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2019-2021
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
PUBLIC GOVERNANCE, PERFORMANCE AND ACCOUNTABILITY
AMENDMENT (IMPROVED GRANTS REPORTING) BILL 2021
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator Katy Gallagher)
PUBLIC GOVERNANCE, PERFORMANCE AND ACCOUNTABILITY
AMENDMENT (IMPROVED GRANTS REPORTING) BILL 2021
OUTLINE
The Public Governance, Performance and Accountability Amendment (Improved Grants
Reporting) Bill 2021 is being introduced to improve accountability and standards in grants
administration.
The Commonwealth Grants Rules and Guidelines, issued under the Public Governance,
Performance and Accountability Act 2013, establish the Commonwealth's grants policy
framework and sets out the requirements and expectations for the administration of grants.
Sub-paragraph 4.12a of the Grants Rules and Guidelines require Ministers to report annually
to the Finance Minister on all instances where they have approved grants that relevant
officials have recommended be rejected. This report must contain a brief statement of
reasons, and is to be provided to the Finance Minister by 31 March each year for the
preceding calendar year.
Sub-paragraph 4.12b of the Grants Rules and Guidelines requires reporting to the Finance
Minister of grants awarded by Ministers within their own electorates.
While there is public reporting of this information, there is a lag in timing. There is a Senate
Order that requires the tabling of all reports and correspondence received by the Finance
Minister under paragraph 4.12 of the Grants Rules and Guidelines by no later than 30 April.
These reports and correspondence relate to grants awarded in the preceding calendar year (so
the Senate Order this year related to grants awarded from 1 January to 31 December 2020).
This bill amends the Public Governance, Performance and Accountability Act 2013 to
prescribe the reporting requirements currently found in the Grants Rules and Guidelines in
primary legislation and improve the timeliness of those requirements. The bill would require
Ministers approving grants against departmental recommendation, within their own
electorates, or grants that did not meet any of the relevant selection criteria to provide reports
to the Finance Minister within 30 days of their approval. The Finance Minister would then
need to table those reports in the Parliament within 5 sitting days of receiving them.
NOTES ON CLAUSES
Clause 1: Short Title
1. Clause 1 is a formal provision specifying the short title of the Bill.
Clause 2: Commencement
2. This clause provides for the Act to commence the day after the Act receives Royal
Assent.
Clause 3 - Schedules
3. Each Act specified in a Schedule to this Act is amended or repealed as is set out in the
applicable items in the Schedule. Any other item in a Schedule to this Act has effect
according to its terms.
Schedule 1--Amendments
Items 1 and 2
4. These items amend the Guide to Part 4-1A at section 105A of the Public Governance,
Performance and Accountability Act 2013 relating to the proposed new reporting
requirements.
Item 3
5. Item 3 inserts a new section 105CA into the Public Governance, Performance and
Accountability Act 2013 requiring the reporting of 'reportable grants' approved by
Ministers to the Finance Minister.
6. A new definition of 'reportable grants' is inserted, which is a grant approved against
departmental recommendation, or a grant approved in the Minister's own electorate,
or a grant approved that did not meet any of the relevant selection criteria (i.e. an
ineligible grant).
7. It requires the provision of a report, containing a statement of reasons explaining the
basis for approval, to the Finance Minister within 30 days of the grant being
approved.
8. If a Minister is a member of the House of Representatives and has approved a
reportable grant for a grantee in their electorate, then this information must be
included in the statement of reasons provided to the Finance Minister. However, this
requirement does not apply if the grant is awarded Australia-wide, state-wide or
across a region on the basis of a formula, and the reportable grant happens to fall
within the relevant Minister's electorate.
9. The Finance Minister then must table those reports within 5 sitting days of receiving
them.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Public Governance, Performance and Accountability Amendment (Improved Grants
Reporting) Bill 2021
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the Bill
The bill would require Ministers approving grants against departmental recommendation,
within their own electorates, or that did not meet any relevant section criteria to provide
reports to the Finance Minister within 30 days of their approval. The Finance Minister would
then need to table those reports in the Parliament within 5 sitting days of receiving them.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
Senator Katy Gallagher