EXPLANATORY STATEMENT
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2017‑2018 (No. 4) (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 adjust amounts appropriated to non-corporate Commonwealth entities, in response to
- the transfer of non-childcare services from the Department of Education and Training to the Department of Social Services on 1 July 2018; and
- the transfer of health grants administration functions from the Department of Health to the Community Grants Hub within the Department of Social Services on 1 September 2018.
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 the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2017‑2018, 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 repeals and substitutes item 5 in 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) 2017‑2018 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 ($) |
5 | Department of Social Services | Departmental item | -1,230,000.00 | +7,633,000.00 | +6,403,000.00 |
Note: A positive amount reflects an increase in an appropriation item and a negative amount reflects a decrease in an appropriation item.
2. Item 2 of the amendment determination adds items 25 and 26 to the table in subsection 6(3) of the Determination. The item affects the relevant appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2017‑2018 in the following way:
Item | Entity | Appropriation item | Amount previously transferred by the Determination ($) | Amount transferred by the amendment determination ($) | Amended amount transferred by the Determination ($) |
25 | Department of Education and Training | Departmental item | 0.00 | -104,000.00 | -104,000.00 |
26 | Department of Health | Departmental item | 0.00 | -7,529,000.00 | -7,529,000.00 |
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 2017-2018, enacted by the Australian Parliament, aims to address the need for financial adjustments following the transfer of specific services between departments. This amendment was introduced to ensure that appropriations are appropriately allocated to non-corporate Commonwealth entities after the transfer of non-childcare services from the Department of Education and Training to the Department of Social Services, as well as the transfer of health grants administration functions from the Department of Health to the Community Grants Hub within the Department of Social Services. The determination, made under section 75 of the Public Governance, Performance and Accountability Act 2013, ensures that the total appropriation amount remains unchanged while reflecting the new departmental responsibilities. The Finance Minister, authorised under the Act, delegated the power to make these determinations to officials within the Department of Finance, facilitating an orderly transition and maintaining fiscal integrity.
Scope and Application
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2017-2018 is an instrument made under section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to adjust appropriations related to the transfer of specific functions from certain Commonwealth departments to the Department of Social Services. It applies to non-corporate Commonwealth entities specifically affected by the transfers of non-childcare services from the Department of Education and Training and health grants administration functions from the Department of Health. The amendment determination ensures that the total appropriation remains unchanged while re-allocating the funds between the entities involved. This determination operates on a Commonwealth level, as it pertains to the reallocation of funds between departments within the federal government. The amendment determination does not require a Statement of Compatibility with Human Rights, as it is exempt from disallowance under the PGPA Act. The affected entities were consulted in the preparation of the amendment determination, consistent with legislative requirements.
Key Provisions
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2017-2018 (No. 4) primarily modifies the appropriation amounts allocated to certain non-corporate Commonwealth entities, in response to the transfer of specific functions and services between departments. Under this determination, the appropriations are adjusted to ensure that the total amount appropriated by Parliament remains unchanged. Specifically, Section 6(3) of the Determination is amended to reflect these changes, where certain items in the appropriation schedule are increased or decreased based on the transfers. For example, the Department of Social Services sees an increase in its appropriation by $6,403,000, while the Department of Education and Training and the Department of Health experience decreases of $104,000 and $7,529,000 respectively.
The obligations imposed by this determination are primarily on the Finance Minister and the officials within the Department of Finance who are tasked with ensuring the appropriate adjustments to appropriations are made. These officials must consult with the affected entities, such as the Department of Education and Training, the Department of Health, and the Department of Social Services, to ensure the amendments are correctly implemented and reflect the actual transfers of functions and services. The Finance Minister must ensure that the determination complies with the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and that no changes are made to the total appropriations without proper legislative authority.
The amendment determination itself does not explicitly outline offences, penalties, or consequences for breaches. However, non-compliance with the PGPA Act or failure to appropriately adjust appropriations as determined could potentially lead to legal or administrative consequences. Under the PGPA Act, significant mismanagement of public funds or failure to adhere to appropriation laws could result in penalties or other corrective measures. Although specific penalties are not mentioned in the determination, the overarching legislative framework provides for such consequences to ensure accountability and transparency in public governance and financial management.