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2022-2023-2024-2025
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
PARLIAMENTARY BUSINESS RESOURCES LEGISLATION AMENDMENT
(MACHINERY OF GOVERNMENT CHANGE) BILL 2025
EXPLANATORY MEMORANDUM
(Circulated by authority of the Special Minister of State, Senator the Honourable Don
Farrell)
PARLIAMENTARY BUSINESS RESOURCES LEGISLATION AMENDMENT
(MACHINERY OF GOVERNMENT CHANGE) BILL 2025
GENERAL OUTLINE
1. The Parliamentary Business Resources Legislation Amendment (Machinery of
Government Change) Bill 2025 (the Bill) would amend the Parliamentary Business
Resources Legislation Amendment (Review Implementation and Other Measures) Act
2024 (PBR Amendment Act) to delay, until 1 July 2026, a machinery of government
change which is currently due to occur on 1 July 2025.
2. The PBR Amendment Act responded to a number of recommendations of the
Independent Review into the Parliamentary Business Resources Act 2017 and the
Independent Parliamentary Expenses Authority Act 2017 (the Review) which was
conducted in 2021. Recommendation 23 called for the transfer of the administration of
certain resources under the Parliamentary Business Resources Act 2017 (PBR Act) from
the Department of Finance (Finance) to the Independent Parliamentary Expenses
Authority (IPEA) and the extension of the application of rulings and legislative
protections to the transferred resources.
3. On commencement, Schedule 1 of the PBR Amendment Act will amend the PBR Act and
the Independent Parliamentary Expenses Authority Act 2017 (IPEA Act) to provide for
this machinery of government change, implementing recommendation 23 of the
Review. Schedule 1 is due to commence on 1 July 2025.
4. The Bill would delay the commencement of Schedule 1, and therefore, the machinery of
government change, by 12 months.
5. The Review was conducted more than three years ago. It acknowledged IPEA's
expertise in travel and recommendation 23 was aimed at building on IPEA's success to
expand its responsibilities to other parts of the PBR Act framework. The Reviewers
highlighted some of the advantages that would flow from the application of IPEA's
unique functions and powers to the extended scope of resources.
6. The changes to the PBR Act / IPEA Act framework enacted by Schedule 1 of the PBR
Amendment Act were developed in the context of broader reform activities to improve
parliamentary workplaces arising from the Australian Human Rights Commission's Set
the Standard Report, conducted in 2021, and the Review of the Members of Parliament
(Staff) Act 1984, conducted in 2022. These reforms have included the establishment of
the statutory Parliamentary Workplace Support Service (PWSS) in late 2023 and the
Independent Parliamentary Standards Commission (IPSC) in late 2024, and legislative
amendments to the Members of Parliament (Staff) Act 1984 in 2023.
7. The delay of the machinery of government change provided under Schedule 1 of the
PBR Amendment Act until 1 July 2026 would minimise the degree of change shortly
after the 2025 federal election, when there will be a heightened need for advice and
support to ceasing and commencing parliamentarians and their staff. It would also
allow for further maturation of the broader operating environment and substantial
recent reforms to Commonwealth Parliamentary Workplaces that have occurred. The
delay to the machinery of government change would also provide sufficient time for
IPEA to settle its administration of the transferred resources prior to the next
independent statutory review of the PBR Act, which is scheduled to occur in late 2027.
The statutory review could consider IPEA's administration of the transferred resources
as part of its review of the operation of the PBR Act, in accordance with the
requirements of section 56 of the PBR Act.
Overview of the Bill
8. The Bill would amend the commencement provision for Schedule 1 of the PBR
Amendment Act from 1 July 2025 to 1 July 2026. This would correspondingly delay the
transfer of the administration of certain resources under the PBR Act, from Finance to
IPEA, and the extension of the application of rulings and legislative protections to the
transferred resources.
Structure of the Bill
9. The Bill comprises:
• the formal aspects of the Bill (Sections 1 - 3)
• amendments (Schedule 1).
FINANCIAL IMPACT
10. The financial impact of the Bill is anticipated to be negligible.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Parliamentary Business Resources Legislation Amendment (Machinery of Government
Change) Bill 2025
1. This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011.
Overview of the Bill
2. The Parliamentary Business Resources Legislation Amendment (Machinery of
Government Change) Bill 2025 (the Bill) would amend the Parliamentary Business
Resources Legislation Amendment (Review Implementation and Other Measures) Act
2024 (PBR Amendment Act) to delay the commencement date of Schedule 1 of the PBR
Amendment Act, from 1 July 2025 to 1 July 2026. This would delay, by 12 months:
• the transfer of the administration of certain resources under the Parliamentary
Business Resources Act 2017 (PBR Act) (including responsibility for providing
advice, monitoring, claims processing, providing resources and recovering payments)
as a Machinery of Government change from the Department of Finance (Finance) to
the Independent Parliamentary Expenses Authority (IPEA).
• the related extension, in relation to the transferred resources, of:
o IPEA's ruling function
o the protection from liability for a debt or penalty loading under the PBR Act
where IPEA provided incorrect personal advice
o the exemption under the Freedom of Information Act 1982 (FOI Act) in
relation to personal advice provided by IPEA.
Human rights implications
3. This Bill does not directly engage any of the applicable rights and freedoms. However,
this Bill would amend the commencement date of Schedule 1 of the PBR Amendment
Act, and Schedule 1 of the PBR Amendment Act engages the following rights and
freedoms:
• right to privacy in Article 17 of the International Covenant on Civil and Political
Rights (ICCPR).
• right to freedom of expression in Article 19 of the ICCPR.
Right to privacy
4. The right to privacy and reputation in article 17 of the ICCPR, provides that no-one shall
be subjected to arbitrary or unlawful interference with their privacy, family, home or
correspondence, or attacks on reputation. Privacy extends to information about a
person.
Exchange of information with Secretary
5. Sections 33 and 34 of the IPEA Act currently require IPEA and the Secretary of Finance
(Secretary) to exchange information, which may include personal information, that
either party reasonably requires to perform its functions.
6. The exchange of information from IPEA to the Secretary (section 33 of the IPEA Act) is
principally aimed at the performance of Finance's functions of legislative oversight and
providing policy advice to government in relation to the PBR Act and Parliamentary
Retirement Travel Act 2002 (PRT Act), while the exchange from the Secretary to IPEA
(section 34 of the IPEA Act) is necessary for the performance of IPEA's audit and
reporting functions.
7. In practice, the flow of information under section 34 from Finance to IPEA is routine and
comprehensive for the performance of IPEA's reporting responsibilities, whereas the
provision of information under section 33 is ad-hoc and targeted. Section 34 information
comprises information about all resources provided to all members by Finance that are
within the scope of IPEA's reporting function and is provided to IPEA on a regular basis.
Section 33 information is required infrequently and would typically be provided either in
response to a specific request by a particular member for additional resources under the
PBR Act, or where a new policy initiative is under consideration which requires usage or
trend data to inform the proposed policy settings. Section 33 information may include
personal information to the extent this is required to make a recommendation to the
Minister.
8. Schedule 1 of the PBR Amendment Act is currently due to commence on 1 July 2025. On
commencement, Item 21 of Schedule 1 of the PBR Amendment Act will amend section
33 of the IPEA Act. IPEA's information-sharing obligations under section 33 currently
cover matters relating to MP work resources. This defined term, which Schedule 1 of the
PBR Amendment Act will repeal, is used in respect of the resources for members and
former members of parliament which IPEA currently audits and on which it reports.
However, IPEA's existing administrative responsibilities, referenced by the defined term
MP travel resources (also to be repealed by Schedule 1 of the PBR Amendment Act), are
a subset of the resources covered by MP work resources. This means that IPEA's existing
information-sharing obligations encompass not only matters that are the subject of its
reporting and auditing responsibilities, but also those covered by its administrative
functions.
9. While the resources IPEA will administer immediately following the commencement of
relevant Items of Schedule 1 of the PBR Amendment Act will continue to be within the
scope of IPEA's existing reporting and auditing functions, the new definition of
Authority-administered MP resource will allow for a future Government decision that
IPEA should administer further resources which would be outside the scope of its
reporting and auditing functions - in particular, resources under section 14 or Part 5 of
the PBR Act.
10. On commencement, the PBR Amendment Act therefore will amend paragraph 33(1)(a)
of the IPEA Act to replace MP work resources with Authority-administered MP resources
or designated MP resources to ensure that IPEA can continue to provide information
pertaining to its administrative, reporting and auditing functions which are reasonably
required for the performance of the Secretary's functions.
11. Section 34 of the IPEA Act will not be amended but will continue to require the Secretary
to give IPEA information it reasonably requires for the performance of its functions,
including personal information.
12. While the expansion of IPEA's administrative responsibilities may increase the provision
of information from IPEA to the Secretary under section 33, it will also reduce the
counter-flow of information from Finance to IPEA under section 34 for IPEA's reporting
and auditing purposes since IPEA will be the holder of such information (as the
Administrator), and not Finance. These adjustments, combined with the differences in
scale and cadence of information-flow under sections 33 and 34 as noted at paragraph 7
above, will have a net impact in a reduction of information exchanged between Finance
and IPEA overall, including of personal information. In this regard, Schedule 1 of the PBR
Amendment Act will therefore likely reduce interference with the privacy of members,
former members and former Prime Ministers.
13. The sharing of information will continue to be authorised by law and is not arbitrary. The
provisions of the PBR Amendment Act will only require sharing of information where this
is reasonably required to perform functions of IPEA and the Secretary, which in turn
would ensure appropriate management and oversight of parliamentary business
resources. The Privacy Act 1988 will continue to apply to the management of personal
information by the Secretary and IPEA.
14. The Bill would not alter the impact Schedule 1 of the PBR Amendment Act will have on
the right to privacy, as outlined above, other than to the extent that the Bill would delay
the commencement of Schedule 1 by 12 months.
Freedom of expression
15. Article 19 of the ICCPR articulates the right to freedom of expression, which includes the
freedom to seek, receive and impart information and ideas, and can only be restricted
by law and for certain purposes.
Expansion to the scope of resources IPEA would administer
16. Schedule 1 of the PBR Amendment Act is currently due to commence on 1 July 2025. On
commencement of that Schedule, the existing exemption under the Freedom of
Information Act 1982 (FOI Act) which applies to personal advice provided under
paragraph 12(1)(a) of the IPEA Act will automatically extend to the expanded scope of
resources IPEA will be responsible for administering. Accordingly, the PBR Amendment
Act may engage with the freedom of expression in that it would restrict the public's
access to this information through freedom of information processes.
17. The extended FOI exemption will be a permissible limitation on freedom of expression
because it supports the rights and freedoms of members and their staff by protecting
against arbitrary interferences with privacy and reputation. It will help facilitate frank
exchanges between IPEA and members and their employees about the resources which
IPEA will administer and will encourage early engagement with IPEA to test whether a
potential claim for resources would be in accordance with the PBR Act.
18. While the personal advice provided by IPEA will be exempted from the FOI Act, IPEA is
required to regularly and publicly report on, and to audit, all PBR Act resources which
are subject to members' obligations. These assurance and transparency mechanisms
offset the impact of the FOI Act exemption, and the associated limitation on freedom of
expression, on the public.
19. The Bill would not alter the impact Schedule 1 of the PBR Amendment Act will have on
the right to freedom of expression, as outlined above, other than to the extent that the
Bill would delay the commencement of Schedule 1 by 12 months.
Conclusion
20. The Parliamentary Business Resources Legislation Amendment (Machinery of
Government Change) Bill 2025 is compatible with human rights. The Bill would indirectly
engage human rights, only to the extent of delaying the commencement of Schedule 1
of the PBR Amendment Act. Schedule 1 of the PBR Amendment Act is compatible with
human rights. To the extent that that the measures in Schedule 1 interfere with the right
to privacy, that interference is lawful and not arbitrary, and the measures are
reasonable, necessary and proportionate to the objective of ensuring transparency and
accountability in the spending of public funds. Likewise, any limitations on freedom of
expression arising from the automatic extension of the FOI Act exemption is permissible
to protect the privacy and reputation of members and their staff, and is proportionate
given the transparency and assurance mechanisms in the IPEA Act.
Special Minister of State, Senator the Hon Don Farrell
NOTES ON CLAUSES
Part 1 - Preliminary
Division 1 - General provisions
Clause 1 - Short title
1. This clause provides for the short title of the Bill upon its enactment by the
Parliament to be the Parliamentary Business Resources Legislation Amendment (Machinery
of Government Change) Act 2025.
Clause 2 - Commencement
2. This clause provides for the commencement of each provision in the Bill, as set out in
the table.
• Item 1 of the table provides that the whole of the Act would commence on the day
after the Act receives the Royal Assent.
3. Subclause 2(2) provides that any information in column 3 of the table is not part of
the Bill. In any published version of the Bill, information may be inserted in column 3, or
information may be edited.
Clause 3 - Schedules
4. Clause 3 provides that legislation that is specified in a Schedule to the Bill is
amended or repealed as set out in the applicable items in the Schedule concerned, and any
other item has effect according to its terms.
Schedule 1 - Amendments
Parliamentary Business Resources Legislation Amendment (Review Implementation and
Other Measures) Act 2024
Item 1 - Subsection 2(1) (table item 2)
5. Item 1 amends table item 2 in subsection 2(1) of the Parliamentary Business
Resources Legislation Amendment (Review Implementation and Other Measures) Act 2024
(PBR Amendment Act) by omitting "2025" and substituting "2026".
6. The effect of Item 1 would be to amend the commencement date of Schedule 1 of
the PBR Amendment Act to 1 July 2026. This would delay, by 12 months:
(a) the transfer of the administration of certain resources under the Parliamentary
Business Resources Act 2017 (PBR Act) (including responsibility for providing
advice, monitoring, claims processing, providing resources and recovering payments)
as a Machinery of Government change from the Department of Finance (Finance) to
the Independent Parliamentary Expenses Authority (IPEA), and
(b) the related extension, in relation to the transferred resources, of:
(i) IPEA's ruling function
(ii) the protection from liability for a debt or penalty loading under the PBR Act
where IPEA provided incorrect personal advice
(iii) the exemption under the Freedom of Information Act 1982 (FOI Act) in
relation to personal advice provided by IPEA.
Item 2 - Schedule 1 (heading)
7. Item 2 omits "2025" and substitutes "2026" in the heading of Schedule 1 of the PBR
Amendment Act. The heading would be "Machinery of government amendments
commencing 1 July 2026".