, Performance and Accountability (Relevant Company) Amendment (2026 Measures No. 1) Rules 2026 amends the Public Governance, Performance and Accountability (Relevant Company) Rule 2016 to prescribe a new kind of relevant company that is limited by shares and is involved in designing, building, commissioning, operating, or undertaking activities related to a high voltage electricity interconnector between Tasmania and Victoria. This amendment is made under the authority provided by the Public Governance, Performance and Accountability Act 2013, allowing the Minister for Finance to form or participate in forming a relevant company on behalf of the Commonwealth. The new relevant company, Marinus Link Holding Company Pty Ltd, will serve as a holding company for Marinus Link Pty Ltd, facilitating the corporate restructure necessary to meet security conditions for long-term concessional financing from the Clean Energy Finance Corporation. The amendment is compatible with human rights, as it does not engage any of the rights or freedoms recognised in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011. The Amendment Rules provide the legislative framework necessary for the Commonwealth's involvement in the new company, ensuring that the activities related to the high voltage electricity interconnector between Tasmania and Victoria are managed within the established public governance and accountability standards. The rules will come into effect on the day after they are registered on the Federal Register of Legislation, following the necessary consultation with relevant departments. This amendment ensures that the Commonwealth can effectively participate in the critical infrastructure project, supporting the energy connectivity between the two states.

Key Provisions

The Public Governance, Performance and Accountability (Relevant Company) Amendment (2026 Measures No. 1) Rules 2026 (the Amendment Rules) amend the Public Governance, Performance and Accountability (Relevant Company) Rule 2016 to include a new type of relevant company. Specifically, the Amendment Rules introduce a company limited by shares that is engaged in designing, building, commissioning, operating, or undertaking activities related to a high voltage electricity interconnector between Tasmania and Victoria. This amendment provides the Finance Minister with the legislative authority to form or participate in forming such a relevant company on behalf of the Commonwealth, as stipulated under section 85 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The Amendment Rules impose specific obligations on the parties and entities they govern. They require that any company limited by shares involved in the specified activities must be prescribed as a relevant company under the PGPA Relevant Company Rule. This ensures that such companies are subject to the governance and accountability frameworks established by the PGPA Act. Additionally, these companies must adhere to the rules and standards set forth by the Finance Minister, who is empowered to make rules under section 101 of the PGPA Act. Breach of the obligations imposed by the Amendment Rules may lead to various consequences. Under the PGPA Act, any failure to comply with the governance, performance, and accountability standards could result in administrative or judicial actions. While the Amendment Rules do not specify particular penalties, the PGPA Act generally provides for civil or criminal penalties, including fines and imprisonment, for breaches of its provisions. The exact penalties depend on the nature and severity of the breach, as well as the specific provisions of the PGPA Act that are contravened. The Amendment Rules are compatible with human rights as recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. The explanatory statement confirms that the Amendment Rules do not engage any of the applicable rights or freedoms and, therefore, do not raise any human rights issues. This compatibility ensures that the Amendment Rules can be implemented without infringing on the human rights and freedoms of individuals or entities.

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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.