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2013-2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
PUBLIC GOVERNANCE, PERFORMANCE AND
ACCOUNTABILITY (CONSEQUENTIAL
MODIFICATIONS OF APPROPRIATION ACTS
(NO.2), (NO.4) AND (NO.6)) BILL 2014
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Finance,
Senator the Hon Mathias Cormann)
TABLE OF CONTENTS
Table of abbreviations and common terms ................................................................... ii
General outline ............................................................................................................... 1
Financial Impact Statement............................................................................................ 1
Statement of compatibility with human rights ............................................................... 1
The Bill in the context of broader reform activities ....................................................... 1
Related legislative activity ............................................................................................. 2
PGPA Amendment Bill ..............................................................................................2
PGPA rules and other instruments .............................................................................2
Consequential amendments........................................................................................2
Consultation ................................................................................................................... 3
Structure of the Bill ........................................................................................................ 4
Main features of the Bill ................................................................................................ 4
NOTES ON CLAUSES ................................................................................................. 5
NOTES ON SCHEDULE 1 - Appropriation Act (No.2) 2012-2013 ............................ 6
NOTES ON SCHEDULE 2 - Appropriation Act (No.4) 2012-2013 ............................ 8
NOTES ON SCHEDULE 3 - Appropriation Act (No.2) 2013-2014 .......................... 10
NOTES ON SCHEDULE 4 - Appropriation Act (No.4) 2013-2014 .......................... 12
NOTES ON SCHEDULE 5 - Appropriation Act (No.6) 2013-2014 .......................... 14
NOTES ON SCHEDULE 6 - Appropriation Act (No.2) 2014-2015 .......................... 16
i
Table of abbreviations and common terms
Abbreviation or Full term or description
common term
CAC Act Commonwealth Authorities and Companies Act 1997
CAC Regulations Commonwealth Authorities and Companies
Regulations 1997
Commonwealth entity An entity as defined in section 10 of the PGPA Act
CRF The Consolidated Revenue Fund established by section 81
of the Constitution
FMA Act Financial Management and Accountability Act 1997
FMA Regulations Financial Management and Accountability Regulations
1997
Finance Minister The Minister with responsibility for administering the
PGPA Act
PGPA Act Public Governance, Performance and Accountability Act
2013
Rules or PGPA rules The rules made under Part 4-1 of the PGPA Act
ii
Public Governance, Performance and Accountability (Consequential
Modifications of Appropriation Acts (No.2), (No.4) and (No.6)) Bill 2014
General outline
1. The Public Governance, Performance and Accountability (Consequential
Modifications of Appropriation Acts (No.2), (No.4) and (No.6)) Bill 2014 (the Bill) would, if
enacted, amend the following Acts appropriating money out of the CRF for certain
expenditure and related purposes:
Appropriation Act (No.2) 2012-2013;
Appropriation Act (No.4) 2012-2013;
Appropriation Act (No.2) 2013-2014;
Appropriation Act (No.4) 2013-2014;
Appropriation Act (No.6) 2013-2014; and
Appropriation Act (No.2) 2014-2015 (the Appropriations Acts).
2. Appropriations are currently approved by Parliament on the basis of an entitys
recognition as operating under the FMA or CAC Acts. From 1 July 2014, the PGPA Act will
replace the FMA Act and the CAC Act as the primary financial legislation of the
Commonwealth.
3. To support the transition to the PGPA Act, the Bill contains consequential amendments
to replace references to or reliance on provisions in the FMA and CAC Acts with equivalent
provisions in the PGPA Act.
Financial Impact Statement
4. The Bill would contribute to the PGPA Act and associated reforms to improve and
modernise the operation of the Commonwealth financial framework, which includes
simplifying regulatory requirements for Commonwealth entities.
5. Achieving improved governance, transparency and accountability arrangements for
Commonwealth entities (including both non-corporate Commonwealth entities and corporate
Commonwealth entities) within the Australian Government will over time lead to long term
efficiencies, although the impact is difficult to quantify.
Statement of compatibility with human rights
6. The Bill, if enacted, will not affect any of the applicable rights or freedoms outlined in
the Human Rights (Parliamentary Scrutiny) Act 2011, such as those in the International
Covenant on Civil and Political Rights.
7. The Bill does not propose any offences or penalties that limit any human rights.
8. The Bill is therefore compatible with the human rights and freedoms recognised or
declared in the international instruments listed in subsection 3(1) of the Human Rights
(Parliamentary Scrutiny) Act 2011.
The Bill in the context of broader reform activities
9. The Commonwealths financial framework provides rules for the governance of
Commonwealth entities and Commonwealth companies and for the proper management and
use of public resources. The framework supports the government in meeting its obligations
1
and responsibilities to the public and the Parliament. It is an important feature of an
accountable and transparent public sector and guides the daily work of Commonwealth
entities and Commonwealth companies, office holders and employees.
10. The Bill supports the introduction of the PGPA Act as the primary financial legislation
of the Commonwealth from 1 July 2014. The PGPA Act is the cornerstone of a broad,
integrated package of reforms to the Commonwealths financial framework. Taken together,
the reforms seek to deliver long-lasting benefits, including:
improved quality of information to Parliament to support its constitutional role in
relation to Commonwealth expenditure;
a more mature approach to risk across the Commonwealth;
improved productivity and performance of the Commonwealth public sector with
accompanying benefits for a broad range of stakeholders; and
reduced red tape within the Commonwealth and for partners who contribute to
delivering Australian Government programs and services, including grant
recipients.
11. It will take several years to implement the reforms and integrate them fully into the
practices and processes of Commonwealth entities and Commonwealth companies. Gradual
introduction of the reforms will ensure that they are appropriately tested and refined in light
of experience.
Related legislative activity
12. The PGPA Act was passed by the previous Parliament and was given Royal Assent on
29 June 2013, with the first five sections coming into effect on 1 July 2013. Sections 6 to
112 of the Act are subject to delayed implementation and are to come into effect 12 months
later, on 1 July 2014, if not fixed by Proclamation before 1 July 2014.
13. The intervening 12 month period has been taken up with the development of supporting
rules to give effect to the operation of the Act and an assessment of any consequential
amendments that may be required to the legislation of Commonwealth entities arising from
the introduction of the PGPA Act and the replacement of the FMA and CAC Acts.
PGPA Amendment Bill
14. The Public Governance, Performance and Accountability Amendment Bill 2014 is
scheduled for presentation to Parliament in the same sittings as this Bill. It is intended to add
to and amend a number of provisions in the PGPA Act to clarify, simplify, enhance and
improve the understanding and operation of the Commonwealths financial management
framework within the context of a modernised financial regime.
PGPA rules and other instruments
15. The PGPA rules and other instruments made by the Finance Minister under the PGPA
Act will replace a range of instruments under current legislation, including the FMA
Regulations, CAC Regulations and Finance Ministers Orders. They will be used to prescribe
the requirements and procedures necessary to give effect to the governance, performance and
accountability matters covered by the PGPA Act.
Consequential amendments
16. The Public Governance, Performance and Accountability (Consequential and
Transitional Provisions) Bill 2014 (Consequential and Transitional Bill) is scheduled for
2
presentation to Parliament in the same sittings as this Bill. The intent of the Consequential
and Transitional Bill is to amend the enabling legislation of Commonwealth entities and
companies so as to:
replace references to the FMA and CAC Acts with the equivalent provisions in the
PGPA Act;
simplify enabling legislation where provisions of the PGPA Act cover a matter
previously dealt with in enabling legislation; and
amend enabling legislation to clarify which matters are covered by the PGPA Act
and which matters are covered by the enabling legislation, such as in the case of
planning and reporting, or disclosure of interest arrangements where an entity may
have additional obligations over and above those imposed through the PGPA Act.
Consultation
17. The PGPA Act was presented to Parliament following two years of consultation and
consideration of issues. The period since its passage has provided an opportunity for
reflection and consultation on the provisions of the Act and the consequential and transitional
arrangements necessary to support its operation.
18. The Department of Finance engaged in and continues to engage in an extensive
consultation program with stakeholders within and outside government, including the
establishment of a Project Board supported by steering committees with wide representation
from across government.
19. These consultation efforts have been supplemented through workshops and
consultations with entities in Sydney, Melbourne, Adelaide, Alice Springs and Darwin, as
well as ongoing conversations with, and feedback from, Commonwealth entities across
Australia about their views on the legislation and how to develop and implement the aims of
the broader reform agenda.
3
Structure of the Bill
20. The structure of the Bill involves:
a clause that provides for the short title of the legislation;
a commencement clause;
a clause that provides for the Schedules to the Bill to amend or repeal the
Appropriations Acts as specified; and
Schedules 1 to 6 to the Bill.
21. An explanation of the amendments proposed in Schedules 1 to 6 is provided in
sequential order in the Bill and in this Explanatory Memorandum.
Main features of the Bill
22. The Bill, if enacted, would make a number of technical amendments to replace
references to the FMA and CAC Acts in the Appropriations Acts with the equivalent
provisions in the PGPA Act.
4
NOTES ON CLAUSES
Clause 1: Short title
23. Under this clause, if the Bill is enacted, it may be cited as the Public Governance,
Performance and Accountability (Consequential Modifications of Appropriation Acts (No.2),
(No.4) and (No.6)) Act 2014.
Clause 2: Commencement
24. This clause provides that if the Bill is enacted:
Sections 1 to 3 will commence on the day that the Bill receives Royal Assent.
Items in Schedules 1 to 5 will commence immediately after the commencement of
section 6 of the Public Governance, Performance and Accountability Act 2013.
Items in Schedule 6 will commence on the later date between immediately after the
commencement of section 6 of the Public Governance, Performance and
Accountability Act 2013 or immediately after the commencement of the
Appropriation Act (No.1) 2014-2015.
Clause 3: Schedule(s)
25. This clause provides that a Schedule to the Bill may amend or repeal the Appropriation
Acts as specified.
5
NOTES ON SCHEDULE 1 - Appropriation Act (No.2) 2012-2013
26. Item 1 explains that a reference in Schedule 1 to "Principal Act" means the
Appropriation Act (No.2) 2012-2013. The notes on Schedule 1 in this Explanatory
Memorandum do the same.
27. Items 2 to 6 would amend definitions in section 3 of the Principal Act to update
references to the FMA Act and CAC Act with the equivalent provisions in the PGPA Act.
28. Item 2 would amend the definition of "Agency" to replace the reference to "an Agency
within the meaning of the Financial Management and Accountability Act 1997" to "a
non-corporate Commonwealth entity within the meaning of the Public Governance,
Performance and Accountability Act 2013"; or the Australian Competition and Consumer
Commission; or the Australian Human Rights Commission; or the Australian Pesticides and
Veterinary Medicines Authority; or the Australian Securities and Investments Commission;
or the Clean Energy Regulator; or the Corporations and Markets Advisory Committee; or the
High Court of Australia; or the Independent Hospital Pricing Authority; or the
Murray-Darling Basin Authority; or the National Health Performance Authority; or the
National Offshore Petroleum Safety and Environmental Management Authority, to recognise
FMA Act body corporate entities that are becoming corporate Commonwealth entities.
29. Item 3 would amend the definition of "CAC Act body" to replace the reference to "a
Commonwealth authority within the meaning of the Commonwealth Authorities and
Companies Act 1997" to "a corporate Commonwealth entity within the meaning of the Public
Governance, Performance and Accountability Act 2013". The reference to a Commonwealth
company being defined by the CAC Act would also be updated to refer to the PGPA Act.
30. Item 4 would define the "Chief Executive" of an Agency to mean the accountable
authority of the Agency within the meaning of the PGPA Act.
31. Item 5 would insert a definition of "general drawing rights limit" to mean "debit limit"
as the drawing rights system under the FMA Act will not be transferred to the PGPA Act.
This definition would be applied from 1 July 2015.
32. Item 6 would update terminology so that a reference to the FMA Act in the definition
of "Special Account" would be substituted by a reference to the PGPA Act.
33. Item 7 would update note 2 to section 6 to explain that sections 30 to 32 of the FMA
Act will continue to apply because of the Public Governance, Performance and
Accountability (Consequential and Transitional Provisions) Act 2014. There would also be
an additional note to reference provisions in the PGPA Act that provide for adjustments.
34. Item 8 would omit the note to subsection 7(1) as the PGPA Act does not require
drawing rights to access an appropriation.
35. Item 9 would omit the note to subsection 8(1) as the PGPA Act does not require
drawing rights to access an appropriation.
36. Item 10 would omit the note to subsection 9(1) as the PGPA Act does not require
drawing rights to access an appropriation.
37. Item 11 would omit the note to section 10 as the PGPA Act does not require drawing
rights to access an appropriation.
38. Item 12 would omit the note to subsection 11(1) as the PGPA Act does not require
drawing rights to access an appropriation.
6
39. Item 13 would explain that the operation of the Principal Act continues to be affected
by those sections of the FMA Act that continue to apply because of Schedule 2 to the Public
Governance, Performance and Accountability (Consequential and Transitional Provisions)
Act 2014. In addition, the Principal Act is now also affected by the PGPA Act.
7
NOTES ON SCHEDULE 2 - Appropriation Act (No.4) 2012-2013
40. Item 1 explains that a reference in Schedule 2 to "Principal Act" means the
Appropriation Act (No.4) 2012-2013. The notes on Schedule 2 in this Explanatory
Memorandum do the same.
41. Items 2 to 6 would amend definitions in section 3 of the Principal Act to update
references to the FMA Act and CAC Act with the equivalent provisions in the PGPA Act.
42. Item 2 would amend the definition of "Agency" to replace the reference to "an Agency
within the meaning of the Financial Management and Accountability Act 1997" to "a
non-corporate Commonwealth entity within the meaning of the Public Governance,
Performance and Accountability Act 2013"; or the Australian Competition and Consumer
Commission; or the Australian Human Rights Commission; or the Australian Pesticides and
Veterinary Medicines Authority; or the Australian Securities and Investments Commission;
or the Clean Energy Regulator; or the Corporations and Markets Advisory Committee; or the
High Court of Australia; or the Independent Hospital Pricing Authority; or the
Murray-Darling Basin Authority; or the National Health Performance Authority; or the
National Offshore Petroleum Safety and Environmental Management Authority, to recognise
FMA Act body corporate entities that are becoming corporate Commonwealth entities.
43. Item 3 would amend the definition of "CAC Act body" to replace the reference to "a
Commonwealth authority within the meaning of the Commonwealth Authorities and
Companies Act 1997" to "a corporate Commonwealth entity within the meaning of the Public
Governance, Performance and Accountability Act 2013". The reference to a Commonwealth
company being defined by the CAC Act would also be updated to refer to the PGPA Act.
44. Item 4 would define the "Chief Executive" of an Agency to mean the accountable
authority of the Agency within the meaning of the PGPA Act.
45. Item 5 would insert a definition of "general drawing rights limit" to mean "debit limit"
as the drawing rights system under the FMA Act will not be transferred to the PGPA Act.
This definition would be applied from 1 July 2015.
46. Item 6 would update terminology so that a reference to the FMA Act in the definition
of "Special Account" would be substituted by a reference to the PGPA Act.
47. Item 7 would update note 2 to section 6 to explain that sections 30 to 32 of the FMA
Act will continue to apply because of the Public Governance, Performance and
Accountability (Consequential and Transitional Provisions) Act 2014. There would also be
an additional note to reference provisions in the PGPA Act that provide for adjustments.
48. Item 8 would omit the note to subsection 7(1) as the PGPA Act does not require
drawing rights to access an appropriation.
49. Item 9 would omit the note to subsection 8(1) as the PGPA Act does not require the
issue of drawing rights. drawing rights to access an appropriation.
50. Item 10 would omit the note to subsection 9(1) as the PGPA Act does not require
drawing rights to access an appropriation.
51. Item 11 would omit the note to section 10 as the PGPA Act does not require drawing
rights to access an appropriation.
52. Item 12 would omit the note to subsection 11(1) as the PGPA Act does not require
drawing rights to access an appropriation.
8
53. Item 13 would explain that the operation of the Principal Act continues to be affected
by those sections of the FMA Act that continue to apply because of Schedule 2 to the Public
Governance, Performance and Accountability (Consequential and Transitional Provisions)
Act 2014. In addition, the Principal Act is now also affected by the PGPA Act.
9
NOTES ON SCHEDULE 3 - Appropriation Act (No.2) 2013-2014
54. Item 1 explains that a reference in Schedule 3 to "Principal Act" means the
Appropriation Act (No.2) 2013-2014. The notes on Schedule 3 in this Explanatory
Memorandum do the same.
55. Items 2 to 6 would amend definitions in section 3 of the Principal Act to update
references to the FMA Act and CAC Act with the equivalent provisions in the PGPA Act.
56. Item 2 would amend the definition of "Agency" to replace the reference to "an Agency
within the meaning of the Financial Management and Accountability Act 1997" to "a
non-corporate Commonwealth entity within the meaning of the Public Governance,
Performance and Accountability Act 2013"; or the Australian Competition and Consumer
Commission; or the Australian Human Rights Commission; or the Australian Pesticides and
Veterinary Medicines Authority; or the Australian Securities and Investments Commission;
or the Clean Energy Regulator; or the Corporations and Markets Advisory Committee; or the
High Court of Australia; or the Independent Hospital Pricing Authority; or the
Murray-Darling Basin Authority; or the National Health Performance Authority; or the
National Offshore Petroleum Safety and Environmental Management Authority, to recognise
FMA Act body corporate entities that are becoming corporate Commonwealth entities.
57. Item 3 would amend the definition of "CAC Act body" to replace the reference to "a
Commonwealth authority within the meaning of the Commonwealth Authorities and
Companies Act 1997" to "a corporate Commonwealth entity within the meaning of the Public
Governance, Performance and Accountability Act 2013". The reference to a Commonwealth
company being defined by the CAC Act would also be updated to refer to the PGPA Act.
58. Item 4 would define the "Chief Executive" of an Agency to mean the accountable
authority of the Agency within the meaning of the PGPA Act.
59. Item 5 would insert a definition of "general drawing rights limit" to mean "debit limit"
as the drawing rights system under the FMA Act will not be transferred to the PGPA Act.
This definition would be applied from 1 July 2015.
60. Item 6 would update terminology so that a reference to the FMA Act in the definition
of "Special Account" would be substituted by a reference to the PGPA Act.
61. Item 7 would update note 2 to section 6 to explain that sections 30 to 32 of the FMA
Act will continue to apply because of the Public Governance, Performance and
Accountability (Consequential and Transitional Provisions) Act 2014. There would also be
an additional note to reference provisions in the PGPA Act that provide for adjustments.
62. Item 8 would omit the note to subsection 7(1) as the PGPA Act does not require
drawing rights to access an appropriation.
63. Item 9 would omit the note to subsection 8(1) as the PGPA Act does not require
drawing rights to access an appropriation.
64. Item 10 would omit the note to subsection 9(1) as the PGPA Act does not require
drawing rights to access an appropriation.
65. Item 11 would omit the note to section 10 as the PGPA Act does not require drawing
rights to access an appropriation.
66. Item 12 would omit the note to subsection 11(1) as the PGPA Act does not require
drawing rights to access an appropriation.
10
67. Item 13 would explain that the operation of the Principal Act continues to be affected
by those sections of the FMA Act that continue to apply because of Schedule 2 to the Public
Governance, Performance and Accountability (Consequential and Transitional Provisions)
Act 2014. In addition, the Principal Act is now also affected by the PGPA Act.
11
NOTES ON SCHEDULE 4 - Appropriation Act (No.4) 2013-2014
68. Item 1 explains that a reference in Schedule 4 to "Principal Act" means the
Appropriation Act (No.4) 2013-2014. The notes on Schedule 4 in this Explanatory
Memorandum do the same.
69. Items 2 to 6 would amend definitions in section 3 of the Principal Act to update
references to the FMA Act and CAC Act with the equivalent provisions in the PGPA Act.
70. Item 2 would amend the definition of "Agency" to replace the reference to "an Agency
within the meaning of the Financial Management and Accountability Act 1997" to "a
non-corporate Commonwealth entity within the meaning of the Public Governance,
Performance and Accountability Act 2013"; or the Australian Competition and Consumer
Commission; or the Australian Human Rights Commission; or the Australian Pesticides and
Veterinary Medicines Authority; or the Australian Securities and Investments Commission;
or the Clean Energy Regulator; or the Corporations and Markets Advisory Committee; or the
High Court of Australia; or the Independent Hospital Pricing Authority; or the
Murray-Darling Basin Authority; or the National Health Performance Authority; or the
National Offshore Petroleum Safety and Environmental Management Authority, to recognise
FMA Act body corporate entities that are becoming corporate Commonwealth entities.
71. Item 3 would amend the definition of "CAC Act body" to replace the reference to "a
Commonwealth authority within the meaning of the Commonwealth Authorities and
Companies Act 1997" to "a corporate Commonwealth entity within the meaning of the Public
Governance, Performance and Accountability Act 2013". The reference to a Commonwealth
company being defined by the CAC Act would also be updated to refer to the PGPA Act.
72. Item 4 would define the "Chief Executive" of an Agency to mean the accountable
authority of the Agency within the meaning of the PGPA Act.
73. Item 5 would insert a definition of "general drawing rights limit" to mean "debit limit"
as the drawing rights system under the FMA Act will not be transferred to the PGPA Act.
This definition would be applied from 1 July 2015.
74. Item 6 would update terminology so that a reference to the FMA Act in the definition
of "Special Account" would be substituted by a reference to the PGPA Act.
75. Item 7 would update the reference concerning notional payments to the PGPA Act.
76. Item 8 would update note 2 to section 6 to explain that sections 30 to 32 of the FMA
Act will continue to apply because of the Public Governance, Performance and
Accountability (Consequential and Transitional Provisions) Act 2014. There would also be
an additional note to reference provisions in the PGPA Act that provide for adjustments.
77. Item 9 would omit the note to subsection 7(1) as the PGPA Act does not require
drawing rights to access an appropriation.
78. Item 10 would omit the note to subsection 8(1) as the PGPA Act does not require
drawing rights to access an appropriation.
79. Item 11 would omit the note to subsection 9(1) as the PGPA Act does not require
drawing rights to access an appropriation.
80. Item 12 would omit the note to section 10 as the PGPA Act does not require drawing
rights to access an appropriation.
12
81. Item 13 would omit the note to subsection 11(1) as the PGPA Act does not require
drawing rights to access an appropriation.
82. Item 14 would explain that the operation of the Principal Act continues to be affected
by those sections of the FMA Act that continue to apply because of Schedule 2 to the Public
Governance, Performance and Accountability (Consequential and Transitional Provisions)
Act 2014. In addition, the Principal Act is now also affected by the PGPA Act.
13
NOTES ON SCHEDULE 5 - Appropriation Act (No.6) 2013-2014
83. Item 1 explains that a reference in Schedule 5 to "Principal Act" means the
Appropriation Act (No.6) 2013-2014. The notes on Schedule 5 in this Explanatory
Memorandum do the same.
84. Items 2 to 6 would amend definitions in section 3 of the Principal Act to update
references to the FMA Act and CAC Act with the equivalent provisions in the PGPA Act.
85. Item 2 would amend the definition of "Agency" to replace the reference to "an Agency
within the meaning of the Financial Management and Accountability Act 1997" to "a
non-corporate Commonwealth entity within the meaning of the Public Governance,
Performance and Accountability Act 2013"; or the Australian Competition and Consumer
Commission; or the Australian Human Rights Commission; or the Australian Pesticides and
Veterinary Medicines Authority; or the Australian Securities and Investments Commission;
or the Clean Energy Regulator; or the Corporations and Markets Advisory Committee; or the
High Court of Australia; or the Independent Hospital Pricing Authority; or the
Murray-Darling Basin Authority; or the National Health Performance Authority; or the
National Offshore Petroleum Safety and Environmental Management Authority, to recognise
FMA Act body corporate entities that are becoming corporate Commonwealth entities.
86. Item 3 would amend the definition of "CAC Act body" to replace the reference to "a
Commonwealth authority within the meaning of the Commonwealth Authorities and
Companies Act 1997" to "a corporate Commonwealth entity within the meaning of the Public
Governance, Performance and Accountability Act 2013". The reference to a Commonwealth
company being defined by the CAC Act would also be updated to refer to the PGPA Act.
87. Item 4 would define the "Chief Executive" of an Agency to mean the accountable
authority of the Agency within the meaning of the PGPA Act.
88. Item 5 would insert a definition of ,,general drawing rights limit to mean ,,debit limit
as the drawing rights system under the FMA Act will not be transferred to the PGPA Act.
This definition would be applied from 1 July 2015.
89. Item 6 would update terminology so that a reference to the FMA Act in the definition
of "Special Account" would be substituted by a reference to the PGPA Act.
90. Item 7 would update the reference concerning notional payments to the PGPA Act.
91. Item 8 would update note 2 to section 6 to explain that sections 30 to 32 of the FMA
Act will continue to apply because of the Public Governance, Performance and
Accountability (Consequential and Transitional Provisions) Act 2014. There would also be
an additional note to reference provisions in the PGPA Act that provide for adjustments.
92. Item 9 would omit the note to subsection 7(1) as the PGPA Act does not require the
issue of drawing rights.
93. Item 10 would omit the note to subsection 8(1) as the PGPA Act does not require the
issue of drawing rights.
94. Item 11 would omit the note to subsection 9(1) as the PGPA Act does not require the
issue of drawing rights.
95. Item 12 would omit the note to section 10 as the PGPA Act does not require the issue
of drawing rights.
14
96. Item 13 would omit the note to subsection 11(1) as the PGPA Act does not require the
issue of drawing rights.
97. Item 14 would explain that the operation of the Principal Act continues to be affected
by those sections of the FMA Act that continue to apply because of Schedule 2 to the Public
Governance, Performance and Accountability (Consequential and Transitional Provisions)
Act 2014. In addition, the Principal Act is now also affected by the PGPA Act.
15
NOTES ON SCHEDULE 6 - Appropriation Act (No.2) 2014-2015
98. Item 1 explains that a reference in Schedule 6 to "Principal Act" means the
Appropriation Act (No.2) 2014-2015. The notes on Schedule 6 in this Explanatory
Memorandum do the same.
99. Items 2 to 6 would amend definitions in section 3 of the Principal Act to update
references to the FMA Act and CAC Act with the equivalent provisions in the PGPA Act.
100. Item 2 would amend the definition of "Agency" to replace the reference to "an Agency
within the meaning of the Financial Management and Accountability Act 1997" to "a
non-corporate Commonwealth entity within the meaning of the Public Governance,
Performance and Accountability Act 2013"; or the Australian Competition and Consumer
Commission; or the Australian Human Rights Commission; or the Australian Pesticides and
Veterinary Medicines Authority; or the Australian Securities and Investments Commission;
or the Clean Energy Regulator; or the Corporations and Markets Advisory Committee; or the
High Court of Australia; or the Independent Hospital Pricing Authority; or the
Murray-Darling Basin Authority; or the National Health Performance Authority; or the
National Offshore Petroleum Safety and Environmental Management Authority, to recognise
FMA Act body corporate entities that are becoming corporate Commonwealth entities.
101. Item 3 would amend the definition of "CAC Act body" to replace the reference to "a
Commonwealth authority within the meaning of the Commonwealth Authorities and
Companies Act 1997" to "a corporate Commonwealth entity within the meaning of the Public
Governance, Performance and Accountability Act 2013". The reference to a Commonwealth
company being defined by the CAC Act would also be updated to refer to the PGPA Act.
102. Item 4 would insert a definition of "general drawing rights limit" to mean "debit limit"
as the drawing rights system under the FMA Act will not be transferred to the PGPA Act.
This definition would be applied from 1 July 2015.
103. Item 5 would update terminology so that a reference to the FMA Act in the definition
of "Special Account" would be substituted by a reference to the PGPA Act.
104. Item 6 would update note 2 to section 6 to explain that sections 30 to 32 of the FMA
Act will continue to apply because of the Public Governance, Performance and
Accountability (Consequential and Transitional Provisions) Act 2014. There would also be
an additional note to reference provisions in the PGPA Act that provide for adjustments.
105. Item 7 would omit the note to subsection 7(1) as the PGPA Act does not require
drawing rights to access an appropriation.
106. Item 8 would omit the note to subsection 8(1) as the PGPA Act does not require
drawing rights to access an appropriation.
107. Item 9 would omit the note to subsection 9(1) as the PGPA Act does not require
drawing rights to access an appropriation.
108. Item 10 would omit the note to section 10 as the PGPA Act does not require drawing
rights to access an appropriation.
109. Item 11 would clarify that subsection 11(1) provides for direct appropriations of money
for CAC Act bodies to be paid directly from the CRF.
110. Item 12 would omit the note to subsection 11(1) as the PGPA Act does not require
drawing rights to access an appropriation.
16
111. Item 13 would explain that the operation of the Principal Act continues to be affected
by those sections of the FMA Act that continue to apply because of Schedule 2 to the Public
Governance, Performance and Accountability (Consequential and Transitional Provisions)
Act 2014. In addition, the Principal Act is now also affected by the PGPA Act.
17