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12/09/2025
(in relation to payments) An invoice, claim or any legitimate request for the payment of moneys made on a Commonwealth entity.
(in relation to accounting) A ledger or code against which particular financial information is recorded (for example, an asset account records the economic changes related to a particular asset controlled by an entity).
Under the PGPA Act, the person or group of persons responsible for, and control over, each Commonwealth entity's operations. The person(s) or body that is the accountable authority of a Commonwealth entity is as follows:
| if the Commonwealth entity is | then the accountable authority of the entity is |
|---|---|
| a Department of State | the Secretary of the Department |
| a parliamentary department | the Secretary of the Department |
| a listed entity | the person or group of persons prescribed by an Act or the rules to be the accountable authority of the entity |
| a body corporate established by a law of the Commonwealth | the governing body of the entity, unless otherwise prescribed by an Act or the rules |
An accountable authority can issue written instructions about any matter relating to the finance law that all officials of the entity must adhere to. (Accountable authorities may also issue instructions to officials of another Commonwealth entity in relation to matters listed in section 20A(2) of the PGPA Act.) These are referred to as accountable authority instructions (AAIs).
DOFA's Accounting Centre of Excellence draws together accounting expertise and focuses on keeping DOFA at the forefront of international governance, budgeting and accounting developments.
The accounting basis that brings items to account as they are earned or incurred (and not as cash received or paid) and includes them in financial statements in the related accounting period.
A scheme that provides retirement benefits based on accumulated employer contributions, and any investment earnings on those contributions. It is also known as a defined contribution scheme.
A payment made by the Commonwealth to an individual or other body in special circumstances and where there is no legal obligation to make the payment. Act of grace payments must be authorised by the Finance Minister or a delegate under section 65 of the PGPA Act. They may be appropriate where a non-corporate entity's conduct or Commonwealth legislation or policy has resulted in an unintended, inequitable, anomalous or otherwise unacceptable result. Act of grace payments are used where any obligation to the applicant is moral, rather than legal.
The actions and/or efforts performed by a Commonwealth entity or Commonwealth company to deliver government objectives and achieve desired results.
Mathematician who compiles and uses statistics mainly for insurance and finance purposes.
Annual Appropriation Bills that seek legislative authority from parliament to draw and expend money from the Consolidated Revenue Fund (CRF) in addition to the authority provided in the annual Appropriation Acts for the previous Budget. The additional authority is to meet expenditure requirements that have arisen since the last Budget, are unavoidable and cannot wait until the next Budget's appropriations.
(in relation to procurement) Requirements in Division 2 of the Commonwealth Procurement Rules (CPRs) that apply to procurement where the estimated value of the procurement is at or above the relevant procurement threshold.
When an accountable authority of a non-corporate Commonwealth entity, or their delegate, gives effect to an arrangement or a grant, including decisions on establishing, varying and paying money. For example, a contract manager might decide that a milestone has been reached by the contractor and that payment is to be made to the contractor for reaching the milestone.
A person performing processing tasks in relation to an arrangement, without making any decisions about the arrangement, is not administering the arrangement.
To administer an arrangement a person should have a delegation or an authorisation of the power in:
(in relation to appropriations) Items administered by the entity on behalf of the Commonwealth. Amounts are appropriated in the annual Appropriation Bills to meet the total estimated expenses for administered items that are expected to be incurred in the upcoming financial year.
Administered items are appropriated separately by entity outcome, making clear what the funding is intended to achieve.
Annual appropriations also provide funding to Commonwealth entities for acquiring new administered assets, enhancing existing administered assets and discharging administered liabilities, through a specific Administered Assets and Liabilities appropriation.
(in relation to budgeting and reporting) Administered items are usually those managed by an entity on behalf of the Government. Entities do not have control over these items, which are normally related to activities governed by eligibility rules and conditions established by the legislation (for example, grants, subsidies and benefit payments). Items should be classified as either departmental or administered.
An instrument issued by the Governor-General that formally establishes matters dealt with by each Department of State and the legislation for which each Minister of State administering a Department of State is responsible.
A provision in the Annual Appropriation Acts that enables the Finance Minister to provide additional appropriation to entities for urgent and unforeseen expenditure in the current year.
A table in Budget Paper No. 4 that shows, by Commonwealth entity and company, by outcome and by source, the aggregate of estimated resources for the upcoming and past financial years.
Australian Government Employees Superannuation Trust. AGEST is the default superannuation scheme for persons covered by the Superannuation (Productivity Benefit) Act.
A sum of money owing to the Commonwealth that is ascertainable or certain (that is, known or able to be determined objectively), including debts due for payment and amounts that are not yet due for payment. For example, an amount owing to an entity from a supplier where an invoice has been issued, but payment is not due until a later date.
Annual funding, provided by annual Appropriation Acts, to Commonwealth entities to carry out Commonwealth outcomes and programmes and also for investment in assets or reduction in liabilities.
Statements prepared by the accountable authority of a Commonwealth entity in accordance with section 39 of the PGPA Act and section 16F of the PGPA Rule that acquits actual performance against planned performance described in the entity's corporate plan. The statements may be audited by the Auditor-General, and must be provided to the entity's minister and the Finance Minister.
The yearly report prepared by the accountable authority of a Commonwealth entity in accordance with section 39 of the PGPA Act or the directors of a Commonwealth company in accordance with section 97 of the PGPA Act. The annual report must be presented to parliament by the responsible minister. The report provides a broad statement of an entity or company's capability and performance, including results against targets published previously for the corresponding year in the portfolio budget statements. It allows accountable authorities and directors to report to their minister on the efficiency and effectiveness of the public administration for which the minister is ultimately responsible.
Application process refers to the steps that must be followed by potential grantees to be considered for a grant. It includes the forms, and written documentation, which contain eligibility and any assessment criteria to be satisfied.
(in relation to procurement) Any notice inviting potential suppliers to participate in a procurement including, but not limited to a request for tender, quote, expression of interest, application for inclusion on a multi-use list, request for information and request for proposal.
A law of the Australian Parliament that provides authority for Commonwealth entities to spend money from the Consolidated Revenue Fund (CRF) for a particular purpose. Entities may not spend money without an appropriation authorising that expenditure and, where necessary, other legislation authorising the specified purpose.
A module of CBMS that is used to assist in the management of appropriations and cash.
Approver (or decision maker) refers to the person or group of people who decide to approve a grant and could be a minister, ministerial panel, accountable authority, official or third party.
A person engaged under section 22, or a person who is engaged as an APS employee under section 72, of the Public Service Act 1999
An agreement or regime of some kind, including a contract, deed or understanding.
Assessment criteria are the specified principles or standards, against which applications will be judged. These criteria are also used to assess the merits of proposals and, in the case of a competitive grant opportunity, to determine application rankings.
Commonwealth entities and companies have periodic requirements for audits:
Audit committees provide independent advice and assurance to the accountable authority of an entity on the appropriateness of the entity's accountability and control framework, including to independently verify and safeguard the integrity of an entity's financial and performance reporting:
(in relation to procurement) The central web-based facility for the publication of Australian Government procurement information, including business opportunities, annual procurement plans and procurement contracts awarded.
Accounting standards are technical pronouncements that set out the required accounting measurements and disclosures for particular types of material transactions and events. The accounting requirements affect the preparation and presentation of an entity's financial statements.
(in relation to financial statements) For Commonwealth entities, accounting standards have the force of law through section 42(2)(a) of the PGPA Act. Further, accounting standards have the force of company law for entities preparing financial reports under that law.
(in relation to budgeting) Section 12(3)(a) of the Charter of Budget Honesty Act requires that the budget is based on accounting standards.
All bodies that comprise the public sector at the national level. This includes the Commonwealth, office holders, statutory corporations, Commonwealth companies and their subsidiary.
Before the establishment of CSC on 1 July 2011, ARIA was the Board responsible for the administration of the CSS, the PSS and the PSSAP. ARIA was also the Trustee for the CSS Fund, the PSS Fund and the PSSAP Fund.
(by an accountable authority) A means of devolving authority. There are two types of authorisation – express (provided in statute) and implied (not provided in statute).
Express authorisation provides authority to an official to exercise an express statutory power, and to act on that power in their own right.
Implied authorisation devolves authority without exercising an express statutory power of delegation (that is, the statutory power remains with the authorising official). Authorised officials only act for and on behalf of the person issuing the authorisation — they do not operate in their own right. In performing the specified task or function, they are required to think and act as though they were the person who gave the authorisation and comply with any conditions attached to the authorisation. The person who issued the authorisation continues to be responsible for the particular task or function as though they actually carried it out and remains accountable for any decisions and actions in exercising the relevant power.
(by the Finance Minister or Treasurer)Under the PGPA Act the Finance Minister or Treasurer may authorise an investment:
An authorisation under section 58 or 59 of the PGPA Act is a legislative instrument that is not disallowable.
The legal authority (whether express or implied) to exercise a power or function that can be given directly through legislation (for example, an accountable authorities' powers under section 23 of the PGPA Act, section 32B of the FFSP Act or other specific legislation) or through a delegation or authorisation.
Building Australia Fund
Relevant money received by an official of a Commonwealth entity or a minister that can be deposited in banks in Australia, or in the place where the money was received. Bankable money must be deposited in a bank account in accordance with the PGPA Rule and the entity's internal controls.
A minister in possession of bankable money (other than money related to the minister's official duties) must give that money to an official of a non‑corporate Commonwealth entity (usually the relevant department of state) as soon as is practicable.
(in relation to performance) Information collected before or at the start of an activity that provides a basis for planning and/or assessing subsequent progress and impact.
(in relation to appropriations) The core level of funding provided each year to an entity or company in annual Appropriation Acts to carry out ordinary business activities (not including funding for specific programmes or outcomes).
(in relation to estimates) The baseline budget estimates in CBMS for the four statements:Financial Performance; Financial Position; Statement of Cash Flows; and the Capital Budget Statement.
(in relation to performance management) The process of measuring and comparing the performance of an organisation's activities against those of similar organisations, to gain information and insights. This process will assist planning for future improvement. Related terms:monitoring and evaluation.
Beneficiaries include the individuals/organisations/communities which directly or indirectly receive a gain or benefit from the grant activity.
Includes any department, listed entity, executive agency, statutory agency, statutory authority, statutory office holder, company, association, cooperative, partnership, trust or departmental function with distinct branding.
Includes any department, listed entity, executive agency, statutory agency, statutory authority, statutory office holder, company, association, cooperative, partnership, trust or departmental function with distinct branding.
Includes any department, listed entity, executive agency, statutory agency, statutory authority, statutory office holder, company, association, cooperative, partnership, trust or departmental function with distinct branding.
A legal entity, other than a body politic or a natural person. It includes a statutory corporation, a company and an incorporated association.
A legal entity, other than a body politic or a natural person. It includes a statutory corporation, a company and an incorporated association.
The final stage in the budget decision-making process. Budget Cabinet is the full committee of cabinet members who make final decisions on Budget proposals that have been previously reviewed and endorsed by the ERC. Proposals that are approved by Budget Cabinet become measures and are included in the Budget.
Budget Papers accompany the Appropriation Bills and are supported by the portfolio budget statements. The Budget Papers are published to assist in explaining the Budget figures. The Budget Papers currently consist of:
The Nation-building Fund which makes funding payments for the creation or development of infrastructure in the areas of transport, communications, eligible broadband matters, energy and water.
A Cabinet Submission is a document that a minister or ministers present to Cabinet to obtain its agreement to a course of action. It is coordinated by portfolio departments and signed off by the relevant portfolio minister. Cabinet generally makes a decision on the proposals within the submission, and the decisions are published as a Cabinet Minute or Cabinet Memorandum.
The purchase of non-current assets necessary for Commonwealth entities and Commonwealth companies to achieve their objectives.
A measure that affects net capital investment, defined as the change in non-financial assets.
The ICT system used to manage the flow of financial information between Finance and Commonwealth entities to facilitate cash and appropriations management, the preparation of budget documentation and financial reporting.
Refers to the Department of the Prime Minister and Cabinet, the Department of the Treasury, and the Department of Finance.
(in relation to cost recovery) The payments to Commonwealth entities by other Commonwealth entities, individuals, and non-government organisations for goods and services and/or regulation, provided to them. The Commonwealth may direct entities to charge for some or all of their activities in a specific manner and/or apply a specific policy framework, such as cost recovery.
Provides a legislative framework for the conduct and reporting of fiscal policy, government decisions and Commonwealth financial statements. The Charter aims to improve the discipline, transparency and accountability applying to the conduct of fiscal policy.
Refers to the requirement under the Superannuation Guarantee (Administration) Act 1992 for employers to offer eligible employees choice of a complying superannuation fund or retirement savings account to receive their superannuation guarantee contributions.
Closed non-competitive processes – for example, where applicants are invited by the entity to submit applications for a particular grant and the applications or proposals are not assessed against other applicants’ submissions but assessed individually against the selection criteria. Better practice closed non-competitive processes either name the eligible applicants and/or provide information on how eligibility was determined.
The workers' compensation insurer for the Commonwealth, providing safety, rehabilitation and compensation services to Commonwealth employees (and employees of the ACT Government) under the auspices of the safety, rehabilitation and compensation services to Commonwealth employees.
The Commonwealth's self-managed insurance fund responsible for protecting Commonwealth entities against insurable losses and promoting better practice risk management to improve policy formulation and the delivery of government activities and services. All Commonwealth entities within the general government sector are insured through Comcover. Entities nominally purchase cover for all normally insurable risks, with the exception of workers' compensation, which remains the responsibility of Comcare.
A generic term for a body of persons that is authoritatively charged with particular activities. This document primarily uses the term in a technical sense to describe a statutory authority that comprises more than one person. However, the term also occurs in the names of certain entities that are led by a single office holder, such as the Australian Public Service Commission.
A generic term for a body of persons that is authoritatively charged with particular activities. This document primarily uses the term in a technical sense to describe a statutory authority that comprises more than one person. However, the term also occurs in the names of certain entities that are led by a single office holder, such as the Australian Public Service Commission.
A generic term for a body of persons that is authorised to perform particular activities. This document primarily uses the term in a technical sense to describe a statutory authority that comprises more than one person. However, the term also occurs in the names of certain entities that are led by a single office holder, such as the Australian Public Service Commission.
An activity or decision of a non-corporate Commonwealth entity (NCE) that results in an obligation on the Commonwealth to pay relevant money. This may involve entering into an arrangement. Commitments include obligations that are contingent upon certain events occurring, such as indemnities, guarantees and warranties.
Accountable authorities of NCEs may approve commitments, or delegate or authorise in writing another person to do so.
The legal entity of the Commonwealth of Australia, created by the Australian Constitution. The term may also be used to differentiate the Australian Government from state and territory governments.
A Corporations Act company that the Commonwealth controls; however, it does not include a company that is a subsidiary of a Commonwealth company, a subsidiary of a corporate Commonwealth entity or a subsidiary of the Future Fund Board of Guardians.
A Corporations Act company that the Commonwealth controls; however, it does not include a company that is a subsidiary of a Commonwealth company, a subsidiary of a corporate Commonwealth entity or a subsidiary of the Future Fund Board of Guardians.
A company established under the Corporations Act 2001 that the Commonwealth controls. A Commonwealth company is legally and financially separate from the Commonwealth.
The Corporations Act is the primary regulatory framework for these companies. Chapter 3 of the PGPA Act sets out additional requirements that Commonwealth companies have to comply with in order to meet appropriate standards of public sector accountability.
The Commonwealth controls a company if, and only if, it (section 89(2) of the PGPA Act):
Commonwealth companies include:
A Commonwealth company does not include a company that is a subsidiary of:
Commonwealth companies are not Commonwealth entities for the purposes of the PGPA Act. The PGPA Act duties that apply to accountable authorities and officials of Commonwealth entities do not apply to directors and officers of Commonwealth companies.
The Flipchart of PGPA bodies lists all Commonwealth companies by portfolio.
A credit card issued to a Commonwealth entity to enable the entity to obtain cash, goods or services on credit. Credit cards and credit vouchers issued to entities are different from personal credit cards or vouchers, as they do not provide the holder with a revolving line of credit. Money borrowed through the use of a credit card or credit voucher must be paid in full within a specific timeframe.
A Commonwealth credit card number is subject to the same requirements as a Commonwealth credit card (for example, in relation to security of storage).
A non-corporate Commonwealth entity or a corporate Commonwealth entity under the PGPA Act, further defined as a Department of State, a Parliamentary Department, a listed entity, or a body corporate established by a Commonwealth law or listed in the PGPA Rule.
A non-corporate Commonwealth entity or a corporate Commonwealth entity under the PGPA Act, further defined as a Department of State, a Parliamentary Department, a listed entity, or a body corporate established by a Commonwealth law or listed in the PGPA Rule.
A Department of State or:
a parliamentary department or
a listed entity or
a body corporate that is:
established by a law of the Commonwealth or
established under a law of the Commonwealth (other than a Commonwealth company) and is prescribed by an Act or the PGPA Rule to be a Commonwealth entity.
The definition of Commonwealth entities in the PGPA Act does not cover:
bodies corporate that are established under, but not by, a law of the Commonwealth (such as Commonwealth companies)
the High Court and the Future Fund Board of Guardians.
All premises owned or leased by a Commonwealth entity, or premises otherwise occupied by or in the care, custody or control of the Commonwealth. This includes land, buildings, aircraft, vessels, vehicles, containers or receptacles.
A legislative instrument issued by the Finance Minister under section 105B of the PGPA Act, which establish the framework under which entities govern and undertake their own procurement. It also includes good practice guidance. All officials performing duties in relation to procurement must act in accordance with the CPRs.
A body corporate that has its status conferred by the Corporations Act 2001.
A body corporate that has its status conferred by the Corporations Act 2001.
ComSuper was the Commonwealth Superannuation Administrator, until merged with Commonwealth Superannuation Corporation on 1 July 2015.
The annual, end-of-year financial statements for the Commonwealth public sector as required by section 48 of the PGPA Act, and prepared in accordance with Australian Accounting Standards and audited by the Australian National Audit Office. They present the consolidated results for the Commonwealth as well as disaggregated information on the various sectors of government.
A fund established by section 81 of the Constitution, comprising money raised or received by the Commonwealth.
A fund established by section 81 of the Constitution, comprising money raised or received by the Commonwealth.
A fund established by section 81 of the Constitution, consists of all revenues and moneys raised or received by the executive government of the Commonwealth. The CRF is self-executing in nature, which means that all money received by the Commonwealth automatically forms part of the CRF.
Refers to competition in public sector functions to improve both efficiency and effectiveness in the delivery of government objectives.
(in relation to budgeting) A provision within the Budget and forward estimates for items that either cannot or should not (generally for reasons of commercial sensitivity) be allocated to specific programmes at the time of publication. For example, allowance for the expected receipts from the sale of assets, or measures that require negotiation by the government where publication of estimates would adversely affect the government's negotiating position. The amount of the contingency reserve is not a general policy reserve, and it is not appropriated.
(in relation to financial statements/reporting) The full definition of both a contingent asset and a contingent liability are contained in AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
Generally, contingencies are an obligation that arises from a past event but is not recognised (e.g. cannot yet be recorded as a liability). Common examples of contingent liabilities in the Commonwealth are indemnities, guarantees, warranties, legal proceedings and disputes, and uncalled capital.
(in relation to procurement) The active management throughout the life of a procurement contract or other contract to ensure a contractor's performance is satisfactory, stakeholders are well informed and all contract requirements are met. It includes managing the contractual relationships and ensuring that deliverables are provided to the required standard, within the agreed timeframe and achieve value for money.
(in relation to procurement) Goods and/or services that the Australian Government has decided to procure at the whole-of-government level. Non-corporate Commonwealth entities must use coordinated procurement arrangements where they exist, unless an exemption has been granted.
Corporate Commonwealth entities and Commonwealth companies are exempt unless a rule or Government Policy Order (GPO) has been issued by the Finance Minister.
A CCE is a body corporate that has a separate legal personality from the Commonwealth, and can act in its own right exercising certain legal rights such as entering into contracts and owning property. Most CCEs are financially separate from the Commonwealth.
CCEs are established through legislation or legislative instrument, and are subject to the PGPA Act, which further clarifies the financial and corporate governance arrangements of these bodies. Some provisions of the PGPA Act applies to CCEs differently to non-corporate Commonwealth entities because of their different legal status, for example the provisions relating to appropriations banking, investments, and use of indemnities.
The Flipchart of PGPA bodies lists all CCEs by portfolio.
The process by which entities are directed and controlled. It is generally understood to encompass authority, accountability, stewardship, leadership, direction and control
The primary strategic planning document of a Commonwealth entity or company, setting out the objectives, capabilities and intended results over a four-year period, in accordance with its stated purposes. The plan should provide a clear line of sight with the relevant annual performance statement, portfolio budget statement and annual report:
accountable authorities of Commonwealth entities must prepare a corporate plan in accordance with section 35 of the PGPA Act and section 16E of the PGPA Rule
directors of Commonwealth companies must prepare a corporate plan in accordance with section 95 of the PGPA Act and section 27A of the PGPA Rule.
A body corporate that is incorporated, or taken to be incorporated, under the Corporations Act 2001.
Charging the non-government sector some or all of the costs of a specific government activity. This may include the provision of goods, services or regulation, or a combination of these. The government must direct that the activity be cost recovered, there must be a statutory basis to charge the non-government sector and alignment between expenses and revenue.
(in relation to budgeting) An assessment of the financial impact of a proposed policy change. Commonwealth entities are required to provide costings for any new policy proposal and seek Cabinet endorsement. Finance must agree to these costings before they can be incorporated into a submission for Cabinet.
Commonwealth Superannuation Corporation. CSC was established on 1 July 2011 by merging ARIA, the Military Superannuation and Benefits Board and the Defence Force Retirement and Death Benefits Authority. CSC is responsible for managing the main Commonwealth civilian and military superannuation schemes. From 1 July 2015 they became responsible for the Administrations Services previously performed by ComSuper. The relevant schemes are:
Commonwealth Superannuation Scheme. The CSS provides for a combination of defined benefits and accumulation benefits. The defined benefit in the CSS is usually a pension based on the length of membership, age and salary at retirement. The accumulation benefits include the 3% employer productivity contribution, if applicable, and the employee component. The CSS was closed to new members from 1 July 1990.
When a person:
holds the money by way of a petty cash advance, change float or other advance or
has received the money, but has not yet dealt with it as required under section 55 of the PGPA Act (which is about banking of relevant money).
When:
a person has taken delivery of relevant property and has not returned it to another person entitled to receive the property on behalf of the Commonwealth and
the person has signed a written acknowledgement at the time of delivery, that the property was delivered on the express condition that the person would at all times take strict care of the property.
A sum of money owing to the Commonwealth which is known and not being disputed, due for payment now and legally capable of being recovered in a legal action for debt. For example, an official who has been overpaid a salary, or a person who has been overpaid a social security payment, may owe a debt to the Commonwealth as a result of the overpayment. Accountable authorities of non-corporate Commonwealth entities are required to pursue amounts owing to the Commonwealth in accordance with section 11 of the PGPA Rule.
In relation to the Commonwealth Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme), defined as:
a specific and unreasonable lapse in complying with existing administrative procedures that would normally have applied to the claimant's circumstances or
an unreasonable failure to institute appropriate administrative procedures to cover a claimant's circumstances or
giving advice to (or for) a claimant that was, in all circumstances, incorrect or ambiguous or
an unreasonable failure to give to (or for) a claimant, the proper advice that was within the official's power and knowledge to give (or was reasonably capable of being obtained by the official to give).
A scheme that provides a retirement benefit usually based on salary and/or a pre-determined formula for calculating that benefit. Unlike an accumulation scheme, the retirement benefit and method of calculation is known to the member at all times.
(in relation to the PGPA Act) An official who has been given statutory authority, by an instrument of delegation, to make particular decisions or perform particular functions. A delegate is constrained by any limitations expressed in the delegation instrument.
(in relation to the PGPA Act) A statutory procedure permitting an official to entrust their statutory authority to another official (the delegate). Delegates personally hold and possess the powers and responsibilities that they have been given and are personally accountable for their decisions and actions in the exercise or performance of the powers and responsibilities that they have been given. A delegation is distinct from an authorisation.
Demand-driven or ‘first-in first-served’ processes – where applications that satisfy stated eligibility criteria receive funding, up to the limit of available appropriations and subject to revision, suspension or abolition of the grant opportunity. Demand driven processes only use verifiable eligibility criteria as the basis for allocating grants. Assessment criteria are not used. The eligibility criteria must be clearly linked to the achievement of value with relevant money.
As established by the Governor-General (in Council) under section 64 of the Constitution.
As established by the Governor-General (in Council) under section 64 of the Constitution.
A Department of State is established by the Governor-General under section 64 of the Constitution. The Constitution recognises that core aspects of government operations are conducted by departments of state. A Department of State has the flexibility to accommodate policy and functional activities in various ways. For example, functions in departments can be separately branded, giving them a distinct identity, and legislation may be used to establish positions or entities, with specific roles and responsibilities, which are administratively supported by the department.
A Department of State includes anybody (except a body corporate), person, group of persons or organisation that is prescribed by an Act or the rules in relation to a specified Department of State. Does not include any part of a Department of State that is a listed entity.
(in relation to budgeting and appropriation bills) Departmental (or administered) capital budget (DCB/ACB) are provided to non-corporate Commonwealth entities that receive government funding to meet the costs associated with the replacement of minor assets (assets valued at $10 million or less) or maintenance costs that are eligible to be capitalised.
(in relation to budgeting and reporting) Departmental items are usually appropriations managed by an entity, and over which the entity has control. That is, the entity's accountable authority has discretion in delivering the activities and/or allocating resources. Typically, these items include the day-to-day operations and program support activities of an entity. Items should be classified as either departmental or administered.
Under the PGPA Act the Finance Minister may make a determination that:
transfers an appropriation from one non-corporate Commonwealth entity to another (also known as a section 75 transfer)
establishes, varies or revokes a special account in accordance with sections 78 of the PGPA Act
Determination made under section 75 or 78 are legislative instrument that cannot be disallowed.
The person appointed to the position of a director (or is acting in that capacity) of a Commonwealth company in accordance with the Corporations Act 2001.
The process of moving monies from the OPA to a Commonwealth entity's transactional bank account.
(in relation to the proper use of public resources) The extent to which the proposed use avoids waste and sharpens the focus on the level of resources that the Commonwealth applies to deliver results. This generally relates to approving the best cost option to deliver the expected results. Economical considerations must be balanced with whether the use will also be efficient, effective and ethical.
(in relation to the proper use of public resources) The extent to which an intervention has attained its major relevant objectives. Effectiveness considerations must be balanced with whether the use will also be efficient, economical and ethical
Currently, Commonwealth entities are subject to an annual efficiency dividend that reduces entity budgets each year in anticipation of efficiencies being found. The efficiency dividend applies to the operational (running) costs. The objectives of the efficiency dividend have been to:
provide managers with a financial incentive to continually seek new or more efficient ways of carrying out ongoing government business
allow government to redirect a portion of efficiency gains to higher priority activities and
clearly demonstrate public service efficiencies resulting from improvements in management and administrative practices and return these gains to the Budget.
(in relation to the proper use of public resources) The extent to which an activity's inputs are minimised for a given level of activity outputs, or the extent to which outputs are maximised for a given level of inputs. Efficiency considerations must be balanced with whether the use will also be effective, economical and ethical.
Eligibility criteria refer to the mandatory criteria which must be met to qualify for a grant. Eligibility criteria should be developed to enable objective validation and are either ‘met’ or ‘not met’. Assessment criteria may apply in addition to eligibility criteria.
(also known as ‘establishing legislation’) – Parliament’s authorisation in statute for a body to be established with certain powers and functions. See also statutory authority.
(also known as ‘establishing legislation’) – Parliament’s authorisation in statute for a body to be established with certain powers and functions. See also statutory authority.
For a Commonwealth entity, the Act or legislative instrument that establishes the entity.
A non-corporate Commonwealth entity or corporate Commonwealth entity as defined by the Public Governance, Performance and Accountability Act 2013.
A non-corporate Commonwealth entity or corporate Commonwealth entity as defined by the Public Governance, Performance and Accountability Act 2013.
(in relation to budgeting) Expected expenses, revenues, assets, liabilities, and cash flows of the Commonwealth, prepared in consultation between Finance and the entities responsible for program delivery. The term 'agreed estimates' is sometimes also used to stress the fact that these estimates are agreed by government, either through individual Cabinet decisions or as a result of Cabinet-endorsed general adjustment processes (for example, parameter indexation). Related terms:parameters, indexation.
These are sent by Finance to Commonwealth entities and cover matters relating to budget estimates and the reporting of actual expenses, and provide advice on:policy changes, whole-of-government processes and requirements, upcoming deadlines, and specific actions that entities must take.
(in relation to the proper use of public resources) The extent to which the proposed use is consistent with the core beliefs and values of society. Where a person behaves in an ethical manner it could be expected that a person in a similar situation would undertake a similar course of action. For the approval of proposed commitments of relevant money, an ethical use of resources involves managing conflicts of interests, and approving the commitment based on the facts without being influenced by personal bias. Ethical considerations must be balanced with whether the use will also be efficient, effective and economical.
Evaluation is the systematic and objective assessment of the design, implementation or results of a government program or activity for the purposes of continuous improvement, accountability and decision-making. It provides a structured and disciplined analysis of the value of policies, programs and activities at all stages of the policy cycle.
An agency designated, in an executive order made by the Governor-General-in-Council, as separate from a department, for staffing and accountability and reporting purposes, under the Public Service Act 1999.
An agency designated, in an executive order made by the Governor-General-in-Council, as separate from a department, for staffing and accountability and reporting purposes, under the Public Service Act 1999.
Payments for expenses, acquiring assets, making loans or paying liabilities.
A committee of Cabinet responsible for examining all proposals in light of the Government's overall fiscal strategy, advising Cabinet on Budget spending priorities and initiating reviews of individual ongoing programmes. Membership of the ERC consists of the Prime Minister, Treasurer and the Minister for Finance, along with other selected portfolio ministers.
External committee means any body comprising external representation formed for the purposes of informing entities on the merits of applications in a grant opportunity. This may include advisory panels, expert committees, or technical advisers.
The Budget result for each year released publicly by the Treasurer no later than three months after the end of the financial year. The report contains fiscal outcomes for the general government sector, public financial corporations and public non-financial corporations, including information on actual revenue, expenses, net capital investment, federal / state financial relations and other information for the financial year.
For the purpose of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), ‘finance law’ (as defined in section 8 of the PGPA Act) means:
The results shown in the financial statements of an entity.
An accrual measure that shows whether the government has to borrow from financial markets to cover its activities. Fiscal balance is calculated as revenue net of expenses from operations, plus revaluation adjustments (to remove items that do not impact on the fiscal balance), plus capital adjustments. Net investment in non-financial assets worsens fiscal balance as such investment is integral to the operation of government. Related term: underlying cash balance.
The government's approach to taxation and spending, both of which can affect the economy.
(in relation to budgeting) A system of rolling three-year financial estimates of the revenues and costs of ongoing government policy decisions, after allowing for estimated movements in economic parameters (after the budget year). The forward estimates include the level of expenses proposed by the Government for future years (based on relevant economic, demographic and other forecasting assumptions.
Dishonestly obtaining a benefit, or causing a loss, by deception or other means. May include (but is not limited to):
theft
accounting fraud (false invoices, misappropriation etc)
unlawful use of, or obtaining property, equipment, material or services
causing a loss, or avoiding and/or creating a liability
providing false or misleading information to the Commonwealth, or failing to provide it when there is an obligation to do so
misuse of Commonwealth assets, equipment of facilities
cartel conduct; making, or using false, forged of falsified documents and
wrongfully using Commonwealth information or intellectual property.
Accountable authorities of Commonwealth entities must take all reasonable measures to prevent, detect and deal with fraud in accordance with section 10 of the PGPA Rule.
A scheme where contributions are paid to a superannuation fund by or on behalf of members of that fund. For taxation purposes the scheme is also known as a taxed scheme. Some schemes provide a combination of funded and unfunded benefits.
A body corporate which is responsible for the investments of the Future Fund and Nation-building Funds and is accountable to the Government for the safekeeping and performance of the Funds’ assets.
A group comprising entities that are primarily budget-funded or that obtain their funds from government generally.
A group comprising entities that are primarily budget-funded or that obtain their funds from government generally.
A group of government-controlled entities that provide public services which are mainly:
This sector classification enables the collection of financial information on the performance of Commonwealth entities and companies in the Commonwealth public sector, and is classified by institutional sector, as defined and required by Australian equivalents of international standards - known as Government Finance Statistics. The other sector classifications are public financial corporations sector (PFC) and public non-financial corporations sector (PNFC).
Commonwealth payments to states and territories made in accordance with Part 2 of the FFR Act that states can use for any purpose (i.e. no conditions are applied to this funding). General revenue assistance includes GST payments that are distributed between the states and territories in accordance with the recommendations of the Commonwealth Grants Commission.
Two other types of payments that the Commonwealth makes to the states and territories under the FFR Act are national specific purpose payments and national partnership payments.
(in relation to relevant property) is disposing of relevant property by an entity unconditionally without receiving payment or other consideration. A minister or official must gift relevant property in accordance with section 66 of the PGPA Act. This does not include relevant money (gifting relevant money is a grant.)
See public sector governance.
The governing body of a corporate Commonwealth entity means:
for a corporate Commonwealth entity that has a board, council or other governing body — that board, council or governing body and
otherwise — all of the members of the entity.
Related term: accountable authority.
(in relation to public sector governance) A Commonwealth entity or Commonwealth company that is prescribed as a GBE by the rules made under the PGPA Act, and so may operate as a profit-making business.
The accountable authority of a Commonwealth entity or directors of a Commonwealth company that is a GBE has additional responsibilities, e.g. extra disclosure requirements in section 28F of the PGPA Rule.
Provides statistics that are based on accounting information, which enable policy-makers and other stakeholders to:
assess the impact of policy decisions on the economy
make international comparisons of financial performance information
analyse the financial operations and financial position of the public sector at either the specific government, institutional sector or transactional level.
The GFS system covers all activities of governments that can be measured in financial terms. The system distinguishes between transactions and other economic flows that impact on movements in assets and liabilities held by governments. The statistics also include information about the value of governments' investments and debt.
GFS is not an accounting system — accounts are mapped to a GFS view, providing the Australian Bureau of Statistics an alternative view of the accounting data.
An order made by the Finance Minister under the PGPA Act, that specifies a policy of the Australian Government that is to apply:
to one or more corporate Commonwealth entities in accordance with section 22 of the PGPA Act or
to one or more wholly-owned Commonwealth companies in accordance with section 93 of the PGPA Act.
(in relation to arrangements) An arrangement for the provision of financial assistance by the Commonwealth or on behalf of the Commonwealth:
under which relevant money or other CRF money is to be paid to a recipient other than the Commonwealth
which is intended to assist the recipient achieve its goals
which is intended to help to address one or more of the government's policy objectives and
under which the recipient may be required to act in accordance with specified terms or conditions.
The CGRGs exempt certain arrangements from the definition of a grant, and therefore from the CGRGs, including procurements, tax concessions, loans, investments, certain intergovernmental payments and international official development assistance.
(in relation to accounting) A payment made by a Commonwealth entity for the purpose of distributing government financial assistance to persons outside the public sector. Grants also include non-monetary distribution of benefits. No consideration is received by the entity for the issuing of a grant.
All grants (monetary and non-monetary) must be reported by entities at fair value and not at nominal amounts, consistent with the Australian Accounting Standards and the FRR.
Grant activity(ies) refers to the project /tasks /services that the grantee is required to undertake.
Grant agreement sets out the relationship between the parties to the agreement and specifies the details of the grant.
Grant opportunity refers to the specific grant round or process where a Commonwealth grant is made available to potential grantees. Grant opportunities may be open or targeted and will reflect the relevant grant selection process.
Grant Opportunity Guidelines (GOGs) refers to a document(s) containing the relevant information required for potential grantees to understand: the purpose, outcomes and objectives of a grant; the application and assessment process; the governance arrangements (including roles and responsibilities); and the operation of the grant. Grant opportunity guidelines include related documents, such as the application guidelines and forms, invitations to apply, supporting documentation, frequently asked questions, draft grant agreements, and any templates for reporting or acquittals.
GrantConnect is the Australian Government’s whole-of-government grants information system, which centralises the publication and reporting of Commonwealth grants in accordance with the CGRPs.
Grantee means the individual/organisation which has been selected to receive a grant.
Grants administration is the processes that an entity undertakes to achieve Government policy outcomes through grants. It includes: planning and design; selection and decision-making; the making of a grant; the management of grant agreements; the ongoing relationship with grantees; reporting; and review and evaluation.
Grants lifecycle includes the: design of grant opportunities and activities; assessment and selection of grantees; establishment of grants; ongoing management of grantees and grant activities; and evaluation of grant opportunities and activities.
A promise whereby one party assumes responsibility for the debt, or performance obligations, of another party should that party default in some way — for example, where an entity guarantees payment of bank borrowings by a third party. A guarantee may give rise to a contingent liability. A guarantee can only be given by an accountable authority of a non-corporate Commonwealth entity in accordance with section 60 of the PGPA Act and the Finance Minister's delegation of this power to accountable authorities.
A legally binding promise whereby a party undertakes to accept the risk of loss or damage another party may suffer. For example, where an entity hires a venue to host a conference it may indemnify the owner of that venue against losses that may be suffered if attendees damage the venue. An indemnity may give rise to a contingent liability. A guarantee can only be given by an accountable authority of a non-corporate Commonwealth entity in accordance with section 60 of the PGPA Act and the Finance Minister's delegation of this power to accountable authorities.
The process by which the forward cost estimates are updated to reflect the forecast economic conditions of the year in which costs are expected to occur.
The following entities are defined in the Crimes Act as intelligence or security agencies:
Australian Security Intelligence Organisation
Australian Secret Intelligence Service
Office of National Assessments
the parts of the Defence Department known as the Australian Signals Directorate, the Defence Intelligence Organisation, and the Australian Geospatial-Intelligence Organisation.
A documented relationship for the provision of services, exchange of information or other administrative function or support, signed between two or more Commonwealth entities. Examples include:an MoU, exchange of letters, business partnership or a service level agreement.
A report, published by the Treasurer, that assesses the long-term sustainability of current government policies over the 40 years following the release of the report, including taking into account the financial implications of demographic change. The report is prepared at least every five years as required under the Charter of Budget Honesty Act 1998.
Purchase of financial assets with relevant money by Commonwealth entities for the purpose of generating future income, appreciation in asset value over time, or hedging for risks. An entity can only invest if empowered by a delegation from the Finance Minister or Treasurer. The PGPA Act and PGPA Rule places restrictions on how investments are to be administered and sets limits on the types of investments (“authorised investments”) that can be made. Delegations from the Finance Minister or Treasurer can include further restrictions or directions.
Some entities have enabling legislation permitting investment activities. The PGPA Act does not limit these investment provisions.
The Treasurer has delegated investment powers to the Australian Office of Financial Management for its role in managing the Commonwealth's public debt.
(in relation to managing performance) A type of performance measurement (using either qualitative or quantitative data) on the efficiency or effectiveness of activities in achieving purposes. Related terms:evaluation and monitoring.
Directions issued by the Attorney-General under the Judiciary Act 1903 that set out certain requirements for Commonwealth legal work.
Directions issued by the Attorney-General under the Judiciary Act 1903 that set out certain requirements for Commonwealth legal work.
A law or body of laws formally made or enacted. Legislation includes:
statute law (Acts of Parliament, also known as primary legislation)
legislative instruments, such as rules and regulations (also known as subordinate or delegated legislation) made by other persons under a power authorised through statute by the parliament (for example, rules made by the Finance Minister in accordance with the PGPA Act).
(in relation to procurement) A legally binding agreement whereby a contactor's liability for damage or loss is limited to a certain amount.
A 'listed entity' is a type of Commonwealth entity for the purpose of the PGPA Act. In the PGPA Act, a listed entity is defined to include a body, person, group of persons or organisation (or any combination of these) that is prescribed by rules made under the PGPA Act or another Act to be a listed entity, but does not include a body corporate. As a listed entity is not a body corporate, a listed entity is known as a non-corporate Commonwealth entity. The other types of non-corporate Commonwealth entities are Departments of State and Parliamentary Departments.
A law enforcement agency within the meaning of section 85ZL of the Crimes Act 1914, that is prescribed by section 7 of the PGPA Rule. Includes the Australian Federal Police, the Australian Commission for Law Enforcement Integrity and the Australian Crimes Commission.
Used to describe a variety of organisational or functional changes affecting the Commonwealth. The term is interchangeable with 'administrative re-arrangements' and/or the Administrative Arrangement Order (AAO).
Government entities are classified based on the extent to which their financial information has a material impact on the whole-of-government financial statements. The breakdown is determined by aggregating the total income, expenses, assets and liabilities of all entities. Entities whose total falls within the top 99 per cent of the total general government sector are classified as 'material' entities. Exceptions apply to entities that are considered material in nature, such as departments of state.
Takes into account the planned outcome and the relative significance of the resources consumed in contributing to the achievement of that outcome.
A policy or decision of the government that affects revenues, expenses or capital (on a GFS basis). Related terms:capital measure and savings measure.
A generic term used primarily in this document to describe a person who is a shareholder or a guarantor of a company. (It can also describe a director in terms of being a member of a board or a member of an accountable authority
A generic term used primarily in this document to describe a person who is a shareholder or a guarantor of a company. (It can also describe a director in terms of being a member of a board or a member of an accountable authority
A generic term used primarily in relation to the governance of a Commonwealth body to describe:
A written agreement between two or more parties that defines the working relationship, expectations and responsibilities. MoUs are usually not legally binding on the parties. They are commonly used to clarify arrangements between non-corporate Commonwealth entities.
Provides an update of the Government's budget estimates by examining expenses and revenues in the year to date, as well as provisions for new decisions that have been taken since the Budget. The purpose of the report is to provide updated information to allow the assessment of the Government's fiscal performance against the fiscal strategy set out in its current fiscal strategy statement.
Includes a Presiding Officer of a parliamentary department.
The performance and analysis of routine measurements to detect changes. Monitoring is used to inform managers about the progress of an ongoing activity, and to detect problems that may be able to be addressed through corrective actions.
Commonwealth payments to states and territories made in accordance with Part 4 of the FFR Act for major reforms or projects, including payments made to support projects, facilitate major reforms and reward jurisdictions that deliver on nationally significant reforms. These payments are facilitated by the following types of agreements:
National Agreements, which define the mutually agreed objectives, outcomes, outputs and performance benchmarks or milestones related to the delivery of specific projects, improvements in service delivery or reform
Project Agreements, which are a simpler form of National Partnership, used for low value and/or low risk projects and
Implementation Plans, which are subsidiary documents to some National Partnership agreements that outline how an individual jurisdiction intends to achieve the outcomes and outputs specified in the overarching National Partnership.
Two other types of payments that the Commonwealth makes to the states and territories under the FFR Act are general revenue assistance and national specific purpose payments.
Annual Commonwealth payments to states and territories made in accordance with Part 3 of the FFR Act to be spent in the key service delivery sectors (for example health, schools, skills, and training, disability services and affordable housing).
Two other types of payments that the Commonwealth makes to the states and territories under the FFR Act are general revenue assistance and national partnership payments.
A common measure of the strength of the government's financial position. Net debt equals interest-bearing debts less nominated financial assets.
An economic measure of wealth. Net worth equals GFS assets less liabilities.
Any proposal that requires a government decision and that:
have a certain or potential financial impact including on the fiscal balance, underlying cash balance, headline cash balance, net debt or net worth on existing estimates within the forward estimates period or beyond (including drawing down on cash reserves or moving expenditure from outside into the forward estimates) or
have changes in expenses offset by changes in other expenses or user charges (revenue) or
create a legal, financial, contingent or other commitment for the Commonwealth or
changes the intent of a previous new policy decision or position, including proposals that are fully offset, absorbed within existing resources, or involve movements between or within outcomes.
Non-competitive, open processes – under which applications may be submitted at any time over the life of the grant opportunity and are assessed individually against the selection criteria, with funding decisions in relation to each application being determined without reference to the comparative merits of other applications.
Non-corporate Commonwealth entities (NCEs) are legally and financially part of the Commonwealth. Examples of NCEs include departments of state, parliamentary departments or listed entities.
NCEs are established under power that comes from the Constitution, usually through legislation and the exercise of executive power. NCEs form part of the executive government, and are accountable to the Parliament. NCEs are subject to the PGPA Act, which further clarifies the financial and corporate governance arrangements of these bodies.
The PGPA Act Flipchart and list is a reference of all Commonwealth entities and companies.
A person engaged as an APS employee under subsection 22(2)(b) or 22(2)(c) of the Public Service Act 1999.
Sometimes called 'capital' costs, these are appropriations included in the even numbered Appropriation Acts (for example, Appropriation Act (No. 2 or 4), which deal with appropriations other than those for the ordinary annual services of the government), and include:
'equity injections', which are provided to entities to, for example, to enable investment in assets to facilitate departmental activities
a 'collection development acquisition budget' (CDAB) for Designated Collecting Institutions (such as the National Gallery of Australia) to purchase heritage and cultural assets
administered assets and liabilities appropriations, which provide funding for acquiring new administered assets, enhancing existing administered assets and discharging administered liabilities relating to activities administered by entities on behalf of the government.
The accountable authority (or delegate) of a non-corporate Commonwealth entity may only write off an amount owing to the Commonwealth in accordance with section 11 of the PGPA Rule. The accountable authority does not need to pursue the recovery of a debt where it is considered not economical, a debt is not legally recoverable or the write-off is authorised by an Act. A decision to write off a debt does not legally extinguish the debt. For example, if the debtor's circumstances change in the future the debt can be reinstated and pursued.
Transactions that do not actually involve money leaving the Consolidated Revenue Fund (CRF), because both parties to the transaction are part of the Commonwealth, or acting on behalf of the Commonwealth. For example, where one non-corporate Commonwealth entity pays another for services, or where one part of a non-corporate Commonwealth entity pays another division of that entity. Section 76 of the PGPA Act treats these notional payments and receipts as real payments and receipts and as such, the appropriation relied on for the transaction should be debited/credited as appropriate.
The intended or desired results that are to be attained or accomplished in pursuit of a stated result, often prescribed through legislative or statutory requirements.
Officials include:
Officials do not include:
The Commonwealth's central bank account. The OPA is one of a group of linked bank accounts, referred to as the Official Public Account Group of Accounts. OPAs are maintained with the Reserve Bank of Australia (RBA), as required by subsection 53(3) of the PGPA Act.
One-off ad hoc grants as a selection process may be appropriate when all the elements of paragraph 2.4c of Part 1 of the Commonwealth Grants Rules and Principles 2024 apply.
A person engaged as an ongoing APS employee under subsection 22(2)(a) of the Public Service Act 1999.
Open competitive processes – which have open and closed nominated dates, with applications being assessed against the nominated selection criteria (eligibility and assessment criteria) and against the comparative merits of other applications.
Functions, services and processes performed in pursuing the objectives or discharging the functions of an entity.
Ordinary Time Earnings. OTE is the default earnings base under the Superannuation Guarantee (Administration) Act 1992 for calculating the SG 9% employer contribution. Since 1 July 2008 all employers have been required to contribute at least 9% of OTE to satisfy their SG obligations. Members of the PSSAP will receive employer contributions in all circumstances that are at least 9% of OTE.
Other Consolidated Revenue Fund (CRF) money is money that forms part of the CRF other than relevant money or any other money of a kind prescribed by the rules (see section 105 of the PGPA Act).
Money that forms part of the Consolidated Revenue Fund (CRF) other than:
relevant money or
any other money of a kind prescribed by the rules (section 105 of the PGPA Act).
Other CRF money provides for situations where a person other than an official of a non-corporate Commonwealth entity receives, holds or spends money that is part of the CRF. This is most likely where a person outside the Commonwealth is engaged as an agent of the Commonwealth to collect money payable to the Commonwealth and, potentially, make payments from the money collected.
Accountable authorities of non-corporate Commonwealth entities must ensure any arrangements relating to the use or management of other CRF money must comply with section 29 of the PGPA Rule.
For example an auction house could be engaged to sell surplus assets on behalf of the Commonwealth. Under the contract they are able to receive the proceeds of sale and take an agreed commission before returning the balance to the Commonwealth. In this situation, the auction house is acting on behalf of the Commonwealth in receiving and managing money that belongs to the Commonwealth (and therefore forms part of the CRF).
The results, impacts or consequences of a purpose or activity, as defined in the annual Appropriation Acts and the portfolio budget statements, by a Commonwealth entity and company.
Economic or activity variables which influence the price or cost of the activity. Economic parameters are the forecasts in the budget and forward years of various economic indicators including movements in prices, production levels and exchange rates. Activity-specific parameters, estimated by entities in consultation with Finance, refer to changes in non-economic variables such as conditions of specific activities (for example, the number of unemployment benefit recipients or the number of sole parents).
A part of the Commonwealth that is established as a department of the Parliament under the Parliamentary Service Act 1999.
A part of the Commonwealth that is established as a department of the Parliament under the Parliamentary Service Act 1999.
A department of the parliament established under the Parliamentary Service Act 1999 to provide a range of services and support for the working of Parliament.
Currently, the parliamentary departments are:
the Department of the Senate
the Department of the House of Representatives
the Department of Parliamentary Services and
the Parliamentary Budget Office.
Relates to an amount which the Commonwealth owes to a person at the time of their death. Such payments may be authorised in accordance with section 25 of the PGPA Rule.
Superannuation (Productivity Benefit) Act 1988.
A system of producing and using performance information for continuous improvement and to help policy makers answer questions about whether promises were kept and goals were achieved.
Performance measurement is a continuous process of collecting and analysing data to compare how well a project, program, or policy is being implemented against expected results. The related concept of performance monitoring involves performing and analysing routine measurements to detect changes. Performance measurement and monitoring is used to:
A generic term encompassing any natural person, body corporate or body politic.
A generic term encompassing any natural person, body corporate or body politic.
Portfolios in the Australian Government are established through the Administrative Arrangements Order (AAO). Acting on advice from the Prime Minister, the Governor-General appoints Ministers, establishes departments of state (also referred to as 'portfolio departments') and formally allocates executive responsibility through the AAO.
The AAO specifies the matters dealt with by each department of state and the legislation administered by each minister. In accordance with the AAO, most of the general executive powers of the Commonwealth are exercised by ministers or their departments. A portfolio may encompass more than one Department of State. For example, the Defence Portfolio consists of the Department of Defence and the Department of Veterans' Affairs.
The PAES, like the Portfolio Budget Statements, informs parliamentarians and the public of the proposed allocation of resources to entities within a portfolio to assist them to achieve government outcomes.
PAES aim to explain the changes in resourcing by outcome since the Budget. They provide information on new measures and their impact on the financial and/or non-financial planned performance of programmes supporting those outcomes. The PAES facilitate an understanding of the proposed appropriations in Appropriation Bills (Nos. 3 & 4). Related term: measures.
The PB Statements inform parliamentarians and the public of the proposed allocation of resources to government outcomes. They also assist the Senate standing committees with their examination of the government's Budget. PB Statements are tabled in Parliament on Budget night and published as budget-related papers.
Cabinet submissions setting out all of the proposals for a portfolio to be considered in the annual Budget process, including savings, spending and any other matters.
The PSAES, like that of the Portfolio Budget Statements, informs senators, members of the House of Representatives and the public of the proposed allocation of resources to entities within a portfolio to assist them to achieve government outcomes.
PSAESs aim to explain the changes in resourcing by outcome since the Additional Estimates update. The PSAESs facilitate understanding of the proposed appropriations in Appropriation Bills (Nos. 5 & 6). These Bills are not produced every year.
The Charter of Budget Honesty Act 1998 requires the secretaries of the Department of Treasury and the Department of Finance to release a pre-election report that provides updated information on the economic and fiscal outlook. The PEFO report must be released within 10 days of the issue of the writ for a general election.
The President of the Senate or the Speaker of the House of Representatives.
Purposes, objectives, and desired states or outcomes, that are ranked as highest in importance by a Commonwealth entity, company, or the Australian Government.
The Australian Government may publish its key priorities, some of which (related to financial and economic management) are often included in Budget Paper No. 1. Commonwealth entities and companies must include in their corporate plans descriptions of how their own purposes and activities contribute to the Australian Government's key priorities.
The whole process of procuring goods and/or services. It begins when a need has been identified and a decision has been made on the procurement requirement. Procurement continues through the processes of risk assessment, seeking and evaluating alternative solutions, the awarding of a contract, delivery of and payment for the goods and services and, where relevant, ongoing contract management and consideration of disposal of goods.
Procurement does not include, for example, grants, statutory appointments or engagement of employees such as under the Public Service Act 1999.
Methods used to conduct a procurement include: open tender or limited tender.
The policies of the Commonwealth for which procurement have been identified as the means of delivery.
Commonwealth programs deliver benefits, services or transfer payments to individuals, organisations or the community as a whole, and/or policy advice to inform government decisions. A program is comprised of activities or groups of activities, as defined in the annual Appropriation Acts and portfolio budget statements, by Commonwealth entity and company. Related term: outcomes.
Efficient, effective, economical and ethical use or management of public resources.
For the accountable authority of a non-corporate Commonwealth entity, proper use and management of public resources means behaving, taking action and making decisions in a way that is not inconsistent with the policies of the Australian Government in accordance with sections 15 and 21 of the PGPA Act.
The Public Sector Superannuation Scheme. The PSS provides defined benefits that are usually based on the average of the member's superannuation salary on the member's last three birthdays, multiplied by an accrued benefit multiple (which is dependent on the level of the member's contributions and length of membership). The PSS was closed to new members from 1 July 2005.
The Public Sector Superannuation Accumulation Plan. The PSSAP provides accumulation lump sum benefits largely based on employer contributions at 15.4% of superannuation salary and investment returns on these contributions. The scheme is generally available to Australian Government employees who commenced employment or appointment on or after 1 July 2005, including persons employed by an Approved Authority (within the meaning of the Superannuation Act 2005) or persons who hold a statutory office.
Commonwealth entities that trade in financial assets and liabilities and operates commercially in the financial markets. PFCs are entities which perform central banking functions, accept demand, time or savings deposits, or have the authority to incur liabilities and acquire financial assets in the market of their own account (e.g. Reserve Bank of Australia and Australian Reinsurance Pool Corporation).
This sector classification enables the collection of financial information on the performance of Commonwealth entities and companies in the Commonwealth public sector, and is classified by institutional sector, as defined and required by Australian equivalents of international standards - known as Government Finance Statistics. The other sector classifications are general government sector (GGS) and public non-financial corporation sector (PNFC).
Commonwealth entities and Commonwealth companies whose primary function is to provide goods and services which are mainly market, non-regulatory and non-financial in nature, financed predominately through sales to the consumers of goods and services (e.g. Australian Postal Corporation, Airservices Australia and NBN Co Limited).
This sector classification enables the collection of financial information on the performance of Commonwealth entities and companies in the Commonwealth public sector, and is classified by institutional sector, as defined and required by Australian equivalents of international standards - known as Government Finance Statistics. The other sector classifications are general government sector (GGS) and public financial corporations sector (PFC).
An infrastructure procurement method involving the use of private sector capital to wholly or partly fund an asset (that would otherwise have been purchased directly by the government) which is used to deliver government objectives.
Relevant money, relevant property, or appropriations.
The set of responsibilities and practices, policies and procedures, exercised by an entity's accountable authority, to provide strategic direction, ensure objectives are achieved, manage risks and use resources responsibly and with accountability.
The legislation under which Australian Public Service employment arrangements are applied to a Department of State, an Executive Agency or a Statutory Agency. Not all PGPA Act Commonwealth entities employ their officials under the Public Service Act.
The legislation under which Australian Public Service employment arrangements are applied to a Department of State, an Executive Agency or a Statutory Agency. Not all PGPA Act Commonwealth entities employ their officials under the Public Service Act.
Arrangements under which the services of one entity are purchased by another entity to contribute to outcomes – these arrangements can occur between Commonwealth entities or between Commonwealth entities and state/territory government or private sector bodies.
When used in relation to a Commonwealth entity or Commonwealth company, it includes the objectives, functions or role of the entity or company.
In relation to performance management, purposes are the reasons or ideal state or outcomes, for which the entity or company undertakes its activities.
the power to control or direct according to a rule or law, including the ability to set mandatory standards.
the power to control or direct according to a rule or law, including the ability to set mandatory standards.
A power to control or direct according to a rule or law, including the ability to set mandatory standards.
For the purposes of the Budget estimates, monthly reports and the FBO report, the term relates to any transactions between entities in the general government sector. For the purposes of the CFS, the term relates to any transactions between entities in the public sector. For the purposes of entity financial statements, the term relates to entities which form part of the Commonwealth public sector or which the Australian Government controls.
Money standing to the credit of any bank account of the Commonwealth or a corporate Commonwealth entity, or money that is held by the Commonwealth or a corporate Commonwealth entity.
The amount (including GST) of a procurement when procurements are subject to the additional rules in Division 2 of the CPR.
Property (other than relevant money) that is owned or held by the Commonwealth or a corporate Commonwealth entity, or any other thing prescribed as relevant property by the rules.
A Commonwealth entity, a Commonwealth company, or a subsidiary of a Commonwealth entity or Commonwealth company, must produce reports within:
the period of 12 months commencing on 1 July or
any other period prescribed by the rules for the entity, company or subsidiary.
The minister who is responsible for matters described under the Administrative Arrangements Order (AAO). Each Commonwealth entity and company has a responsible minister, which one depends on the matters that the entity or company deals with, or otherwise prescribed by the rules.
A non-corporate entity can increase the balance of certain appropriations by the amount of certain receipts collected by the entity in accordance with section 74 of the PGPA Act and section 27 of the PGPA Rule. In turn, the increasing of an appropriation authorises the entity to spend those amounts from the Consolidated Revenue Fund (CRF) against that appropriation.
Income received by the government through taxes, customs, duties and interest. Also includes inflows or other enhancements or savings in outflows of future economic benefits in the form of increases in assets or reductions in liabilities of the entity, other than those relating to contributions by owners, that result in an increase in equity during the reporting period.
The effect of uncertainty on objectives.
Coordinated activities to direct and control an organisation with regard to risk.
Retirement Savings Accounts. These accounts are typically offered by financial institutions as a low risk/low income accumulation account.
Legislative instruments made by the Finance Minister under sections 101 to 105 of the PGPA Act prescribing matters:
required or permitted by the PGPA Act or
necessary or convenient to be prescribed for carrying out or giving effect to the PGPA Act.
Rules made under the PGPA Act are disallowable legislative instruments.
A measure that reduces the cost of an activity, providing savings to the Commonwealth. Can also be the result of government terminating an activity. The savings measure can be used to offset spending elsewhere, reduce funding, change resourcing, etc.
An administrative scheme that allows non-corporate Commonwealth entities to compensate individuals or other bodies who have experienced detriment (a quantifiable financial loss) as a result of an entity's defective administration, and which have no other avenues of redress.
The Finance Minister may make a determination to transfer an appropriation from one non-corporate Commonwealth entity to another entity in accordance with section 75 of the PGPA Act, to follow the transfer of a function between those entities. These transfers are most common following changes to the Administrative Arrangements Order (AAO) that move functions between non-corporate Commonwealth entities.
A determination made under section 75 is a non-disallowable legislative instrument.
Selection criteria comprise eligibility criteria and assessment criteria.
Selection process is the method used to select potential grantees. This process may involve comparative assessment of applications or the assessment of applications against the eligibility criteria and/or the assessment criteria.
The review of estimates of government expenditure by Senate committees as part of the annual budget cycle.
A public statement about the service that an entity will provide and what customers can expect from the entity. In particular, the service charter advises what the entity does, how to contact and communicate with the entity, the standard of service that customers can expect, and their basic rights and responsibilities, and how to provide feedback or make a complaint.
Superannuation Guarantee is the minimum superannuation provision that an employer is required to provide under the Superannuation Guarantee (Administration) Act 1992.
A ledger, in law, that allows relevant money to be drawn from the Consolidated Revenue Fund for specified purposes, up to the special account’s balance. It enables separate accounting to support an identified activity, including within a department.
A ledger, in law, that allows relevant money to be drawn from the Consolidated Revenue Fund for specified purposes, up to the special account’s balance. It enables separate accounting to support an identified activity, including within a department.
A type of special appropriation, limited by amount, criteria or time, which may be established under sections 78 and 80 of the PGPA Act.
A special account establishes a ledger, in law, that allows relevant money to be drawn from the Consolidated Revenue Fund for specified purposes, up to the special account's balance. It enables separate accounting to support an identified activity, including within a department.
Authority within an Act (other than an annual Appropriation Act) to spend money from the Consolidated Revenue Fund (CRF) for particular purposes.
A statutory authority identified in an Act as a ‘Statutory Agency’ for the purposes of the Public Service Act.
A statutory authority identified in an Act as a ‘Statutory Agency’ for the purposes of the Public Service Act.
A generic term for an Australian Government body established through legislation for a public purpose. This can include a body headed by, or comprising, an office holder, a commission or a governing board.
A generic term for an Australian Government body established through legislation for a public purpose. This can include a body headed by, or comprising, an office holder, a commission or a governing board.
A statutory body that is a body corporate, including an entity created under section 87 of the PGPA Act.
A statutory body that is a body corporate, including an entity created under section 87 of the PGPA Act.
An entity, body or organisation that is controlled by a corporate Commonwealth entity or Commonwealth company.
Targeted or restricted competitive processes – which are open to a small number of potential grantees based on the specialised requirements of the grant activity under consideration. Applications are assessed against the nominated selection criteria and against the comparative merits of other applications.
Third parties refers to any person or entity involved in the grants administration process who is not a minister, accountable authority or official. Third parties include but are not limited to: external committees, ministerial committees, ministerial staff, parliamentarians, sub‑contractors, non-government organisations and corporate Commonwealth entities, where they undertake grants administration processes on behalf of the Government.
Relevant money that has been received by an official of a Commonwealth entity or a minister, and cannot be deposited in banks in Australia, or in the place where the money was received. For example, banks in Australia do not accept foreign currency coinage.
Unbankable money, since it cannot be used as money, is treated as relevant property and can be used, managed or disposed of by the entity's accountable authority in accordance with the PGPA Rule and the entity's internal controls.
A cash measure that shows whether the Government has to borrow from financial markets to cover its activities. The underlying cash balance is calculated as net cash receipts from operations (excluding Future Fund earnings), plus financing adjustments (to remove cash flows more appropriately viewed as financing in GFS), plus net cash flows from capital investment (net cash investment in non-financial assets worsens underlying cash balance as such investment is integral to the operation of Government). Related term:fiscal balance.
A scheme where the employer does not pay contributions to a superannuation fund. Instead, the employer contributes when the employee's benefit is paid. For taxation purposes, it is also known as an untaxed scheme. Some schemes provide a combination of funded and unfunded benefits.
Is a core requirement of the Commonwealth Procurement Rules (CPRs). Officials responsible for a procurement must be satisfied after reasonable enquiries, that the procurement achieves a value for money outcome.
A special concession granted to an individual or other body that extinguishes a debt or other amount owing to the Commonwealth. Waivers may be granted by the Finance Minister (or a delegate) under section 63 of the PGPA Act.
A promise whereby one party provides certain assurances to another party. Warranties often relate to asset and sales agreements. For example, where an entity sells an asset to a third party it may provide a warranty that the entity has a right to sell the asset, the asset is fit for use and defective parts will be replaced within a specified period. A warranty may give rise to a contingent liability.
Includes all institutional sectors of the Commonwealth reporting under the GFS; the general government sector; the public non-financial corporations sector and the public financial corporations sector. This is the level at which the annual consolidated financial statements (CFS) of the Commonwealth are reported.
A Commonwealth company whose shares are not beneficially owned by any person other than the Commonwealth.
A wholly-owned Commonwealth company has some additional requirements under the PGPA Act that are set out in RMG 601.
The Department of Finance acknowledges the Traditional Owners and Custodians throughout Australia and their continuing connection to land, water and community.