Treasury Portfolio Governance (Machinery of Government Arrangements) Instrument 2025

Overview

The Treasury Portfolio Governance (Machinery of Government Arrangements) Instrument 2025 was enacted to address the need for a smooth transition of functions and powers within the Australian government portfolio following the Administrative Arrangements Order made by the Governor-General on 13 May 2025. This instrument, made by Steven Kennedy, Secretary to the Department of the Treasury, aims to ensure continuity in the administration of transferring functions by delegating powers and functions to officials who were previously involved in their administration. It is designed to maintain the integrity and effectiveness of public sector finance laws during the transition, while also providing clear directions, instructions, and limitations for the exercise of delegated powers and functions. This instrument is made under several acts, including the Financial Framework (Supplementary Powers) Act 1997 and the Government Procurement (Judicial Review) Act 2018, and it will cease to have effect on 30 August 2025.

Scope and Application

The Treasury Portfolio Governance (Machinery of Government Arrangements) Instrument 2025, made under the authority of several acts including the Financial Framework (Supplementary Powers) Act 1997 and the Public Governance, Performance and Accountability Act 2013, pertains to officials in various departments who were involved in the administration of transferring functions prior to the Administrative Arrangements Order made by the Governor-General on 13 May 2025. This instrument ensures the continuity of powers and functions delegated under public sector finance laws for these officials, maintaining their authority in accordance with any pre-existing directions, instructions, conditions, and limitations. It applies specifically to officials in departments other than the Treasury who had been involved in the administration of transferring functions immediately before the new Administrative Arrangements Order took effect. The instrument comes into force immediately upon registration, with a scheduled repeal on 30 August 2025.

Key Provisions

The Treasury Portfolio Governance (Machinery of Government Arrangements) Instrument 2025 includes several key provisions that govern the delegation and exercise of certain powers and functions related to transferring government responsibilities. Section 5(1) and (2) delegate specific powers and functions to officials involved in the administration of transferring functions under public sector finance laws, ensuring continuity in governance. These officials, who were previously involved in the administration of these functions and had been delegated powers or functions under public sector finance laws, retain their delegated powers and functions. Section 6 stipulates that any powers or functions delegated under section 5 must be exercised in accordance with the directions, instructions, conditions, and limitations that applied before the new Administrative Arrangements Order (AAO) took effect. The obligations imposed by this instrument are primarily on officials within departments other than the Treasury, who must exercise their delegated powers and functions in line with the existing conditions and limitations. These officials are required to adhere to the same directives, instructions, conditions, and limitations that were in place prior to the new AAO. This ensures that there is no disruption in the administration of transferring functions and that all relevant legal frameworks are followed. Failure to comply with the provisions of this instrument can result in legal consequences. However, the instrument does not explicitly detail specific offences, penalties, or consequences for breach. The cessation of effect and repeal of the instrument on 30 August 2025 means that any non-compliance occurring before this date would be subject to the legal frameworks and penalties applicable at that time. It is important for officials to understand and adhere to these obligations to avoid any potential legal repercussions.