EXPLANATORY STATEMENT
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2015-2016 (No. 7) (the amendment determination)
Purpose of the determination
The amendment determination modifies the 2015‑2016 Appropriation Acts to transfer appropriations in relation to shared services functions:
from the Department of Education and Training to the Department of Employment and the Department of Finance; and
from the Department of Employment to the Department of Finance.
The amendment determination is made under section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to amend the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2015‑2016 (the Determination).
The amendment determination results in no change to the total amount appropriated by Parliament.
Commencement
The amendment determination commences on the day after registration.
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, sub‑delegated this power to certain officials within the Department of Finance, including the official who made the determination.
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 8 of the Legislation 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 Legislation 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 Chapter 3, Part 1 of the Legislation Act 2003, the affected entities were consulted in the preparation of the amendment determination.
Summary of Modifications
1. Items 1 and 2 of the amendment determination repeal and substitute items to the table in subsection 6(3) of the Determination. The items affect relevant appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2015‑2016 in the following way:
Item | Entity | Appropriation item | Amount previously transferred by the Determination ($) | Amount transferred by the amendment determination ($) | Amended amount transferred by the Determination ($) |
10 | Department of Education and Training | Departmental item | +44,904,000.00 | -7,477,000.00 | +37,427,000.00 |
39 | Department of Finance | Departmental item | -837,000.00 | +3,168,000.00 | +2,331,000.00 |
Note: A positive amount reflects an increase in an appropriation item and a negative amount reflects a decrease in an appropriation item.
2. Item 3 adds an item to the table in subsection 6(3) of the Determination. The item affects the relevant appropriation item in Schedule 1 to the Appropriation Act (No. 1) 2015‑2016 in the following way:
Item | Entity | Appropriation item | Amount previously transferred by the Determination ($) | Amount transferred by the amendment determination ($) | Amended amount transferred by the Determination ($) |
44 | Department of Employment | Departmental item | 0.00 | +4,309,000.00 | +4,309,000.00 |
Note: A positive amount reflects an increase in an appropriation item and a negative amount reflects a decrease in an appropriation item.
Overview
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2015-2016 (No. 7), enacted under the Public Governance, Performance and Accountability Act 2013, addresses the need to reallocate appropriations among various departments for shared services functions. This amendment was necessary to ensure that the functions and their associated funding were appropriately aligned with the entities responsible for their delivery. The amendment transfers appropriations from the Department of Education and Training to the Department of Employment and the Department of Finance, and from the Department of Employment to the Department of Finance. This reallocation maintains the total appropriation amount as initially approved by Parliament. The determination was made by officials within the Department of Finance, who were sub-delegated this authority by the Finance Minister under the PGPA Act. The amendment determination does not require a Statement of Compatibility with Human Rights, as it is exempt from disallowance. Consultation with the affected entities was conducted in accordance with the Legislation Act 2003 to ensure that the changes were appropriately considered and implemented.
Scope and Application
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2015-2016 applies to appropriations under the Appropriation Act (No. 1) 2015-2016, facilitating the transfer of funds among certain departments within the Commonwealth government. Specifically, it affects the Department of Education and Training, the Department of Employment, and the Department of Finance, reallocating funds for shared services functions. This amendment is made under section 75 of the Public Governance, Performance and Accountability Act 2013, with no overall change to the total appropriations approved by Parliament. The amendment determination operates within the Commonwealth jurisdiction and follows the provisions of the Legislation Act 2003. Notably, it does not require a Statement of Compatibility with Human Rights, as it is exempt from disallowance under the PGPA Act. Consultations with the relevant departments were conducted in accordance with the Legislation Act 2003 before drafting the amendment.
Key Provisions
The main operative sections of the Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2015-2016 (No. 7) (the amendment determination) involve the transfer of appropriations related to shared services functions. Specifically, sections 1 and 2 of the amendment determination involve the re-allocation of funds from the Department of Education and Training to the Department of Employment and the Department of Finance, as well as from the Department of Employment to the Department of Finance. This amendment does not alter the total amount appropriated by Parliament, but rather re-directs the appropriations according to the new structure of departmental responsibilities.
In terms of obligations and requirements, the amendment determination imposes a clear transfer of financial responsibility from one entity to another. The Department of Education and Training, for example, will see a reduction in its appropriation by $7,477,000, which is transferred to the Department of Finance. Conversely, the Department of Finance will see an increase in its appropriation by $2,331,000. Similarly, the Department of Employment, which previously had no appropriation item in this context, will now receive an appropriation of $4,309,000 from the Department of Finance. This reallocation is intended to better align the financial resources with the entities that are responsible for the shared services functions.
The amendment determination also outlines specific legal consequences for non-compliance, although the primary focus is on the financial transfers and reallocations. If any entity fails to adhere to the specified transfer amounts or timelines, it could potentially face legal repercussions, including financial penalties or other enforcement actions. However, the amendment determination itself does not specify particular penalties or enforcement mechanisms beyond the financial adjustments outlined.
It is important to note that, under section 75(7) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), determinations such as this one are exempt from disallowance, meaning that they do not require a Statement of Compatibility with Human Rights as per the Human Rights (Parliamentary Scrutiny) Act 2011. This exemption is due to the nature of the determination being a transfer of appropriations rather than a legislative change that could impact human rights. The amendment determination was prepared in consultation with the affected entities, ensuring that the changes reflect the current operational requirements and responsibilities of the involved departments.