Federal Register of Legislation - Australian Government

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Determinations/Financial (Other) as made
This instrument establishes a new special account for the Department of Defence, under section 78 of the Public Governance, Performance and Accountability Act 2013.
Administered by: Finance
Registered 17 Jul 2019
Tabling HistoryDate
Tabled HR22-Jul-2019
Tabled Senate22-Jul-2019

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance

Public Governance, Performance and Accountability Act 2013

PGPA Act Determination (Defence Endowments, Bequests, Services and Trust Moneys Special Account 2019)

Purpose of this determination

This determination is made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to establish the Defence Endowments, Bequests, Services and Trust Moneys Special Account 2019 (the special account).

The special account is being established to enable the Department of Defence (Defence) to continue to hold and expend amounts on behalf of persons other than the Commonwealth, such as amounts held as a result of a trust, endowment, bequest, legacy, or other contribution received by Defence from a person outside the Commonwealth. The special account will also allow Defence to manage amounts related to services provided to or undertaken on behalf of parties other than the Commonwealth, such as joint activities with other governments and the provision of services to participants in the Young Endeavour Youth Program.

The special account is generally intended to replace the following special accounts:

·         Defence Endowments Special Account, which will sunset on 1 October 2019;

·         Fedorczenko Legacy Special Account, which will sunset on 1 October 2019;

·         Services for Other Entities and Trust Moneys – Defence Special Account, which will sunset on 1 October 2019;

·         Young Endeavour Youth Program Special Account, which sunsetted on 1 April 2019.

Once the special account is established, the legislative instruments establishing the three special accounts which will sunset on 1 October 2019, will be repealed and an amount equivalent to the sum of the amounts standing to the credit of those three special accounts immediately before the repeal will be credited to the special account as its opening balance.

In addition, funds previously credited to  Defence’s departmental appropriation from the Young Endeavour Youth Program Special Account (YEYPSA) (which sunsetted on 1 April 2019), in accordance with item 9 of subsection 27(2) of the Public Governance, Performance and Accountability Rule 2014, will be credited to this special account.  The actual amount credited will be the amount originally transferred from the YEYPSA, adjusted for all YEYPSA-related transactions that occurred between 1 April 2019 and the date the funds are credited to this special account and debited from  Defence’s departmental appropriation.

The operating context of special accounts

A special account may be established, varied or revoked by a determination made by the Minister for Finance under section 78 of the PGPA Act, or by an Act.

A special account is an appropriation mechanism that sets aside amounts within the Consolidated Revenue Fund (CRF) for spending on specified purposes. The purposes of a special account are set out in the establishing determination or Act.

In accordance with section 81 of the Constitution, all revenues or moneys raised or received by the Commonwealth Executive Government form one CRF. Section 83 of the Constitution provides that such money may not be drawn from the Treasury except under an appropriation made by law.

·         A special account enables revenues or moneys raised or received to be set aside for the purposes of that special account.

·         Payments made for the purposes of a special account are supported by an appropriation in the PGPA Act; subsection 78(4) appropriates the CRF for the purposes of a special account established by a determination, and subsection 80(1) appropriates the CRF for the purposes of a special account established by an Act.

Special account determinations

Special account determinations are legislative instruments for the purposes of the Legislation Act 2003. Special account determinations may be varied or revoked by a subsequent determination being made in accordance with subsection 78(3) of the PGPA Act.

In accordance with subsection 79(3) of the PGPA Act, the Minister for Finance must table a copy of such determinations in each House of the Parliament. Subsection 79(4) of the PGPA Act provides that special account determinations are subject to disallowance by either House of the Parliament. The disallowance period starts on the day a special account determination is tabled in the House and ends on the fifth sitting day after the determination was tabled in that House.

Subsection 79(5) provides that, if neither House passes a resolution to disallow a special account determination, the determination commences on the day immediately after the last day on which it could have been disallowed, or on a later day if specified in the determination. This determination does not specify a later day, so commences on the day mentioned in paragraph 79(5)(a) of the PGPA Act.

Human Rights

A Statement of Compatibility with Human Rights is not required for this 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. While determinations made or varied under subsections 78(1) or 78(3) of the PGPA Act are subject to disallowance under section 79 of the PGPA Act, subsection 79(2) provides that they are not subject to disallowance under section 42 of the Legislation Act 2003. As such, a Statement of Compatibility with Human Rights is not required.

Consultation

Defence was consulted in the preparation of this determination.