Financial Management Legislation Amendment Act 2025 (Vic)

Financial Management Legislation Amendment Act 2025

No. 30 of 2025

TABLE OF PROVISIONS

Section  Page

Part 1—Preliminary

1Purposes

2Commencement

Part 2—Amendment of Financial Management Act 1994

3Definitions

4Directions

5New section 8B inserted

6How money is to be issued

7Principles of sound financial management

8Financial policy objectives and strategies statement

9Budget update

9AMid-year report

10Quarterly financial report

11Transmission of documents to Parliament

12New section 40AAB inserted

13New sections 41 and 41A inserted

14Accountable officer

15Section 43 amended

16New sections 43A to 43E inserted

17Section 44A substituted and new sections 44AB to 44AD inserted

18New section 44C inserted

18ATabling requirements

19New section 52A inserted

19AAnnual reports of State-owned corporations and other bodies

20Consequential amendments

21Regulations

22Schedule 1 and heading to Schedules repealed

Part 3—Amendment of Constitution Act 1975

23Section 93 repealed

24Special appropriations for expenses of Executive Council, Legislative Council and Legislative Assembly

Part 4—Amendment of Local Government Act 1989

25Definitions

Part 5—Repeal of this Act

26Repeal of this Act

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Endnotes

1     General information

Financial Management Legislation Amendment Act 2025

No. 30 of 2025

[Assented to 19 August 2025]

The Parliament of Victoria enacts:

PART 1—PRELIMINARY

1Purposes

The main purposes of this Act are—

(a)to amend the Financial Management Act 1994—

(i)to improve the operation of that Act; and

(ii)to remove requirements relating to warrants to issue public money; and

(b)to amend the Constitution Act 1975 to remove the requirement for warrants to issue public money; and

(c)to amend the Local Government Act 1989 to make a consequential amendment to that Act.

2Commencement

This Act comes into operation on the day after the day on which it receives the Royal Assent.

PART 2—AMENDMENT OF FINANCIAL MANAGEMENT ACT 1994

3Definitions

(1)In section 3 of the Financial Management Act 1994 insert the following definitions—

"Department Head means—

(a)in relation to a department within the meaning of the Public Administration Act 2004, a person employed as the Department Head of that department under section 12 of that Act; and

(b)in relation to a prescribed office, the prescribed officer for the prescribed office;

prescribed office has the same meaning as in section 4(1) of the Public Administration Act 2004;

prescribed officer has the same meaning as in section 4(1) of the Public Administration Act 2004;".

(2)In section 3 of the Financial Management Act 1994, in the definition of Board, after "Board" insert ", in Part 7A,".

(3)In section 3 of the Financial Management Act 1994, in the definition of chief finance and accounting officer omit "and accounting".

(4)In section 3 of the Financial Management Act 1994, in the definition of department, for paragraph (b) substitute—

"(b)a prescribed office;".

4Directions

(1)In section 8(1) of the Financial Management Act 1994 omit "and accounting".

(2)After section 8(5) of the Financial Management Act 1994 insert—

"(6)A person or body given a direction under subsection (1) must comply with the direction.".

5New section 8B inserted

After section 8A of the Financial Management Act 1994 insert—

"8B   Establishment or abolition of certain entities

(1)A Minister (other than the Minister administering this section) who intends to establish a body, office or trust body must consult the Minister administering this section before the body, office or trust body is established.

(2)A Minister (other than the Minister administering this section) who intends to abolish a body, office or trust body must consult the Minister administering this section before the body, office or trust body is abolished.

(3)Notice of the establishment or abolition of a body, office or trust body by a Minister must be published in the Government Gazette by that Minister.".

6How money is to be issued

Section 17 of the Financial Management Act 1994 is repealed.

7Principles of sound financial management

After section 23D(1)(b) of the Financial Management Act 1994 insert—

"(ba)set an expectation that each department and public body should operate within its budget;".

8Financial policy objectives and strategies statement

After section 23E(3) of the Financial Management Act 1994 insert—

"(4)Despite subsections (1) and (3), the Minister is not required to prepare a financial policy objectives and strategies statement referred to in subsection (3) for a financial year if a pre-election budget update prepared in accordance with Division 6 is released on or after 15 September and before 15 December in that financial year.".

9Budget update

After section 23L(2) of the Financial Management Act 1994 insert—

"(3)Despite subsection (1), the Minister is not required to prepare a budget update for a financial year if a pre-election budget update prepared in accordance with Division 6 is released on or after 15 September and before 15 December in that financial year.".

9AMid-year report

After section 25(2)(b) of the Financial Management Act 1994 insert—

"(ba)must include details of payments made during the period of 6 months ending on 31 December in the financial year out of money advanced to the Treasurer in an annual appropriation Act for that year to meet urgent claims;".

10Quarterly financial report

After section 26(4) of the Financial Management Act 1994 insert—

"(5)Despite subsection (1), the Minister is not required to prepare a quarterly financial report for the quarter ending on 30 September in a financial year if a pre‑election budget update is released on or after 15 September and before 15 December in that financial year.".

11Transmission of documents to Parliament

In Column 2 of the Table to section 27D(3) of the Financial Management Act 1994, for "15 November" substitute "15 December".

12New section 40AAB inserted

After section 40AA of the Financial Management Act 1994 insert—

40AABMinister may determine certain provisions of this Part apply to public body"

The Minister, by notice published in the Government Gazette, may determine that any one or more of the following sections applies to a public body as if the public body were a department—

(a)section 28;

(b)section 29;

(c)section 30.".

13New sections 41 and 41A inserted

Before section 42 of the Financial Management Act 1994 insert—

"41   Definitions

In this Part—

board, in relation to a public body or prescribed office that has a governing body (by whatever name called), means that governing body;

declared body means a prescribed office or public body specified in an Order made under section 41A;

overarching obligation—

(a)of the accountable officer of a department or public body (other than a declared body), means the obligation set out in section 43B(1); or

(b)of the accountable officer of a declared body, means the obligation set out in section 43E(1);

relevant department chief finance officer, for a prescribed office or public body, means the chief finance officer of the department which has responsibility to the relevant Minister for that prescribed office or public body.

41ADeclared body

The Governor in Council, by Order published in the Government Gazette, may declare a prescribed office or a public body to be a declared body for the purposes of this Part.".

14Accountable officer

In section 42(2)(a) of the Financial Management Act 1994, for "department head" substitute "Department Head".

15Section 43 amended

(1)Insert the following heading to section 43 of the Financial Management Act 1994—

"Chief finance officer".

(2)In section 43(1) of the Financial Management Act 1994—

(a)in paragraph (a), for "chief finance and accounting officer;" substitute "chief finance officer.";

(b)paragraphs (b) and (c) are repealed.

(3)In section 43(2) of the Financial Management Act 1994, for "chief finance and accounting officer" substitute "chief finance officer".

16New sections 43A to 43E inserted

After section 43 of the Financial Management Act 1994 insert—

"43A Financial management responsibilities—board of prescribed office or public body

(1)The board (if any) of a prescribed office or a public body must ensure that the accountable officer of the prescribed office or public body fulfils the accountable officer's overarching obligation.

(2)The board is responsible to the relevant Minister for the public body or prescribed office in fulfilling the board's obligation under subsection (1).

(3)The board must report on the board's obligation under subsection (1) to—

(a)the Department Head of the Department of Treasury and Finance; and

(b)in the case of a public body, the Department Head of the department which has responsibility to the relevant Minister for that public body.

(4)This section does not apply to the board of a declared body.

43BFinancial management responsibilities—accountable officer of department or public body

(1)The accountable officer of a department or public body must manage the following in a financially effective, economical, efficient and sustainable manner—

(a)the operations of the department or public body;

(b)the public resources for which the department or public body is responsible.

(2)Without limiting subsection (1), the accountable officer of a department or public body must—

(a)establish and maintain effective controls and reporting mechanisms for matters relating to the financial management of the department or public body; and

(b)ensure that the person who holds the position of chief finance officer of the department or public body can meet the responsibilities of that position under this Act or any other Act.

(3)In fulfilling the accountable officer's overarching obligation, the accountable officer of a department or public body is responsible to—

(a)the relevant Minister for the department or public body; and

(b)in the case of a public body, the board (if any) of the public body.

(4)The accountable officer must report on the accountable officer's overarching obligation to—

(a)the Department Head of the Department of Treasury and Finance; and

(b)in the case of a public body, the Department Head of the department which has responsibility to the relevant Minister for that public body.

(5)This section does not apply to the accountable officer of a declared body.

43CFinancial management responsibilities—chief finance officer

(1)In assisting the accountable officer in fulfilling the accountable officer's overarching obligation, the chief finance officer of a department or public body is responsible to—

(a)the accountable officer; and

(b)the relevant Minister for the department or public body.

(2)In assisting the accountable officer in reporting on their overarching obligation, the chief finance officer of a department or public body is responsible to—

(a)the Department Head of the Department of Treasury and Finance; and

(b)in the case of a public body, the Department Head of the department which has responsibility to the relevant Minister for that public body.

(3)This section does not apply to the chief finance officer of a declared body.

43DFinancial management responsibilities—board of declared body

The board (if any) of a declared body must ensure that the accountable officer of the declared body fulfils the accountable officer's overarching obligation.

43EFinancial management responsibilities—accountable officer of declared body

(1)The accountable officer of a declared body must manage the following in a financially effective, economical, efficient and sustainable manner—

(a)the operations of the declared body;

(b)the public resources for which the declared body is responsible.

(2)In fulfilling the accountable officer's overarching obligation, the accountable officer is responsible to the board (if any).

(3)The accountable officer must report to the board (if any) of the declared body on the accountable officer's overarching obligation.".

17Section 44A substituted and new sections 44AB to 44AD inserted

For section 44A of the Financial Management Act 1994 substitute—

44AAccountable officer must provide financial information"

(1)The accountable officer of a department or public body must provide financial information to a person or body specified in subsection (2) as soon as practicable after—

(a)receiving a request for the information; or

(b)determining that the person or body should be made aware of the information.

(2)For the purposes of subsection (1), the following are specified—

(a)the relevant Minister for the department or public body;

(b)the Department Head of the Department of Treasury and Finance;

(c)in the case of a public body, the Department Head of the department which has responsibility to the relevant Minister for that public body;

(d)in the case of a public body or prescribed office, the board (if any) of the public body or prescribed office.

(3)This section does not apply to the accountable officer of a declared body.

44ABAccountable officer of declared body must provide financial information

(1)The accountable officer of a declared body must provide financial information to a person or body specified in subsection (2) as soon as practicable after—

(a)receiving a request for the information; or

(b)determining that the person or body should be made aware of the information.

(2)For the purposes of subsection (1), the following are specified—

(a)the Department Head of the Department of Treasury and Finance;

(b)the board (if any) of the declared body.

44ACChief finance officer must provide information on material risks

(1)The chief finance officer of a department or public body must provide the information specified in subsection (2) to a person specified in subsection (3) as soon as practicable after—

(a)receiving a request for the information; or

(b)determining that the person should be made aware of the information.

(2)For the purposes of subsection (1), the following information is specified—

(a)details of the risks relating to the department or public body that may have a material impact on the financial position or performance of the State;

(b)any other financial information.

(3)For the purposes of subsection (1), the following persons are specified—

(a)in the case of a prescribed office or public body, the relevant department chief finance officer;

(b)the Department Head of the Department of Treasury and Finance.

(4)As soon as practicable after receiving information under subsection (1)(a), the relevant department chief finance officer must provide that information to the Department Head of the Department of Treasury and Finance.

(5)This section does not apply to the chief finance officer of a declared body.

44ADChief finance officer of declared body must provide information on material risks

(1)The chief finance officer of a declared body must provide the information specified in subsection (2) to the Department Head of the Department of Treasury and Finance as soon as practicable after—

(a)receiving a request for the information; or

(b)determining that the Department Head should be made aware of the information.

(2)For the purposes of subsection (1), the following information is specified—

(a)details of the risks relating to the declared body that may have a material impact on the financial position or performance of the State;

(b)any other financial information.".

18New section 44C inserted

After section 44B of the Financial Management Act 1994 insert—

44CDepartment or public body to report if likely to exceed budget"

(1)A department or public body must give written notification to the Department Head of the Department of Treasury and Finance if the department or public body is likely to exceed its budget.

(2)Notification under subsection (1) must be accompanied by a plan, in the form determined by the Department Head of the Department of Treasury and Finance, of how the department or public body intends to manage the risk that it exceeds its budget and other identified issues and risks.

(3)The Department Head of the Department of Treasury and Finance may require the department or public body to give the Department Head of the Department of Treasury and Finance any further information regarding the risk that the department or public body is likely to exceed its budget or any matter contained in the plan.

(4)This section does not apply to a declared body.".

18ATabling requirements

(1)For section 46(1) of the Financial Management Act 1994 substitute—

"(1)Subject to subsections (2) and (3), the relevant Minister of a department or public body must cause the report of operations and audited financial statements of the department or public body for a financial year to be transmitted to each House of the Parliament on or after the next following 15 October and before the earlier of—

(a)the end of the next following fourth month of the financial year; or

(b)either—

(i)the expiration of the fourth sitting day of that House after the report is received by the relevant Minister; or

(ii)if the first sitting day of a House of the Parliament after the report is received by the relevant Minister is more than 14 days after the date of receipt of the report, the expiration of the fourteenth day after the report is received by the relevant Minister.

(1A)On transmitting a report under subsection (1), the relevant Minister must report to each House of Parliament the date of receipt by the relevant Minister of the report.

(1B)The relevant Minister must not direct a department or public body to submit its report of operations and audited financial statements to the relevant Minister on a particular date.".

(2)In section 46(2)(b) of the Principal Act, for "laid before each House of the Parliament within 14 sitting days of that House after the request." substitute "transmitted to each House of the Parliament on or before—

(i)the expiration of the fourth sitting day of that House after the request; or

(ii)if the first sitting day of a House of the Parliament after the request is more than 14 days after the request, the expiration of the fourteenth day after that request.".

(3)After section 46(3) of the Principal Act insert—

"(3A)The clerk of each House of the Parliament must cause a report transmitted under subsection (1) or (2) to be laid before the House on the day on which it is received or on the next sitting day of the House.

(3B)If the relevant Minister proposes to transmit a report to the Parliament on a day on which neither House of the Parliament is sitting, the relevant Minister must—

(a)give at least one business day's notice of the relevant Minister's intention to do so to the clerk of each House of the Parliament; and

(b)give the report to the clerk of each House on the day indicated in the notice.

(3C)The clerk of each House must—

(a)notify each member of the House of the receipt of a notice under subsection (3B)(a) on the same day that the clerk receives that notice; and

(b)give a copy of the report to each member of the House as soon as practicable after the report is received under subsection (3B)(b); and

(c)cause the report to be laid before the House on the next sitting day of the House.

(3D)A copy of a report that is given to the clerks under subsection (3B)(b) is taken to have been published by order, or under the authority, of the Houses of Parliament.

(3E)The publication of a document by the relevant Minister under subsection (3B)(b) is absolutely privileged and the provisions of sections 73 and 74 of the Constitution Act 1975 and any other enactment or rule of law relating to the publication of the proceedings of the Parliament apply to and in relation to the publication of the document as if it were a document to which those sections applied and had been published by the Government Printer under the authority of the Parliament.".

(4)Insert the following note at the foot of section 46—

"Note

Section 4 of the Members of Parliament (Standards) Act 1978 sets out values that a Minister should demonstrate in the carrying out of the Minister's public duties.  These values include accountability.".

19New section 52A inserted

After section 52 of the Financial Management Act 1994 insert—

52AMinister may dispense with financial statements"

If, under section 10(2) of the Audit Act 1994, the Auditor-General dispenses with all of an audit of a public body's financial statements for a year, the Minister may, by written notice given to the accountable officer of the public body, dispense with any requirement for those financial statements to be prepared and submitted to the Auditor-General.".

19AAnnual reports of State-owned corporations and other bodies

(1)After section 53A(4) of the Financial Management Act 1994 insert—

"(4A)The relevant Minister must not direct the body to submit its annual report to the relevant Minister on a particular date.".

(2)For section 53A(5) of the Principal Act substitute—

"(5)Subject to subsections (6) and (7), the relevant Minister must cause the annual report to be transmitted to each House of the Parliament on or after the next following 15 October and before the earlier of—

(a)the next following 31 October; or

(b)either—

(i)the expiration of the fourth sitting day of that House after the annual report is received by the relevant Minister; or

(ii)if the first sitting day of a House of the Parliament after the annual report is received by the relevant Minister is more than 14 days after the date of receipt of the annual report, the expiration of the fourteenth day after the annual report is received by the relevant Minister.

(5A)On transmitting a report under subsection (5), the relevant Minister must report to each House of Parliament the date of receipt by the relevant Minister of the report.".

(3)In section 53A(6)(b) of the Principal Act, for "laid before each House of the Parliament within 14 sitting days of that House after the request." substitute "transmitted to each House of the Parliament before—

(i)the expiration of the fourth sitting day of that House after that request; or

(ii)if the first sitting day of a House of the Parliament after that request is more than 14 days after the date of the request, the expiration of the fourteenth day after that request.".

(4)After section 53A(6) of the Principal Act insert—

"(6A)The clerk of each House of the Parliament must cause a report transmitted under subsection (5) or (6) to be laid before the House on the day on which it is received or on the next sitting day of the House.

(6B)If the relevant Minister proposes to transmit a report to the Parliament on a day on which neither House of the Parliament is sitting, the relevant Minister must—

(a)give at least one business day's notice of the relevant Minister's intention to do so to the clerk of each House of the Parliament; and

(b)give the report to the clerk of each House on the day indicated in the notice.

(6C)The clerk of each House must—

(a)notify each member of the House of the receipt of a notice under subsection (6B)(a) on the same day that the clerk receives that notice; and

(b)give a copy of the report to each member of the House as soon as practicable after the report is received under subsection (6B)(b); and

(c)cause the report to be laid before the House on the next sitting day of the House.

(6D)A copy of a report that is given to the clerks under subsection (6B)(b) is taken to have been published by order, or under the authority, of the Houses of Parliament.

(6E)The publication of a document by the relevant Minister under subsection (6B)(b) is absolutely privileged and the provisions of sections 73 and 74 of the Constitution Act 1975 and any other enactment or rule of law relating to the publication of the proceedings of the Parliament apply to and in relation to the publication of the document as if it were a document to which those sections applied and had been published by the Government Printer under the authority of the Parliament.".

(7)Insert the following note at the foot of section 53A—

"Note

Section 4 of the Members of Parliament (Standards) Act 1978 sets out values that a Minister should demonstrate in the carrying out of the Minister's public duties.  These values include accountability.".

20Consequential amendments

In sections 55 and 57(3) and (5) of the Financial Management Act 1994 omit "and accounting" (wherever occurring).

21Regulations

After section 59(1)(b) of the Financial Management Act 1994 insert—

"(ba)matters relating to financial planning for authorities and public bodies;

(bb)policies, systems and procedures for managing the financial performance of authorities and public bodies;

(bc)policies, systems and procedures for the management of public resources by authorities and public bodies;

(bd)policies, systems and procedures for implementing a response to an audit conducted under the Audit Act 1994;

(be)policies, systems and procedures for recording and reporting on the application of appropriations;

(bf)subject to consultation with the Minister responsible for the administration of Part 4 of the Project Development and Construction Management Act 1994, policies, systems and procedures for the procurement of any public construction by or on behalf of the State or by or on behalf of departments or public bodies;".

22Schedule 1 and heading to Schedules repealed

(1)The heading to the Schedules to the Financial Management Act 1994 is repealed.

(2)Schedule 1 to the Financial Management Act 1994 is repealed.

PART 3—AMENDMENT OF CONSTITUTION ACT 1975

23Section 93 repealed

Section 93 of the Constitution Act 1975 is repealed.

24Special appropriations for expenses of Executive Council, Legislative Council and Legislative Assembly

In section 94(2) of the Constitution Act 1975 omit "in discharge of such warrants as shall from time to time be directed to him by the Governor".

PART 4—AMENDMENT OF LOCAL GOVERNMENT ACT 1989

25Definitions

In section 3(1) of the Local Government Act 1989, in the definition of CPI, after "1994" insert "or the pre-election budget update prepared under Division 6 of Part 5 of that Act".

PART 5—REPEAL OF THIS ACT

26Repeal of this Act

This Act is repealed on the first anniversary of its commencement.

Note

The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).

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ENDNOTES

1   General information

See for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information.

Minister's second reading speech—

Legislative Assembly: 27 May 2025

Legislative Council: 19 June 2025

The long title for the Bill for this Act was "A Bill for an Act to amend the Financial Management Act 1994, the Constitution Act 1975 and the Local Government Act 1989 and for other purposes."