Federal Register of Legislation - Australian Government

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A Bill for an Act to establish the Parliamentary Budget Office, and for related purposes
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Registered 12 Jul 2010
Introduced Senate 24 Jun 2010

2008‑2009‑2010

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

Parliamentary Budget Office Bill 2010

 

No.      , 2010

 

(Senator Barnett)

 

 

 

A Bill for an Act to establish the Parliamentary Budget Office, and for related purposes

  

  

  


Contents

Part 1—Preliminary                                                                                                               1

1............ Short title............................................................................................ 1

2............ Commencement.................................................................................. 2

3............ Object................................................................................................. 2

4............ Definitions.......................................................................................... 2

Part 2—The Parliamentary Budget Officer                                                             4

Division 1—Establishment and independence                                                4

5............ Establishment..................................................................................... 4

6............ Independence of the Parliamentary Budget Officer............................ 4

Division 2—Functions of the Parliamentary Budget Officer                   6

7............ Functions............................................................................................ 6

8............ Parliamentary Budget Officer to have regard to priorities of Parliament 7

9............ General powers................................................................................... 7

10.......... Flexibility and range of working methods in performance of functions.. 7

Division 3—Reports                                                                                                      9

11.......... Reporting schedule............................................................................. 9

12.......... Operational plan................................................................................. 9

13.......... Variation of operational plan............................................................ 10

14.......... Compliance with plans..................................................................... 10

Division 4—Appointment and conditions                                                        11

15.......... Appointment.................................................................................... 11

16.......... Selection............................................................................................ 11

17.......... Acting Parliamentary Budget Officer............................................... 12

18.......... Remuneration and allowances........................................................... 12

19.......... Leave of absence............................................................................... 13

20.......... Disclosure of interests...................................................................... 13

21.......... Outside employment........................................................................ 13

22.......... Other terms and conditions.............................................................. 13

23.......... Resignation....................................................................................... 13

24.......... Termination of appointment............................................................ 14

Part 3—Parliamentary Budget Office                                                                       15

25.......... Establishment................................................................................... 15

26.......... Constitution of the PBO.................................................................. 15

27.......... Function of the Parliamentary Budget Office................................... 15

28.......... Staff.................................................................................................. 15

29.......... Consultants....................................................................................... 16

30.......... Delegation by Parliamentary Budget Officer.................................... 16

Part 4—Miscellaneous                                                                                                       17

31.......... Appropriation.................................................................................. 17

32.......... Committees may request draft estimates for PBO........................... 17

33.......... Guaranteed availability of parliamentary appropriations................ 18

34.......... Parliamentary Budget Officer may approve expenditure................. 18

35.......... Indemnity......................................................................................... 18

36.......... Annual report................................................................................... 18

37.......... Functions of other statutory offices................................................. 19

38.......... Delegation......................................................................................... 19

39.......... Determinations................................................................................. 19

 


A Bill for an Act to establish the Parliamentary Budget Office, and for related purposes

The Parliament of Australia enacts:

Part 1Preliminary

  

1  Short title

                   This Act may be cited as the Parliamentary Budget Office Act 2010.

2  Commencement

             (1)  This Act commences on the day after an Act authorising the appropriation of funds for the establishment of the office of Parliamentary Budget Officer and the operation of the PBO receives the Royal Assent.

             (2)  If the event mentioned in subsection (1) does not occur, this Act does not commence at all.

3  Object

                   The object of this Act is to establish an independent statutory office of Parliamentary Budget Officer to enhance transparency and accountability by providing objective and impartial advice and analysis on the Commonwealth budget and budget cycle, including the financial impact of major policy announcements.

4  Definitions

             (1)  In this Act:

authorised committee means a committee of either House, or of both Houses, which is authorised by resolution of that House, or of both Houses, for any purpose connected with the functions of the Parliamentary Budget Officer.

Commissioner means the Parliamentary Service Commissioner appointed under the Parliamentary Services Act 1999.

deputy, in relation to a Presiding Officer, means the senior‑most Deputy Speaker or Deputy President, as the case may be, who is not of the same political party or coalition of parties as the Presiding Officer.

House means a House of the Parliament.

Presiding Officer means:

                     (a)  in relation to the Senate—the President of the Senate; and

                     (b)  in relation to the House of Representatives—the Speaker of the House of Representatives.

             (2)  Unless the contrary intention appears:

                     (a)  a reference to the Presiding Officers means the Presiding Officers acting jointly; and

                     (b)  a reference to a decision or determination of the Presiding Officers means a decision or determination in writing jointly signed by each of the Presiding Officers.

             (3)  If either House passes a resolution in relation to this Act or the powers and functions of the Parliamentary Budget Officer, the Presiding Officer of that House:

                     (a)  must not take any action under this Act which is contrary to that resolution; and

                     (b)  must comply with any direction given in that resolution in relation to the exercise of the Presiding Officer’s functions under this Act.


 

Part 2The Parliamentary Budget Officer

Division 1Establishment and independence

5  Establishment

             (1)  The office of Parliamentary Budget Officer is established by this section.

             (2)  Whenever a vacancy occurs in the office of Parliamentary Budget Officer, an appointment must be made to the office as soon as practicable.

6  Independence of the Parliamentary Budget Officer

             (1)  The Parliamentary Budget Officer is an independent officer of the Parliament.

             (2)  The functions, powers, rights, immunities and obligations of the Parliamentary Budget Officer are as specified in this Act and other laws of the Commonwealth. There are no implied functions, powers, rights, immunities or obligations arising from the Parliamentary Budget Officer being an independent officer of the Parliament.

             (3)  The powers of the Parliament to act in relation to the Parliamentary Budget Officer are as specified in or applying under this Act and other laws of the Commonwealth. For this purpose, Parliament includes:

                     (a)  each House of the Parliament; and

                     (b)  the members of each House of the Parliament; and

                     (c)  the committees of each House of the Parliament and joint committees of both Houses of the Parliament.

There are no implied powers of the Parliament arising from the Parliamentary Budget Officer being an independent officer of the Parliament.

             (4)  Subject to this Act and to other laws of the Commonwealth, the Parliamentary Budget Officer has complete discretion in the performance or exercise of his or her functions and powers. In particular, the Parliamentary Budget Officer is not subject to direction from anyone in relation to:

                     (a)  whether or not a particular function is to be undertaken; or

                     (b)  the way in which a particular function is to be undertaken; or

                     (c)  the priority to be given to any particular matter.

Division 2Functions of the Parliamentary Budget Officer

7  Functions

Primary function—providing advice and analysis

             (1)  The Parliamentary Budget Officer has the primary function of enhancing transparency and accountability by providing objective and impartial advice and analysis on:

                     (a)  the Commonwealth budget and budget cycle, including the financial or economic impact of major policy announcements; and

                     (b)  the transparency of the budget process and its supporting documentation.

             (2)  In undertaking that primary function, the Parliamentary Budget Officer must report to each House of the Parliament in accordance with a schedule of reporting requirements developed in accordance with section 11.

             (3)  The Parliamentary Budget Officer may report to each House on the other matters specified in subsection (1) as he or she thinks fit.

             (4)  The Parliamentary Budget Officer may also report to each House, as he or she thinks fit, on any other announcement or development related to Commonwealth fiscal policy.

Additional functions

             (5)  The Parliamentary Budget Officer has the following additional functions:

                     (a)  to hold inquiries and report to each House about matters relating to his or her functions; and

                     (b)  to undertake research about matters relating to his or her functions; and

                     (c)  to promote public understanding of matters relating to his or her functions; and

                     (d)  to perform any other functions conferred on the Parliamentary Budget Officer by this Act or any other law; and

                     (e)  to do anything incidental to any of the preceding functions.

             (6)  The Parliamentary Budget Officer may undertake the additional functions specified in subsection (5) as he or she thinks fit.

             (7)  The Parliamentary Budget Officer may undertake the additional functions specified in subsection (5) in relation to particular matters referred to him or her:

                     (a)  by a resolution of either House of the Parliament; or

                     (b)  by a committee of either House; or

                     (c)  by a member of either House.

8  Parliamentary Budget Officer to have regard to priorities of Parliament

                   In performing or exercising his or her functions and powers, the Parliamentary Budget Officer must have regard to:

                     (a)  the priorities of the Parliament expressed in resolutions of either or both Houses; and

                     (b)  any reports on matters connected to the functions of the Parliamentary Budget Officer made by committees of either or both Houses.

9  General powers

                   The Parliamentary Budget Officer has power to do everything necessary or convenient to be done for, or in connection with, the performance of the functions of the Parliamentary Budget Officer.

10  Flexibility and range of working methods in performance of functions

                   In the performance and exercise of his or her functions and powers, the Parliamentary Budget Officer:

                     (a)  is not required to act in a formal manner; and

                     (b)  may inform himself or herself on any matter in any way he or she thinks fit; and

                     (c)  may consult with anyone he or she thinks fit; and

                     (d)  may receive written or oral information or submissions; and

                     (e)  may establish working groups and task forces; and

                      (f)  may request information from government departments and agencies.

Division 3Reports

11  Reporting schedule

             (1)  The Parliamentary Budget Officer must develop a schedule of the kinds of events, measures and announcements against which he or she expects to report to Parliament.

             (2)  At a minimum, that schedule must require that the Parliamentary Budget Officer report to each House of the Parliament on the matters specified in subsection 7(1) at least four times each year, including:

                     (a)  as soon as practicable after the annual budget statement and budget reply (however described) are made to the House of Representatives; and

                     (b)  as soon as practicable after the Treasurer makes any formal statement which incorporates a revision of budget estimates or outcomes.

             (3)  The Parliamentary Budget Officer must include details of the schedule in each operational plan prepared under section 12.

12  Operational plan

             (1)  The Parliamentary Budget Officer must prepare an operational plan that:

                     (a)  defines the Officer’s principal objectives in performing his or her functions; and

                     (b)  gives a broad outline of the strategies to be pursued by the Officer to achieve those objectives; and

                     (c)  sets out a schedule of the kinds of events, measures and announcements the Officer expects will trigger a requirement to make a report on a matter specified in subsection 7(1).

             (2)  The Parliamentary Budget Officer must present a copy of each operational plan to each House of the Parliament as soon as practicable after it is prepared.

             (3)  The first operational plan is to relate to the period ending on 30 June 2013, and must include details of the Parliamentary Budget Officer’s intentions in respect of:

                     (a)  establishing and staffing the PBO; and

                     (b)  developing in the PBO the expertise to undertake its functions; and

                     (c)  developing a schedule of reporting requirements.

             (4)  The first operational plan may provide that a reduced schedule of reporting requirements apply during the first 12 months of the establishment of the PBO.

             (5)  Each subsequent operational plan is to relate to the 3‑year period commencing on 1 July in each subsequent year and must include details of how the Parliamentary Budget Officer intends to meet the schedule of reporting requirements.

             (6)  An operational plan prepared under subsection (1) is not a legislative instrument.

13  Variation of operational plan

             (1)  Either House, or both Houses, may, by resolution, request that the Parliamentary Budget Officer vary the operational plan that is in force.

             (2)  The Parliamentary Budget Officer must consider any request under subsection (1) to vary an operational plan and may vary the plan accordingly.

             (3)  If the Parliamentary Budget Officer varies an operational plan, he or she must present a copy of the varied operational plan to each House of the Parliament as soon as practicable after the variation is made.

14  Compliance with plans

                   When performing his or her functions and exercising his or her powers, the Parliamentary Budget Officer must take into account the operational plan that is in force.

Division 4Appointment and conditions

15  Appointment

             (1)  The Parliamentary Budget Officer is to be appointed by the Presiding Officers by written instrument, following a selection process undertaken in accordance with section 16.

             (2)  The Parliamentary Budget Officer is to be appointed on a full‑time basis.

             (3)  The Parliamentary Budget Officer holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.

Note:          The Parliamentary Budget Officer is eligible for reappointment: see subsection 33(4A) of the Acts Interpretation Act 1901.

16  Selection

             (1)  The selection of a Parliamentary Budget Office must follow the process set out in this section.

             (2)  The Presiding Officers must establish a panel comprising the holders of at least 3 of the following offices:

                     (a)  the Ombudsman;

                     (b)  the Auditor‑General;

                     (c)  the Governor of the Reserve Bank of Australia;

                     (d)  the Secretary of the Treasury.

             (3)  The panel must assess and recommend to the Presiding Officers a short‑list of at least 2 candidates for appointment to the position.

             (4)  The Presiding Officers may delegate administrative responsibility for the selection process to the Commissioner.

             (5)  The Presiding Officers, together with their deputies, must select an appointee from the short‑listed candidates. If this group is unable to select an appointee, the Presiding Officers must commence a new selection process.

17  Acting Parliamentary Budget Officer

             (1)  The Presiding Officers may appoint a person to act as the Parliamentary Budget Officer:

                     (a)  during a vacancy in the office of the Parliamentary Budget Officer (whether or not an appointment has previously been made to the office); or

                     (b)  during any period, or during all periods, when the Parliamentary Budget Officer is absent from duty or from Australia, or is, for any reason, unable to perform the duties of the office.

Note:          Section 33A of the Acts Interpretation Act 1901 has rules that apply to acting appointments.

             (2)  Anything done by or in relation to a person purporting to act under an appointment is not invalid merely because:

                     (a)  the occasion for the appointment had not arisen; or

                     (b)  there was a defect or irregularity in connection with the appointment; or

                     (c)  the appointment had ceased to have effect; or

                     (d)  the occasion to act had not arisen or had ceased.

18  Remuneration and allowances

             (1)  Subject to subsection (3), the Parliamentary Budget Officer is to be paid the remuneration and allowances that are determined by the Remuneration Tribunal. If no such determination is in operation, the Parliamentary Budget Officer is to be paid the remuneration and allowances that are determined by the Presiding Officers by written instrument.

             (2)  This section has effect subject to the Remuneration Tribunal Act 1973.

             (3)  The remuneration and allowances of the Parliamentary Budget Officer must be broadly equivalent to the remuneration and allowances of the Auditor‑General.

19  Leave of absence

             (1)  The Parliamentary Budget Officer has the recreation leave entitlements that are determined by the Remuneration Tribunal.

             (2)  The Presiding Officers may grant the Parliamentary Budget Officer leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that they determine.

20  Disclosure of interests

                   The Parliamentary Budget Officer must give written notice to the Presiding Officers of all interests, pecuniary or otherwise, that the Parliamentary Budget Officer has or acquires and that conflict or could conflict with the proper performance of the Parliamentary Budget Officer’s functions.

21  Outside employment

                   The Parliamentary Budget Officer must not engage in paid employment outside the duties of his or her office without the approval of the Presiding Officers.

22  Other terms and conditions

                   The Parliamentary Budget Officer holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Presiding Officers.

23  Resignation

             (1)  The Parliamentary Budget Officer may resign his or her appointment by giving the Presiding Officers a written resignation.

             (2)  The resignation takes effect on the first day it is received by either of the Presiding Officers, or, if a later day is specified in the resignation, on that later day.

24  Termination of appointment

             (1)  The Presiding Officers may terminate the appointment of the Parliamentary Budget Officer for misbehaviour or physical or mental incapacity.

             (2)  The Presiding Officers may terminate the appointment of the Parliamentary Budget Officer if:

                     (a)  the Parliamentary Budget Officer:

                              (i)  becomes bankrupt; or

                             (ii)  applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or

                            (iii)  compounds with his or her creditors; or

                            (iv)  makes an assignment of his or her remuneration for the benefit of his or her creditors; or

                     (b)  the Parliamentary Budget Officer is absent, except on leave of absence, for 14 consecutive days or for 28 days in any 12 months; or

                     (c)  the Parliamentary Budget Officer engages, except with the approval of the Presiding Officers, in paid employment outside the duties of his or her office (see section 21); or

                     (d)  the Parliamentary Budget Officer fails, without reasonable excuse, to comply with section 20 (disclosure of interests).


 

Part 3Parliamentary Budget Office

  

25  Establishment

             (1)  The Parliamentary Budget Office (PBO) is established by this section.

26  Constitution of the PBO

                   The PBO consists of:

                     (a)  the Parliamentary Budget Officer; and

                     (b)  the staff of the PBO.

27  Function of the Parliamentary Budget Office

                   The PBO’s function is to assist the Parliamentary Budget Officer in the performance of the Parliamentary Budget Officer’s functions.

28  Staff

             (1)  The staff of the PBO are to be persons engaged under the Public Service Act 1999.

             (2)  For the purposes of the Public Service Act 1999:

                     (a)  the Parliamentary Budget Officer and the staff of the PBO together constitute a Statutory Agency; and

                     (b)  the Parliamentary Budget Officer is the Head of that Statutory Agency.

             (3)  Directions to staff of the PBO relating to the performance of the Parliamentary Budget Officer’s functions may only be given by:

                     (a)  the Parliamentary Budget Officer; or

                     (b)  a member of the staff of the PBO authorised by the Parliamentary Budget Officer to give such directions.

29  Consultants

             (1)  The Parliamentary Budget Officer may engage a person who has suitable qualifications and experience to assist in the performance of any of the functions of the Parliamentary Budget Officer.

             (2)  The terms and conditions of engagement are to be determined, in writing, by the Parliamentary Budget Officer.

30  Delegation by Parliamentary Budget Officer

             (1)  The Parliamentary Budget Officer may, by written instrument, delegate any of the Parliamentary Budget Officer’s powers or functions to:

                     (a)  an SES employee or acting SES employee in the PBO; or

                     (b)  a person engaged under section 30 whose skills and responsibilities are equivalent to, or exceed, the skills and responsibilities expected of an SES employee.

Note:          SES employee and acting SES employee are defined in section 17AA of the Acts Interpretation Act 1901.

             (2)  In exercising powers or functions under the delegation, the delegate must comply with any directions of the Parliamentary Budget Officer.


 

Part 4Miscellaneous

  

31  Appropriation

             (1)  The PBO is to be funded from money appropriated by the Parliament for the purpose.

             (2)  Provisions for the appropriation of funds for the purposes of the PBO must be proposed in the annual and additional appropriation bills.

             (3)  The Finance Minister must consult with the Parliamentary Budget Officer to seek agreement on the estimates of proposed expenditure for the PBO for inclusion in those bills.

             (4)  The Parliamentary Budget Officer may, at any time, present to each House of the Parliament, or to an authorised committee:

                     (a)  a statement of his or her estimates of expenditure required for the PBO to undertake its functions; or

                     (b)  a report on any consultations which have taken place with the Finance Minister in accordance with subsection (3); or

                     (c)  a copy of any agreement made under subsection (3).

             (5)  If appropriation bills are introduced that propose estimates of expenditure for the PBO other than in accordance with an agreement made under subsection (3), the Finance Minister must present a statement to each House of the Parliament prior to consideration of the bills, setting out the reasons for the failure to reach agreement on the estimates.

             (6)  Subsection (3) does not apply in relation to the initial appropriation made by the Parliament to establish the office of Parliamentary Budget Officer.

32  Committees may request draft estimates for PBO

             (1)  An authorised committee may request the Parliamentary Budget Officer to submit to the committee draft estimates for the PBO for a financial year before the annual Commonwealth budget for that financial year.

             (2)  The Parliamentary Budget Officer must comply with the request in time to allow the committee to consider the draft estimates and make recommendations on them before the budget.

33  Guaranteed availability of parliamentary appropriations

                   The Finance Minister must issue drawing rights under section 27 of the Financial Management and Accountability Act 1997 that cover in full the amounts that the Parliament appropriates for the purposes of the PBO.

34  Parliamentary Budget Officer may approve expenditure

                   The Parliamentary Budget Officer has authority to approve a proposal to spend money under an appropriation for the PBO.

Note:          The Parliamentary Budget Officer’s power under this section may be delegated under section 31.

35  Indemnity

             (1)  The Commonwealth must indemnify a person for any liability that the person incurs for an act or omission of the person in the course of performing a function of the Parliamentary Budget Officer.

             (2)  The indemnity does not apply if the liability arose from an act or omission in bad faith.

             (3)  The indemnity does not cover a liability of a person to the extent to which the person is entitled to be indemnified for the liability by a person other than the Commonwealth, whether under a contract of insurance or otherwise.

36  Annual report

                   The Parliamentary Budget Office must, as soon as practicable after the end of each financial year, prepare and give to the Presiding Officer of each House a report of the operations of the PBO during that financial year.

37  Functions of other statutory offices

                   The functions of each of the following independent statutory offices are extended to include the function of assisting in the selection of a Parliamentary Budget Officer in accordance with this Act:

                     (a)  the Ombudsman;

                     (b)  the Auditor‑General;

                     (c)  the Governor of the Reserve Bank of Australia.

38  Delegation

             (1)  The Presiding Officers may, in writing, delegate any or all their functions and powers under this Act (other than their functions and powers under Division 4 of Part 2) jointly to the Secretaries of the Departments established under the Parliamentary Service Act 1999.

             (2)  In exercising functions or powers delegated under subsection (1), the delegates must comply with any directions of the Presiding Officers.

39  Determinations

                   The Presiding Officers may, by legislative instrument, determine matters:

                     (a)  required or permitted by this Act to be determined; or

                     (b)  necessary or convenient to be determined for carrying out or giving effect to this Act.