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2019-2020
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
APPROPRIATION BILL (NO. 4) 2019-2020
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Minister for Finance,
Senator the Honourable Mathias Cormann)
Table of Acronyms and Defined Terms
AAA Actual Available Appropriation
AAO Administrative Arrangements Order
AFM Advance to the Finance Minister
AI Act Acts Interpretation Act 1901
BA Budget Appropriation
Commonwealth An entity as defined in section 10 of the PGPA Act
entity
corporate entity A corporate Commonwealth entity or a
Commonwealth company within the meaning of the
PGPA Act
CRF Consolidated Revenue Fund
Finance Minister Minister for Finance
GST Goods and Services Tax
non-corporate Non-corporate Commonwealth entities as defined in
entities the PGPA Act, or the High Court
PGPA Act Public Governance, Performance and Accountability
Act 2013
portfolio Portfolio Budget Statements and Portfolio Additional
statements Estimates Statements
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
House of Representatives 1
Outline
Appropriation Bill (No. 4) 2019-2020
General Outline
1 This Explanatory Memorandum accompanies the Appropriation Bill (No. 4)
2019-2020 (the Bill).
2 The main purpose of the Bill is to propose appropriations from the
Consolidated Revenue Fund (CRF) for services that are not the ordinary annual
services of the Government in addition to amounts appropriated through the
Appropriation Act (No. 2) 2019-2020 and the Supply Act (No. 2) 2019-2020.
3 Appropriations for the ordinary annual services of the Government must be
contained in a separate Bill from other appropriations in accordance with
sections 53 and 54 of the Australian Constitution (the Constitution).
Consequently, the Bill proposes appropriations that are not for the ordinary annual
services of the Government. Annual appropriations that are for the ordinary
annual services of the Government are proposed in the Appropriation Bill (No. 3)
2019-2020. Together these two Bills are termed the Additional Estimates
Appropriation Bills.
4 The Portfolio Additional Estimates Statements are published and tabled in
the Parliament in relation to the Bill. This Explanatory Memorandum should be
read in conjunction with the various 2019-20 portfolio statements (being the
Portfolio Budget Statements 2019-20 and the Portfolio Additional Estimates
Statements) which contain details on the appropriations set out in the Schedules of
the Bills.
Structure of the Bill
5 The Bill provides for the appropriation of specified amounts for expenditure
by Australian Government entities, primarily being non-corporate Commonwealth
entities (non-corporate entities) under the Public Governance, Performance and
Accountability Act 2013 (PGPA Act).
6 Part 1 of the Bill deals with definitions, the interpretative role of the
portfolio statements, and the concept of notional transactions. Part 2 of the Bill
proposes appropriations to make payments of the amounts in Schedule 2 for State,
ACT, NT and local government items (clause 7), administered items (clause 8),
administered assets and liabilities items (clause 9), other departmental items
(clause 10) and corporate entity items (clause 11). Part 3 of the Bill specifies the
Advance to the Finance Minister (AFM) provision (clause 12).
7 Part 4 deals with credits to special accounts (clause 13), the conditions that
apply to payments of State, ACT, NT and local government items (clause 14),
provides for amounts to be appropriated as necessary (clause 15) and specifies
when the Bill is repealed (clause 16). In addition to the AFM provision in Part 3,
clause 15 of the Bill recognises that the appropriations proposed in the Bill may
also be varied by the PGPA Act.
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
House of Representatives 2
Outline
Financial Impact
8 The Bill, if enacted, would appropriate the amounts specified in Schedule 2
as set out in section 6.
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
House of Representatives 3
Statement of compatibility with human rights
Statement of compatibility with human rights
1 The Bill seeks to appropriate money for services that are not considered to
be the ordinary annual services of the Government.
2 Accordingly, the Bill performs an important constitutional function, by
authorising the withdrawal of money from the CRF for the broad purposes
identified in the Bill.
3 However, as the High Court has emphasised, beyond this, the Appropriation
Acts do not ordinarily confer authority to engage in executive action. In particular,
they do not ordinarily confer legal authority to spend. To the extent that any item
of the Bill might be read as purporting to confer such authority, the Government
does not rely on the item to provide it.
4 Given that the legal effect of Appropriation Bills is limited in this way, the
Bill is not seen as engaging, or otherwise affecting, the rights or freedoms relevant
to the Human Rights (Parliamentary Scrutiny) Act 2011.
5 Detailed information on the relevant appropriations, however, is contained
in the portfolio statements.
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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Notes on clauses
Notes on clauses
Part 1--Preliminary
Clause 1--Short title
1 Clause 1 specifies that the short title of the Bill, once enacted, will be the
Appropriation Act (No. 4) 2019-2020.
Clause 2--Commencement
2 Clause 2 provides for the Bill to commence as an Act on the day of the
Royal Assent.
Clause 3--Definitions
3 Clause 3 defines the key terms used in the Bill, such as "administered item",
"non-corporate entity", and "State, ACT, NT and local government item".
Clause 4--Portfolio statements
4 Clause 4 declares that the portfolio statements are relevant documents under
paragraph 15AB(2)(g) of the Acts Interpretation Act 1901 (AI Act) which
provides for material to be considered in the interpretation of an Act if the
material is declared by the Act to be relevant material for the purposes of
section 15AB of the AI Act.
5 The purpose of the portfolio statements is to provide information on the
proposed allocation of resources to Government outcomes by Commonwealth
entities within each portfolio. The term "portfolio statements" is defined in the
Bill, at clause 3, to mean the Portfolio Budget Statements 2019-20 and the
Portfolio Additional Estimates Statements tabled in relation to the Bill.
Clause 5--Notional transactions between entities that are part
of the Commonwealth
6 Clause 5 provides that notional transactions between non-corporate entities
are to be treated as if they are real transactions. Notional transactions, therefore,
require the debiting of an appropriation made by Parliament. The payments of the
amounts in Schedule 2 from one non-corporate entity to another do not require, in
a constitutional sense, an appropriation, because both non-corporate entities
operate within the CRF. For reasons of financial discipline and transparency, the
practice has arisen for these payments between non-corporate entities to be treated
as though they required an appropriation, and to debit an appropriation when such
notional payments are made. This is consistent with section 76 of the PGPA Act.
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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Notes on clauses
7 When a non-corporate entity makes a payment, whether to another
non-corporate entity or another part of the same non-corporate entity (such as a
different "business unit" within the entity), it is to be treated as a "real" payment.
This means that the appropriation made by Parliament is extinguished by the
amount of the notional payment, even though no payment is actually made from
the CRF. Similarly, a notional receipt in such a situation is to be treated by the
receiving non-corporate entity (where relevant) as if it were a real receipt. This
does not mean every internal transfer of public money involves a notional
payment and receipt.
Part 2--Appropriation items
Clause 6--Summary of appropriations
8 Clause 6 sets out the total of the appropriations in Schedule 2 of the Bill.
The amounts in Schedule 2 may be increased by a determination under clause 12
(Advance to the Finance Minister).
9 The amounts in Schedule 2 of the Bill may be adjusted further in accordance
with sections 74 to 75 of the PGPA Act. Specifically:
Section 74 of the PGPA Act, when read with Rule 27 of the Public
Governance, Performance and Accountability Rule 2014, permits
non-corporate entities to retain certain types of receipts by adding them to
their most recent departmental item or other type of appropriation in an
Appropriation Act when prescribed.
Appropriations may be adjusted by amounts recoverable by a non-corporate
entity from the Australian Taxation Office for Goods and Services Tax
(GST), in accordance with section 74A of the PGPA Act. The amounts
specified in Schedule 2 exclude recoverable GST. The appropriations shown
represent the net amount that Parliament is asked to allocate to particular
purposes.
Section 74A has the effect of increasing an appropriation by the amount of
the GST qualifying amount arising from payments in respect of the
appropriation. As a result, there is sufficient appropriation for payments
under an appropriation item, provided that the amount of those payments,
less the amount of recoverable GST, can be met from the initial amount
shown against the item in Schedule 2. Section 74A also applies to notional
transactions between and within non-corporate entities.
Items may be adjusted to take into account the transfer of functions between
non-corporate entities, in accordance with section 75 of the PGPA Act. It is
possible that adjustments under section 75 may result in new items and/or
outcomes being created in an Appropriation Act.
10 Additionally, the Finance Minister manages the payment from items in the
Bill by non-corporate entities using a discretionary power under section 51 of the
PGPA Act. Section 51 allows the Finance Minister to manage the timing and the
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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Notes on clauses
amount of appropriated money to be made available to a Commonwealth entity
(an entity as defined in section 10 of the PGPA Act), except as required by law.
Clause 7--State, ACT, NT and local government items
11 Clause 7 provides administered appropriations for financial assistance to the
States, ACT, NT and local governments. State, ACT, NT and local government
items are appropriated separately for each outcome, making it clear what the
funding is intended to achieve. The amount specified in Schedule 2 for an
outcome may be applied by a non-corporate entity for the purpose of making
payments to any of the States, ACT, NT or local government authorities for the
purpose of achieving that outcome.
12 Clauses 7 and 14 delegate Parliament's power under section 96 of the
Constitution to impose terms and conditions on payments of financial assistance
to the States to the responsible Ministers listed in Schedule 1 of the Bill.
Schedule 1 also lists the Ministers who may determine the amounts and timing of
those payments. These payments are usually made pursuant to eligibility rules and
conditions established by the Government or Parliament.
13 Additional information on payments to the States, Territories and local
government can be found in the portfolio statements of the relevant entities. These
documents can be found at www.budget.gov.au.
Clause 8--Administered items
14 Subclause 8(1) provides for the appropriation of new administered outcome
amounts to be applied by a non-corporate entity for the purpose of contributing to
the outcome for a non-corporate entity. An "administered item" is defined in
clause 3 to be an amount set out in Schedule 2 opposite an outcome for a
non-corporate entity under the heading "New Administered Outcomes". As with
administered items in the Appropriation Bill (No. 3) 2019-2020, New
Administered Outcomes are appropriated separately for outcomes, making it clear
what the funding is intended to achieve.
15 The purposes for which each administered item can be spent are further set
out in subclause 8(2). Subclause 8(2) provides that where the portfolio statements
indicate a particular activity is in respect of a particular outcome, then expenditure
on that activity is taken to be expenditure for the purpose of contributing to
achieving that outcome.
16 New Administered Outcomes are those administered by a non-corporate
entity on behalf of the Government (e.g. certain grants, benefits and transfer
payments). These payments are usually made pursuant to eligibility rules and
conditions established by the Government or the Parliament. Specifically,
administered items are tied to outcomes (departmental items are not).
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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Notes on clauses
17 New Administered Outcomes are typically proposed when a non-corporate
entity's outcomes are changed to reflect new program objectives, strategies and/or
activities; and/or
a non-corporate entity seeks administered operating appropriations for the
first time (including existing non-corporate entities that have received
departmental operating appropriations in the past); and/or
annual administered operating appropriations are proposed for the first time,
for programs previously funded by special appropriations.
Clause 9--Administered assets and liabilities items
18 Clause 9 provides amounts in Schedule 2 to acquire administered assets,
enhance existing administered assets and/or discharge administered liabilities
relating to activities administered by non-corporate entities on behalf of the
Government. Administered assets and liabilities appropriations are provided for
functions managed by a non-corporate entity on behalf of the Government.
Administered assets and liabilities items can be applied for any outcomes of the
non-corporate entity in Schedule 2 of the Bill; Schedule 1 of the Appropriation
Act (No. 1) 2019-2020; Schedule 1 of the Supply Act (No. 1) 2019-2020;
Schedule 2 of the Appropriation Act (No. 2) 2019-2020; Schedule 2 of the Supply
Act (No. 2) 2019-2020; or Schedule 1 of the Appropriation Bill (No. 3) 2019-
2020.
Clause 10--Other departmental items
19 Clause 10 appropriates departmental non-operating appropriations in the
form of equity injections, over which the non-corporate entity also exercises
control. This clause provides that the amount specified in other departmental
items for a non-corporate entity may be applied for the departmental expenditure
of the entity. For example, "equity injections" can be provided to non-corporate
entities to enable investment in assets to facilitate departmental activities and for
Designated Collecting Institutions to purchase heritage and cultural assets.
20 Other departmental items are not expressed in terms of a particular financial
year. For example, equity injection appropriations provide funding to meet the
cost expected to be incurred in the Budget year to acquire a new asset, however,
for a number of reasons, some part of the appropriation might not be required
until a later financial year. Other departmental items are available until they are
spent, or the Act through which they were appropriated is repealed. Annual
Appropriation Acts have a lifespan of up to three years after which they
automatically repeal.
Clause 11--Corporate entity items
21 Clause 11 provides for appropriations of money for corporate entities to be
paid from the CRF by the relevant Department. Clause 11 provides that payments
for corporate entities must be used for the purposes of those entities.
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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Notes on clauses
22 A "corporate entity" is defined in clause 3 to be a corporate Commonwealth
entity or a Commonwealth company within the meaning of the PGPA Act. Many
corporate entities receive funding from appropriations. However, these entities are
legally separate from the Commonwealth, and as a result, do not debit
appropriations or make payments from the CRF.
23 Corporate entity payments are initiated by requests to the relevant portfolio
Departments from the corporate entity. The Finance Minister manages
appropriations for corporate entities through a discretionary power to control the
timing and amount made available under section 51 of the PGPA Act, except as
required by law. Corporate entities hold the amounts paid to them on their own
account.
24 Subclause 11(2) provides that if a corporate entity is subject to another Act
that requires amounts appropriated by Parliament for the purposes of that entity to
be paid to the entity, then the full amount of the corporate entity payment must be
paid to the entity.
25 The purpose of subclause 11(2) is to clarify that subclause 11(1) is not
intended to qualify any obligations in other legislation regulating a corporate
entity, where that other legislation requires the Commonwealth to pay the full
amount appropriated for the purposes of the entity.
26 In addition to the annual appropriations, some corporate entities may also
receive public money from related entities such as a portfolio Department and
from special appropriations managed by those Departments. Many corporate
entities also receive funds from external sources.
Part 3--Advance to the Finance Minister
Clause 12--Advance to the Finance Minister
27 Section 12 of the Appropriation Act (No. 2) 2019-2020 and section 12 of the
Supply Act (No. 2) 2019-2020 enable the Finance Minister to allocate additional
amounts for items when satisfied that there is an urgent need for expenditure, and
the existing appropriation in the current year, is not provided for, or is
insufficiently provided for. The allocated amount is referred to as the Advance to
the Finance Minister (AFM). Subsection 12(3) of the Appropriation Act (No. 2)
2019-2020 provides that the total amount that can be determined under the AFM
provisions of the Appropriation Act (No. 2) 2019-2020 and the Supply Act (No. 2)
2019-2020 is $380 million.
28 Clause 12 of the Bill provides that irrespective of the amounts issued from
the AFM before the commencement of the Bill, the amount available under
section 12 of the Appropriation Act (No. 2) 2019-2020 will be restored to the
original amount of $380 million. The clause ensures that there will be sufficient
scope to provide amounts from the AFM for the remainder of the financial year.
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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Notes on clauses
29 Subclause 12(1) of the Bill specifies that if the Finance Minister has
determined under subsection 12(2) of the Appropriation Act (No. 2) 2019-2020 or
subsection 12(2) of the Supply Act (No. 2) 2019-2020 to increase an amount in
Schedule 2 of the Appropriation Act (No. 2) 2019-2020 or Schedule 2 of the
Supply Act (No. 2) 2019-2020, respectively, from the AFM, then the amount is to
be disregarded for the purposes of subsection 12(3) of the Appropriation Act
(No. 2) 2019-2020 when the Bill commences. From the date this Bill commences
as an Act the total amount that can be determined under the AFM will again be
$380 million.
30 Subclause 12(2) of the Bill prevents appropriations for the same expenditure
from both the AFM and the Bill. Subclause 12(2) ensures that if Schedule 2 of the
Bill provides an amount for a particular expenditure and, prior to the
commencement of the Bill, the Finance Minister determines an amount from the
AFM under section 12 of the Appropriation Act (No. 2) 2019-2020 or section 12
of the Supply Act (No. 2) 2019-2020 for the same expenditure (the advanced
amount), then the appropriation in the Bill will be reduced by the amount of the
advanced amount. The appropriated amount cannot be reduced below nil.
31 For example, if the Bill provides $20 million for a program and an advanced
amount of $5 million is determined by the Finance Minister under the
Appropriation Act (No. 2) 2019-2020 for a particular payment under that program,
then the amount appropriated by the Bill, once enacted, will be reduced by
$5 million (i.e. appropriating only $15 million for the program).
32 The Finance Minister may continue to make determinations under
subsection 12(2) of the Appropriation Act (No. 2) 2019-2020 to add an amount
from the AFM to an item of a Commonwealth entity if the criteria in
subsection 12(1) of that Act are satisfied.
Part 4--Miscellaneous
Clause 13--Crediting amounts to special accounts
33 Clause 13 provides that if the purpose of an item in Schedule 2 is also the
purpose of a special account (regardless of whether the item expressly refers to the
special account), then amounts may be debited against the appropriation for that
item and credited to the special account. Special accounts may be established
under the PGPA Act by a determination of the Finance Minister (section 78) that
is disallowable by Parliament or by another Act (sections 79 and 80). The
determination or Act that establishes the special account will specify the purposes
of the special account.
Clause 14-- Conditions etc. applying to State, ACT, NT and
local government items
34 Clause 14 deals with Parliament's power under section 96 of the
Constitution to provide financial assistance to the States. Clause 14 delegates the
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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Notes on clauses
power to the responsible Ministers listed in Schedule 1 of the Bill, by providing
the Ministers named in Schedule 1 with the power to determine:
conditions under which payments to the States, ACT, NT and local
government may be made: clause 14(2)(a); and
the amounts and timing of those payments: clause 14(2)(b).
35 Subclause 14(4) provides that determinations made under subclause 14(2)
are not legislative instruments, because these determinations are not altering the
appropriations approved by Parliament. Determinations under subclause 14(2) are
administrative in nature and will simply determine how appropriations for State,
ACT, NT and local government items will be paid.
36 Determinations under clause 14 or its equivalent are rare. Most payments to
the States and Territories are governed by, and appropriated through, the Federal
Financial Relations Act 2009. For the payments to the States, ACT, NT and local
government in an even-numbered Appropriation Act, generally other legislative or
agreed frameworks determine how the payments are made and when, such as the
Local Government (Financial Assistance) Act 1995 or a National Agreement.
Many of these arrangements can be found on the Federal Financial Relations
website (http://www.federalfinancialrelations.gov.au/).
37 Although financial assistance is provided to the ACT, NT and local
governments without reference to section 96 of the Constitution, those payments
are administered in the same way. Therefore, the Ministers identified in
Schedule 1 may set the amounts and timing and impose terms and conditions on
those payments. Subclause 14(5) also notes that clause 14 will not limit the
powers of the Commonwealth under section 96 of the Constitution to provide
financial assistance to a State which is not appropriated by a State, ACT, NT and
local government item.
38 In the Bill, appropriations to the States, ACT, NT and local government are
sought for the Department of Education, Skills and Employment against
Outcome 1 and the Department of Infrastructure, Transport, Regional
Development and Communications against Outcome 1 and Outcome 3.
39 Further information may also be found in their portfolio statements for the
respective portfolios. The most recent detailed estimates of Commonwealth
payments to the States, Territories and local governments from 2019-20 to
2022-23 may be found in Annex A to Appendix C in the Mid-Year Economic and
Fiscal Outlook 2019-20 which is available at http://www.budget.gov.au/.
Clause 15--Appropriation of the Consolidated Revenue Fund
40 Clause 15 provides that the CRF is appropriated as necessary for the
purposes of the Bill. Significantly, this clause means that there is an appropriation
in law when the Act commences. That is, the appropriations are not made or
brought into existence just before they are paid, but when the Act commences.
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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Notes on clauses
This clause indicates that the amounts appropriated may be affected by the
PGPA Act, in particular sections 74 to 75 (see clause 6), after the Act commences.
Clause 16--Repeal of this Act
41 Clause 16 specifies that the Bill, once enacted, will repeal at the start of
1 July 2022.
Schedule 1--Payments to or for the States, ACT, NT and
local government
42 In accordance with clause 14, Schedule 1 lists the Ministers responsible for
determinations on payments to or for the States, ACT, NT and local government.
Schedule 2--Services for which money is appropriated
43 Schedule 2 specifies the appropriations proposed for the other than ordinary
annual services of the Government. Schedule 2 contains a summary table which
lists the total amounts for each portfolio. A separate summary table is included for
each portfolio, with other tables detailing the appropriations for each
Commonwealth entity. More details about the appropriations in Schedule 2 are
contained in the portfolio statements and the second reading speech for the Bill.
44 Schedule 2 includes, for information purposes, the amount appropriated in
the Appropriation Act (No. 2) 2019-2020 and the Supply Act (No. 2) 2019-2020,
which is printed in italics and labelled as "Budget Appropriation (italic figures) -
2019-2020", and a figure for the previous financial year labelled "Actual
Available Appropriation (light figures) - 2018-2019". The Budget Appropriation
(BA) and Actual Available Appropriation (AAA) are estimates that do not affect
the amount available at law. These figures provide a comparison with the
proposed appropriations.
45 The BA and AAA are calculated for each item by adding the amounts
appropriated in the relevant financial year's annual Appropriation Acts, plus any
AFMs, and any adjustments under sections 51 and 75 of the PGPA Act. In some
instances, the figures may also be affected by limits applied administratively by
the Department of Finance. In addition, where an entity's outcome structure has
changed since the last Appropriation Act, only ongoing outcomes may be shown
in the Bill.
Machinery of Government changes
46 Since the commencement of the Appropriation Act (No. 2) 2019-2020, there
have been changes to Departments pursuant to Machinery of Government (MoG)
changes from the Administrative Arrangements Order (AAO) made on
5 December 2019 and commencing on 1 February 2020.
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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Notes on clauses
47 On 5 December 2019, the Governor-General in Council acting on the Prime
Minister's recommendations under section 64 of the Constitution abolished the
following Departments of State commencing on 1 February 2020:
Department of Agriculture;
Department of Communications and the Arts;
Department of Employment, Skills, Small and Family Business; and
Services Australia.
48 On 5 December 2019, the Governor-General in Council acting on the Prime
Minister's recommendations under section 64 of the Constitution renamed the
Departments of State in the first column to the names in the second column
commencing on 1 February 2020:
Before 1 February 2020 From 1 February 2020
Department of the Environment and Department of Agriculture, Water and
Energy the Environment
Department of Education Department of Education, Skills and
Employment
Department of Industry, Innovation Department of Industry, Science, Energy
and Science and Resources
Department of Infrastructure, Department of Infrastructure, Transport,
Transport, Cities and Regional Regional Development and
Development Communications
49 The AAO also resulted in the transfer of legislative responsibility and
related functions between various Commonwealth entities to take effect on and
from/commencing 1 February 2020, as follows:
responsibility for agriculture has transferred from the Agriculture portfolio
to the Agriculture, Water and the Environment portfolio;
responsibility for communications and arts has transferred from the
Communications and the Arts portfolio to the Infrastructure, Transport,
Regional Development and Communications portfolio;
responsibility for employment and skills has transferred from the
Employment, Skills, Small and Family Business portfolio to the Education,
Skills and Employment portfolio;
responsibility for small business has transferred from the Employment,
Skills, Small and Family Business portfolio to the Industry, Science, Energy
and Resources portfolio; and
responsibility for energy from the Environment and Energy portfolio to the
Industry, Science, Energy and Resources portfolio.
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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Notes on clauses
50 The Governor-General in Council made an order, under section 65 of the
Public Service Act 1999, establishing Services Australia as an Executive Agency
commencing 1 February 2020 and specifying its functions. The Public
Governance, Performance and Accountability Amendment (Services Australia)
Rules 2020 prescribes Services Australia, in Schedule 1 to the Public Governance,
Performance and Accountability Rule 2014, as a listed entity commencing
1 February 2020 for purposes of the PGPA Act.
51 Schedule 2 to the Bill therefore differs to Schedule 2 of the Appropriation
Act (No. 2) 2019-2020 in the following ways:
it refers to the new names of Departments and Portfolios as a result of the
AAO;
Commonwealth entities moved between portfolios as a result of the AAO
are shown under their current portfolio;
it includes amendments to outcome statements in relation to functions
transferred between Departments; and
appropriations proposed for functions transferred are included for the entity
which has gained the function.
52 The Public Governance, Performance and Accountability (Section 75
Transfers) Amendment Determination 2019-2020 (No. 3) amended references to
the names of portfolios and Departments in Schedule 2 of the Supply Act (No. 2)
2019-2020 and in Schedule 2 of the Appropriation Act (No. 2) 2019-2020, to
reflect the AAO.
53 Full details of the changes as expressed in the 5 December 2019 AAO can
be found at https://www.pmc.gov.au/resource-centre/government/aao-made-5-
december-2019-effect-1-february-2020.
Explanatory Memorandum to Appropriation Bill (No. 4) 2019-2020
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