Public Governance, Performance and Accountability Act 2013

Public Governance, Performance and Accountability Act 2013
Title	Public Governance, Performance and Accountability Act 2013
Enacted	2013
Jurisdiction	Australia
Status	current

Public Governance, Performance and Accountability Act 2013 The Public Governance, Performance and Accountability Act 2013 is an Australian statute that reformed financial management, reporting and accountability arrangements across Commonwealth entities, aligning administrative practice with statutory obligations and policy objectives. The Act consolidated prior frameworks and interfaced with instruments and institutions to shape corporate governance, financial stewardship and performance reporting across departments, statutory agencies and research organizations. It intersects with a range of Australian legal and administrative developments and has been subject to amendment through parliamentary processes and executive instruments.

Background and Legislative Context

The Act emerged from reviews and reforms influenced by inquiries such as the Macklin Review, recommendations from the Australian National Audit Office, and administrative reform agendas promoted by the Department of Finance (Australia), reflecting broader themes evident in reports by the Productivity Commission, debates in the Parliament of Australia, and priorities of the Prime Minister of Australia and Treasurer of Australia. It was introduced into the House of Representatives of Australia and negotiated with stakeholders including the Australian Public Service Commission, the Commonwealth Grants Commission, peak bodies such as the Institute of Public Administration Australia and representative unions like the Community and Public Sector Union. The legislative package consolidated and replaced provisions from the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997 and harmonised with standards used by institutions including the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority.

Key Provisions and Structure

The Act establishes statutory duties, reporting requirements and governance obligations for Commonwealth entities and companies, creating a framework of corporate-like duties akin to those enforced by the Corporations Act 2001 while preserving public-sector distinctives upheld by the Audit Act 1901 and oversight by the Auditor-General of Australia. It sets out roles for accountable authorities and chief executives, prescribes financial management frameworks, and requires entity-level governance arrangements consistent with standards from bodies such as the International Monetary Fund, the Organisation for Economic Co-operation and Development, and guidance used by the World Bank. The structure includes parts addressing financial framework, performance framework, audit and reporting, and miscellaneous provisions that interact with instruments from the Governor-General of Australia and directions by the Minister for Finance (Australia).

Public Governance and Accountability Principles

The Act embeds accountability duties for accountable authorities and chief executive officers, requiring stewardship, ethical conduct and strategic decision-making reminiscent of obligations considered in cases heard by the High Court of Australia and administrative law principles from the Administrative Appeals Tribunal. It mandates transparent reporting and integrity frameworks comparable to corporate governance codes like those overseen by the Australian Securities Exchange and draws on international norms articulated by the United Nations Development Programme and the Commonwealth of Nations governance guidance. Accountability mechanisms align with the functions of entities such as the Australian Commission for Law Enforcement Integrity, the Office of the Public Advocate (Australia), and the Independent Commission Against Corruption in various jurisdictions, while intersecting with parliamentarian scrutiny via committees like the Parliamentary Joint Committee on Public Accounts and Audit.

Financial Management and Performance Framework

The Act prescribes budgeting, appropriation and financial statement requirements, integrating practices similar to those advocated by the International Public Sector Accounting Standards Board and the Chartered Institute of Public Finance and Accountancy. It requires entities to adopt internal control frameworks, risk management arrangements found in guidance by the Australian National Audit Office and to produce corporate plans and annual performance statements akin to reporting by institutions such as the Commonwealth Scientific and Industrial Research Organisation and the Australian Broadcasting Corporation. The performance framework links funding, program delivery and outcomes reporting with scrutiny by fiscal institutions including the Reserve Bank of Australia and review processes used by the Productivity Commission and Commonwealth Grants Commission.

Compliance, Oversight and Enforcement

Oversight under the Act is exercised through audit, parliamentary reporting and ministerial directions, with primary audit functions performed by the Auditor-General of Australia and the Australian National Audit Office, and parliamentary scrutiny conducted by the Joint Committee of Public Accounts and Audit and estimates committees within the Senate of Australia. Enforcement mechanisms interact with administrative law remedies available through the Federal Court of Australia and the High Court of Australia, and integrity systems involving agencies like the Commonwealth Ombudsman and anti-corruption bodies including the Australian Commission for Law Enforcement Integrity. The Act also provides for civil and administrative sanctions, compliance frameworks aligned with practices in agencies such as the Department of Veterans' Affairs and the Department of Defence (Australia).

Amendments and Legislative History

Since enactment, the Act has been amended by legislative instruments and amendment acts introduced in the Parliament of Australia following recommendations from reviews by the Department of Finance (Australia), the Australian National Audit Office and select committees including the Senate Economics Legislation Committee. Amendments have addressed issues raised by stakeholders including the Institute of Chartered Accountants in Australia and policy changes from successive Treasurer of Australia administrations, and continue to be shaped by jurisprudence from the High Court of Australia and implementation experiences in entities such as the Australian Taxation Office and the Department of Health (Australia). The Act remains a central element of Commonwealth administration and public sector reform agendas debated in forums such as the Council of Australian Governments.

Category:Australian federal legislation