Financial Framework Legislation Amendment Act 2008
No. 90, 2008
An Act to amend the Financial Management and Accountability Act 1997 and other legislation, and for other purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Main amendments
Part 1—Amendments
Albury‑Wodonga Development Act 1973
Financial Management and Accountability Act 1997
Public Service Act 1999
Reserve Bank Act 1959
Part 2—Other provisions
Schedule 2—Consequential amendments
Defence Home Ownership Assistance Scheme Act 2008
Financial Framework Legislation Amendment Act 2008
No. 90, 2008
An Act to amend the Financial Management and Accountability Act 1997 and other legislation, and for other purposes
[Assented to 20 September 2008]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Financial Framework Legislation Amendment Act 2008.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day on which this Act receives the Royal Assent. | 20 September 2008 |
2. Schedule 1, items 1 to 14 | 1 July 2009. | 1 July 2009 |
3. Schedule 1, items 15 to 66 | A single day to be fixed by Proclamation. However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period. | 20 March 2009 |
4. Schedule 1, item 67 | 1 July 2009. | 1 July 2009 |
5. Schedule 1, items 68 to 76 | At the same time as the provision(s) covered by table item 3. | 20 March 2009 |
6. Schedule 2 | The later of: (a) the start of the day on which item 20 of Schedule 1 to this Act commences; and (b) immediately after the commencement of section 83 of the Defence Home Ownership Assistance Scheme Act 2008. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. | 20 March 2009 (paragraph (a) applies) |
Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Main amendments
Part 1—Amendments
Overview
The Financial Framework Legislation Amendment Act 2008 No. 90, 2008 was enacted by the Parliament of Australia to amend the Financial Management and Accountability Act 1997 and other relevant legislation, addressing gaps in financial management practices and accountability within the public sector. This Act introduces changes to improve the oversight and management of public funds and financial transactions, ensuring better compliance with existing legislative frameworks. It also aims to strengthen the accountability of public officials by imposing clearer penalties and responsibilities regarding the handling of public money. The policy objective of this Act is to enhance financial governance and ensure that public resources are managed effectively and transparently, thereby contributing to the integrity and efficiency of public administration.
Scope and Application
The Financial Framework Legislation Amendment Act 2008 amends the Financial Management and Accountability Act 1997 (FMA Act) and other related legislation. This Act applies to various entities including the Albury-Wodonga Development Corporation, agencies, the Reserve Bank, and the Public Service, as well as the conduct and transactions of these entities. The Act’s geographic and jurisdictional reach is national, impacting Commonwealth entities and their operations. The amendments introduced by the Act include changes to notional payments and receipts, reporting and spending of public money, investment of public money, and audit committee requirements. Notably, the Act also makes consequential amendments to other legislation such as the Defence Home Ownership Assistance Scheme Act 2008. The commencement of the provisions varies, with most sections and amendments commencing on 1 July 2009, while some provisions have specific start dates or conditions for commencement as detailed in the Act. Additionally, the Act includes transitional provisions to ensure continuity in certain operations and investments. Certain exclusions and savings are provided to maintain the applicability of previous provisions in specific transitional circumstances. Subordinate instruments may further extend or restrict the application of the Act’s provisions.
Key Provisions
- The Financial Framework Legislation Amendment Act 2008 (C2008A00090) makes several amendments to existing legislation, primarily focusing on the Financial Management and Accountability Act 1997. Section 6 of the Act introduces new provisions for notional payments and receipts by agencies, ensuring that the Act applies to notional payments as if they were real payments, including the requirement for a drawing right. Section 12 is amended to clarify the receipt and spending of public money by outsiders, including penalties for unauthorised payments by outsiders. Section 44A mandates that Chief Executives provide regular reports to the responsible Minister and the Finance Minister on the operations and financial affairs of their agencies, respectively.
- The Act imposes obligations on various parties, including Chief Executives who must now establish and maintain audit committees (section 46), ensure compliance with financial management laws (section 44(2)), and report on the operations and financial affairs of their agencies (section 44A). Furthermore, Chief Executives are required to prepare financial statements if their agency ceases to exist or if its functions are transferred to another agency (section 51).
- The Act also sets out penalties and consequences for breaches. For instance, an outsider who makes an unauthorised payment of public money can be imprisoned for up to two years (section 12(2)). Similarly, any person contravening the provisions regarding the receipt and spending of public money can incur penalties as specified in the relevant sections. The penalties generally replace the term "maximum penalty" with "penalty," thereby allowing courts to impose appropriate penalties within the legal limits.
- In summary, the Financial Framework Legislation Amendment Act 2008 modifies financial management practices by clarifying the treatment of notional payments, imposing stricter reporting requirements on Chief Executives, and enhancing penalties for unauthorised transactions involving public money. The changes aim to improve financial accountability and oversight within the Commonwealth.
- Area of Law
- Administrative Law
- Finance & Banking Law
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Repeal & Amendment
- Penalty
- Reporting & Disclosure Obligations
- Regulatory Standards