EXPLANATORY STATEMENT
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2013-2014 (No.1) (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 amend Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2013-2014, dated 24 September 2014 (primary determination), to adjust amounts appropriated to non-corporate Commonwealth entities, in response to the Administrative Arrangements Order made on 23 December 2014.
The amendment determination adjusts appropriations to support functions transferring from the former Department of Industry to the Department of the Treasury, in relation to small business programmes.
Commencement
The amendment determination commences on 1 February 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 amended 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, sub‑delegated 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 2013-2014, 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 agencies were consulted in the preparation of the amendment determination.
Summary of Amendments
- The amendment determination adds items to the table in section 5 of the primary determination. The new items affect relevant appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2013-2014 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 the Treasury | Administered item, Outcome 1 | +100 | |
Department of Industry and Science | Administered item, Outcome 1 | | -100 |
| Total | +100 | -100 |
2. In accordance with the AAO made on 23 December 2014, the amendment determination inserts into the primary determination an amendment that states that references to Departments in each of the 2013‑14 Appropriation Acts have effect as if:
(a) the Department of Education is referred to as the Department of Education and Training; and
(b) the Department of Industry is referred to as the Department of Industry and Science.
Overview
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2013-2014 (No.1) was enacted in 2015 to amend the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2013-2014, addressing the adjustments to appropriations for non-corporate Commonwealth entities following a transfer of functions as per the Administrative Arrangements Order of 2014. This amendment was introduced to support the reallocation of resources related to small business programs from the former Department of Industry to the Department of the Treasury. Enacted by the Parliament of Australia under the authority of section 75 of the Public Governance, Performance and Accountability Act 2013, the policy objective of this amendment is to ensure the smooth transition and continued funding of programs affected by departmental restructuring, without altering the total appropriations set by Parliament. The amendment determination commenced on 1 February 2015, and it was made under the delegated authority of the Secretary of the Department of Finance.
Scope and Application
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2013-2014 applies to non-corporate Commonwealth entities specifically involved in the transfer of functions related to small business programmes. This amendment determination affects the Department of the Treasury and the Department of Industry and Science, adjusting the appropriation amounts between these entities in response to the Administrative Arrangements Order dated 23 December 2014. The amendment ensures that the total appropriated amount remains unchanged, with specific adjustments to support functions transferring from the former Department of Industry to the Department of the Treasury. The amendment determination has a Commonwealth-wide application, affecting appropriations under the Appropriation Act (No. 1) 2013-2014. The amendment determination is made under section 75 of the Public Governance, Performance and Accountability Act 2013 and is a legislative instrument for the purposes of the Legislative Instruments Act 2003. It does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the PGPA Act. The amendment determination commences on 1 February 2015.
Key Provisions
The amendment determination under section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) modifies the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2013-2014, effective from 1 February 2015. The primary purpose of the amendment is to adjust appropriations related to small business programmes, transferring functions from the former Department of Industry to the Department of the Treasury following the Administrative Arrangements Order dated 23 December 2014. Specifically, the amendment determination introduces changes in the table in section 5 of the primary determination, affecting appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2013-2014. It increases an appropriation item by $100,000 for the Department of the Treasury while decreasing a corresponding item by the same amount for the Department of Industry and Science, ensuring the total appropriated amount remains unchanged. Additionally, the amendment alters references to certain departments in the 2013-14 Appropriation Acts to reflect the new department names as per the Administrative Arrangements Order.
The amendment determination imposes specific obligations on the parties involved, primarily ensuring the correct reallocation and adjustment of appropriations to support the transfer of functions between the Department of Industry and the Department of the Treasury. The entities must comply with the amended appropriation items as specified in the determination, ensuring that financial resources are correctly allocated to reflect the transfer of responsibilities. The amendment also requires updating references in relevant appropriation acts to accurately reflect the new departmental names, facilitating clear and accurate financial tracking and reporting.
Breach of the provisions set out in the amendment determination could lead to financial mismanagement and misallocation of resources, which could potentially result in legal and administrative consequences. Although the amendment determination itself does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance, violations of the PGPA Act or other related financial management laws could result in severe penalties. For instance, under the PGPA Act, individuals or entities found to be in breach of the act’s provisions could face fines, imprisonment, or both, depending on the severity and nature of the breach. The exact penalties would be determined by the relevant courts based on the specific circumstances of any non-compliance.