EXPLANATORY STATEMENT
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2014-2015 (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 2014-2015 (the primary determination), dated 30 January 2015, 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 Social Services, in relation to early childhood and childcare; the former Department of Industry to the Department of Education and Training, in relation to vocational education and training; and the former Department of Industry to the Department of the Treasury, in relation to small business programmes.
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 2014-2015, 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 table of amendments of appropriation items at subsection 5(4) in the primary determination provides an aggregation of appropriation items for each affected agency, rather than the individual items. The amendment determination amends items to the table in section 5 of the primary determination by the amounts in the table below, which sets out the individual appropriation transfers.
The amendment determination affects relevant appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2014-2015 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.
Agency affected | Item affected | Transfer to ($ ’000) | Transfer from ($ ’000) |
Department of Social Services | Administered item, Outcome 2 | +72,686 | |
Department of Education and Training | Administered item, Outcome 1 | | -72,686 |
Department of Education and Training | Administered item, Outcome 3 | +140,366 | |
Department of Industry and Science | Administered item, Outcome 1 | | -140,366 |
Department of Social Services | Departmental item | +10,938 | |
Department of Education and Training | Departmental item | | -10,938 |
Department of Education and Training | Departmental item | +11,512 | |
Department of Industry and Science | Departmental item | | -11,512 |
Department of the Treasury | Departmental item | +374 | |
Department of Industry and Science | Departmental item | | -374 |
| | +235,876 | -235,876 |
Overview
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2014-2015 was enacted to adjust appropriations to non-corporate Commonwealth entities in response to changes in the Administrative Arrangements Order made on 23 December 2014. This amendment determination was introduced under section 75 of the Public Governance, Performance and Accountability Act 2013 by the Secretary of the Department of Finance, who has been delegated this authority by the Finance Minister. The primary objective of this amendment determination is to ensure that the appropriations are appropriately aligned with the transfers of functions between various departments, specifically in relation to early childhood and childcare, vocational education and training, and small business programmes. The amendment determination, which is a legislative instrument as defined by the Legislative Instruments Act 2003, commenced on the day after its registration and does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance. The preparation of this amendment determination involved consultation with the affected agencies as per the Legislative Instruments Act 2003.
Scope and Application
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2014-2015 (No. 1) amends the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2014-2015 to adjust appropriations to support functions transferring between certain non-corporate Commonwealth entities. Specifically, the amendment determination addresses the reallocation of appropriations resulting from the Administrative Arrangements Order made on 23 December 2014. It modifies appropriations related to early childhood and childcare moving from the former Department of Education to the Department of Social Services, vocational education and training shifting from the former Department of Industry to the Department of Education and Training, and small business programmes transitioning from the former Department of Industry to the Department of the Treasury. The amendment determination applies to the appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2014-2015, ensuring that the total amount appropriated by Parliament remains unchanged. The amendment determination commences on the day after it is registered and is made under the authority of section 75 of the Public Governance, Performance and Accountability Act 2013.
Key Provisions
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2014-2015 (No. 1) amends the appropriations to non-corporate Commonwealth entities in response to the Administrative Arrangements Order made on 23 December 2014. Specifically, it adjusts appropriations to support functions transferring from the former Department of Education to the Department of Social Services, from the former Department of Industry to the Department of Education and Training, and from the former Department of Industry to the Department of the Treasury. This amendment ensures that the financial resources align with the new responsibilities of these entities as a result of the departmental restructuring. The determination modifies the primary determination dated 30 January 2015, under section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
The Act imposes certain obligations and requirements on the entities affected by the amendment determination. The Department of Social Services, Department of Education and Training, and Department of the Treasury must ensure that their appropriations reflect the changes as set out in the amendment determination. This includes the need for accurate financial tracking and reporting to align with the new allocation of resources. Additionally, the Department of Industry and Science, which is transferring funds to other departments, must comply with the financial adjustments specified in the determination. Proper documentation and accounting practices are required to facilitate the smooth transition of financial responsibilities.
Failure to comply with the provisions of the amendment determination may lead to financial mismanagement and potential legal repercussions. Although the determination itself does not explicitly state penalties for non-compliance, breaches of the PGPA Act or related administrative arrangements could result in civil or criminal consequences. Under the PGPA Act, individuals found guilty of breaches may face fines and imprisonment. For instance, section 111 of the PGPA Act provides for a maximum penalty of five years imprisonment or a fine of up to $180,000, or both, for serious breaches involving fraud, corruption, or other unlawful conduct. Additionally, the amendment determination being a legislative instrument, any non-compliance could also result in administrative penalties as prescribed under the Legislative Instruments Act 2003.