Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2015-2016 (No. 1)

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 2015-2016 (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 2015-2016 (the primary determination), dated 30 October 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 adjusts Appropriation Act (No. 1) 2015-2016 and Appropriation Act (No. 2) 2015-2016 to support functions transferring:

         from the Attorney-General’s Department to the Department of Communications and the Arts (previously known as the Department of Communications), in relation to censorship, copyright, and cultural affairs, including movable cultural heritage and support for the arts;

         from the Department of Communications and the Arts to the Department of Industry, Innovation and Science (previously known as the Department of Industry and Science), in relation to national policy issues relating to the digital economy;

         from the Department of Finance to the Department of the Prime Minister and Cabinet in relation to public data policy, including Gov 2.0 and related matters;

         from the Department of Human Services to the Department of Health, in relation to Medicare provider compliance;

         from the Department of Industry, Innovation and Science to the Department of the Environment, in relation to renewable energy technology development; and

         from the Department of the Treasury to the Department of Industry, Innovation and Science, in relation to Northern Australia policy and coordination.

 

The amendment 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 2015-2016, 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, item 1 of the amendment determination modifies subsection 5(2) of the primary determination so that references to Portfolio names in Appropriation Act (No. 1) 2015-2016 and Appropriation Act (No. 2) 2015-2016 have effect as if:
  • Communications is referred to as Communications and the Arts; and
  • Industry and Science is referred to as Industry, Innovation and Science.

 

2.                   Also, references to Department names in Appropriation Act (No. 1) 2015-2016 and Appropriation Act (No. 2) 2015-2016 have effect as if:

  • the Department of Communications is referred to as the Department of Communications and the Arts; and
  • the Department of Industry and Science is referred to as the Department of Industry, Innovation and Science.

 

3.                   Item 2 of the amendment determination adds paragraph 6(2)(d) to the primary determination so that Appropriation Act (No. 1) 2015-2016 has effect as if the following Outcome was included in Schedule 1 for the Department of Communications and the Arts:

 

Outcome 2

Participation in, and access to, Australia’s arts and culture through developing and supporting cultural expression

 

4.                   The text for Outcome 2 for the Department of Communications and the Arts is the same as the text of Outcome 2 for the Attorney-General’s Department, and reflects the transfer of the cultural affairs function, including movable cultural heritage and support for the arts to the Department of Communications and the Arts. Replicating the text of the relevant Outcome for the gaining entity ensures that the purposes in which Parliament appropriated for the transferred function remains unchanged.

 

5.                   Item 3 of the amendment determination adds subsection 6(2A) to the primary determination so that Appropriation Act (No. 1) 2015-2016 has effect as if the following corporate entity items were included in the Communications and the Arts Portfolio:

  •    Australia Council
  •    Australian Film, Television and Radio School
  •    Australian National Maritime Museum
  •    National Film and Sound Archive of Australia
  •    National Gallery of Australia
  •    National Library of Australia
  •    National Museum of Australia
  •    National Portrait Gallery of Australia
  •    Screen Australia

6.                   As per Schedule 1 of Appropriation Act (No. 1) 2015-2016, appropriations in relation to the above corporate entities were available to the Attorney-General’s Portfolio, for payment to the corporate entities. Accordingly, to recognise the transfer of function to the Communications and the Arts Portfolio for cultural affairs, including movable cultural heritage and support for the arts, the amendment determination has effect as if the relevant corporate entity items were included for the Communications and the Arts Portfolio.

 

7.                   Items 4 and 5 of the amendment determination modify items in the table in subsection 6(3) of the primary determination to reflect the transfer of appropriations between entities affected by the AAO.  The table in subsection 6(3) in the primary determination provides an aggregation of appropriation items for each affected entity, rather than the individual items.

 

8.                   In item 4 in the amendment determination, the modification of subsection 6(3) table item 4 (Department of the Environment) is calculated as the offsetting amounts for both table item 3 (Department of Agriculture and Water Resources) in the primary determination and a portion of table item 34 (Department of Industry, Innovation and Science) in the amendment determination as follows:

Entity affected

Item affected

Table item 4

($’000)

Table items 3 and 34

($’000)

Department of Agriculture and Water Resources

Departmental item

 

+15,711

Department of the Environment

Departmental item

-15,711

 

Department of the Environment

Departmental item

+4,688

 

Department of Industry, Innovation and Science

Departmental item

 

-4,688

 

 

-11,023

+11,023

 

9.                   The individual transfer amounts for the aggregated amount in table item 34, including the portion related to the transfer noted above to the Department of the Environment, affecting the departmental item in the Appropriation Act (No. 1) 2015-2016 for the Department of Industry, Innovation and Science are as follows:

Entity affected

Item affected

Transfer to

($’000)

Transfer from

($’000)

Department of Industry, Innovation and Science

Departmental item

 

-4,688

Department of Industry, Innovation and Science

Departmental item

+2,453

 

Department of Industry, Innovation and Science

Departmental item

+1,000

 

 

10.               In item 5 in the amendment determination, the modification of subsection 6(3) table item 9 (Department of Health) is calculated as the offsetting amounts for a portion of table item 11 (Department of Social Services) in the primary determination and table item 12 (Department of Human Services) in the amendment determination as follows:

Entity affected

Item affected

Table item 9

($’000)

Table items 11 and 12

($’000)

Department of Social Services

Departmental item

 

-55,001

Department of Health

Departmental item

+55,001

 

Department of Health

Departmental item

+28,830

 

Department of Human Services

Departmental item

 

-28,830

 

 

+83,831

-83,831

 

11.               Item 6 of the amendment determination adds items to the table in subsection 6(3) of the primary determination. The items in the table affect relevant appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2015-2016 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.

 

12.               The table in the amendment determination provides an aggregate of the transfer amounts for each affected appropriation item, rather than the individual transfer amounts. While the table in the amendment determination is stated in the $thousands ($’000), the table below sets out the individual transfer amounts in dollars and cents for each affected appropriation item:

 

Entity affected

Item affected

Transfer to

($)

Transfer from

($)

Department of Health

Departmental item

+28,830,000.00

 

Department of Human Services

Departmental item

 

-28,830,000.00

Department of Communications and the Arts

Administered item, Outcome 2

+94,970,000.00

 

Attorney-General’s Department

Administered item, Outcome 2

 

-94,970,000.00

Department of Communications and the Arts

Corporate entity item, Australia Council

+49,526,000.00

 

Attorney-General’s Department

Corporate entity item, Australia Council

 

-49,526,000.00

Department of Communications and the Arts

Corporate entity item, Australian Film, Television and Radio School

+14,033,834.00

 

Attorney-General’s Department

Corporate entity item, Australian Film, Television and Radio School

 

-14,033,834.00

Department of Communications and the Arts

Corporate entity item, Australian National Maritime Museum

+7,330,000.00

 

Attorney-General’s Department

Corporate entity item, Australian National Maritime Museum

 

-7,330,000.00

Department of Communications and the Arts

Corporate entity item, National Film and Sound Archive

+13,895,000.00

 

Attorney-General’s Department

Corporate entity item, National Film and Sound Archive

 

-13,895,000.00

Department of Communications and the Arts

Corporate entity item, National Library of Australia

+29,300,000.00

 

Attorney-General’s Department

Corporate entity item, National Library of Australia

 

-29,300,000.00

Department of Communications and the Arts

Corporate entity item, National Museum of Australia

+18,301,000.00

 

Attorney-General’s Department

Corporate entity item, National Museum of Australia

 

-18,301,000.00

Department of Communications and the Arts

Corporate entity item, National Portrait Gallery of Australia

+5,505,000.00

 

Attorney-General’s Department

Corporate entity item, National Portrait Gallery of Australia

 

-5,505,000.00

Department of Communications and the Arts

Corporate entity item, Screen Australia

+6,002,000.00

 

Attorney-General’s Department

Corporate entity item, Screen Australia

 

-6,002,000.00

Department of the Environment

Administered item, Outcome 2

+182,180,000.00

 

Department of Industry, Innovation and Science

Administered item, Outcome 1

 

-182,180,000.00

Department of Industry, Innovation and Science

Administered item, Outcome 1

+2,192,000.00

 

Department of Communications and the Arts

Administered item, Outcome 1

 

-2,192,000.00

Department of the Environment

Departmental item

+4,688,000.00

 

Department of Industry, Innovation and Science

Departmental item

 

-4,688,000.00

Department of Industry, Innovation and Science

Departmental item

+2,453,000.00

 

Department of Communications and the Arts

Departmental item

 

-2,453,000.00

Department of Communications and the Arts

Departmental item

+13,801,000.00

 

Attorney-General’s Department

Departmental item

 

-13,801,000.00

Department of Industry, Innovation and Science

Departmental item

+1,000,000.00

 

Department of the Treasury

Departmental item

 

-1,000,000.00

Department of the Prime Minister and Cabinet

Departmental item

+323,000.00

 

Department of Finance

Departmental item

 

-323,000.00

 

 

+474,329,834.00

-474,329,834.00

 

 

13.               Item 7 of the amendment determination inserts subsection 7(2A) to the primary determination so that Schedule 2 to Appropriation Act (No. 2) 2015-2016 has effect as if the following corporate entity items were included in the Communications and the Arts Portfolio:

  •    Australian National Maritime Museum
  •    National Film and Sound Archive of Australia
  •    National Gallery of Australia
  •    National Library of Australia
  •    National Museum of Australia
  •    National Portrait Gallery of Australia

 

14.               This recognises the corporate entities affected by the transfer of function from the Attorney-General’s Portfolio to the Communications and the Arts Portfolio relating to cultural affairs, including movable cultural heritage and support for the arts.

 

15.               Item 8 adds items to the table at subsection 7(3) in the primary determination. The new items affect relevant appropriation items in Schedule 2 to Appropriation Act (No. 2) 2015-2016 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.

 

16.               While the table in the amendment determination is stated in the $thousands ($’000), the table below sets out the individual transfer amounts in dollars and cents for each affected appropriation item:

Entity affected

Item affected

Transfer to

($)

Transfer from

($)

Department of Communications and the Arts

Corporate entity item, Australian National Maritime Museum

+396,915.00

 

Attorney-General’s Department

Corporate entity item, Australian National Maritime Museum

 

-396,915.00

Department of Communications and the Arts

Corporate entity item, National Library of Australia

+5,649,000.00

 

Attorney-General’s Department

Corporate entity item, National Library of Australia

 

-5,649,000.00

 

 

+6,045,915.00

-6,045,915.00

 

Overview

The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2015-2016 (No. 1) was enacted in response to the need to adjust appropriations for non-corporate Commonwealth entities following the Administrative Arrangements Order (AAO) of 30 September 2015. The determination, made under section 75 of the Public Governance, Performance and Accountability Act 2013, amends the primary determination of 30 October 2015 to redistribute funds among various departments to align with the new administrative arrangements. This includes the reallocation of functions related to censorship, copyright, cultural affairs, the digital economy, public data policy, Medicare provider compliance, renewable energy technology development, and Northern Australia policy and coordination. The amendment determination ensures that the total amount appropriated by Parliament remains unchanged, and it was authorised by the Finance Minister, who delegated this power to the Secretary of the Department of Finance. The amendment determination, which commenced on 5 November 2015, is a legislative instrument exempt from disallowance, and therefore, a Statement of Compatibility with Human Rights is not required. The affected entities were consulted in preparing this determination.

Scope and Application

The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2015-2016 amends the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2015-2016 under section 75 of the Public Governance, Performance and Accountability Act 2013. This amendment determination applies to non-corporate Commonwealth entities that have undergone functional transfers as specified in the Administrative Arrangements Order made on 30 September 2015. The entities affected include, but are not limited to, the Department of Communications and the Arts, the Department of Industry, Innovation and Science, the Department of the Environment, the Department of Health, the Department of the Prime Minister and Cabinet, and the Department of Finance. The amendment ensures the appropriations are correctly allocated in line with these transfers, without altering the total amount appropriated by Parliament. The amendment determination commenced on 5 November 2015 and is a legislative instrument exempt from disallowance, thus no Statement of Compatibility with Human Rights is required. Consultations with the affected entities were conducted in line with the Legislative Instruments Act 2003. The amendment determination modifies the references in the Appropriation Acts to reflect the new portfolio names and departmental functions, ensuring clarity and proper allocation of funds in accordance with the specified transfers.

Key Provisions

The main operative sections of the Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2015-2016 (No. 1) (the amendment determination) adjust appropriations in the Appropriation Act (No. 1) 2015-2016 and Appropriation Act (No. 2) 2015-2016 in response to the Administrative Arrangements Order (AAO) made on 30 September 2015. The amendment determination modifies references to certain department names and portfolio names, adds new Outcome descriptions, and updates the list of corporate entities within specific portfolios. These changes ensure that the reallocation of funds due to the transfer of functions between departments aligns with the purposes for which Parliament originally appropriated the funds. The amendment determination results in no change to the total amount appropriated by Parliament. The amendment determination imposes several obligations on the parties and entities it governs. Firstly, it mandates that the references to department names and portfolio names in the Appropriation Acts be updated to reflect the changes resulting from the AAO. This includes renaming the Department of Communications to the Department of Communications and the Arts and the Department of Industry and Science to the Department of Industry, Innovation and Science. Secondly, it requires the inclusion of specific Outcomes and corporate entities within the affected portfolios to ensure that the reallocation of funds remains true to the original purposes for which they were appropriated. This includes adding Outcome 2 for the Department of Communications and the Arts and updating the list of corporate entities within the Communications and the Arts Portfolio. Any breach of the provisions of this amendment determination could lead to administrative consequences. However, the amendment determination does not explicitly state penalties or consequences for non-compliance. The absence of specified penalties or consequences suggests that enforcement and compliance are likely to be managed through administrative oversight and review processes, ensuring that the reallocation of funds remains within the legal and budgetary frameworks established by the Parliament. The amendment determination, commencing on 5 November 2015, is made under section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), enabling the Finance Minister to modify appropriations in relation to the transfer of functions between non-corporate Commonwealth entities. This authority is further delegated to the Secretary of the Department of Finance, who has sub-delegated this power to certain officials within the Department. The amendment determination is a legislative instrument under the Legislative Instruments Act 2003 and amends the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2015-2016. Importantly, the amendment determination is exempt from disallowance, and hence, a Statement of Compatibility with Human Rights is not required. The preparation of the amendment determination involved consultation with the affected entities, consistent with the Legislative Instruments Act 2003.

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