EXPLANATORY STATEMENT
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2018‑2019 (No. 12) (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 Machinery of Government changes.
On 5 December 2019, the Governor-General made a new Administrative Arrangements Order (AAO) to replace the AAO made on 29 May 2019. The new AAO commenced on 1 February 2020. The amendment determination modifies the Appropriation Acts to reflect the transfer of responsibility for information and communications technology supporting the delivery of services and payments to the community from the Department of Social Services to Services Australia.
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 the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2018‑2019 (the Determination), 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
- Item 1 of the amendment determination repeals and substitutes two items in the table in subsection 6(4) of the Determination. The items affect the relevant appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2018‑2019 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 ($) |
7 | Department of Social Services | Departmental item | +35,580,900.77 | -6,984,018.06 | +28,596,882.71 |
26 | Services Australia (Executive Agency) | Departmental item | +46,301,000.00 | +6,984,018.06 | +53,285,018.06 |
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 2018-2019 was enacted to address the need for adjustments in appropriations to non-corporate Commonwealth entities following Machinery of Government changes. Specifically, this amendment determination was introduced in response to the transfer of information and communications technology responsibilities from the Department of Social Services to Services Australia, as outlined in the new Administrative Arrangements Order of 5 December 2019. This legislative instrument ensures that the total appropriation amount remains unchanged while reflecting the reallocation of responsibilities. The determination was made under the authority of section 75 of the Public Governance, Performance and Accountability Act 2013 by the Secretary of the Department of Finance, who was delegated this power. The amendment aims to align the appropriations with the new organisational structure without altering the overall budget allocation.
Scope and Application
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2018-2019 applies to adjustments of appropriations within non-corporate Commonwealth entities, specifically in response to Machinery of Government changes. The determination is made under section 75 of the Public Governance, Performance and Accountability Act 2013, allowing the Finance Minister to modify Appropriation Acts related to the transfer of functions between entities. This amendment determination reflects the transfer of information and communications technology responsibilities from the Department of Social Services to Services Australia, aligning with the new Administrative Arrangements Order that took effect on 1 February 2020. It is important to note that the amendment determination results in no overall change to the total amount appropriated by Parliament. The amendment determination operates under the legislative authority granted by the PGPA Act, with the Secretary of the Department of Finance having the power to make such determinations, delegated from the Finance Minister. The determination does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the PGPA Act.
Key Provisions
The main operative sections of the Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2018-2019 (No. 12) include the modification of appropriations due to Machinery of Government changes. Specifically, section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) empowers the Finance Minister to adjust appropriations in response to the transfer of responsibilities between non-corporate Commonwealth entities. The amendment determination modifies appropriations to reflect the transfer of information and communications technology functions from the Department of Social Services to Services Australia, following a new Administrative Arrangements Order made on 5 December 2019. The determination ensures that the total amount appropriated by Parliament remains unchanged.
The amendment determination imposes several obligations on the entities it governs. Primarily, it requires the Department of Social Services and Services Australia to adjust their appropriations in line with the changes specified in the determination. This includes ensuring that financial records and reports accurately reflect the transferred amounts. The amendment determination also necessitates that both entities comply with the updated appropriations, which now reflect their new roles and responsibilities concerning information and communications technology. Additionally, the entities must ensure that their financial management practices align with the provisions of the PGPA Act and related legislative instruments.
Breaches of the provisions set out in the amendment determination may lead to civil and criminal consequences. Although the specific offences and penalties are not detailed in the Explanatory Statement, breaches of the PGPA Act generally can result in significant penalties. Under the PGPA Act, unauthorised expenditure by a Commonwealth entity or officer can result in civil penalties, including fines and reimbursement of the amounts expended. Criminal penalties can also be imposed for serious breaches, including fines and imprisonment. The exact penalties would depend on the specific nature and severity of the breach, as outlined in the PGPA Act and other relevant legislation. The amendment determination, by ensuring compliance with the PGPA Act, helps mitigate these risks by clearly delineating the adjusted appropriations and the legal framework governing them.