Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2012-2013 (No. 2)

Administered by Department of Finance

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EXPLANATORY STATEMENT

Public Governance, Performance and Accountability Act 2013

Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2012-2013 (No. 2) (the amendment determination)

Purpose of the determination

The amendment determination is made under section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to further amend Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2012-2013, dated 24 September 2014 (primary determination), and amended by Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2012-2013 (No. 1), dated 27 March 2015, to adjust amounts appropriated to non-corporate Commonwealth entities, in response to the Administrative Arrangements Order (AAO) made on 30 September 2015.

The amendment determination modifies appropriations to support functions transferring from the Department of Communications and the Arts (previously known as the Department of Broadband, Communications and the Digital Economy) to the Department of Industry, Innovation and Science (previously known as Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education or the Department of Industry, Innovation, Science, Research and Tertiary Education), in relation to national policy issues relating to the digital economy.

The determination results in no change to the total amount appropriated by Parliament.

Commencement

The amendment determination commences on 5 November 2015.

Authority for the determination

Section 75 of the PGPA Act enables the Finance Minister to determine that one or more Schedules to one or more Appropriation Acts are modified in a specified way in relation to the transfer of a function from one non-corporate Commonwealth entity to another.

Under section 107 of the PGPA Act, the Finance Minister has delegated the power to make determinations under section 75 to the Secretary of the Department of Finance. Under section 109 of the PGPA Act, the Secretary has, in turn, subdelegated this power to certain officials within the Department of Finance, including the official who made the determination.

The amendment determination is a legislative instrument for the purposes of section 5 of the Legislative Instruments Act 2003. The amendment determination amends Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2012-2013, which is a legislative instrument for the purposes of section 5 of the Legislative Instruments Act 2003.

Statement of Compatibility with Human Rights

A Statement of Compatibility with Human Rights is not required for the amendment determination. 
Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under
section 42 of the Legislative Instruments Act 2003. A determination, including an amendment determination, under section 75 of the PGPA Act is exempt from disallowance under subsection 75(7) of the PGPA Act. As such, a Statement of Compatibility with Human Rights is not required.

Consultation

Consistent with Part 3 of the Legislative Instruments Act 2003, the affected entities were consulted in the preparation of the amendment determination.

Summary of Modifications

  1.           In accordance with the AAO made on 30 September 2015, the amendment determination repeals and substitutes section 7 of the primary determination that states that references to Departments in each of the 2012-13 Appropriation Acts have effect as if it refers to:
  • Department of Education and Training instead of Department of Education, Employment and Workplace Relations; and
  • Department of Industry, Innovation and Science instead of Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education or the Department of Industry, Innovation, Science, Research and Tertiary Education; and
  • Department of Communications and the Arts instead of the Department of Broadband, Communications and the Digital Economy.

2.              The amendment determination adds a table as section 9 of the primary determination. The items in the table affects relevant appropriation items in Schedule 1 to the Appropriation Act (No. 3) 20122013 in the following way, which results in no change to the total amount appropriated by Parliament. A positive amount reflects an increase in an appropriation item, and a negative amount reflects a decrease in an appropriation item.

 

 

Entity affected

Item affected

Transfer to

($ ’000)

Transfer from

($ ’000)

Department of Industry, Innovation and Science

Departmental item

+540

 

Department of Communications and the Arts

Departmental item

 

-540

 

Overview

The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2012-2013 (No. 2) was enacted to adjust appropriations to non-corporate Commonwealth entities in response to the Administrative Arrangements Order made on 30 September 2015. This amendment was necessary to modify appropriations to support functions transferring from the Department of Communications and the Arts to the Department of Industry, Innovation and Science, specifically in relation to national policy issues concerning the digital economy. This determination was made under section 75 of the Public Governance, Performance and Accountability Act 2013 and was authorised by the Finance Minister, with the power delegated to the Secretary of the Department of Finance and subsequently to certain officials within the department. The amendment determination ensures no change to the total amount appropriated by Parliament and commenced on 5 November 2015. The process involved consultation with the affected entities as required by the Legislative Instruments Act 2003.

Scope and Application

The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2012-2013 (No. 2) applies to appropriations under the Public Governance, Performance and Accountability Act 2013, specifically in relation to the transfer of functions between non-corporate Commonwealth entities. This amendment determination is made in response to the Administrative Arrangements Order of 30 September 2015, which involved the transfer of functions from the Department of Communications and the Arts to the Department of Industry, Innovation and Science. The determination affects the appropriations allocated to these entities for the financial year 2012-2013, adjusting the amounts in accordance with the transfers without altering the overall appropriations set by Parliament. The amendment is geographically confined to the Commonwealth level, impacting only federal entities and their functions. The amendment determination does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the PGPA Act. Consultations with the affected entities were conducted as per the Legislative Instruments Act 2003.

Key Provisions

The main operative sections of this amendment determination are sections 7 and 9, which involve the repeal and substitution of section 7 of the primary determination, and the addition of a new section 9. Section 7 (referenced in the primary determination) now refers to the Department of Industry, Innovation and Science instead of the previous Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education or the Department of Industry, Innovation, Science, Research and Tertiary Education. Section 9, newly added by this amendment, provides a table that details specific appropriations adjustments in response to the Administrative Arrangements Order made on 30 September 2015. These adjustments include a transfer of $540,000 from the Department of Communications and the Arts to the Department of Industry, Innovation and Science, with no overall change to the total amount appropriated by Parliament. The obligations imposed by this Act on the parties or entities it governs include the necessity to comply with the appropriations adjustments outlined in section 9 of the amendment determination. Specifically, the Department of Communications and the Arts must transfer $540,000 to the Department of Industry, Innovation and Science, and this transfer must be reflected in their financial records and reporting. Conversely, the Department of Industry, Innovation and Science must account for the receipt of this amount in their financial management practices. Both entities are required to ensure that these adjustments are accurately reflected in their respective budgets and financial statements for the 2012-2013 financial year. There are no explicit offences, penalties, or civil/criminal consequences outlined in this amendment determination for non-compliance with the appropriations adjustments. However, failure to adhere to the financial management and reporting requirements as dictated by the Public Governance, Performance and Accountability Act 2013 could potentially lead to broader administrative or financial oversight issues. Such issues might result in the need for corrective action or further scrutiny from relevant oversight bodies. The primary focus of this amendment determination is to ensure that the appropriations are correctly adjusted in line with the transfer of functions, rather than to impose punitive measures for non-compliance.

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