EXPLANATORY STATEMENT
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2018‑2019 (No. 2) (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 health grants administration functions from the Department of Health to the Department of Social Services for the Community Grants Hub 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 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
1. Item 1 of the amendment determination repeals and substitutes item 6 in the table in subsection 6(4) of the Determination. The item affects the relevant appropriation item 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 ($) |
6 | Department of Health | Departmental item | -11,454,000.00 | -39,155,000.00 | -50,609,000.00 |
Note: A positive amount reflects an increase in an appropriation item and a negative amount reflects a decrease in an appropriation item.
2. Item 2 of the amendment determination adds item 7 to the table in subsection 6(4) of the Determination. The item affects the relevant appropriation item in Schedule 1 to the Appropriation Act (No. 1) 2018‑2019 in the following way:
Item | Entity | Appropriation item | Amount previously transferred by the Determination ($) | Amount transferred by the amendment determination ($) | Amended amount transferred by the Determination ($) |
7 | Department of Social Services | Departmental item | 0.00 | +39,155,000.00 | +39,155,000.00 |
Overview
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2018-2019 (No. 2) was enacted to address the administrative transfer of health grants from the Department of Health to the Department of Social Services. The determination, made under section 75 of the Public Governance, Performance and Accountability Act 2013, ensures that there is no overall change to the total amount appropriated by Parliament, despite the reallocation of funds between the two departments. This adjustment was necessitated by the transfer of the Community Grants Hub functions on 1 September 2018. The amendment determination was enacted by the Parliament of Australia and was designed to streamline and clarify the allocation of funds without altering the total appropriation. The objective was to facilitate a seamless transition of responsibilities while maintaining fiscal discipline and transparency in the allocation of public funds.
Scope and Application
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2018-2019 (No. 2) pertains to the adjustment of appropriations allocated to non-corporate Commonwealth entities, specifically in response to the transfer of health grants administration functions from the Department of Health to the Department of Social Services for the Community Grants Hub on 1 September 2018. This amendment determination is made under section 75 of the Public Governance, Performance and Accountability Act 2013 and is intended to ensure that there is no alteration to the total amount appropriated by Parliament. The Finance Minister, under the authority granted by section 75 of the PGPA Act, has delegated the power to make such determinations to the Secretary of the Department of Finance, who in turn has sub-delegated this power to certain officials within the department. The amendment determination modifies the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2018-2019 by adjusting the appropriation amounts between the Department of Health and the Department of Social Services, reflecting the reallocation of functions.
This amendment determination applies specifically to the transfer of funds within the Commonwealth and does not extend to state or territory entities. It is noteworthy that a Statement of Compatibility with Human Rights is not required for this determination, as it is exempt from disallowance under subsection 75(7) of the PGPA Act. Consultation with the affected entities was undertaken in accordance with the requirements of Chapter 3, Part 1 of the Legislation Act 2003. The substantive changes include a reduction in the appropriation for the Department of Health and an equivalent increase for the Department of Social Services, ensuring that the overall appropriations remain unchanged.
Key Provisions
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2018-2019 (No. 2) amends the amounts appropriated to non-corporate Commonwealth entities in response to the transfer of health grants administration functions from the Department of Health to the Department of Social Services. The amendment determination primarily involves the adjustment of appropriation items within the Appropriation Act (No. 1) 2018-2019, ensuring that the total appropriation remains unchanged while redistributing funds between the affected departments.
Section 6(4) of the amendment determination makes two significant modifications. Firstly, it repeals and substitutes item 6 in the table of the Determination, affecting the Department of Health's appropriation item. Specifically, the amendment reduces the previously transferred amount by an additional $39,155,000.00, resulting in a total reduction of $50,609,000.00. Secondly, it adds item 7 to the table, transferring $39,155,000.00 to the Department of Social Services, which had not been previously allocated under the original Determination.
The amendment determination imposes clear obligations on the entities involved. The Department of Health is required to adjust its appropriation, reflecting the reduced funding of $50,609,000.00, while the Department of Social Services must account for the newly transferred amount of $39,155,000.00. These adjustments are to be made in accordance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act), ensuring that the changes are properly reflected in the financial records and reporting mechanisms of both departments.
The amendment determination does not specify any offences, penalties, or consequences for non-compliance. However, any failure to adhere to the appropriations as adjusted by the amendment determination could potentially result in broader accountability issues under the PGPA Act. Non-compliance with appropriation laws can lead to financial mismanagement and may attract scrutiny from the Commonwealth's audit bodies, including the Australian National Audit Office, which could recommend further action or corrective measures.