Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2023-2024 (No. 8)

Administered by Department of Finance

Legislation au F2024L01284 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 20232024 (No. 8)

 

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 power in section 75 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.

Subsection 75(7) of the PGPA Act provides that a determination made under subsection (2) is a legislative instrument, but that section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination. The Explanatory Memorandum for the Public Governance, Performance and Accountability Bill 2013 provides (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.

The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2023-2024 (No. 8) (the amendment determination) amends the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2023‑2024 (the principal determination) to reflect the transfer of appropriations from the National Mental Health Commission to the Department of Health and Aged Care.

As part of the 2024-25 Budget, the Government announced that the functions and funding of the National Mental Health Commission will be transferred to the Department of Health and Aged Care while considering the most appropriate longer term arrangements.

The amendment determination is a legislative instrument for the purposes of section 8 of the Legislation Act 2003. It does not change the total amount appropriated by the Parliament. 

The principal determination modifies the specified 2023-24 Appropriation Acts to, among other things, increase or decrease appropriation items for affected entities due to the transfer of functions between them.

The specified 2023-24 Appropriation Acts include:

  • the Appropriation Act (No. 1) 2023-2024; and
  • the Appropriation Act (No. 2) 2023-2024.

Commencement

The amendment determination commences on 14 October 2024.


 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 made under subsection 75(2) of the PGPA Act is exempt from disallowance under subsection (7). 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 amendments

  1.       Item 1 of Schedule 1 to the amendment determination updates the cumulative effect of the increases in appropriation item for the Department of Health and Aged Care as set out in replacement item 9 of the table in subsection 5(3) of the principal determination.

Subsection 5(3) of the principal determination has effect as if appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2023-2024 were increased or decreased in accordance with the table included in the subsection. If an appropriation item exists only because of the principal determination, the increase is from a nil amount. The amendment determination does not change the total amount appropriated by the Parliament.

Item

Entity

Appropriation item

Previous increase/ decrease by the principal determination

($)

Current increase/ decrease by the amendment determination

 ($)

Total increase/ decrease by the principal determination

($)

9

Department of Health and Aged Care

Departmental item

-6,308,000.00

+2,006,766.41

-4,301,233.59

Note: A positive amount reflects an increase in an appropriation item and a negative amount reflects a decrease in an appropriation item.

  1.       Item 2 of Schedule 1 to the amendment determination adds items 20 to 22 at the end of the table in subsection 5(3) of the principal determination and has effect as if the appropriation items in Schedule 1 to the Appropriation Act (No. 1) 2023-2024 were increased or decreased in accordance with the table included in the subsection. If an appropriation item exists only because of the principal determination, the increase is from a nil amount. The amendment determination does not change the total amount appropriated by the Parliament.

Item

Entity

Appropriation item

Previous increase/ decrease by the principal determination

($)

Current increase/ decrease by the amendment determination

 ($)

Total increase/ decrease by the principal determination

($)

20

National Mental Health Commission

Departmental item

0.00

-2,006,766.41

-2,006,766.41

21

National Mental Health Commission

Administered item, Outcome 1

0.00

-5,187,562.30

-5,187,562.30

22

Department of Health and Aged Care

Administered item, Outcome 1

0.00

+5,187,562.30

+5,187,562.30

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 2023-2024 (No. 8) is a legislative instrument that modifies appropriations as a result of the transfer of functions from the National Mental Health Commission to the Department of Health and Aged Care. Enacted by the Parliament of Australia, this determination addresses the need to reallocate resources in response to administrative reorganisations within the Commonwealth, ensuring that appropriations are adjusted accordingly. The amendment determination is an administrative change that does not alter the total amount appropriated by Parliament, and it is exempt from disallowance under the Legislation Act 2003, reflecting its administrative nature. The determination is consistent with the objectives of the Public Governance, Performance and Accountability Act 2013, which facilitates the reallocation of functions and resources between non-corporate Commonwealth entities. The Finance Minister has delegated the authority to make such determinations to the Secretary of the Department of Finance, who has further subdelegated this power to certain officials. The amendment determination updates the principal determination to reflect the transfer of appropriations from the National Mental Health Commission to the Department of Health and Aged Care, with affected entities consulted during its preparation.

Scope and Application

The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2023-2024 (No. 8) applies to the transfer of appropriations from the National Mental Health Commission to the Department of Health and Aged Care as part of the 2024-25 Budget. This amendment determination modifies the specified 2023-24 Appropriation Acts, namely the Appropriation Act (No. 1) 2023-2024 and the Appropriation Act (No. 2) 2023-2024, to reflect the reallocation of funds between these entities. The determination does not alter the total amount appropriated by Parliament but adjusts the appropriation items for the affected entities based on the transfer of functions and resources. This amendment determination is a legislative instrument under the Legislation Act 2003 and is exempt from disallowance due to its nature as an administrative change. The amendment determination commences on 14 October 2024, and no statement of compatibility with human rights is required as it is not subject to disallowance. Consultation with the affected entities was conducted in accordance with section 17 of the Legislation Act 2003.

Key Provisions

The Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2023-2024 (No. 8) (the amendment determination) amends the Public Governance, Performance and Accountability (Section 75 Transfers) Determination 2023-2024 (the principal determination) to reflect the transfer of appropriations from the National Mental Health Commission to the Department of Health and Aged Care. This transfer is part of the Government's 2024-25 Budget, which involves reallocating functions and funding from the National Mental Health Commission to the Department of Health and Aged Care, with a view to determining the most appropriate longer-term arrangements (Section 75, PGPA Act). Under the amendment determination, the specified 2023-24 Appropriation Acts, including the Appropriation Act (No. 1) 2023-2024 and the Appropriation Act (No. 2) 2023-2024, are modified to adjust appropriation items for the affected entities due to the transfer of functions between them. For instance, the Department of Health and Aged Care sees an increase in its departmental item appropriation by $2,006,766.41, while the National Mental Health Commission has a decrease in its departmental item appropriation by $2,006,766.41 (Schedule 1, Item 9). Additionally, the amendment determination introduces new items (20 to 22) to the table in subsection 5(3) of the principal determination, reflecting further adjustments in administered items for both the National Mental Health Commission and the Department of Health and Aged Care (Schedule 1, Item 20-22). The amendment determination imposes obligations on the Finance Minister, who is responsible for determining that the specified appropriations are modified in the specified way in relation to the transfer of functions. This determination is mandated under section 75 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The Secretary of the Department of Finance has been delegated this power under section 107 of the PGPA Act, with certain officials within the Department of Finance subdelegated this responsibility under section 109 of the PGPA Act. The amendment determination requires these officials to consult with the affected entities, namely the National Mental Health Commission and the Department of Health and Aged Care, in its preparation, in accordance with section 17 of the Legislation Act 2003. There are no specific offences, penalties, or consequences outlined for breaches of this amendment determination. However, any breach of the Public Governance, Performance and Accountability Act 2013 or the Legislation Act 2003, under which this determination is made, may result in civil or criminal liability depending on the nature of the breach. For instance, violations of the PGPA Act could lead to disciplinary action against public officers, while breaches of the Legislation Act 2003 may be subject to the general penalties for non-compliance with legislative instruments, which could include fines and other civil penalties. The maximum penalties would depend on the specific provisions of the PGPA Act and the Legislation Act 2003 that are breached.

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