Financial Management Legislation Amendment Act 1999
No. 20, 1999
Financial Management Legislation Amendment Act 1999
No. 20, 1999
An Act to amend legislation relating to Commonwealth financial management, and for related purposes
Contents
Part 1—Preliminary
1 Short title...................................
2 Commencement...............................
3 Definitions..................................
Part 2—Amendments
4 Schedule(s)..................................
Part 3—Transitional and miscellaneous
5 Conversion of RMF components and CAF components........
6 Transitional provisions for the Loan Fund................
7 Instruments referring to payments into the Consolidated Revenue Fund
8 Quarterly statements sufficient during transitional period.......
9 Regulations..................................
Schedule 1—Amendments and repeals
Financial Management and Accountability Act 1997
Loan Consolidation and Investment Reserve Act 1955
Financial Management Legislation Amendment Act 1999
No. 20, 1999
An Act to amend legislation relating to Commonwealth financial management, and for related purposes
The Parliament of Australia enacts:
Part 1—Preliminary
1 Short title
This Act may be cited as the Financial Management Legislation Amendment Act 1999.
2 Commencement
(1) If this Act receives the Royal Assent before 1 May 1999, then this Act commences on 1 July 1999.
(2) Subject to subsection (3), if this Act receives the Royal Assent on or after 1 May 1999 then it commences on a day to be fixed by Proclamation. The day must be the first day of a quarter.
(3) If this Act receives the Royal Assent on or after 1 May 1999 but does not commence under subsection (2) within the period of 6 months beginning on the day on which it receives the Royal Assent, then it commences on the first day of the third quarter after the quarter in which it receives the Royal Assent.
3 Definitions
In this Act, unless the contrary intention appears:
commencing time means the time when this Act commenced.
instrument includes an Act and any instrument made under an Act.
new account means an account established by section 5.
old component means:
(a) a component of the Reserved Money Fund; or
(b) a component of the Commercial Activities Fund.
quarter means any of the following periods:
(a) the period starting on 1 January and ending on 31 March;
(b) the period starting on 1 April and ending on 30 June;
(c) the period starting on 1 July and ending on 30 September;
(d) the period starting on 1 October and ending on 31 December.
Part 2—Amendments
4 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.
Part 3—Transitional and miscellaneous
5 Conversion of RMF components and CAF components
(1) This section applies to each old component that:
(a) was in existence immediately before the commencing time; or
(b) is established by a provision of an Act that comes into operation after the commencing time.
However, this section does not apply to the Loan Consolidation and Investment Reserve.
Note: Schedule 1…
Overview
The Financial Management Legislation Amendment Act 1999 No. 20 was enacted by the Parliament of Australia to amend existing legislation concerning Commonwealth financial management, ensuring clarity and efficiency in financial operations and accountability. This Act sought to address gaps and inconsistencies in the Financial Management and Accountability Act 1997 and other related legislation, primarily by refining the structure and terminology around financial management. It included the conversion of existing components of the Reserved Money Fund and the Commercial Activities Fund into Special Accounts, and streamlined the references to the Consolidated Revenue Fund, thereby enhancing the clarity and effectiveness of financial transactions and reporting. The policy objective of this Act was to provide a more robust framework for managing Commonwealth finances, ensuring that financial activities are conducted with greater transparency and accountability.
Scope and Application
The Financial Management Legislation Amendment Act 1999 No. 20 is an Act of the Commonwealth of Australia designed to amend existing legislation relating to Commonwealth financial management. It applies to various components of the financial framework of the Commonwealth, including the Reserved Money Fund and the Commercial Activities Fund, by converting them into Special Accounts as defined under the Financial Management and Accountability Act 1997. This Act also specifies that the Loan Consolidation and Investment Reserve Act 1955 is repealed. The Act's jurisdiction extends across the Commonwealth, and it applies to any instruments and entities involved in financial transactions with the Commonwealth. The Act includes specific transitional provisions to ensure a smooth conversion of existing components into new accounts, with references to old components being interpreted as references to the new accounts for transactions occurring after the Act's commencement. Additionally, any references to the Loan Fund in instruments are interpreted as references to the Consolidated Revenue Fund post-commencement. The Act also provides for the publication of financial statements by the Finance Minister on a monthly basis, aligning with the budget estimates for the financial year, and allows for the delegation of certain powers and functions by the Treasurer. The Act commenced on 1 July 1999, or on a day fixed by Proclamation if assented to after 1 May 1999, and if not commenced within six months, it commenced on the first day of the third quarter after the quarter in which it received the Royal Assent.
Key Provisions
- The Financial Management Legislation Amendment Act 1999 (the "Act") brings about significant changes to the financial management framework of the Commonwealth of Australia, primarily through the amendment of the Financial Management and Accountability Act 1997 (FMAA Act) and the repeal of the Loan Consolidation and Investment Reserve Act 1955. The Act is structured in three main parts: Preliminary, Amendments, and Transitional and miscellaneous provisions.
- First, the operative sections of the Act primarily address the conversion of existing financial components into new accounts, the transitional treatment of funds during the implementation phase, and adjustments to the financial reporting requirements. Section 5 of the Act establishes new accounts for old components of the Reserved Money Fund and the Commercial Activities Fund, replacing them with Special Accounts under the FMAA Act. This conversion occurs at the time the Act commences or when the component is established, if later (section 5(2)). Section 6 ensures that references to the Loan Fund in legal instruments are interpreted as references to the Consolidated Revenue Fund post-commencement, effectively integrating the Loan Fund into the general revenue system (section 6(1)). Additionally, section 7 modifies references to payments into the Consolidated Revenue Fund to mean payments to the Commonwealth, unless the amount is already public money.
- Second, the Act imposes specific obligations on various parties. For example, the Finance Minister is mandated to maintain proper accounts and records relating to the receipt and expenditure of public money (section 19). The Act also requires the Finance Minister to establish, revoke, vary, or abolish Special Accounts, with these accounts being appropriated for expenditure up to their current balance (section 20). Furthermore, the Act outlines the procedures for the disallowance of certain determinations made by the Finance Minister, allowing either House of Parliament to disallow a determination within five sitting days of it being tabled (section 22).
- Third, the Act delineates consequences for non-compliance. While the Act does not explicitly state criminal or civil penalties for breaches of its provisions, the nature of the amendments suggests that violations could lead to legal challenges or administrative actions under the existing legal framework. For example, failure to maintain proper accounts and records could potentially result in legal repercussions under the broader financial management laws of Australia.
- In summary, the Financial Management Legislation Amendment Act 1999 introduces critical structural changes to the financial management system of the Commonwealth, reorganizing existing funds into Special Accounts, adjusting legal references to funds, and imposing specific duties on the Finance Minister regarding financial records and account management. While the Act does not explicitly outline penalties for breaches, adherence to its provisions is crucial for maintaining the integrity and transparency of the Commonwealth's financial operations.
- Area of Law
- Financial Management & Accountability
- Instrument
- Act
- Concepts
- Commencement Provisions
- Definitions & Interpretation
- Regulatory Standards
- Transitional Provisions
- Appropriations
- Investment of Public Money
