What is a Machinery of Government Change?

On the advice of the Prime Minister, the Governor-General appoints Ministers, establishes Departments of State and allocates executive responsibility to Ministers through the AAO.

The AAO is published on the Federal Register of Legislation and posted on the PM&C website. It describes the principal matters dealt with by each Commonwealth department and the legislation administered by the relevant Minister.

Changes to the AAO can happen at any time and may commence immediately or from a future date. Changes are more common following a general election as a new Government puts arrangements in place to implement its priorities and programs.

Not all MoG changes result in changes to the AAO and not all changes to the AAO result in a MoG change (for example, where a function transfers between entities in the same portfolio there will be a MoG change without a change to the AAO and where existing matters are clarified in a portfolio’s AAO listing there will not be a MoG change).

The AAO is necessarily high level. Changes to the AAO to implement a MoG change are only made where necessary. PM&C’s Government Division will work with affected entities on whether a change to the AAO is necessary.

Negotiations between affected entities should occur whilst waiting for MoG changes to come into effect.

Legislative change may be needed to implement new administrative arrangements, for example, to create or abolish an entity, or to confer new functions on an entity established by legislation. Entities are advised to seek legal advice from their internal legal advisers and/or the Australian Government Solicitor (AGS) within 3 business days of being advised of upcoming MoG changes, to confirm if legislative changes may be necessary. Where legislative change is required, the requirements of the Legislation Handbook apply as per usual practice.

It may be necessary to change the names of departments and entities or the title of responsible Ministers as they appear in Acts or legislative instruments. In some cases, the Acts Interpretation Act 1901 can be used to give the same effect, including through substituted reference orders. 

Further advice on the impact of a name change can be obtained from the Attorney-General’s Department.

The MoG change date of effect (commencement date) will be either:

• the date AAO is made or a change to the AAO is made (the AAO change may commence on the date it is made or on the date specified in the AAO)
• the date specified in a decision by the Cabinet or Prime Minister, or
• the date specified in legislation or a legislative instrument.

The MoG change completion date will be either:

• the date specified in a decision by the Cabinet or Prime Minister, or
• 13 weeks from the MoG change date of effect.

Responsibility for the following activities transfers to the receiving entity on the MoG change date of effect:

• policy and/or administrative functions not supported by specific legislation. While in practice these may continue to be delivered by staff of the transferring entity (for example, under delegations or authorisations from the receiving entity), the responsibility for performing and delivering those functions transfers to the receiving entity on the MoG change date of effect
• functions supported by specific legislation (for example, regulatory activities)
• special appropriations in legislation
• special accounts established in Acts in accordance with section 80 of the PGPA Act
• special accounts established under section 78 of the PGPA Act where the AAO clearly transfers responsibility for functions associated with the special accounts to another department
• revenues and expenses collected or incurred under specific legislation.

Where entities are unsure of the date of effect for the transfer of appropriations, they should contact Finance for further advice.

Please note that the MoG date of effect may be different to the agreed date for the movement of employees under section 72 of the Public Service Act 1999 (PS Act).

Entities must complete the following core activities by the MoG change completion date:

• transfer of annual appropriations, subject to minor balance adjustments which may be required as accounts are settled
• movement of employees under the PS Act
• transfer of assets and liabilities
• agreed reporting arrangements for the MoG change, including transitional arrangements
• development of a plan or strategy to resolve remaining matters, which could include employee integration into receiving entity culture, information technology, property, security clearances, and minor appropriation balances.

Where a MoG change is anticipated (as a result of discussions with PM&C and/or ministerial correspondence), affected entities should prepare in advance of the expected date of the MoG change. This includes ensuring delegation instruments are drafted and ready to be signed on the date of effect, to mitigate against potential legislative and financial breaches, see Delegation of powers.