PARLIAMENTARY BUDGET OFFICE BILL 2010

i Parliamentary Budget Office Bill 2010 No. , 2010

Contents

Part 1--Preliminary

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Object

.................................................................................................

4 Definitions

.........................................................................................

Part 2--The Parliamentary Budget Officer

Division 1--Establishment and independence

5 Establishment

.....................................................................................

Independence of the Parliamentary Budget Officer ........................... 4

Division 2--Functions of the Parliamentary Budget Officer

7 Functions

...........................................................................................

Parliamentary Budget Officer to have regard to priorities of

Parliament .......................................................................................... 7

9 General

powers

..................................................................................

Flexibility and range of working methods in performance of

functions ............................................................................................ 7

Division 3--Reports

11 Reporting

schedule

............................................................................

12 Operational

plan

.................................................................................

13 Variation

operational plan ........................................................... 10

14 Compliance

with

plans

.....................................................................

Division 4--Appointment and conditions

15 Appointment

....................................................................................

16 Selection

..........................................................................................

17 Acting

Parliamentary Budget Officer .............................................. 12

18 Remuneration

and

allowances ......................................................... 12

Leave of absence .............................................................................. 13

20 Disclosure

interests ...................................................................... 13

21 Outside

employment

........................................................................

22 Other

terms

and

conditions .............................................................. 13

23 Resignation

......................................................................................

24 Termination

appointment ............................................................ 14

Part 3--Parliamentary Budget Office

25 Establishment

...................................................................................

Constitution of the PBO ................................................................... 15

Function of the Parliamentary Budget Office .................................. 15

Parliamentary Budget Office Bill 2010 No. , 2010 ii

28 Staff

.................................................................................................

29 Consultants

......................................................................................

30 Delegation

Parliamentary Budget Officer ................................... 16

Part 4--Miscellaneous

31 Appropriation

...................................................................................

Committees may request draft estimates for PBO ........................... 17

Guaranteed availability of parliamentary appropriations ................. 18

Parliamentary Budget Officer may approve expenditure ................. 18

35 Indemnity

.........................................................................................

36 Annual

report

...................................................................................

Functions of other statutory offices ................................................. 19

38 Delegation

........................................................................................

39 Determinations

.................................................................................

Part 1 Preliminary

Section 2

2 Parliamentary Budget Office Bill 2010 No. , 2010

2 Commencement

(1) This Act commences on the day after an Act authorising the

appropriation of funds for the establishment of the office of

Parliamentary Budget Officer and the operation of the PBO

receives the Royal Assent.

(2) If the event mentioned in subsection (1) does not occur, this Act

does not commence at all.

3 Object

The object of this Act is to establish an independent statutory

office of Parliamentary Budget Officer to enhance transparency

and accountability by providing objective and impartial advice and

analysis on the Commonwealth budget and budget cycle, including

the financial impact of major policy announcements.

4 Definitions

(1) In this Act:

authorised committee means a committee of either House, or of

both Houses, which is authorised by resolution of that House, or of

both Houses, for any purpose connected with the functions of the

Parliamentary Budget Officer.

Commissioner means the Parliamentary Service Commissioner

appointed under the Parliamentary Services Act 1999.

deputy, in relation to a Presiding Officer, means the senior-most

Deputy Speaker or Deputy President, as the case may be, who is

not of the same political party or coalition of parties as the

Presiding Officer.

House means a House of the Parliament.

Presiding Officer means:

(a) in relation to the Senate--the President of the Senate; and

(b) in relation to the House of Representatives--the Speaker of

the House of Representatives.

Preliminary Part 1

Section 4

Parliamentary Budget Office Bill 2010 No. , 2010 3

(2) Unless the contrary intention appears:

(a) a reference to the Presiding Officers means the Presiding

Officers acting jointly; and

(b) a reference to a decision or determination of the Presiding

Officers means a decision or determination in writing jointly

signed by each of the Presiding Officers.

(3) If either House passes a resolution in relation to this Act or the

powers and functions of the Parliamentary Budget Officer, the

Presiding Officer of that House:

(a) must not take any action under this Act which is contrary to

that resolution; and

(b) must comply with any direction given in that resolution in

relation to the exercise of the Presiding Officer's functions

under this Act.

Part 2 The Parliamentary Budget Officer

Division 1 Establishment and independence

Section 5

4 Parliamentary Budget Office Bill 2010 No. , 2010

Part 2--The Parliamentary Budget Officer

Division 1--Establishment and independence

5 Establishment

(1) The office of Parliamentary Budget Officer is established by this

section.

(2) Whenever a vacancy occurs in the office of Parliamentary Budget

Officer, an appointment must be made to the office as soon as

practicable.

6 Independence of the Parliamentary Budget Officer

(1) The Parliamentary Budget Officer is an independent officer of the

Parliament.

(2) The functions, powers, rights, immunities and obligations of the

Parliamentary Budget Officer are as specified in this Act and other

laws of the Commonwealth. There are no implied functions,

powers, rights, immunities or obligations arising from the

Parliamentary Budget Officer being an independent officer of the

Parliament.

(3) The powers of the Parliament to act in relation to the Parliamentary

Budget Officer are as specified in or applying under this Act and

other laws of the Commonwealth. For this purpose, Parliament

includes:

(a) each House of the Parliament; and

(b) the members of each House of the Parliament; and

committees of both Houses of the Parliament.

There are no implied powers of the Parliament arising from the

Parliamentary Budget Officer being an independent officer of the

Parliament.

(4) Subject to this Act and to other laws of the Commonwealth, the

Parliamentary Budget Officer has complete discretion in the

performance or exercise of his or her functions and powers. In

Part 2 The Parliamentary Budget Officer

Division 2 Functions of the Parliamentary Budget Officer

Section 7

6 Parliamentary Budget Office Bill 2010 No. , 2010

Division 2--Functions of the Parliamentary Budget Officer

7 Functions

Primary function--providing advice and analysis

(1) The Parliamentary Budget Officer has the primary function of

enhancing transparency and accountability by providing objective

and impartial advice and analysis on:

(a) the Commonwealth budget and budget cycle, including the

financial or economic impact of major policy

announcements; and

(b) the transparency of the budget process and its supporting

documentation.

(2) In undertaking that primary function, the Parliamentary Budget

Officer must report to each House of the Parliament in accordance

with a schedule of reporting requirements developed in accordance

with section 11.

(3) The Parliamentary Budget Officer may report to each House on the

other matters specified in subsection (1) as he or she thinks fit.

(4) The Parliamentary Budget Officer may also report to each House,

as he or she thinks fit, on any other announcement or development

related to Commonwealth fiscal policy.

Additional functions

(5) The Parliamentary Budget Officer has the following additional

functions:

(a) to hold inquiries and report to each House about matters

relating to his or her functions; and

(b) to undertake research about matters relating to his or her

functions; and

her functions; and

(d) to perform any other functions conferred on the

Parliamentary Budget Officer by this Act or any other law;

and

The Parliamentary Budget Officer Part 2

Functions of the Parliamentary Budget Officer Division 2

Section 8

Parliamentary Budget Office Bill 2010 No. , 2010 7

(e) to do anything incidental to any of the preceding functions.

(6) The Parliamentary Budget Officer may undertake the additional

functions specified in subsection (5) as he or she thinks fit.

(7) The Parliamentary Budget Officer may undertake the additional

functions specified in subsection (5) in relation to particular

matters referred to him or her:

(a) by a resolution of either House of the Parliament; or

(b) by a committee of either House; or

8 Parliamentary Budget Officer to have regard to priorities of

Parliament

In performing or exercising his or her functions and powers, the

Parliamentary Budget Officer must have regard to:

(a) the priorities of the Parliament expressed in resolutions of

either or both Houses; and

(b) any reports on matters connected to the functions of the

Parliamentary Budget Officer made by committees of either

or both Houses.

9 General powers

The Parliamentary Budget Officer has power to do everything

necessary or convenient to be done for, or in connection with, the

performance of the functions of the Parliamentary Budget Officer.

10 Flexibility and range of working methods in performance of

functions

In the performance and exercise of his or her functions and powers,

the Parliamentary Budget Officer:

(a) is not required to act in a formal manner; and

(b) may inform himself or herself on any matter in any way he or

she thinks fit; and

(d) may receive written or oral information or submissions; and

The Parliamentary Budget Officer Part 2

Reports Division 3

Section 11

Parliamentary Budget Office Bill 2010 No. , 2010 9

Division 3--Reports

11 Reporting schedule

(1) The Parliamentary Budget Officer must develop a schedule of the

kinds of events, measures and announcements against which he or

she expects to report to Parliament.

(2) At a minimum, that schedule must require that the Parliamentary

Budget Officer report to each House of the Parliament on the

matters specified in subsection 7(1) at least four times each year,

including:

(a) as soon as practicable after the annual budget statement and

budget reply (however described) are made to the House of

Representatives; and

(b) as soon as practicable after the Treasurer makes any formal

statement which incorporates a revision of budget estimates

or outcomes.

(3) The Parliamentary Budget Officer must include details of the

schedule in each operational plan prepared under section 12.

12 Operational plan

(1) The Parliamentary Budget Officer must prepare an operational plan

that:

(a) defines the Officer's principal objectives in performing his or

her functions; and

(b) gives a broad outline of the strategies to be pursued by the

Officer to achieve those objectives; and

announcements the Officer expects will trigger a requirement

to make a report on a matter specified in subsection 7(1).

(2) The Parliamentary Budget Officer must present a copy of each

operational plan to each House of the Parliament as soon as

practicable after it is prepared.

Part 2 The Parliamentary Budget Officer

Division 3 Reports

Section 13

10 Parliamentary Budget Office Bill 2010 No. , 2010

(3) The first operational plan is to relate to the period ending on

30 June 2013, and must include details of the Parliamentary

Budget Officer's intentions in respect of:

(a) establishing and staffing the PBO; and

(b) developing in the PBO the expertise to undertake its

functions; and

(4) The first operational plan may provide that a reduced schedule of

reporting requirements apply during the first 12 months of the

establishment of the PBO.

(5) Each subsequent operational plan is to relate to the 3-year period

commencing on 1 July in each subsequent year and must include

details of how the Parliamentary Budget Officer intends to meet

the schedule of reporting requirements.

(6) An operational plan prepared under subsection (1) is not a

legislative instrument.

13 Variation of operational plan

(1) Either House, or both Houses, may, by resolution, request that the

Parliamentary Budget Officer vary the operational plan that is in

force.

(2) The Parliamentary Budget Officer must consider any request under

subsection (1) to vary an operational plan and may vary the plan

accordingly.

(3) If the Parliamentary Budget Officer varies an operational plan, he

or she must present a copy of the varied operational plan to each

House of the Parliament as soon as practicable after the variation is

made.

14 Compliance with plans

When performing his or her functions and exercising his or her

powers, the Parliamentary Budget Officer must take into account

the operational plan that is in force.

The Parliamentary Budget Officer Part 2

Appointment and conditions Division 4

Section 15

Parliamentary Budget Office Bill 2010 No. , 2010 11

Division 4--Appointment and conditions

15 Appointment

(1) The Parliamentary Budget Officer is to be appointed by the

Presiding Officers by written instrument, following a selection

process undertaken in accordance with section 16.

(2) The Parliamentary Budget Officer is to be appointed on a full-time

basis.

(3) The Parliamentary Budget Officer holds office for the period

specified in the instrument of appointment. The period must not

exceed 5 years.

Note:

The Parliamentary Budget Officer is eligible for reappointment: see

subsection 33(4A) of the Acts Interpretation Act 1901.

16 Selection

(1) The selection of a Parliamentary Budget Office must follow the

process set out in this section.

(2) The Presiding Officers must establish a panel comprising the

holders of at least 3 of the following offices:

(a)

the

Ombudsman;

(b)

the

Auditor-General;

(d) the Secretary of the Treasury.

(3) The panel must assess and recommend to the Presiding Officers a

short-list of at least 2 candidates for appointment to the position.

(4) The Presiding Officers may delegate administrative responsibility

for the selection process to the Commissioner.

(5) The Presiding Officers, together with their deputies, must select an

appointee from the short-listed candidates. If this group is unable

to select an appointee, the Presiding Officers must commence a

new selection process.

Part 2 The Parliamentary Budget Officer

Division 4 Appointment and conditions

Section 17

12 Parliamentary Budget Office Bill 2010 No. , 2010

17 Acting Parliamentary Budget Officer

(1) The Presiding Officers may appoint a person to act as the

Parliamentary Budget Officer:

(a) during a vacancy in the office of the Parliamentary Budget

Officer (whether or not an appointment has previously been

made to the office); or

(b) during any period, or during all periods, when the

Parliamentary Budget Officer is absent from duty or from

Australia, or is, for any reason, unable to perform the duties

of the office.

Note:

Section 33A of the Acts Interpretation Act 1901 has rules that apply to

acting appointments.

(2) Anything done by or in relation to a person purporting to act under

an appointment is not invalid merely because:

(a) the occasion for the appointment had not arisen; or

(b) there was a defect or irregularity in connection with the

appointment; or

(d) the occasion to act had not arisen or had ceased.

18 Remuneration and allowances

(1) Subject to subsection (3), the Parliamentary Budget Officer is to be

paid the remuneration and allowances that are determined by the

Remuneration Tribunal. If no such determination is in operation,

the Parliamentary Budget Officer is to be paid the remuneration

and allowances that are determined by the Presiding Officers by

written instrument.

(2) This section has effect subject to the Remuneration Tribunal Act

1973.

(3) The remuneration and allowances of the Parliamentary Budget

Officer must be broadly equivalent to the remuneration and

allowances of the Auditor-General.

The Parliamentary Budget Officer Part 2

Appointment and conditions Division 4

Section 19

Parliamentary Budget Office Bill 2010 No. , 2010 13

19 Leave of absence

(1) The Parliamentary Budget Officer has the recreation leave

entitlements that are determined by the Remuneration Tribunal.

(2) The Presiding Officers may grant the Parliamentary Budget Officer

leave of absence, other than recreation leave, on the terms and

conditions as to remuneration or otherwise that they determine.

20 Disclosure of interests

The Parliamentary Budget Officer must give written notice to the

Presiding Officers of all interests, pecuniary or otherwise, that the

Parliamentary Budget Officer has or acquires and that conflict or

could conflict with the proper performance of the Parliamentary

Budget Officer's functions.

21 Outside employment

The Parliamentary Budget Officer must not engage in paid

employment outside the duties of his or her office without the

approval of the Presiding Officers.

22 Other terms and conditions

The Parliamentary Budget Officer holds office on the terms and

conditions (if any) in relation to matters not covered by this Act

that are determined by the Presiding Officers.

23 Resignation

(1) The Parliamentary Budget Officer may resign his or her

appointment by giving the Presiding Officers a written resignation.

(2) The resignation takes effect on the first day it is received by either

of the Presiding Officers, or, if a later day is specified in the

resignation, on that later day.

Part 2 The Parliamentary Budget Officer

Division 4 Appointment and conditions

Section 24

14 Parliamentary Budget Office Bill 2010 No. , 2010

24 Termination of appointment

(1) The Presiding Officers may terminate the appointment of the

Parliamentary Budget Officer for misbehaviour or physical or

mental incapacity.

(2) The Presiding Officers may terminate the appointment of the

Parliamentary Budget Officer if:

(a) the Parliamentary Budget Officer:

(i) becomes bankrupt; or

(ii) applies to take the benefit of any law for the relief of

bankrupt or insolvent debtors; or

(iii) compounds with his or her creditors; or

(iv) makes an assignment of his or her remuneration for the

benefit of his or her creditors; or

(b) the Parliamentary Budget Officer is absent, except on leave

of absence, for 14 consecutive days or for 28 days in any 12

months; or

approval of the Presiding Officers, in paid employment

outside the duties of his or her office (see section 21); or

(d) the Parliamentary Budget Officer fails, without reasonable

excuse, to comply with section 20 (disclosure of interests).

Parliamentary Budget Office Part 3

Section 25

Parliamentary Budget Office Bill 2010 No. , 2010 15

Part 3--Parliamentary Budget Office

25 Establishment

(1) The Parliamentary Budget Office (PBO) is established by this

section.

26 Constitution of the PBO

The PBO consists of:

(a) the Parliamentary Budget Officer; and

(b) the staff of the PBO.

27 Function of the Parliamentary Budget Office

The PBO's function is to assist the Parliamentary Budget Officer in

the performance of the Parliamentary Budget Officer's functions.

28 Staff

(1) The staff of the PBO are to be persons engaged under the Public

Service Act 1999.

(2) For the purposes of the Public Service Act 1999:

(a) the Parliamentary Budget Officer and the staff of the PBO

together constitute a Statutory Agency; and

(b) the Parliamentary Budget Officer is the Head of that

Statutory Agency.

(3) Directions to staff of the PBO relating to the performance of the

Parliamentary Budget Officer's functions may only be given by:

(a) the Parliamentary Budget Officer; or

(b) a member of the staff of the PBO authorised by the

Parliamentary Budget Officer to give such directions.

Part 3 Parliamentary Budget Office

Section 29

16 Parliamentary Budget Office Bill 2010 No. , 2010

29 Consultants

(1) The Parliamentary Budget Officer may engage a person who has

suitable qualifications and experience to assist in the performance

of any of the functions of the Parliamentary Budget Officer.

(2) The terms and conditions of engagement are to be determined, in

writing, by the Parliamentary Budget Officer.

30 Delegation by Parliamentary Budget Officer

(1) The Parliamentary Budget Officer may, by written instrument,

delegate any of the Parliamentary Budget Officer's powers or

functions to:

(a) an SES employee or acting SES employee in the PBO; or

(b) a person engaged under section 30 whose skills and

responsibilities are equivalent to, or exceed, the skills and

responsibilities expected of an SES employee.

Note:

SES employee and acting SES employee are defined in section 17AA

of the Acts Interpretation Act 1901.

(2) In exercising powers or functions under the delegation, the

delegate must comply with any directions of the Parliamentary

Budget Officer.

Miscellaneous Part 4

Section 31

Parliamentary Budget Office Bill 2010 No. , 2010 17

Part 4--Miscellaneous

31 Appropriation

(1) The PBO is to be funded from money appropriated by the

Parliament for the purpose.

(2) Provisions for the appropriation of funds for the purposes of the

PBO must be proposed in the annual and additional appropriation

bills.

(3) The Finance Minister must consult with the Parliamentary Budget

Officer to seek agreement on the estimates of proposed expenditure

for the PBO for inclusion in those bills.

(4) The Parliamentary Budget Officer may, at any time, present to

each House of the Parliament, or to an authorised committee:

(a) a statement of his or her estimates of expenditure required for

the PBO to undertake its functions; or

(b) a report on any consultations which have taken place with the

Finance Minister in accordance with subsection (3); or

(5) If appropriation bills are introduced that propose estimates of

expenditure for the PBO other than in accordance with an

agreement made under subsection (3), the Finance Minister must

present a statement to each House of the Parliament prior to

consideration of the bills, setting out the reasons for the failure to

reach agreement on the estimates.

(6) Subsection (3) does not apply in relation to the initial appropriation

made by the Parliament to establish the office of Parliamentary

Budget Officer.

32 Committees may request draft estimates for PBO

(1) An authorised committee may request the Parliamentary Budget

Officer to submit to the committee draft estimates for the PBO for

a financial year before the annual Commonwealth budget for that

financial year.

Part 4 Miscellaneous

Section 33

18 Parliamentary Budget Office Bill 2010 No. , 2010

(2) The Parliamentary Budget Officer must comply with the request in

time to allow the committee to consider the draft estimates and

make recommendations on them before the budget.

33 Guaranteed availability of parliamentary appropriations

The Finance Minister must issue drawing rights under section 27 of

the Financial Management and Accountability Act 1997 that cover

in full the amounts that the Parliament appropriates for the

purposes of the PBO.

34 Parliamentary Budget Officer may approve expenditure

The Parliamentary Budget Officer has authority to approve a

proposal to spend money under an appropriation for the PBO.

Note:

The Parliamentary Budget Officer's power under this section may be

delegated under section 31.

35 Indemnity

(1) The Commonwealth must indemnify a person for any liability that

the person incurs for an act or omission of the person in the course

of performing a function of the Parliamentary Budget Officer.

(2) The indemnity does not apply if the liability arose from an act or

omission in bad faith.

(3) The indemnity does not cover a liability of a person to the extent to

which the person is entitled to be indemnified for the liability by a

person other than the Commonwealth, whether under a contract of

insurance or otherwise.

36 Annual report

The Parliamentary Budget Office must, as soon as practicable after

the end of each financial year, prepare and give to the Presiding

Officer of each House a report of the operations of the PBO during

that financial year.

Miscellaneous Part 4

Section 37

Parliamentary Budget Office Bill 2010 No. , 2010 19

37 Functions of other statutory offices

The functions of each of the following independent statutory

offices are extended to include the function of assisting in the

selection of a Parliamentary Budget Officer in accordance with this

Act:

(a)

the

Ombudsman;

(b)

the

Auditor-General;

38 Delegation

(1) The Presiding Officers may, in writing, delegate any or all their

functions and powers under this Act (other than their functions and

powers under Division 4 of Part 2) jointly to the Secretaries of the

Departments established under the Parliamentary Service Act

1999.

(2) In exercising functions or powers delegated under subsection (1),

the delegates must comply with any directions of the Presiding

Officers.

39 Determinations

The Presiding Officers may, by legislative instrument, determine

matters:

(a) required or permitted by this Act to be determined; or

(b) necessary or convenient to be determined for carrying out or

giving effect to this Act.

Commonwealth of Australia Bills

PARLIAMENTARY BUDGET OFFICE BILL 2010