EXPLANATORY STATEMENT
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2019‑2020 (No. 1) (the amendment determination)
Purpose of the determination
The amendment determination modifies the 2019‑2020 Supply Acts to adjust amounts appropriated to non-corporate Commonwealth entities in response to the Administrative Arrangements Order (AAO) made on 29 May 2019. The determination modifies the Appropriation Acts to support functions transferred within the Department of Employment, Skills, Small and Family Business in relation to the small business support functions.
The amendment determination is made under section 75 of the PGPA Act to amend the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2019‑2020 (the Determination).
The amendment determination results in no change to the total amount appropriated by Parliament.
Commencement
The amendment determination commences on 1 July 2019.
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 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 items 13 and 14 in the table in the subsection 6(4) of the Determination. The items affect relevant appropriation items in Schedule 1 to the Supply Act (No. 1) 2019‑2020 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 ($) |
13 | Department of Employment, Skills, Small and Family Business | Administered item – Outcome 1 | +4,537,917.00 | -249,917.00 | +4,288,000.00 |
14 | Department of Employment, Skills, Small and Family Business | Administered item – Outcome 2 | +320,976,416.00 | +249,917.00 | +321,226,333.00 |
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 2019-2020 (No. 1) was enacted to adjust appropriations for non-corporate Commonwealth entities following the Administrative Arrangements Order made on 29 May 2019. This amendment determination, made under section 75 of the Public Governance, Performance and Accountability Act 2013, modifies the 2019-2020 Supply Acts to support functions transferred within the Department of Employment, Skills, Small and Family Business, particularly those related to small business support. This adjustment does not change the overall amount appropriated by Parliament and is intended to ensure that the funding aligns with the new administrative arrangements. The determination is an outcome of the delegation of powers from the Finance Minister to officials within the Department of Finance, as stipulated in the PGPA Act. It is important to note that no Statement of Compatibility with Human Rights is required for this determination, as it is exempt from disallowance under the PGPA Act.
Scope and Application
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2019-2020 modifies the 2019-2020 Supply Acts to adjust amounts appropriated to non-corporate Commonwealth entities in response to the Administrative Arrangements Order made on 29 May 2019. This amendment determination is made under section 75 of the Public Governance, Performance and Accountability Act 2013 to modify the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2019-2020. The purpose of this amendment is to support functions transferred within the Department of Employment, Skills, Small and Family Business in relation to the small business support functions, ensuring that there is no change to the total amount appropriated by Parliament. The amendment determination applies to the entities affected by the Administrative Arrangements Order and the specific appropriation items in Schedule 1 to the Supply Act (No. 1) 2019-2020. It does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the PGPA Act. The amendment determination commenced on 1 July 2019, following consultation with the affected entities as required by the Legislation Act 2003.
Key Provisions
The main operative sections of the Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2019-2020 (No. 1) (the amendment determination) involve modifications to appropriations for non-corporate Commonwealth entities, specifically within the Department of Employment, Skills, Small and Family Business. Under section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the Finance Minister has the authority to adjust the amounts appropriated to these entities in response to administrative arrangements orders. The amendment determination (Item 1) repeals and substitutes items 13 and 14 in the table of the Determination, which impacts specific appropriation items in Schedule 1 to the Supply Act (No. 1) 2019-2020. For instance, for the Department of Employment, Skills, Small and Family Business, the amendment results in a reduction of $249,917 in Outcome 1 and an increase of $249,917 in Outcome 2.
The obligations imposed by the Act on the parties or entities it governs are primarily related to the adjustments in appropriation amounts to reflect the transfer of functions within the Department of Employment, Skills, Small and Family Business. This necessitates that the relevant entities ensure their financial planning and resource allocation align with the new appropriation figures set forth in the amendment determination. It is crucial for these entities to accurately reflect these changes in their budget forecasts and financial reports. The amendment determination ensures that the entities are adequately funded for the functions they are responsible for, as per the latest administrative arrangements.
The amendment determination does not specify any new offences or penalties for breaches; however, any failure by the non-corporate Commonwealth entities to adhere to the new appropriation figures could result in financial mismanagement or misallocation of resources. Such non-compliance might lead to audits and investigations by the Australian National Audit Office or the Department of Finance. While the amendment determination itself does not stipulate specific penalties, breaches of appropriation laws generally can lead to severe administrative and legal consequences, including financial penalties or criminal charges depending on the severity of the breach.