EXPLANATORY STATEMENT
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2016-2017 (No. 3) (the amendment determination)
Purpose of the determination
The amendment determination modifies the 2016‑2017 Appropriation Acts to support functions transferred from the Department of Education and Training to the Department of Employment in relation to shared services functions.
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 2016-2017 (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 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 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 2016-2017, 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. Item 1 of the amendment determination adds items to the table in subsection 7(2) of the Determination. The items affect relevant appropriation items in Schedule 1 to Appropriation Act (No. 1) 2016-2017 in the following way:
Item | Entity | Appropriation item | Amount previously transferred by the Determination ($) | Transfer Increase (+) / decrease (-) ($) | Amended amount transferred by the Determination ($) |
3 | Department of Employment | Departmental item | 0.00 | +5,253,000.00 | +5,253,000.00 |
4 | Department of Education and Training | Departmental item | 0.00 | -5,253,000.00 | -5,253,000.00 |
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 2016-2017 (No. 3) amends the 2016-2017 Appropriation Acts to facilitate the transfer of shared services functions from the Department of Education and Training to the Department of Employment. Enacted under the authority of the Public Governance, Performance and Accountability Act 2013, this amendment determination is designed to ensure that the reallocation of these functions does not alter the total amount appropriated by Parliament. The determination, made by officials within the Department of Finance, was prepared in consultation with the affected entities, and it ensures that the financial adjustments necessary for the transfer of functions are accurately reflected in the appropriation acts without affecting the overall budget allocation.
Scope and Application
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2016-2017 (No. 3) modifies the 2016-2017 Appropriation Acts to facilitate the transfer of specific functions from the Department of Education and Training to the Department of Employment concerning shared services. This amendment determination is enacted under section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), which empowers the Finance Minister to adjust the appropriation items in the Appropriation Acts for transfers between non-corporate Commonwealth entities. The amendment determination specifically modifies the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2016-2017, resulting in a reallocation of $5,253,000 from the Department of Education and Training to the Department of Employment. It is important to note that this amendment determination does not affect the total appropriation amount as authorised by Parliament.
Key Provisions
The main operative sections of the Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2016-2017 (No. 3) (the amendment determination) are sections that modify the 2016–2017 Appropriation Acts to support functions transferred from the Department of Education and Training to the Department of Employment in relation to shared services functions. Specifically, section 7(2) of the amendment determination adds items to the table that affect relevant appropriation items in Schedule 1 to Appropriation Act (No. 1) 2016–2017, thereby reallocating funds between the two departments. For instance, item 3 of the amendment determination increases the departmental item for the Department of Employment by $5,253,000, while item 4 decreases the departmental item for the Department of Education and Training by the same amount. These adjustments ensure that the total amount appropriated by Parliament remains unchanged, but reallocates funds to reflect the transfer of functions.
The amendment determination imposes obligations on the Department of Employment and the Department of Education and Training to ensure that the reallocation of funds aligns with the transfer of shared services functions. This includes managing the increased funding for the Department of Employment to cover the costs associated with the transferred functions, while the Department of Education and Training must account for the reduced funding. Additionally, both departments must ensure that the reallocation of funds does not impact the overall budget approved by Parliament and that the changes are accurately reflected in their financial records.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the amendment determination for breaching its provisions. However, any failure to comply with the reallocation of funds or mismanagement of the transferred functions could potentially lead to broader accountability issues under the Public Governance, Performance and Accountability Act 2013. While the amendment determination itself does not specify penalties, non-compliance with the PGPA Act could result in disciplinary actions, financial penalties, or other consequences as outlined in the legislation. Given that the amendment determination is made under section 75 of the PGPA Act, which is exempt from disallowance under subsection 75(7) of the PGPA Act, it is important for both departments to adhere strictly to the requirements set forth to avoid any repercussions.