‍The Public Governance, Performance and Accountability Act 2013 (PGPA Act) is the central legislative framework that defines how the Australian Government governs, manages, and accounts for public resources. It translates the principles of public sector management into a coherent system of financial governance, performance measurement, and risk management. The PGPA Act is the anchor for Commonwealth planning, budgeting, resource allocation, and institutional accountability.

The Act responds to a modern public sector environment characterised by complex service delivery models, rapid technological adaptation, and an increasing demand for transparency and integrity. It provides a unified framework for how all Commonwealth entities—including government departments, corporate agencies, and commercial entities—shape, manage, and report on the use of public funds and powers.

Purpose of the PGPA Act

The PGPA Act serves several critical purposes that guide Commonwealth officials, government entities, and the broader public administration ecosystem.

1. Establishing a Clear Governance Posture

The PGPA Act defines a modern approach to public sector governance, shifting from a rigid, rules-based financial compliance system to a principles-based model focused on performance and accountability. It articulates the strategic logic for how public resources should be efficiently, effectively, economically, and ethically managed.

2. Providing a Framework for Resource Management

The Act outlines how the Commonwealth will use public money, public property, and institutional authority to achieve government objectives. It emphasises:

• High standards of governance, performance, and accountability.

• Crucial collaboration with partners, states, and the private sector to achieve shared outcomes.

• Resilient internal control systems and data integrity.

3. Guiding Performance Measurement and Reporting

The PGPA Act sets the direction for:

• Corporate planning and operational forecasting.

• Performance statement development and target setting.

• Annual evaluation, tracking, and auditing.

• Transparent public disclosure via the annual reporting cycle.

It ensures that performance measurement aligns with actual strategic delivery, rather than just financial consumption.

4. Strengthening Public Sector Risk Management

The Act defines risk oversight requirements across:

• Enterprise and system-wide risk identification.

• Active mitigation and business continuity planning.

• Shared risks across multi-agency initiatives.

• Fraud control and anti-corruption frameworks.

5. Integrating Financial Governance with Integrity

The PGPA Act positions resource management as part of a broader public integrity ecosystem, linking financial management with:

• Public sector values and ethical behavior.

• Accountability to the Parliament and the Australian taxpayer.

• Ministerial oversight and administrative law.

• Anti-corruption, auditing, and whistle-blower protections.

Scope of the PGPA Act

The PGPA Act covers the full spectrum of public governance, performance management, and financial accountability. Its scope includes:

1. Institutional Classification Framework

The Act applies across different structures of public administration, categorising and regulating:

• Non-corporate Commonwealth entities (e.g., government departments like Defence or Health).

• Corporate Commonwealth entities (e.g., body corporates like CSIRO or Tourism Australia).

• Commonwealth companies (e.g., NBN Co).

This categorization underpins all subsequent governance obligations and levels of financial independence.

2. Duties of Accountable Authorities and Officials

The PGPA Act defines core legal duties, typically including:

• For Accountable Authorities (Secretaries and Boards): Governing the entity, establishing internal control systems, and encouraging cooperation.

• For Officials (All Public Servants): Acting with care and diligence, acting in good faith, disclosing material personal interests, and using public resources properly.

3. Planning and Performance Cycles

The Act outlines the mandatory performance cycle, which includes:

• The Corporate Plan: The primary rolling four-year planning document detailing activities and targets.

• The Annual Performance Statement: An audited, year-end assessment of whether those targets were met.

4. Financial Management and Use of Public Resources

The PGPA Act guides financial decisions across:

• Appropriations and the expenditure of public money.

• Entering into grants, procurement contracts, and financial commitments.

• Indemnities, guarantees, and borrowing money on behalf of the Commonwealth.

• The banking, investment, and custody of public funds.

5. Inter-Agency and Cross-Sector Cooperation

The Act explicitly requires entities to work together where appropriate. It covers:

• Shared outcomes across multiple government agencies.

• Joint funding agreements with state or territory governments.

• Partnerships with commercial vendors and non-profit organizations.

6. Parliamentary Transparency and Reporting

The PGPA Act integrates public sector activities with parliamentary oversight, maintaining frameworks for:

• The timely tabling of Annual Reports in Parliament.

• Scrutiny by the Auditor-General and the Australian National Audit Office (ANAO).

• Reviews by parliamentary committees, such as the Joint Committee of Public Accounts and Audit (JCPAA).

Content Overview

While the legislative instrument is organized into Parts and Sections, the PGPA Act functionally operates through several major pillars:

1. Governance and Duties

A foundational section establishing who is accountable for what, mapping the legal responsibilities of agency leaders and every individual public official.

2. Planning and Performance

Defines the cycle of accountability, requiring entities to state what they intend to achieve at the start of the year and report what they actually achieved at the end.

3. Financial Controls and Resource Management

Sets out the strict boundaries for handling money, banking, making investments, issuing grants, buying goods, and safeguarding public property.

4. Audit, Oversight, and Sanctions

Details the mechanisms for checking compliance, handling instances of fraud or mismanagement, and enforcing consequences when duties are breached.

5. The PGPA Rule (Subordinate Legislation)

Provides the detailed, adaptable regulations that sit beneath the main Act, giving specific instructions on how to meet the high-level legal requirements.

Why the PGPA Act Matters

The PGPA Act is essential because it:

• Provides a coherent, long-term framework for public administration.

• Aligns institutional capability and spending with the public interest.

• Strengthens democratic accountability and institutional integrity.

• Integrates financial management with clear, measurable real-world outcomes.

• Guides the lawful expenditure of hundreds of billions of dollars in public funds.

• Ensures the Australian public service remains transparent, trusted, and efficient.

For public servants, agency leaders, commercial partners, and oversight bodies, the PGPA Act is the authoritative guide to how the Australian government must manage its responsibilities and resources.

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