EXPLANATORY STATEMENT
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2020‑2021 (No. 3) (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 commencement on 4 April 2021 of the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 in part, and the appointment on 4 April 2021 of the Commissioner of Taxation as the Commonwealth Registrar of the Australian Business Registry Services.
The amendment determination modifies the Appropriation Acts to support the transfer of the administration of business registry functions from the Australian Securities and Investments Commission to the Australian Taxation Office under the Australian Government’s Modernising Business Registers program.
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 this determination.
The amendment determination amends the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2020‑2021 (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 determination.
Summary of Modifications
- Item 1 of the amendment determination adds items 6 and 7 to the table in subsection 7(2) of the Determination. The items affects the relevant appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2020‑2021 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 | Australian Securities and Investments Commission | Departmental item | 0.00 | -4,143,356.36 | -4,143,356.36 |
7 | Australian Taxation Office | Departmental item | 0.00 | +4,143,356.36 | +4,143,356.36 |
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 2020-2021 (No. 3) is an amendment made under section 75 of the Public Governance, Performance and Accountability Act 2013. This determination was introduced to facilitate the transfer of business registry functions from the Australian Securities and Investments Commission to the Australian Taxation Office, which began on April 4, 2021. The amendment aims to adjust the amounts appropriated to non-corporate Commonwealth entities in response to this transfer, ensuring that the overall appropriations by Parliament remain unchanged. The determination is made by the Secretary of the Department of Finance, who has the authority to do so under the delegation from the Finance Minister, and it does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the PGPA Act.
Scope and Application
The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2020-2021 (No. 3) applies to adjustments in the appropriation of funds to non-corporate Commonwealth entities, specifically the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO). This amendment determination is made under section 75 of the Public Governance, Performance and Accountability Act 2013 to facilitate the transfer of business registry functions from ASIC to the ATO as part of the Modernising Business Registers program. The amendment determination modifies the Appropriation Acts to reflect this transfer, ensuring there is no net change to the total amount appropriated by Parliament. It is effective from the day after its registration and operates at the Commonwealth level, impacting the financial allocations between the two entities. This amendment does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the Public Governance, Performance and Accountability Act 2013. The affected entities were consulted in the preparation of this determination as per the Legislation Act 2003.
Key Provisions
The amendment determination made under section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) modifies the appropriation amounts for non-corporate Commonwealth entities as a result of the transfer of business registry functions from the Australian Securities and Investments Commission (ASIC) to the Australian Taxation Office (ATO). Specifically, the amendment determination transfers $4,143,356.36 from ASIC to the ATO, reflecting changes due to the commencement of the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 and the appointment of the Commissioner of Taxation as the Commonwealth Registrar of the Australian Business Registry Services (sections 7(2) and 7(3)). This amendment does not alter the total amount appropriated by Parliament, maintaining the overall budget constraints.
The amendment determination imposes specific obligations on the entities involved, primarily ASIC and the ATO. ASIC must reduce its appropriation by $4,143,356.36 to reflect the transfer of business registry functions. Conversely, the ATO must increase its appropriation by the same amount to facilitate the new responsibilities. These modifications ensure that the financial resources are aligned with the functional changes, thereby maintaining fiscal integrity and accountability under the PGPA Act (sections 7(2) and 7(3)).
Breach of the provisions outlined in this amendment determination could result in various consequences. While the determination itself does not specify particular offences, any failure by ASIC or the ATO to comply with the appropriation changes could lead to broader accountability issues under the PGPA Act. Non-compliance might result in investigations by the Australian National Audit Office or other oversight bodies, potentially leading to financial penalties or corrective measures to ensure adherence to the appropriation adjustments. The specific penalties would depend on the nature and extent of the non-compliance, as governed by the overarching provisions of the PGPA Act.