EXPLANATORY STATEMENT
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2013-2014 (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 2013-2014, dated 24 September 2014 (primary determination), and amended by Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2013-2014 (No. 1), dated 30 January 2014, 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 Education to the Department of the Social Services, in relation to early childhood and childcare; and the former Department of Industry to the Department of Education and Training, in relation to vocational education and training.
Commencement
The amendment determination commences on the day after it is registered.
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 Social Services | Departmental item | +12,447 | |
Department of Education and Training | Departmental item | | -12,447 |
| Total | +12,447 | -12,447 |
2. The amendment determination adds a table as section 7 of the primary determination. The items in the table affect relevant appropriation items in Schedule 2 to the Appropriation Act (No. 2) 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 Education and Training | Other departmental item (Equity Injections) | +3,860 | |
Department of Industry and Science | Other departmental item (Equity Injections) | | -3,860 |
| Total | +3,860 | -3,860 |
3. The amendment determination adds a table as section 8 of the primary determination. The items in the table affect relevant appropriation items in Schedule 2 to the Appropriation Act (No. 4) 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 Education and Training | Other departmental item (Equity Injections) | +14,255 | |
Department of Industry and Science | Other departmental item (Equity Injections) | | -14,255 |
| Total | +14,255 | -14,255 |
Overview
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2013-2014 (No. 2) was enacted to address the need for adjustments to appropriations as a result of the transfer of certain functions between non-corporate Commonwealth entities. This amendment determination was introduced to align with the Administrative Arrangements Order made on 23 December 2014, specifically affecting the transfer of early childhood and childcare functions from the former Department of Education to the Department of Social Services, and vocational education and training functions from the former Department of Industry to the Department of Education and Training. The amendment determination was made under section 75 of the Public Governance, Performance and Accountability Act 2013, with the authority to make such determinations delegated by the Finance Minister to the Secretary of the Department of Finance, who further sub-delegated this power to certain officials within the Department. This legislative instrument ensures the smooth reallocation of resources to support the transferred functions without altering the total amount appropriated by Parliament.
Scope and Application
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2013-2014 (No. 2) is a legislative instrument designed to adjust appropriations for specific functions transferred between non-corporate Commonwealth entities in response to the Administrative Arrangements Order made on 23 December 2014. This amendment determination is made under section 75 of the Public Governance, Performance and Accountability Act 2013 and amends the primary determination dated 24 September 2014, as well as its first amendment dated 30 January 2014. The amendment determination targets the reallocation of funds related to early childhood and childcare services, moving them from the former Department of Education to the Department of Social Services, and vocational education and training services, moving them from the former Department of Industry to the Department of Education and Training. The adjustment of appropriations is detailed in the determination and is intended to ensure that the total amount appropriated by Parliament remains unchanged, with increases in some areas offset by decreases in others. The amendment determination is effective from the day after its registration and is exempt from disallowance, thus not requiring a Statement of Compatibility with Human Rights. Consultation with the affected agencies was conducted in line with the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2013-2014 (No. 2) (the amendment determination) involve adjustments to appropriations for specific functions transferred between non-corporate Commonwealth entities. These adjustments are detailed in sections 5, 7, and 8 of the primary determination, which have been amended by this amendment. Section 5 adjusts the appropriation for early childhood and childcare functions transferring from the Department of Education to the Department of Social Services by $12,447,000. Section 7 pertains to equity injections for vocational education and training functions, adjusting the appropriation by $3,860,000 from the Department of Industry to the Department of Education and Training. Finally, section 8 further adjusts the appropriation for equity injections related to vocational education and training by $14,255,000, again from the Department of Industry to the Department of Education and Training. These adjustments are made in response to the Administrative Arrangements Order of 2014 and ensure that the total amount appropriated by Parliament remains unchanged.
The amendment determination imposes obligations on the Finance Minister and relevant departments to ensure the proper allocation and management of appropriations following the transfer of functions. Specifically, it mandates that the Department of Social Services and the Department of Education and Training must adjust their departmental appropriations to reflect the new allocation of funds for early childhood and childcare, as well as equity injections for vocational education and training. The Finance Minister, under section 75 of the PGPA Act, has the authority to determine these adjustments, while the Secretary of the Department of Finance, under section 107, has delegated this power to certain officials. These officials are responsible for implementing the adjustments detailed in sections 5, 7, and 8 of the primary determination.
There are no explicit offences, penalties, or civil/criminal consequences outlined in the amendment determination for breaches of the provisions. However, any failure to comply with the adjustments as specified could potentially lead to financial mismanagement or misallocation of funds, which may result in further legislative scrutiny or administrative action. The Finance Minister and relevant departments are obligated to ensure the adjustments are accurately reflected in the appropriations, and any discrepancies or non-compliance could be subject to review under the PGPA Act or other relevant legislation.