Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2021-2022 (No. 3)

Administered by Department of Finance

Legislation au F2022L00042 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Public Governance, Performance and Accountability Act 2013

Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 20212022 (No. 3) (the amendment determination)

Purpose of the determination

Section 75 of the Public Governance, Performance and Accountability Act 2013 (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.

The amendment determination gives effect to the power in section 75, which recognises that the Executive Government will from time to time choose to reorganise the administration and delivery of its functions with commensurate transfers of resources, including appropriations, between entities.

Section 75(7) of the PGPA Act provides that a determination made under section 75(2) is a legislative instrument, but that section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.

Importantly, the Parliament by passing section 75(7) of the PGPA Act provided that these determinations would be exempt from disallowance. The Explanatory Memorandum for the Public Governance, Performance and Accountability Bill 2013 provided (at paragraph 370) that determinations made under section 75 are exempt from disallowance as the changes effected by determinations made under section 75 are in the nature of administrative changes only, relating to the Executive Government’s decisions about the allocation of functions to particular entities.

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, subdelegated this power to certain officials within the Department of Finance, including the official who made this amendment determination.

The amendment determination is a legislative instrument for the purposes of section 8 of the Legislation Act 2003.

On 28 October 2021, the Prime Minister agreed to transfer the Murray-Darling Basin Aboriginal Water Entitlements Program from the Department of Agriculture, Water and the Environment to the National Indigenous Australians Agency.

The amendment determination amends the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2021‑2022 (the Determination) to reflect this transfer. The amendment determination does not change the total amount appropriated by the Parliament.

Commencement

The amendment determination commences on the day after registration.

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 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 section 17 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 adds items 15 and 16 in the table in subsection 5(2) of the Determination. The items affect the relevant appropriation items in Schedule 1 to the Appropriation Act (No. 1) 20212022 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 ($)

15

Department of Agriculture, Water and the Environment

Administered item, Outcome 5

0.00

-40,000,000.00

-40,000,000.00

16

National Indigenous Australians Agency

Administered item, Outcome 1

0.00

+40,000,000.00

+40,000,000.00

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 2021-2022 (No. 3) was enacted to facilitate the transfer of the Murray-Darling Basin Aboriginal Water Entitlements Program from the Department of Agriculture, Water and the Environment to the National Indigenous Australians Agency. This amendment is pursuant to the authority granted by section 75 of the Public Governance, Performance and Accountability Act 2013, which allows the Finance Minister to adjust appropriations in relation to the transfer of functions between non-corporate Commonwealth entities. The amendment determination ensures that the reallocation of resources is properly reflected in the appropriation process without altering the total amount appropriated by Parliament. This legislative instrument, exempt from disallowance as stipulated in section 75(7) of the PGPA Act, was prepared after consultation with the relevant entities, as required by section 17 of the Legislation Act 2003.

Scope and Application

The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2021-2022 (No. 3) applies to the modification of appropriations in relation to the transfer of the Murray-Darling Basin Aboriginal Water Entitlements Program from the Department of Agriculture, Water and the Environment to the National Indigenous Australians Agency. This amendment determination is a legislative instrument under the Legislation Act 2003 and operates within the Commonwealth jurisdiction. Notably, it is exempt from disallowance as stipulated in section 75(7) of the Public Governance, Performance and Accountability Act 2013. The amendment determination was made by officials within the Department of Finance, who have been sub-delegated this power by the Secretary of the Department of Finance. It does not require a Statement of Compatibility with Human Rights due to its exemption from disallowance. The amendment reflects a reallocation of $40 million from the Department of Agriculture, Water and the Environment to the National Indigenous Australians Agency, without altering the total appropriations set by Parliament.

Key Provisions

The main operative sections of the Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2021-2022 (No. 3) (the Amendment Determination) include the introduction of new items 15 and 16 in the table under subsection 5(2) of the Determination. These modifications affect Schedule 1 to the Appropriation Act (No. 1) 2021-2022 by reallocating specific appropriation items. Specifically, item 15 reduces the appropriation for the Department of Agriculture, Water and the Environment by $40,000,000.00, while item 16 increases the appropriation for the National Indigenous Australians Agency by the same amount. This reallocation reflects the transfer of the Murray-Darling Basin Aboriginal Water Entitlements Program from the former to the latter entity, as agreed upon by the Prime Minister on 28 October 2021. The Amendment Determination imposes certain obligations on the parties involved, primarily the Department of Agriculture, Water and the Environment and the National Indigenous Australians Agency. The Department must now account for a reduction of $40,000,000.00 in its appropriation, while the National Indigenous Australians Agency is now allocated an additional $40,000,000.00 for the Murray-Darling Basin Aboriginal Water Entitlements Program. These changes require both entities to adjust their financial planning and resource allocation accordingly. The entities must also ensure compliance with the terms of the Amendment Determination by accurately reflecting these changes in their respective budgets and financial records. There are no explicit offences, penalties, or civil/criminal consequences outlined in the Amendment Determination for breach. However, failure to comply with the financial reallocations stipulated in the determination could potentially lead to broader administrative and legal repercussions under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Such non-compliance might result in scrutiny from the Department of Finance or other oversight bodies, which could lead to further administrative actions or investigations. It is important for both entities to adhere strictly to the terms of the Amendment Determination to avoid any adverse implications related to their financial management and compliance with the PGPA Act. The Amendment Determination, as a legislative instrument, is exempt from disallowance under section 42 of the Legislation Act 2003, as stipulated in section 75(7) of the PGPA Act. This exemption means that while the changes are legally binding, they do not require parliamentary approval to be enacted. This process ensures that the administrative changes relating to the transfer of functions and resources can be implemented efficiently without the need for additional legislative scrutiny or parliamentary debate. This streamlined approach facilitates the timely execution of government reorganisations and resource reallocations.

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