Glossary

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:

• inform managers about the progress of an ongoing activity
• detect problems that may be able to be addressed through corrective actions
• provide information to support accountabilities and reporting obligations under the PGPA Act and associated instruments
• contribute to an evidence base for future evaluations or reviews, particularly in helping develop a program logic.

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.

Since 1 July 2022, the Commonwealth public sector has consisted of 16 departments of state in 15 portfolios:

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.