Revised Explanatory Memorandum
(Circulated by authority of the Minister for Finance, Senator the Hon Mathias Cormann)Notes on Schedule 5 - Consequential amendments relating to the Public Governance, Performance and Accountability Act 2013
53. The amendments in this Schedule of the Bill are primarily directed at improving the operation of the PGPA Act and its interaction with entities' enabling legislation by updating references to the PGPA Act and harmonising matters such as disclosure of interests, annual reporting, corporate planning and termination of appointments.
Part 1 - Amendments
Agricultural and Veterinary Chemicals (Administration) Act 1992
54. Item 1 would insert a new section 25A at the end of Division 3 of Part 3 of the Agriculture and Veterinary Chemicals (Administration) Act 1992. The new section 25A would provide that advisory board members are officials for the purposes of the PGPA Act.
A New Tax System (Goods and Services Tax) Act 1999
55. Item 2 would repeal subsection 177-1(5) and substitute a new definition of "Untaxable Commonwealth entity" that replaces references to the FMA Act and CAC Act with the PGPA Act.
56. Item 3 would update the definition of Finance Minister in section 195-1 to replace a reference to the FMA Act with the PGPA Act.
Australian National Registry of Emissions Units Act 2011
57. Item 4 would amend subsection 93(2) to replace a reference to the FMA Act with the PGPA Act.
Australian Securities and Investments Commission Act 2001
58. Item 5 would replace a reference to the FMA Act in paragraph 10A(a) of the Australian Securities and Investments Commission Act 2001 (ASIC Act) with the PGPA Act.
59. Item 6 would repeal and substitute a new paragraph 111(1)(e), and insert a new paragraph 111(1)(f). This amendment would harmonise the termination arrangements in the ASIC Act with those under the PGPA Act.
60. Item 7 would repeal section 124 of the ASIC Act, relating to requirements for members to disclose certain interests to the Chairperson of ASIC. This provision is not required as section 29 of the PGPA Act provides requirements of general application relating to disclosures of interest.
61. Item 8 would repeal subsections 136(1) and (2) and substitute a new subsection 136(1), providing the requirements for the annual report of ASIC to align, to the extent possible, with those under section 46 of the PGPA Act.
62. Item 9 would repeal subsection 136(3) as this is now addressed by section 46 of the PGPA Act. Subsection 46(2) of the PGPA Act requires that annual reports be provided to the relevant Minister by the 15th day of the fourth month after the reporting period (usually October) so that the Minister can table the annual report in each House of Parliament.
63. The intent behind subsection 46(2) is that the annual report should be provided to the Minister with sufficient time for the Minister to consider and then table the annual report before the end of the fourth month after the end of a reporting period, in line with existing Requirements for Annual Reports approved by the Joint Committee of Public Accounts and Audit (JCPAA). This allows for the timetable of Senate Legislation Committee meetings to be met, which supports an intention that annual reports should be available in time for the Supplementary Budget Estimates hearings that occur toward the end of the year. Those requirements take account of relevant legislation and the oversight needs of parliament and other scrutineers of government activity, such as the Australian National Audit Office. Section 46 should therefore be read together with the Requirements for Annual Reports to provide the complete timeframe for the public release of an annual report, as it passes from an agency to a responsible Minister and then to the parliament.
64. This approach is consistent with section 9 of the former CAC Act and also allows for an accountable authority to seek an extension to provide an annual report to a responsible Minister beyond the specified date in the PGPA Act in accordance with section 34C of the Acts Interpretation Act 1901.
65. Item 10 would repeal paragraph 235D(3)(c) and substitute a new paragraph 235D(3)(c) that would provide that the Chair is to include a copy of the advice provided by the Financial Reporting Council, as provided for under paragraph 225(2)(b), and the reasons in the annual report, prepared under section 46 of the PGPA Act.
66. Items 11 and 12 would replace a reference to the FMA Act in paragraph 235F(3)(c) and section 235H with the PGPA Act.
67. Item 13 would repeal section 235J as annual reporting requirements are provided for in section 46 of the PGPA Act.
68. Item 14 would replace a reference to the FMA Act in paragraph 236DB(3)(c) with the PGPA Act.
69. Items 15 and 16 would replace a reference to the FMA Act in paragraph 236DD(3)(c) and section 236DF with the PGPA Act.
70. Item 17 would repeal section 236DG, which relates to the tabling of the annual report for the Auditing and Assurance Standards Board, as section 46 of the PGPA Act provides requirements for the provision of annual reports.
Carbon Credits (Carbon Farming Initiative) Act 2011
71. Item 18 would repeal a note in subsection 183(1) that references section 28 of the FMA Act (which related to repayments by the Commonwealth) and would substitute an amended note which refers to section 77 of the PGPA Act, which is the equivalent provision.
72. Item 19 would update a reference to the FMA Act in subsection 299(2) by substituting a reference to the PGPA Act to identify the relevant Minister as the Minister administering the Carbon Credits (Carbon Farming Initiative) Act 2011.
Clean Energy Regulator Act 2011
73. Item 20 would harmonise disclosure of interest requirements for the CER with those in section 29 of the PGPA Act by inserting a new section 22.
74. Item 21 would repeal section 23, as this provision would no longer be required due to the insertion of a new section 22 by item 20. In connection with this, item 22 would amend paragraph 27(2)(d) to replace references to section 22 or 23 of the Act with section 29 of the PGPA Act, as this will now apply.
75. Item 23 would repeal Division 7 of Part 2 of the Act and substitute new Division 7 - Planning and reporting obligations, contained in sections 39 and 40, detailing requirements in relation to the corporate plan and annual report respectively. The new provisions have been amended to align with the general provisions in sections 29 and 46 of the PGPA Act.
76. Item 24 would amend a reference update to paragraph 42(a), replacing the FMA Act with the PGPA Act.
Climate Change Authority Act 2011
77. Item 25 would repeal sections 26 and 27, substituting a new section 26 relating to disclosure of interests in accordance with the requirements of section 29 of the PGPA Act.
78. Item 26 would repeal paragraph 31(2)(d) and substitute a new paragraph 31(2)(d) that refers to section 29 of the PGPA Act.
79. Item 27 would amend subsection 36(2) to replace a reference to section 27 of the CCA Act with a reference to section 29 of the PGPA Act, which relates to disclosure of interests.
80. Item 28 would repeal section 48 and substitute a new section 48 dealing with disclosure of interest by the CEO, aligning with the requirements set out in section 29 of the PGPA Act.
81. Item 29 would repeal paragraph 50(2)(c) to substitute a new paragraph that references section 29 of the PGPA Act, which relates to disclosure of interests.
82. Item 30 would repeal Division 8 of Part 2, substituting a new section 55 covering requirements for corporate plans that references section 35 of the PGPA Act.
83. Item 31 is a technical amendment that would omit a reference to the FMA Act from paragraph 58(a) of the CCA Act and insert the PGPA Act.
Corporations Act 2001
84. Items 32, 33, 34, 35 and 36 would make technical amendments to paragraphs 45B(1)(d), 111K(b), 301(3)(a), 601AE(1A)(a) and 601AE(1A)(b)(ii) to update terminology in paragraphs to align with PGPA Act terminology.
Financial Framework (Supplementary Powers) Act 1997
85. Item 37 would amend section 5 of the Act in relation to the definition of "Finance Minister". The amendment would omit the words "this Act" and substitute the words "the Public Governance, Performance and Accountability Act 2013".
Income Tax Assessment Act 1936
86. Item 38 would update a reference in subsection 159ZR(1) to section 33 of the FMA Act (which related to act of grace payments) to its equivalent provision at section 65 of the PGPA Act.
87. Item 39 would update a reference in subsection 160AAA(1) to section 33 of the FMA Act (which related to act of grace payments) to its equivalent provision at section 65 of the PGPA Act.
Income Tax Assessment Act 1997
88. Item 40 would amend subsection 995-1(1) in relation to the definition of the Finance Minister, and would update a reference to the FMA Act by substituting the PGPA Act.
Infrastructure Australia Act 2008
89. Item 41 would amend section 3 of the Act to update the definition of Finance Minister, in line with the PGPA Act.
90. Item 42 would repeal the note in subsection 4(2) and substitute a new note that references the PGPA Act as applying to Infrastructure Australia.
91. Item 43 would repeal subsection 18(2) and substitute a new section dealing with the termination of the appointment of a member to align with the general termination arrangements provided in section 30 of the PGPA Act.
92. Item 44 would amend paragraph 21(2)(a) to omit a reference to the CAC Act and substitute the appropriate reference to section 29 of the PGPA Act.
93. Item 45 would repeal section 34 and substitute a new section 34 that aligns disclosure of interests with the general requirements provided in section 29 of the PGPA Act.
94. Item 46 would repeal sections 39B and 39C, and substitute new sections 39B and 39C that provide for corporate plans and annual reports in alignment with sections 35 and 46 of the PGPA Act.
95. Item 47 would repeal subsection 39DA(2) and substitute a new subsection 39DA(2) that would reference section 59 of the PGPA Act, which deals with investment by corporate Commonwealth entities.
96. Item 48 would repeal subsections 39DB(2) to (4). Subsection 39DB(2) is an exemption to the spending limit provisions in 39DB(1) for investing surplus money under the CAC Act. Under subsection 59(2) of the PGPA Act, there is a general exemption to spending limit provisions for investments by corporate Commonwealth entities under section 59(1). This makes subsection 39DB(2) unnecessary. Subsection 39DB(3) is not required because section 57 of the PGPA Act provides a general prohibition on borrowing by corporate Commonwealth entities, like Infrastructure Australia, unless expressly authorised. By extension subsection 39DB(4) is not required.
National Land Transport Act 2014
97. Item 49 would update the definition of "non-corporate Commonwealth entity" in subsection 4(1) of the Act to align with the definition provided in the PGPA Act.
Ozone Protection and Synthetic Greenhouse Gas (Import Levy) (Transitional Provisions) Act 2014
98. Item 50 would repeal and substitute the note in section 6 of the Act with a note that references section 77 of the PGPA Act, relating to repayments by the Commonwealth.
Ozone Protection and Synthetic Greenhouse Gas Management Act 1989
99. Item 51 would repeal and substitute a new subsection 65B(2) to update a reference to a special account in the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Ozone Act).
100. Item 52 would repeal and substitute new subsections 65C(2) and (3) of the Ozone Act to provide for the management of appropriations in relation to notional payments involving non-corporate Commonwealth entities. The amendment would update references to the PGPA Act.
Renewable Energy (Electricity) Act 2000
101. Items 53 and 54 would amend subsection 5(1) of the Renewable Energy (Electricity) Act 2000 (Electricity Act) to repeal the definition of "Minister for Finance" and substitute a new definition for "Finance Minister" that aligns with the PGPA Act.
102. Item 55 would amend subsection 30R(2) of the Electricity Act to update a reference relating to a special account. Items 56 and 57 follow this amendment in the notes to sections 30S and 30T.
103. Item 58 would update a reference to the Finance Minister in subsection 42(2).
104. Item 59 would update the definition of "Commonwealth" in subsection 42(4).
Social Security Act 1991
105. Item 60 would repeal the notes to subsections 1061PAAA(2) and 1061PAAB(3).
106. Item 61 would repeal and replace section 1061PAAE to align the definition of "Department official" with the PGPA Act.
Social Security (Administration) Act 1999
107. Item 62 would replace the note in subsection 123ZM(4) to reference subsection 56(1) of the PGPA Act, relating to borrowing arrangements.
Student Identifiers Act 2014
108. Items 63 and 64 would update references to special accounts, in subsection 48(2) and note 1 to section 49 of the Act, to align with the PGPA Act.
109. Item 65 would replace a reference to section 39 of the FMA Act, in note 2 to section 49 of the Act, with section 58 of the PGPA Act.
110. Item 66 would update a note in section 50 to reference section 80 of the PGPA Act.
Superannuation Guarantee (Administration) Act 1992
111. Item 67 and 68 would update the definition of "Commonwealth entity" and "Finance Minister" within subsection 5(5).
Taxation Administration Act 1953
112. Item 69 would repeal the note in subsection 15B(4).
113. Item 70 would update a reference to the FMA Act in subsection 15B(9) with a reference to paragraph 103(c) of the PGPA Act, which relates to rules relating to the Commonwealth and non-corporate Commonwealth entities.
114. Item 71 would repeal the note to subsections 15C( 2) and (3).
115. Item 72 would update a reference to the FMA Act in subsection 15D(8) with a reference to the PGPA Act.
Water Act 2007
116. Item 73 would amend the Water Act 2007 to provide that the Chief Executive of the Murray-Darling Basin Authority is the accountable authority for PGPA Act purposes.
Part 2 - Transitional and application provisions
117. Item 74 provides that an amendment in this Schedule that relates to a corporate or strategic plan is to apply to reporting periods from 1 July 2015 onwards, when corporate planning requirements under sections 35 and 95 of the PGPA Act will commence.
118. Item 75 provides that amendments relating to annual reports are to apply to reports for reporting periods commencing on or after 1 July 2014, as the annual reporting requirements under section 46 of the PGPA Act commenced from 1 July 2014.
119. Item 76 provides for the application of amendments involving disclosure of interest requirements. The item provides that where a disclosure has been made in accordance with an Act and before the commencement of this item, then that disclosure will be taken to have been made in accordance with section 29 of the PGPA Act.
120. Item 77 provides a savings arrangement for instruments in force that are made under a provision of an Act that is amended by this Schedule.