EXPLANATORY STATEMENT
Issued by the Authority of the Treasurer and the Minister for Finance and Deregulation
Nation-building Funds Act 2008
Building Australia Fund (Subsequent Credit) Determination 2010
Subsection 15(1) of the Nation-building Funds Act 2008 (the Act) provides that the Treasurer and the Minister for Finance and Deregulation, as the responsible Ministers, may, by writing, determine that a specified amount is to be credited to the Building Australia Fund Special Account (BAF Account) on a specified day or in specified instalments on specified days.
The purpose of this Building Australia Fund (Subsequent Credit) Determination 2010 is to specify, in accordance with paragraph 15(1)(a) of the Act, that $80,140,000.00 is to be credited to the BAF Account on 17 May 2010.
This amount relates to the unspent monies of the Commonwealth Government’s contribution towards pre‑construction works for the West Metro project which the New South Wales Government announced would not be proceeding. The Commonwealth Government provided a contribution of $91,000,000.00, originally sourced from the BAF Account, to the New South Wales Government for the pre‑construction works of the project in June 2009. The New South Wales Government returned the unspent monies to the Commonwealth in April 2010. This Determination will enable the unspent monies to be returned to the BAF Account. Following the completion of an audit by the New South Wales Auditor-General, further monies may be returned.
The Determination is deemed to be a legislative instrument for the purpose of the Legislative Instruments Act 2003. However, the Determination, as a ministerial direction, is not disallowable.
The Determination commences on the day it is registered on the Federal Register of Legislative Instruments.
Overview
The Nation-building Funds Act 2008 was enacted to establish and manage the Building Australia Fund, aiming to support infrastructure projects across Australia. This Act allows the Treasurer and the Minister for Finance and Deregulation to credit funds to the Building Australia Fund Special Account as necessary. The Building Australia Fund (Subsequent Credit) Determination 2010, issued under the authority of these ministers, addresses a specific issue related to the unspent funds from a cancelled infrastructure project. In this case, $91 million was initially allocated for pre-construction works on the West Metro project in New South Wales, but when the project was abandoned, the unspent $80 million was returned to the Commonwealth. The Determination mandates that this amount be re-credited to the Building Australia Fund Special Account on 17 May 2010, ensuring the funds are appropriately managed and available for future infrastructure initiatives.
Scope and Application
The Building Australia Fund (Subsequent Credit) Determination 2010 is an instrument under the Nation-building Funds Act 2008, which grants the Treasurer and the Minister for Finance and Deregulation the authority to credit specified amounts to the Building Australia Fund Special Account. This particular Determination specifies the crediting of $80,140,000.00 to the BAF Account on 17 May 2010, relating to unspent funds from a Commonwealth Government contribution towards pre-construction works for the West Metro project in New South Wales. The Act applies to the Treasurer and the Minister for Finance and Deregulation, and the Determination operates nationally, as it involves the management of funds within the Commonwealth's Building Australia Fund. The Determination is not subject to disallowance and comes into effect upon registration on the Federal Register of Legislative Instruments. The Act allows for further credits based on audit outcomes, thereby extending its application through subsequent determinations.
Key Provisions
The main operative sections of the Building Australia Fund (Subsequent Credit) Determination 2010 (F2010L01254) are found within the context of the Nation-building Funds Act 2008. Under section 15(1) of the Act, the Treasurer and the Minister for Finance and Deregulation are authorised to determine that a specified amount is to be credited to the Building Australia Fund Special Account (BAF Account) on a specified day or in instalments. In this case, the Determination specifies that $80,140,000.00 is to be credited to the BAF Account on 17 May 2010. This amount represents the unspent portion of the Commonwealth Government's contribution to the West Metro project pre-construction works, which the New South Wales Government decided would not proceed.
The Act imposes certain obligations on the responsible Ministers, namely the Treasurer and the Minister for Finance and Deregulation. These obligations include ensuring that the determination aligns with the provisions of the Nation-building Funds Act 2008 and that the specified amount is accurately credited to the BAF Account on the designated date. The Determination provides a clear directive that $80,140,000.00, previously contributed by the Commonwealth Government to the New South Wales Government for the West Metro project, should be returned to the BAF Account following the project's cancellation. Furthermore, the Determination specifies that this action is taken to realign unspent funds with the Building Australia Fund, ensuring the proper management and allocation of these funds.
The Building Australia Fund (Subsequent Credit) Determination 2010 does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches. However, any failure to comply with the Act or the Determination could potentially lead to administrative or legal consequences under the broader legislative framework. Given that the Determination is a ministerial direction and not a disallowable instrument under the Legislative Instruments Act 2003, non-compliance with the terms of the Determination could result in administrative scrutiny or legal action by the relevant authorities to enforce compliance and ensure the proper management of funds within the Building Australia Fund.